[Congressional Record Volume 150, Number 127 (Friday, October 8, 2004)]
[House]
[Pages H9187-H9627]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

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House of Representatives

   CONFERENCE REPORT ON H.R. 4200, RONALD W. REAGAN NATIONAL DEFENSE 
                 AUTHORIZATION ACT FOR FISCAL YEAR 2005

  Mr. HUNTER submitted the following conference report and statement on 
the bill (H.R. 4200) to authorize appropriations for fiscal year 2005 
for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe personnel strengths for such fiscal year for the Armed 
Forces, and for other purposes:

                  Conference Report (H. Rept. 108-767)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     4200) to authorize appropriations for fiscal year 2005 for 
     military activities of the Department of Defense, for 
     military construction, and for defense activities of the 
     Department of Energy, to prescribe personnel strengths for 
     such fiscal year for the Armed Forces, and for other 
     purposes, having met, after full and free conference, have 
     agreed to recommend and do recommend to their respective 
     Houses as follows:
       That the House recede from its disagreement to the 
     amendment of the Senate and agree to the same with an 
     amendment as follows:
       In lieu of the matter proposed to be inserted the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Ronald W. Reagan National 
     Defense Authorization Act for Fiscal Year 2005''.

     SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF 
                   CONTENTS.

       (a) Divisions.--This Act is organized into three divisions 
     as follows:
       (1) Division A--Department of Defense Authorizations.
       (2) Division B--Military Construction Authorizations.
       (3) Division C--Department of Energy National Security 
     Authorizations and Other Authorizations.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title.
Sec. 2. Organization of Act into divisions; table of contents.
Sec. 3. Congressional defense committees defined.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.

                       Subtitle B--Army Programs

Sec. 111.  Multiyear procurement authority for the light weight 155-
              millimeter howitzer program.
Sec. 112.  Light utility helicopter program.

                       Subtitle C--Navy Programs

Sec. 121.  DDG-51 modernization program.
Sec. 122.  Repeal of authority for pilot program for flexible funding 
              of cruiser conversions and overhauls.
Sec. 123.  LHA(R) amphibious assault ship program.

                     Subtitle D--Air Force Programs

Sec. 131.  Prohibition of retirement of KC-135E aircraft.
Sec. 132.  Prohibition of retirement of F-117 aircraft.
Sec. 133.  Aerial refueling aircraft acquisition program.

                       Subtitle E--Other Matters

Sec. 141.  Development of deployable systems to include consideration 
              of force protection in asymmetric threat environments.
Sec. 142.  Allocation of equipment authorized by this title to units 
              deployed, or to be deployed, to Operation Iraqi Freedom 
              or Operation Enduring Freedom.
Sec. 143.  Report on options for acquisition of precision-guided 
              munitions.

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

              Subtitle A--Authorization of Appropriations

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Future Combat Systems program strategy.
Sec. 212. Collaborative program for research and development of vacuum 
              electronics technologies.
Sec. 213. Annual Comptroller General report on Joint Strike Fighter 
              program.
Sec. 214. Amounts for United States Joint Forces Command to be derived 
              only from Defense-wide amounts.
Sec. 215. Global Positioning System III satellite.
Sec. 216. Initiation of concept demonstration of Global Hawk high 
              altitude endurance unmanned aerial vehicle.
Sec. 217. Joint Unmanned Combat Air Systems program.

                  Subtitle C--Missile Defense Programs

Sec. 231.  Fielding of ballistic missile defense capabilities.
Sec. 232.  Integration of Patriot Advanced Capability-3 and Medium 
              Extended Air Defense System into ballistic missile 
              defense system.
Sec. 233.  Comptroller General assessments of ballistic missile defense 
              programs.
Sec. 234.  Baselines and operational test and evaluation for ballistic 
              missile defense system.

                       Subtitle D--Other Matters

Sec. 241. Annual report on submarine technology insertion.
Sec. 242. Sense of Congress regarding funding of the Advanced 
              Shipbuilding Enterprise under the National Shipbuilding 
              Research Program of the Navy.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Other Department of Defense programs.

                  Subtitle B--Environmental Provisions

Sec. 311. Satisfaction of Superfund audit requirements by Inspector 
              General of the Department of Defense.
Sec. 312. Reimbursement of Environmental Protection Agency for certain 
              costs in connection with Moses Lake Wellfield Superfund 
              Site, Moses Lake, Washington.
Sec. 313. Increase in authorized amount of environmental remediation, 
              Front Royal, Virginia.
Sec. 314. Small boat harbor, Unalaska, Alaska.
Sec. 315. Report regarding encroachment issues affecting Utah Test and 
              Training Range, Utah.

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Sec. 316. Comptroller General study and report on alternative 
              technologies to decontaminate groundwater at Department 
              of Defense installations.
Sec. 317. Comptroller General study and report on drinking water 
              contamination and related health effects at Camp Lejeune, 
              North Carolina.
Sec. 318. Sense of Congress regarding perchlorate contamination of 
              ground and surface water from Department of Defense 
              activities.

                 Subtitle C--Workplace and Depot Issues

Sec. 321. Simplification of annual reporting requirements concerning 
              funds expended for depot maintenance and repair 
              workloads.
Sec. 322. Repeal of annual reporting requirement concerning management 
              of depot employees.
Sec. 323. Extension of special treatment for certain expenditures 
              incurred in operation of Centers of Industrial and 
              Technical Excellence.
Sec. 324. Temporary authority for contractor performance of security-
              guard functions.
Sec. 325. Pilot program for purchase of certain municipal services for 
              Army installations.
Sec. 326. Bid protests by Federal employees in actions under Office of 
              Management and Budget Circular A-76.
Sec. 327. Limitations on conversion of work performed by Department of 
              Defense civilian employees to contractor performance.
Sec. 328. Competitive sourcing reporting requirement.

                   Subtitle D--Information Technology

Sec. 331. Preparation of Department of Defense plan for transition to 
              Internet Protocol version 6.
Sec. 332. Defense business enterprise architecture, system 
              accountability, and conditions for obligation of funds 
              for defense business system modernization.
Sec. 333. Report on maturity and effectiveness of the Global 
              Information Grid Bandwidth Expansion (GIG-BE).

             Subtitle E--Extensions of Program Authorities

Sec. 341. Two-year extension of Department of Defense 
              telecommunications benefit.
Sec. 342. Extension of Arsenal Support Program Initiative.
Sec. 343. Two-year extension of warranty claims recovery pilot program.

                       Subtitle F--Other Matters

Sec. 351. Reimbursement for certain protective, safety, or health 
              equipment purchased by or for members of the Armed Forces 
              deployed in contingency operations.
Sec. 352. Limitation on preparation or implementation of Mid-Range 
              Financial Improvement Plan pending report.
Sec. 353. Pilot program to authorize Army working-capital funded 
              facilities to engage in cooperative activities with non-
              Army entities.
Sec. 354. Transfer of excess Department of Defense personal property to 
              assist firefighting agencies.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent active duty end strength minimum 
              levels.
Sec. 403. Additional authority for increases of Army and Marine Corps 
              active duty personnel end strengths for fiscal years 2005 
              through 2009.
Sec. 404. Exclusion of service academy permanent and career professors 
              from a limitation on certain officer grade strengths.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
              reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2005 limitation on number of non-dual status 
              technicians.
Sec. 415. Maximum number of Reserve personnel authorized to be on 
              active duty for operational support.
Sec. 416. Accounting and management of reserve component personnel 
              performing active duty or full-time National Guard duty 
              for operational support.

              Subtitle C--Authorizations of Appropriations

Sec. 421. Military personnel.
Sec. 422. Armed Forces Retirement Home.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Transition of active-duty list officer force to a force of 
              all regular officers.
Sec. 502.  Repeal of requirement that Deputy Chiefs and Assistant 
              Chiefs of Naval Operations be selected from officers in 
              the line of the Navy.
Sec. 503.  Limitation on number of officers frocked to major general 
              and rear admiral.
Sec. 504.  Distribution in grade of Marine Corps reserve officers in an 
              active status in grades below brigadier general
Sec. 505.  Authority for Federal recognition of National Guard 
              commissioned officers appointed from former Coast Guard 
              personnel.
Sec. 506.  Study regarding promotion eligibility of retired officers 
              recalled to active duty.
Sec. 507.  Succession for office of Chief, National Guard Bureau.
Sec. 508.  Redesignation of Vice Chief of the National Guard Bureau as 
              Director of the Joint Staff of the National Guard Bureau.

              Subtitle B--Reserve Component Policy Matters

Sec. 511.  Modification of stated purpose of the reserve components.
Sec. 512.  Homeland defense activities conducted by the National Guard 
              under authority of title 32.
Sec. 513.  Commission on the National Guard and Reserves.
Sec. 514.  Repeal of exclusion of active duty for training from 
              authority to order Reserves to active duty.
Sec. 515.  Army program for assignment of active component advisers to 
              units of the Selected Reserve.
Sec. 516.  Authority to accept certain voluntary services.
Sec. 517.  Authority to redesignate the Naval Reserve as the Navy 
              Reserve.
Sec. 518.  Comptroller General assessment of integration of active and 
              reserve components of the Navy.
Sec. 519.  Limitation on number of Starbase academies in a State.
Sec. 520. Recognition items for certain reserve component personnel.

            Subtitle C--Reserve Component Personnel Matters

Sec. 521.  Status under disability retirement system for reserve 
              members released from active duty due to inability to 
              perform within 30 days of call to active duty.
Sec. 522.  Requirement for retention of Reserves on active duty to 
              qualify for retired pay not applicable to nonregular 
              service retirement system.
Sec. 523.  Federal civil service military leave for Reserve and 
              National Guard civilian technicians.
Sec. 524.  Expanded educational assistance authority for officers 
              commissioned through ROTC program at military junior 
              colleges.
Sec. 525. Repeal of sunset provision for financial assistance program 
              for students not eligible for advanced training.
Sec. 526.  Effect of appointment or commission as officer on 
              eligibility for Selected Reserve education loan repayment 
              program for enlisted members.
Sec. 527. Educational assistance for certain reserve component members 
              who perform active service.
Sec. 528.  Sense of Congress on guidance concerning treatment of 
              employer-provided compensation and other benefits 
              voluntarily provided to employees who are activated 
              Reservists.

    Subtitle D--Joint Officer Management and Professional Military 
                               Education

Sec. 531.  Strategic plan to link joint officer development to overall 
              missions and goals of Department of Defense.
Sec. 532.  Improvement to professional military education in the 
              Department of Defense.
Sec. 533.  Joint requirements for promotion to flag or general officer 
              grade.
Sec. 534.  Clarification of tours of duty qualifying as a joint duty 
              assignment.
Sec. 535.  Two-year extension of temporary standard for promotion 
              policy objectives for joint officers.
Sec. 536.  Two-year extension of authority to waive requirement that 
              Reserve Chiefs and National Guard Directors have 
              significant joint duty experience.

                 Subtitle E--Military Service Academies

Sec. 541.  Revision to conditions on service of officers as service 
              academy superintendents.
Sec. 542.  Academic qualifications of the dean of the faculty of United 
              States Air Force Academy.
Sec. 543.  Board of Visitors of United States Air Force Academy.
Sec. 544.  Appropriated funds for service academy athletic and 
              recreational extracurricular programs to be treated in 
              same manner as for military morale, welfare, and 
              recreation progams.
Sec. 545.  Codification of prohibition on imposition of certain charges 
              and fees at the service academies.

            Subtitle F--Other Education and Training Matters

Sec. 551.  College First delayed enlistment program.
Sec. 552.  Senior Reserve Officers' Training Corps and recruiter access 
              at institutions of higher education.
Sec. 553.  Tuition assistance for officers.
Sec. 554.  Increased maximum period for leave of absence for pursuit of 
              a program of education in a health care profession.
Sec. 555.  Eligibility of cadets and midshipmen for medical and dental 
              care and disability benefits.
Sec. 556.  Transfer of authority to confer degrees upon graduates of 
              the Community College of the Air Force. 
Sec. 557.  Change in titles of leadership positions at the Naval 
              Postgraduate School.

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   Subtitle G--Assistance to Local Educational Agencies for Defense 
                          Dependents Education

Sec. 558.  Continuation of impact aid assistance on behalf of 
              dependents of certain members despite change in status of 
              member.
Sec. 559.  Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 560.  Impact aid for children with severe disabilities.

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

Sec. 561.  Award of medal of honor to individual interred in the Tomb 
              of the Unknowns as representative of casualties of a war.
Sec. 562.  Plan for revised criteria and eligibility requirements for 
              award of Combat Infantryman Badge and Combat Medical 
              Badge for service in Korea after July 28, 1953.
Sec. 563.  Authority to appoint Brigadier General Charles E. Yeager, 
              United States Air Force (retired), to the grade of major 
              general on the retired list.
Sec. 564.  Posthumous commission of William Mitchell in the grade of 
              major general in the Army.

                      Subtitle I--Military Voting

Sec. 566.  Federal write-in ballots for absentee military voters 
              located in the United States.
Sec. 567.  Repeal of requirement to conduct electronic voting 
              demonstration project for the Federal election to be held 
              in November 2004.
Sec. 568.  Reports on operation of Federal voting assistance program 
              and military postal system.

                  Subtitle J--Military Justice Matters

Sec. 571.  Review on how sexual offenses are covered by Uniform Code of 
              Military Justice.
Sec. 572.  Waiver of recoupment of time lost for confinement in 
              connection with a trial.
Sec. 573.  Processing of forensic evidence collection kits and 
              acquisition of sufficient stocks of such kits.
Sec. 574.  Authorities of the Judge Advocates General.

             Subtitle K--Sexual Assault in the Armed Forces

Sec. 576.  Examination of sexual assault in the Armed Forces by the 
              Defense Task Force established to examine sexual 
              harassment and violence at the military service 
              academies.
Sec. 577.  Department of Defense policy and procedures on prevention 
              and response to sexual assaults involving members of the 
              Armed Forces.

           Subtitle L--Management and Administrative Matters

Sec. 581.  Three-year extension of limitation on reductions of 
              personnel of agencies responsible for review and 
              correction of military records.
Sec. 582.  Staffing for Defense Prisoner of War/Missing Personnel 
              Office (DPMO).
Sec. 583.  Permanent ID cards for retiree dependents age 75 and older.
Sec. 584.  Authority to provide civilian clothing to members traveling 
              in connection with medical evacuation.
Sec. 585.  Authority to accept donation of frequent traveler miles, 
              credits, and tickets to facilitate rest and recuperation 
              travel of deployed members of the Armed Forces and their 
              families.
Sec. 586.  Annual report identifying reasons for discharges from the 
              Armed Forces during preceding fiscal year.
Sec. 587.  Study of blended wing concept for the Air Force.
Sec. 588.  Sense of Congress regarding return of members to active duty 
              service upon rehabilitation from service-related 
              injuries.

                       Subtitle M--Other Matters

Sec. 591.  Protection of Armed Forces personnel from retaliatory 
              actions for communications made through the chain of 
              command.
Sec. 592.  Implementation plan for accession of persons with 
              specialized skills.
Sec. 593.  Enhanced screening methods and process improvements for 
              recruitment of home schooled and National Guard Challenge 
              program GED recipients.
Sec. 594.  Redesignation of National Guard Challenge Program as 
              National Guard Youth Challenge Program.
Sec. 595.  Reports on certain milestones relating to Department of 
              Defense transformation.
Sec. 596.  Report on issues relating to removal of remains of persons 
              interred in United States military cemeteries overseas.
Sec. 597.  Comptroller General reports on closure of Department of 
              Defense dependent elementary and secondary schools and 
              commissary stores.
Sec. 598.  Comptroller General report on transition assistance programs 
              for members separating from the Armed Forces.
Sec. 599.  Study on coordination of job training standards with 
              certification standards for military occupational 
              specialties.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2005.
Sec. 602. Relationship between eligibility to receive supplemental 
              subsistence allowance and eligibility to receive imminent 
              danger pay, family separation allowance, and certain 
              Federal assistance.
Sec. 603. Authority to provide family separation basic allowance for 
              housing.
Sec. 604. Geographic basis for housing allowance during short-
              assignment permanent changes of station for education or 
              training.
Sec. 605. Immediate lump-sum reimbursement for unusual nonrecurring 
              expenses incurred for duty outside the continental United 
              States.
Sec. 606. Authority for certain members deployed in combat zones to 
              receive limited advances on future basic pay.
Sec. 607. Repeal of requirement that members entitled to basic 
              allowance for subsistence pay subsistence charges while 
              hospitalized.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay 
              authorities for reserve forces.
Sec. 612. One-year extension of certain bonus and special pay 
              authorities for certain health care professionals.
Sec. 613. One-year extension of special pay and bonus authorities for 
              nuclear officers.
Sec. 614. One-year extension of other bonus and special pay 
              authorities.
Sec. 615. Authority to provide hazardous duty incentive pay to military 
              firefighters.
Sec. 616. Reduced service obligation for nurses receiving nurse 
              accession bonus.
Sec. 617. Assignment incentive pay.
Sec. 618. Modification of active and reserve component reenlistment and 
              enlistment bonus authorities.
Sec. 619. Bonus for certain initial service of officers in the Selected 
              Reserve.
Sec. 620. Revision of authority to provide foreign language proficiency 
              pay.
Sec. 621. Eligibility of enlisted members to qualify for critical 
              skills retention bonus while serving on indefinite 
              reenlistment.
Sec. 622. Eligibility of reserve component members for incentive bonus 
              for conversion to military occupational specialty to ease 
              personnel shortage.
Sec. 623. Permanent increase in authorized amounts for imminent danger 
              special pay and family separation allowance.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for family members to 
              attend burial ceremony or memorial service of member who 
              dies on duty.
Sec. 632. Transportation of family members incident to serious illness 
              or injury of members of the uniformed services.
Sec. 633. Reimbursement for certain lodging costs incurred in 
              connection with dependent student travel.

             Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Computation of high-36 month average for reserve component 
              members retired for disability while on active duty or 
              dying while on active duty.
Sec. 642. Repeal of phase-in of concurrent receipt of retired pay and 
              veterans' disability compensation for military retirees 
              with service-connected disabilities rated as 100 percent.
Sec. 643. Death benefits enhancement.
Sec. 644. Phased elimination of two-tier annuity computation for 
              surviving spouses under Survivor Benefit Plan.
Sec. 645. One-year open enrollment period for Survivor Benefit Plan 
              commencing October 1, 2005.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

Sec. 651. Consolidation and reorganization of legislative provisions 
              regarding defense commissary system and exchanges and 
              other morale, welfare, and recreation activities.
Sec. 652. Consistent State treatment of Department of Defense 
              Nonappropriated Fund Health Benefits Program.

                       Subtitle F--Other Matters

Sec. 661. Eligibility of members for reimbursement of expenses incurred 
              for adoption placements made by foreign governments.
Sec. 662. Clarification of education loans qualifying for education 
              loan repayment program for reserve component health 
              professions officers.
Sec. 663. Receipt of pay by reservists from civilian employers while on 
              active duty in connection with a contingency operation.
Sec. 664. Relief for mobilized reservists from certain Federal 
              agricultural loan obligations.

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Sec. 665. Survey and analysis of effect of extended and frequent 
              mobilization of reservists for active duty service on 
              reservist income.
Sec. 666. Study of disability benefits for veterans of service in the 
              Armed Forces with service-connected disabilities.

                   TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

Sec. 701. TRICARE coverage for members of reserve components who commit 
              to continued service in the Selected Reserve after 
              release from active duty.
Sec. 702.  Comptroller General report on the cost and feasibility of 
              providing private health insurance stipends for members 
              of the Ready Reserves.
Sec. 703.  Permanent earlier eligibility date for TRICARE benefits for 
              members of reserve components and their dependents.
Sec. 704.  Waiver of certain deductibles under TRICARE program for 
              members on active duty for a period of more than 30 days.
Sec. 705.  Authority for payment by United States of additional amounts 
              billed by health care providers to activated Reserves.
Sec. 706.  Permanent extension of transitional health care benefits and 
              addition of requirement for preseparation physical 
              examination.

                Subtitle B--Other Benefits Improvements

Sec. 711.  Opportunity for young child dependent of deceased member to 
              become eligible for enrollment in a TRICARE dental plan.
Sec. 712.  Comptroller General report on provision of health, 
              education, and support services for Exceptional Family 
              Member Program enrollees.
Sec. 713.  Continuation of sub-acute care for transition period.
Sec. 714.  Improvements to pharmacy benefits program.
Sec. 715.  Professional accreditation of military dentists.
Sec. 716.  Temporary authority for waiver of collection of payments due 
              for CHAMPUS benefits received by disabled persons unaware 
              of loss of CHAMPUS eligibility.
Sec. 717.  Services of marriage and family therapists.
Sec. 718.  Chiropractic health care benefits advisory committee.

           Subtitle C--Planning, Programming, and Management

Sec. 721.  Pilot program for health care delivery.
Sec. 722.  Study of provision of travel reimbursement to hospitals for 
              certain military disability retirees.
Sec. 723.  Study of mental health services.
Sec. 724.  Policy for timely notification of next of kin of members 
              seriously ill or injured in combat zones.
Sec. 725.  Revised funding methodology for military retiree health care 
              benefits.
Sec. 726.  Grounds for presidential waiver of requirement for informed 
              consent or option to refuse regarding administration of 
              drugs not approved for general use.
Sec. 727. TRICARE program regional directors.

     Subtitle D--Medical Readiness Tracking and Health Surveillance

Sec. 731.  Medical readiness plan and Joint Medical Readiness Oversight 
              Committee.
Sec. 732.  Medical readiness of Reserves.
Sec. 733.  Baseline Health Data Collection Program.
Sec. 734.  Medical care and tracking and health surveillance in the 
              theater of operations.
Sec. 735.  Declassification of information on exposures to 
              environmental hazards.
Sec. 736.  Report on training on environmental hazards.
Sec. 737.  Uniform policy for meeting mobilization-related medical care 
              needs at military installations.
Sec. 738.  Full implementation of Medical Readiness Tracking and Health 
              Surveillance Program and Force Health Protection and 
              Readiness Program.
Sec. 739.  Reports and Internet accessibility relating to health 
              matters.

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

             Subtitle A--Acquisition Policy and Management

Sec. 801.  Software-related program costs under major defense 
              acquisition programs.
Sec. 802.  Internal controls for Department of Defense procurements 
              through GSA Client Support Centers.
Sec. 803.  Defense commercial communications satellite services 
              procurement process.
Sec. 804.  Contractor performance of acquisition functions closely 
              associated with inherently governmental functions.
Sec. 805.  Sustainment plans for existing systems while replacement 
              systems are under development.
Sec. 806.  Applicability of competition exceptions to eligibility of 
              National Guard for financial assistance for performance 
              of additional duties.
Sec. 807.  Inflation adjustment of acquisition-related dollar 
              thresholds.

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

Sec. 811.  Rapid acquisition authority to respond to combat 
              emergencies.
Sec. 812. defense acquisition workforce improvements.
Sec. 813.  Period for multiyear task and delivery order contracts.
Sec. 814.  Funding for contract ceilings for certain multiyear 
              procurement contracts.
Sec. 815.  Increased threshold for senior procurement executive 
              approval of use of procedures other than competitive 
              procedures.
Sec. 816.  Increased threshold for applicability of requirement for 
              defense contractors to provide information on 
              subcontracting authority of contractor personnel to 
              cooperative agreement holders.
Sec. 817.  Extension of authority for use of simplified acquisition 
              procedures.
Sec. 818.  Submission of cost or pricing data on noncommercial 
              modifications of commercial items.
Sec. 819.  Delegations of authority to make determinations relating to 
              payment of defense contractors for business restructuring 
              costs.
Sec. 820.  Availability of Federal supply schedule supplies and 
              services to United Service Organizations, Incorporated.
Sec. 821.  Addition of landscaping and pest control services to list of 
              designated industry groups participating in the Small 
              Business Competitiveness Demonstration Program.
Sec. 822. Increased thresholds under special emergency procurement 
              authority.

      Subtitle C--United States Defense Industrial Base Provisions

Sec. 831. Defense trade reciprocity.
Sec. 832. Assessment and report on the acquisition of polyacrylonitrile 
              (PAN) carbon fiber from foreign sources.

        Subtitle D--Extensions of Temporary Program Authorities

Sec. 841.  Extension of mentor-protege program.
Sec. 842. Amendment to mentor-protege program.
Sec. 843.  Extension of test program for negotiation of comprehensive 
              small business subcontracting plans.
Sec. 844.  Extension of pilot program on sales of manufactured articles 
              and services of certain Army industrial facilities.

                 Subtitle E--Other Acquisition Matters

Sec. 851.  Review and demonstration project relating to contractor 
              employees.
Sec. 852.  Inapplicability of certain fiscal laws to settlements under 
              special temporary contract closeout authority.
Sec. 853.  Contracting with employers of persons with disabilities.
Sec. 854.  Defense procurements made through contracts of other 
              agencies.
Sec. 855.  Requirements relating to source selection for integrated 
              support of aerial refueling aircraft fleet for the Air 
              Force.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

       Subtitle A--Duties and Functions of Department of Defense

Sec. 901.  Study of roles and authorities of the Director of Defense 
              Research and Engineering.
Sec. 902.  Change of membership of specified council.

                      Subtitle B--Space Activities

Sec. 911.  Space posture review.
Sec. 912.  Panel on the future of national security space launch.
Sec. 913.  Operationally responsive national security satellites.
Sec. 914.  Nondisclosure of certain products of commercial satellite 
              operations.

                Subtitle C--Intelligence-Related Matters

Sec. 921.  Two-year extension of authority of the Secretary of Defense 
              to engage in commercial activities as security for 
              intelligence collection activities abroad.
Sec. 922.  Pilot program on cryptologic service training.

                       Subtitle D--Other Matters

Sec. 931. Strategic plan for destruction of lethal chemical agents and 
              munitions stockpile.
Sec. 932.  Secretary of Defense criteria for and guidance on 
              identification and internal transmission of critical 
              information.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001.  Transfer authority.
Sec. 1002.  United States contribution to NATO common-funded budgets in 
              fiscal year 2005.
Sec. 1003.  Budget justification documents for operation and 
              maintenance.
Sec. 1004.  Licensing of intellectual property.
Sec. 1005.  Repeal of funding restrictions concerning development of 
              medical countermeasures against biological warfare 
              threats.
Sec. 1006.  Report on budgeting for exchange rates for foreign currency 
              fluctuations.

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Sec. 1007.  Fiscal year 2004 transfer authority.
Sec. 1008.  Clarification of fiscal year 2004 funding level for a 
              National Institute of Standards and Technology account.
Sec. 1009.  Notification of fund transfers from working-capital funds.
Sec. 1010.  Charges for Defense Logistics Information Services 
              materials.

                Subtitle B--Naval Vessels and Shipyards

Sec. 1011.  Authority for award of contracts for ship dismantling on 
              net-cost basis.
Sec. 1012.  Use of proceeds from exchange and sale of obsolete navy 
              service craft and boats.
Sec. 1013.  Transfer of naval vessels to certain foreign recipients.
Sec. 1014.  Independent study to assess cost effectiveness of the Navy 
              ship construction program.
Sec. 1015.  Limitation on disposal of obsolete naval vessel.

                    Subtitle C--Counterdrug Matters

Sec. 1021.  Use of funds for unified counterdrug and counterterrorism 
              campaign in Colombia.
Sec. 1022.  Sense of Congress and report regarding counter-drug efforts 
              in Afghanistan.

       Subtitle D--Matters Relating to Museums and Commemorations

Sec. 1031.  Recognition of the Liberty Memorial Museum, Kansas City, 
              Missouri, as America's National World War I Museum.
Sec. 1032.  Program to commemorate 60th anniversary of World War II.
Sec. 1033.  Annual report on Department of Defense operation and 
              financial support for military museums.

                          Subtitle E--Reports

Sec. 1041.  Quarterly detailed accounting for operations conducted as 
              part of the Global War on Terrorism.
Sec. 1042.  Report on post-major combat operations phase of Operation 
              Iraqi Freedom.
Sec. 1043.  Report on training provided to members of the Armed Forces 
              to prepare for post-conflict operations.
Sec. 1044.  Report on establishing National Centers of Excellence for 
              unmanned aerial and ground vehicles.
Sec. 1045.  Study of continued requirement for two-crew manning for 
              ballistic missile submarines.
Sec. 1046.  Report on Department of Defense programs for prepositioning 
              of materiel and equipment.
Sec. 1047.  Report on al Quaeda and associated groups in Latin America 
              and the Caribbean.

   Subtitle F--Defense Against Terrorism and Other Domestic Security 
                                Matters

Sec. 1051.  Acceptance of communications equipment provided by local 
              public safety agencies.
Sec. 1052.  Determination and report on full-time airlift support for 
              homeland defense operations.
Sec. 1053.  Survivability of critical systems exposed to chemical or 
              biological contamination.

                 Subtitle G--Personnel Security Matters

Sec. 1061.  Use of National Driver Register for personnel security 
              investigations and determinations.
Sec. 1062.  Standards for disqualification from eligibility for 
              Department of Defense security clearance.

               Subtitle H--Transportation-Related Matters

Sec. 1071.  Use of military aircraft to transport mail to and from 
              overseas locations.
Sec. 1072.  Reorganization and clarification of certain provisions 
              relating to control and supervision of transportation 
              within the Department of Defense.
Sec. 1073.  Evaluation of procurement practices relating to 
              transportation of security-sensitive cargo.

                       Subtitle I--Other Matters

Sec. 1081.  Liability protection for Department of Defense volunteers 
              working in maritime environment.
Sec. 1082.  Sense of Congress concerning media coverage of the return 
              to the United States of the remains of deceased members 
              of the Armed Forces from overseas.
Sec. 1083.  Transfer of historic F3A-1 Brewster Corsaird aircraft.
Sec. 1084.  Technical and clerical amendments.
Sec. 1085.  Preservation of search and rescue capabilities of the 
              Federal Government.
Sec. 1086.  Acquisition of aerial firefighting equipment for National 
              Interagency Fire Center.
Sec. 1087.  Revision to requirements for recognition of institutions of 
              higher education as Hispanic-serving institutions for 
              purposes of certain grants and contracts.
Sec. 1088.  Military extraterritorial jurisdiction over contractors 
              supporting defense missions overseas.
Sec. 1089.  Definition of United States for purposes of Federal crime 
              of torture.
Sec. 1090.  Energy savings performance contracts.
Sec. 1091. Sense of Congress and policy concerning persons detained by 
              the United States.
Sec. 1092. Actions to prevent the abuse of detainees.
Sec. 1093. Reporting requirements.
Sec. 1094.  Findings and sense of Congress concerning Army Specialist 
              Joseph Darby.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

Sec. 1101.  Payment of Federal employee health benefit premiums for 
              mobilized Federal employees.
Sec. 1102.  Foreign language proficiency pay.
Sec. 1103.  Pay and performance appraisal parity for civilian 
              intelligence personnel.
Sec. 1104.  Pay parity for senior executives in defense nonappropriated 
              fund instrumentalities.
Sec. 1105.  Science, mathematics, and research for transformation 
              (SMART) defense scholarship pilot program.
Sec. 1106.  Report on how to recruit and retain individuals with 
              foreign language skills.
Sec. 1107.  Plan on implementation and utilization of flexible 
              personnel management authorities in Department of Defense 
              laboratories.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

Sec. 1201.  Commanders' Emergency Response Program.
Sec. 1202.  Assistance to Iraq and Afghanistan military and security 
              forces.
Sec. 1203.  Redesignation and modification of authorities relating to 
              Inspector General of the Coalition Provisional Authority.
Sec. 1204.  Presidential report on strategy for stabilization of Iraq.
Sec. 1205.  Guidance on contractors supporting deployed forces in Iraq.
Sec. 1206.  Report on contractors supporting deployed forces and 
              reconstruction efforts in Iraq.
Sec. 1207.  United Nations Oil-for-Food Program.
Sec. 1208.  Support of military operations to combat terrorism.

                Subtitle B--Counterproliferation Matters

Sec. 1211.  Defense international counterproliferation programs.
Sec. 1212.  Policy and sense of Congress on nonproliferation of 
              ballistic missiles.
Sec. 1213.  Sense of Congress on the global partnership against the 
              spread of weapons of mass destruction.
Sec. 1214.  Report on collaborative measures to reduce the risks of a 
              launch of Russian nuclear weapons.

                       Subtitle C--Other Matters

Sec. 1221.  Authority for humanitarian assistance for the detection and 
              clearance of landmines extended to include other 
              explosive remnants of war.
Sec. 1222.  Expansion of entities of the People's Republic of China 
              subject to certain presidential authorities when 
              operating in the United States.
Sec. 1223.  Assignment of NATO naval personnel to submarine safety 
              programs.
Sec. 1224.  Availability of Warsaw Initiative Funds for new NATO 
              members.
Sec. 1225.  Bilateral exchanges and trade in defense articles and 
              defense services between the United States and the United 
              Kingdom and Australia.
Sec. 1226.  Study on missile defense cooperation.

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

Sec. 1301.  Specification of Cooperative Threat Reduction programs and 
              funds.
Sec. 1302.  Funding allocations.
Sec. 1303.  Temporary authority to waive limitation on funding for 
              chemical weapons destruction facility in Russia.
Sec. 1304.  Inclusion of descriptive summaries in annual Cooperative 
              Threat Reduction reports and budget justification 
              materials.

                    TITLE XIV--SUNKEN MILITARY CRAFT

Sec. 1401.  Preservation of title to sunken military craft and 
              associated contents.
Sec. 1402.  Prohibitions.
Sec. 1403.  Permits.
Sec. 1404.  Penalties.
Sec. 1405.  Liability for damages.
Sec. 1406.  Relationship to other laws.
Sec. 1407.  Encouragement of agreements with foreign countries.
Sec. 1408.  Definitions.

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

Sec. 1501.  Purpose.
Sec. 1502.  Army procurement.
Sec. 1503.  Navy and Marine Corps procurement.
Sec. 1504.  Defense-wide activities procurement.
Sec. 1505.  Operation and maintenance.
Sec. 1506. Defense working capital funds.
Sec. 1507. Iraq Freedom Fund.
Sec. 1508.  Defense health program.
Sec. 1509.  Military personnel.
Sec. 1510.  Treatment as additional authorizations.
Sec. 1511.  Transfer authority.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.

[[Page H9192]]

Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 
              2004 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
              2003 project.

                            TITLE XXII--NAVY

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

                         TITLE XXIII--AIR FORCE

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

                      TITLE XXIV--DEFENSE AGENCIES

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

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

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

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

Sec. 2601. Authorized Guard and Reserve construction and land 
              acquisition projects.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
              specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 2002 
              projects.
Sec. 2703. Extension and renewal of authorizations of certain fiscal 
              year 2001 projects.

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Modification of approval and notice requirements for 
              facility repair projects.
Sec. 2802. Reporting requirements regarding military family housing 
              requirements for general officers and flag officers.
Sec. 2803. Congressional notification of deviations from authorized 
              cost variations for military construction projects and 
              military family housing projects.
Sec. 2804. Assessment of vulnerability of military installations to 
              terrorist attack and annual report on military 
              construction requirements related to antiterrorism and 
              force protection.
Sec. 2805. Repeal of limitations on use of alternative authority for 
              acquisition and improvement of military housing.
Sec. 2806. Additional reporting requirements relating to alternative 
              authority for acquisition and improvement of military 
              housing.
Sec. 2807. Temporary authority to accelerate design efforts for 
              military construction projects carried out using design-
              build selection procedures.
Sec. 2808. Notification thresholds and requirements for expenditures or 
              contributions for acquisition of facilities for reserve 
              components.
Sec. 2809. Authority to exchange reserve component facilities to 
              acquire replacement facilities.
Sec. 2810. One-year extension of temporary, limited authority to use 
              operation and maintenance funds for construction projects 
              outside the United States.
Sec. 2811. Consideration of combination of military medical treatment 
              facilities and health care facilities of Department of 
              Veterans Affairs.

        Subtitle B--Real Property and Facilities Administration

Sec. 2821. Reorganization of existing administrative provisions 
              relating to real property transactions.
Sec. 2822. Development of Heritage Center for the National Museum of 
              the United States Army.
Sec. 2823. Elimination of reversionary interests clouding United States 
              title to property used as Navy homeports.

                Subtitle C--Base Closure and Realignment

Sec. 2831. Establishment of specific deadline for submission of 
              revisions to force-structure plan and infrastructure 
              inventory.
Sec. 2832. Specification of final selection criteria for 2005 base 
              closure round.
Sec. 2833. Repeal of authority of Secretary of Defense to recommend 
              that installations be placed in inactive status.
Sec. 2834. Voting requirements for Defense Base Closure and Realignment 
              Commission to add to or otherwise expand closure and 
              realignment recommendations made by Secretary of Defense.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2841. Land conveyance, Sunflower Army Ammunition Plant, Kansas.
Sec. 2842. Land exchange, Fort Campbell, Kentucky and Tennessee.
Sec. 2843. Land conveyance, Louisiana Army Ammunition Plant, Doyline, 
              Louisiana.
Sec. 2844. Land conveyance, Fort Leonard Wood, Missouri.
Sec. 2845. Transfer of administrative jurisdiction, Defense Supply 
              Center, Columbus, Ohio.
Sec. 2846. Jurisdiction and utilization of former public domain lands, 
              Umatilla Chemical Depot, Oregon.
Sec. 2847. Modification of authority for land conveyance, equipment and 
              storage yard, Charleston, South Carolina.
Sec. 2848. Land conveyance, Fort Hood, Texas.
Sec. 2849. Land conveyance, local training area for Browning Army 
              Reserve Center, Utah.
Sec. 2850. Land conveyance, Army Reserve Center, Hampton, Virginia.
Sec. 2851. Land conveyance, Army National Guard Facility, Seattle, 
              Washington.
Sec. 2852. Modification of land exchange and consolidation, Fort Lewis, 
              Washington.

                       Part II--Navy Conveyances

Sec. 2861. Land exchange, former Richmond Naval Air Station, Florida.
Sec. 2862. Land conveyance, Honolulu, Hawaii.
Sec. 2863. Land conveyance, Navy property, former Fort Sheridan, 
              Illinois.
Sec. 2864. Land exchange, Naval Air Station, Patuxent River, Maryland.
Sec. 2865. Modification of land acquisition authority, Perquimans 
              County, North Carolina.
Sec. 2866. Land conveyance, Naval Weapons Station, Charleston, South 
              Carolina.
Sec. 2867. Land conveyance, Navy YMCA building, Portsmouth, Virginia.

                    Part III--Air Force Conveyances

Sec. 2871. Land exchange, Maxwell Air Force Base, Alabama.
Sec. 2872. Land conveyance, March Air Force Base, California.
Sec. 2873. Land conveyance, former Griffiss Air Force Base, New York.

                       Part IV--Other Conveyances

Sec. 2881. Land exchange, Arlington County, Virginia.

                       Subtitle E--Other Matters

Sec. 2891. One-year resumption of Department of Defense Laboratory 
              Revitalization Demonstration Program.
Sec. 2892. Designation of Airmen Leadership School at Luke Air Force 
              Base, Arizona, in honor of John J. Rhodes, a former 
              minority leader of the House of Representatives.
Sec. 2893. Settlement of claim of Oakland Base Reuse Authority and 
              Redevelopment Agency.
Sec. 2894. Report on establishment of mobilization station at Camp 
              Ripley National Guard Training Center, Little Falls, 
              Minnesota.
Sec. 2895. Report on feasibility of establishment of veterans memorial 
              at Marine Corps Air Station, El Toro, California.
Sec. 2896. Sense of Congress regarding effect of military housing 
              policies and force structure and basing changes on local 
              educational agencies.
Sec. 2897. Sense of Congress and study regarding memorial honoring non-
              United States citizens killed in the line of duty while 
              serving in the United States Armed Forces.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Report on requirements for Modern Pit Facility.
Sec. 3112. Two-year extension of authority for appointment of certain 
              scientific, engineering, and technical personnel.
Sec. 3113. Limited authority to carry out new projects under Facilities 
              and Infrastructure Recapitalization Program after project 
              selection deadline.
Sec. 3114. Modification of milestone and report requirements for 
              National Ignition Facility.
Sec. 3115. Modification of submittal date of annual plan for 
              stewardship, management, and certification of warheads in 
              the nuclear weapons stockpile.

[[Page H9193]]

Sec. 3116. Defense site acceleration completion.
Sec. 3117. Treatment of waste material.
Sec. 3118. Local stakeholder organizations for 2006 closure sites.
Sec. 3119. Report to Congress on Advanced Nuclear Weapons Concepts 
              Initiative.

                   Subtitle C--Proliferation Matters

Sec. 3131. Modification of authority to use International Nuclear 
              Materials Protection and Cooperation Program funds 
              outside the former Soviet Union.
Sec. 3132. Acceleration of removal or security of fissile materials, 
              radiological materials, and related equipment at 
              vulnerable sites worldwide.
Sec. 3133. Silk Road Initiative.
Sec. 3134. Nuclear nonproliferation fellowships for scientists employed 
              by United States and Russian Federation.
Sec. 3135. Utilization of international contributions to the 
              elimination of weapons grade plutonium production 
              program.

                       Subtitle D--Other Matters

Sec. 3141. Indemnification of Department of Energy contractors.
Sec. 3142. Report on maintenance of retirement benefits for certain 
              workers at 2006 closure sites after closure of sites.
Sec. 3143. Report on efforts of National Nuclear Security 
              Administration to understand plutonium aging.
Sec. 3144. Support for public education in the vicinity of Los Alamos 
              National Laboratory, New Mexico.
Sec. 3145. Review of Waste Isolation Pilot Plant, New Mexico, pursuant 
              to competitive contract.
Sec. 3146. National Academy of Sciences study on management by 
              Department of Energy of certain radioactive waste 
              streams.
Sec. 3147. Compensation of Pajarito Plateau, New Mexico, homesteaders 
              for acquisition of lands for Manhattan Project in World 
              War II.
Sec. 3148. Modification of requirements relating to conveyances and 
              transfer of certain land at Los Alamos National 
              Laboratory, New Mexico.

 Subtitle E--Energy Employees Occupational Illness Compensation Program

Sec. 3161. Contractor employee compensation.
Sec. 3162. Conforming amendments.
Sec. 3163. Technical amendments.
Sec. 3164. Transfer of funds for fiscal year 2005.
Sec. 3165. Use of Energy Employees Occupational Illness Compensation 
              Fund for certain payments to covered uranium employees.
Sec. 3166. Improvements to Subtitle B of Energy Employees Occupational 
              Illness Compensation Program Act of 2000.
Sec. 3167. Emergency Special Exposure Cohort meeting and report.
Sec. 3168. Coverage of individuals employed at atomic weapons employer 
              facilities during periods of residual contamination.
Sec. 3169. Update of report on residual contamination of facilities.
Sec. 3170. Sense of Congress on resource center for energy employees 
              under Energy Employee Occupational Illness Compensation 
              Program in western New York and western Pennsylvania 
              region.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.
Sec. 3302. Revision of earlier authority to dispose of certain 
              materials in National Defense Stockpile.
Sec. 3303. Disposal of ferromanganese.
Sec. 3304. Prohibition on storage of mercury at certain facilities.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                  TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for Maritime Administration.
Sec. 3502. Extension of authority to provide war risk insurance for 
              merchant marine vessels.
Sec. 3503. Modification of priority afforded applications for national 
              defense tank vessel construction assistance.

                TITLE XXXVI--ASSISTANCE TO FIREFIGHTERS

Sec. 3601. Short title.
Sec. 3602. Amendments to Federal Fire Prevention and Control Act of 
              1974.
Sec. 3603. Report on assistance to firefighters.

     SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.

                       Subtitle B--Army Programs

       Sec. 111.  Multiyear procurement authority for the light 
           weight 155-millimeter howitzer program.
       Sec. 112.  Light utility helicopter program.

                       Subtitle C--Navy Programs

       Sec. 121.  DDG-51 modernization program.
       Sec. 122.  Repeal of authority for pilot program for 
           flexible funding of cruiser conversions and overhauls.
       Sec. 123.  LHA(R) amphibious assault ship program.

                     Subtitle D--Air Force Programs

       Sec. 131.  Prohibition of retirement of KC-135E aircraft.
       Sec. 132.  Prohibition of retirement of F-117 aircraft.
       Sec. 133.  Aerial refueling aircraft acquisition program.

                       Subtitle E--Other Matters

       Sec. 141.  Development of deployable systems to include 
           consideration of force protection in asymmetric threat 
           environments.
       Sec. 142.  Allocation of equipment authorized by this title 
           to units deployed, or to be deployed, to Operation 
           Iraqi Freedom or Operation Enduring Freedom.
       Sec. 143.  Report on options for acquisition of precision-
           guided munitions.

              Subtitle A--Authorization of Appropriations

     SEC. 101. ARMY.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for procurement for the Army as follows:
       (1) For aircraft, $2,611,540,000.
       (2) For missiles, $1,307,000,000.
       (3) For weapons and tracked combat vehicles, 
     $1,702,695,000.
       (4) For ammunition, $1,545,702,000.
       (5) For other procurement, $4,345,246,000.

     SEC. 102. NAVY AND MARINE CORPS.

       (a) Navy.--Funds are hereby authorized to be appropriated 
     for fiscal year 2005 for procurement for the Navy as follows:
       (1) For aircraft, $8,814,442,000.
       (2) For weapons, including missiles and torpedoes, 
     $2,067,520,000.
       (3) For shipbuilding and conversion, $10,116,827,000.
       (4) For other procurement, $4,633,886,000.
       (b) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 2005 for procurement for the 
     Marine Corps in the amount of $1,268,453,000.
       (c) Navy and Marine Corps Ammunition.--Funds are hereby 
     authorized to be appropriated for fiscal year 2005 for 
     procurement of ammunition for the Navy and the Marine Corps 
     in the amount of $878,140,000.

     SEC. 103. AIR FORCE.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for procurement for the Air Force as follows:
       (1) For aircraft, $13,228,124,000.
       (2) For ammunition, $1,318,959,000.
       (3) For missiles, $4,548,513,000.
       (4) For other procurement, $12,949,327,000.

     SEC. 104. DEFENSE-WIDE ACTIVITIES.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for Defense-wide procurement in the amount of 
     $2,846,583,000.

                       Subtitle B--Army Programs

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

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

     SEC. 112. LIGHT UTILITY HELICOPTER PROGRAM.

       (a) Limitation.--None of the funds authorized to be 
     appropriated under section 101(1) for the procurement of 
     light utility helicopters may be obligated or expended until 
     30 days after the date on which the Secretary of the Army 
     submits to the congressional defense committees a report that 
     contains--
       (1) the Secretary's certification that all required 
     documentation for the acquisition of light utility 
     helicopters has been completed and approved; and
       (2) an Army aviation modernization plan described in 
     subsection (b).
       (b) Army Aviation Modernization Plan.--The Army aviation 
     modernization plan referred to in subsection (a)(2) is an 
     updated modernization plan for Army aviation that contains, 
     at a minimum, the following:
       (1) The analysis on which the plan is based.
       (2) A discussion of the Secretary's decision to terminate 
     the Comanche helicopter program and to restructure the 
     aviation force of the Army.
       (3) The actions taken or to be taken to accelerate the 
     procurement and development of aircraft survivability 
     equipment for Army aircraft, together with a detailed list of 
     aircraft survivability equipment that specifies such 
     equipment by platform and by the related programmatic funding 
     for procurement.
       (4) A discussion of the conversion of Apache helicopters to 
     block III configuration, including (A) the rationale for 
     converting only 501 Apache helicopters to that configuration, 
     and (B) the costs associated with a conversion of all Apache 
     helicopters to the block III configuration.
       (5) A discussion of the procurement of light armed 
     reconnaissance helicopters, including (A) the rationale for 
     the requirement for light armed reconnaissance helicopters, 
     and (B) a discussion of the costs associated with upgrading 
     the light armed reconnaissance helicopter to meet Army 
     requirements.
       (6) The rationale for the Army's requirement for light 
     utility helicopters, together with a summary and copy of the 
     analysis of the alternative means for meeting such 
     requirement that the Secretary considered in the 
     determination to procure light utility helicopters, 
     including, at a minimum, the analysis of the alternative of

[[Page H9194]]

     using light armed reconnaissance helicopters and UH-60 Black 
     Hawk helicopters instead of light utility helicopters to meet 
     such requirement.
       (7) The rationale for the procurement of cargo fixed-wing 
     aircraft.
       (8) The rationale for the initiation of a joint multi-role 
     helicopter program.
       (9) A description of the operational employment of the 
     Army's restructured aviation force.

                       Subtitle C--Navy Programs

     SEC. 121. DDG-51 MODERNIZATION PROGRAM.

       (a) Acceleration of Modernization Program.--The Secretary 
     of the Navy shall accelerate the program for in-service 
     modernization of the DDG-51 class of destroyers (in this 
     section referred to as the ``modernization program'').
       (b) Report.--Not later than March 31, 2005, the Secretary 
     of the Navy shall submit to the congressional defense 
     committees a report on the steps taken as of that date to 
     carry out subsection (a). The report shall--
       (1) describe the elements of the modernization program; and
       (2) specify those elements of the modernization program 
     that are expected to contribute to the goal of reducing the 
     crew size of the DDG-51 class of destroyers by one-third and 
     explain the basis for those expectations.

     SEC. 122. REPEAL OF AUTHORITY FOR PILOT PROGRAM FOR FLEXIBLE 
                   FUNDING OF CRUISER CONVERSIONS AND OVERHAULS.

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

     SEC. 123. LHA(R) AMPHIBIOUS ASSAULT SHIP PROGRAM.

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

                     Subtitle D--Air Force Programs

     SEC. 131. PROHIBITION OF RETIREMENT OF
                   KC-135E AIRCRAFT.

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

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

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

     SEC. 133. AERIAL REFUELING AIRCRAFT ACQUISITION PROGRAM.

       (a) Termination of Leasing Authority.--Subsection (a) of 
     section 135 of the National Defense Authorization Act for 
     Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1413; 10 
     U.S.C. 2401a note) is amended by striking ``may lease no more 
     than 20 tanker aircraft'' and inserting ``shall lease no 
     tanker aircraft''.
       (b) Multiyear Procurement Authority.--Subsection (b) of 
     such section is amended--
       (1) in paragraph (1)--
       (A) by striking ``Beginning with the fiscal year 2004 
     program year, the Secretary'' and inserting ``The 
     Secretary''; and
       (B) by striking ``necessary to meet'' and all that follows 
     through ``is insufficient'';
       (2) in paragraph (2), by striking ``80'' and inserting 
     ``100''; and
       (3) by striking paragraph (4).
       (c) Study.--Subsection (c)(1) of such section is amended by 
     striking ``leased under the multiyear aircraft lease pilot 
     program or'' in subparagraphs (A) and (B).
       (d) Relationship to Previous Law.--Such section is further 
     amended by adding at the end the following new subsection:
       ``(f) Relationship to Previous Law.--The multiyear 
     procurement authority in subsection (b) may not be executed 
     under section 8159 of the Department of Defense 
     Appropriations Act, 2002 (division A of Public Law 107-
     117).''.

                       Subtitle E--Other Matters

     SEC. 141. DEVELOPMENT OF DEPLOYABLE SYSTEMS TO INCLUDE 
                   CONSIDERATION OF FORCE PROTECTION IN ASYMMETRIC 
                   THREAT ENVIRONMENTS.

       (a) Requirement for Systems Development.--The Secretary of 
     Defense shall require that the Department of Defense 
     regulations, directives, and guidance governing the 
     acquisition of covered systems be revised to require that--
       (1) an assessment of warfighter survivability and of system 
     suitability against asymmetric threats shall be performed as 
     part of the development of system requirements for any such 
     system; and
       (2) requirements for key performance parameters for force 
     protection and survivability shall be included as part of the 
     documentation of system requirements for any such system.
       (b) Covered Systems.--In this section, the term ``covered 
     system'' means any of the following systems that is expected 
     to be deployed in an asymmetric threat environment:
       (1) Any manned system.
       (2) Any equipment intended to enhance personnel 
     survivability.
       (c) Inapplicability of Development Requirement to Systems 
     Already Through Development.--The revisions pursuant 
     subsection (a) to Department of Defense regulations, 
     directives, and guidance shall not apply to a system that 
     entered low-rate initial production before the date of the 
     enactment of this Act.
       (d) Deadline for Policy Revisions.--The revisions required 
     by subsection (a) to Department of Defense regulations, 
     directives, and guidance shall be made not later than 120 
     days after the date of the enactment of this Act.

     SEC. 142. ALLOCATION OF EQUIPMENT AUTHORIZED BY THIS TITLE TO 
                   UNITS DEPLOYED, OR TO BE DEPLOYED, TO OPERATION 
                   IRAQI FREEDOM OR OPERATION ENDURING FREEDOM.

       In allocating equipment acquired using funds authorized to 
     be appropriated by this title to operational units deployed, 
     or scheduled to be deployed, to Operation Iraqi Freedom or 
     Operation Enduring Freedom, the Secretary of Defense shall 
     ensure that the allocation is made without regard to the 
     status of the units as active, Guard, or reserve component 
     units.

     SEC. 143. REPORT ON OPTIONS FOR ACQUISITION OF PRECISION-
                   GUIDED MUNITIONS.

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

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

              Subtitle A--Authorization of Appropriations

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Future Combat Systems program strategy.
Sec. 212. Collaborative program for research and development of vacuum 
              electronics technologies.
Sec. 213. Annual Comptroller General report on Joint Strike Fighter 
              program.
Sec. 214. Amounts for United States Joint Forces Command to be derived 
              only from Defense-wide amounts.
Sec. 215. Global Positioning System III satellite.
Sec. 216. Initiation of concept demonstration of Global Hawk high 
              altitude endurance unmanned aerial vehicle.
Sec. 217. Joint Unmanned Combat Air Systems program.

                  Subtitle C--Missile Defense Programs

Sec. 231. Fielding of ballistic missile defense capabilities.
Sec. 232. Integration of Patriot Advanced Capability-3 and Medium 
              Extended Air Defense System into ballistic missile 
              defense system.
Sec. 233. Comptroller General assessments of ballistic missile defense 
              programs.
Sec. 234. Baselines and operational test and evaluation for ballistic 
              missile defense system.

                       Subtitle D--Other Matters

Sec. 241. Annual report on submarine technology insertion.
Sec. 242. Sense of Congress regarding funding of the Advanced 
              Shipbuilding Enterprise under the National Shipbuilding 
              Research Program of the Navy.

              Subtitle A--Authorization of Appropriations

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

        Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for the use of the Department of Defense for 
     research, development, test, and evaluation as follows:
       (1) For the Army, $9,307,248,000.
       (2) For the Navy, $16,200,591,000.
       (3) For the Air Force, $20,432,933,000.
       (4) For Defense-wide activities, $20,556,986,000, of which 
     $304,135,000 is authorized for the Director of Operational 
     Test and Evaluation.

     SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

       (a) Fiscal Year 2005.--Of the amounts authorized to be 
     appropriated by section 201, $11,191,600,000 shall be 
     available for the Defense Science and Technology Program, 
     including basic research, applied research, and advanced 
     technology development projects.
       (b) Basic Research, Applied Research, and Advanced 
     Technology Development Defined.--For purposes of this 
     section, the term ``basic research, applied research, and 
     advanced technology development'' means work funded in 
     program elements for defense research and development under 
     Department of Defense category 6.1, 6.2, or 6.3.

    Subtitle B--Program Requirements, Restrictions, and Limitations

     SEC. 211. FUTURE COMBAT SYSTEMS PROGRAM STRATEGY.

       (a) Program Strategy Required.--The Secretary of the Army 
     shall establish and implement a program strategy for the 
     Future Combat

[[Page H9195]]

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

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

       (a) Program Required.--The Secretary of Defense shall 
     establish a program for research and development in advanced 
     vacuum electronics to meet the requirements of Department of 
     Defense systems.
       (b) Description of Program.--The program under subsection 
     (a) shall be carried out collaboratively by the Director of 
     Defense Research and Engineering, the Secretary of the Navy, 
     the Secretary of the Air Force, the Secretary of the Army, 
     and other appropriate elements of the Department of Defense. 
     The program shall include the following activities:
       (1) Activities needed for development and maturation of 
     advanced vacuum electronics technologies needed to meet the 
     requirements of the Department of Defense.
       (2) Identification of legacy and developmental Department 
     of Defense systems which may make use of advanced vacuum 
     electronics under the program.
       (c) Report.--Not later than January 31, 2005, the Director 
     of Defense Research and Engineering shall submit to the 
     congressional defense committees a report on the 
     implementation of the program under subsection (a). The 
     report shall include the following:
       (1) Identification of the organization to have lead 
     responsibility for carrying out the program.
       (2) Assessment of the role of investing in vacuum 
     electronics technologies as part of the overall strategy of 
     the Department of Defense for investing in electronics 
     technologies to meet the requirements of the Department.
       (3) The management plan and schedule for the program and 
     any agreements relating to that plan.
       (4) Identification of the funding required for fiscal year 
     2006 and for the future-years defense program to carry out 
     the program.
       (5) A list of program capability goals and objectives.
       (6) An outline of the role of basic and applied research in 
     support of the development and maturation of advanced vacuum 
     electronics technologies needed to meet the requirements of 
     the Department of Defense.
       (7) Assessment of global capabilities in vacuum electronics 
     technologies and the effect of those capabilities on the 
     national security and economic competitiveness of the United 
     States.

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

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

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

       (a) In General.--Chapter 9 of title 10, United States Code, 
     is amended by adding at the end the following new section:

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

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

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

       (c) Applicability.--Section 232 of title 10, United States 
     Code (as added by subsection (a)) applies to fiscal years 
     beginning with fiscal year 2007.

     SEC. 215. GLOBAL POSITIONING SYSTEM III SATELLITE.

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

     SEC. 216. INITIATION OF CONCEPT DEMONSTRATION OF GLOBAL HAWK 
                   HIGH ALTITUDE ENDURANCE UNMANNED AERIAL 
                   VEHICLE.

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

     SEC. 217. JOINT UNMANNED COMBAT AIR SYSTEMS PROGRAM.

       (a) Executive Committee.--(1) The Secretary of Defense 
     shall, subject to subsection (b), establish an executive 
     committee and require that executive committee to provide 
     guidance and recommendations for the management of the Joint 
     Unmanned Combat Air Systems program to the Director of the 
     Defense Advanced Research Projects Agency and the personnel 
     who are managing the program for such agency.
       (2) The executive committee established under paragraph (1) 
     shall be composed of the following members:
       (A) The Under Secretary of Defense for Acquisition, 
     Technology, and Logistics, who shall chair the executive 
     committee.
       (B) The Assistant Secretary of the Navy for Research, 
     Development, and Acquisition.

[[Page H9196]]

       (C) The Assistant Secretary of the Air Force for 
     Acquisition.
       (D) The Deputy Chief of Naval Operations for Warfare 
     Requirements and Programs.
       (E) The Deputy Chief of Staff of the Air Force for Air and 
     Space Operations.
       (F) Any additional personnel of the Department of Defense 
     whom the Secretary determines appropriate for membership on 
     the executive committee.
       (b) Applicability Only to DARPA-Managed Program.--The 
     requirements of subsection (a) apply with respect to the 
     Joint Unmanned Combat Air Systems program only while the 
     program is managed by the Defense Advanced Research Projects 
     Agency.

                  Subtitle C--Missile Defense Programs

     SEC. 231. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

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

     SEC. 232. INTEGRATION OF PATRIOT ADVANCED CAPABILITY-3 AND 
                   MEDIUM EXTENDED AIR DEFENSE SYSTEM INTO 
                   BALLISTIC MISSILE DEFENSE SYSTEM.

       (a) Relationship to Ballistic Missile Defense System.--The 
     combined program of the Department of the Army known as the 
     Patriot Advanced Capability-3/Medium Extended Air Defense 
     System air and missile defense program (hereinafter in this 
     section referred to as the ``PAC-3/MEADS program'') is an 
     element of the Ballistic Missile Defense System.
       (b) Management of Configuration Changes.--The Director of 
     the Missile Defense Agency, in consultation with the 
     Secretary of the Army (acting through the Assistant Secretary 
     of the Army for Acquisition, Logistics and Technology) shall 
     ensure that any configuration change for the PAC-3/MEADS 
     program is subject to the configuration control board 
     processes of the Missile Defense Agency so as to ensure 
     integration of the PAC-3/MEADS element with appropriate 
     elements of the Ballistic Missile Defense System.
       (c) Required Procedures.--(1) Except as otherwise directed 
     by the Secretary of Defense, the Secretary of the Army 
     (acting through the Assistant Secretary of the Army for 
     Acquisition, Logistics and Technology) may make a significant 
     change to the baseline technical specifications or the 
     baseline schedule for the PAC-3/MEADS program only with the 
     concurrence of the Director of the Missile Defense Agency.
       (2) With respect to a proposal by the Secretary of the Army 
     to make a significant change to the procurement quantity 
     (including any quantity in any future block procurement) 
     that, as of the date of such proposal, is planned for the 
     PAC-3/MEADS program, the Secretary of Defense shall 
     establish--
       (A) procedures for a determination of the effect of such 
     change on Ballistic Missile Defense System capabilities and 
     on the cost of the PAC-3/MEADS program; and
       (B) procedures for review of the proposed change by all 
     relevant commands and agencies of the Department of Defense, 
     including determination of the concurrence or nonconcurrence 
     of each such command and agency with respect to such proposed 
     change.
       (d) Report.--Not later than February 1, 2005, the Secretary 
     of Defense shall submit to the congressional defense 
     committees a report describing the procedures developed 
     pursuant to subsection (c)(2).
       (e) Definitions.--For purpose of this section:
       (1) The term ``significant change'' means, with respect to 
     the PAC-3/MEADS program, a change that would substantially 
     alter the role or contribution of that program in the 
     Ballistic Missile Defense System.
       (2) The term ``baseline technical specifications'' means, 
     with respect to the PAC-3/MEADS program, those technical 
     specifications for that program that have been approved by 
     the configuration control board of the Missile Defense Agency 
     and are in effect as of the date of the review.
       (3) The term ``baseline schedule'' means, with respect to 
     the PAC-3/MEADS program, the development and production 
     schedule for the PAC-3/MEADS program in effect at the time of 
     a review of such program conducted pursuant to subsection (b) 
     or (c)(2)(B).

     SEC. 233. COMPTROLLER GENERAL ASSESSMENTS OF BALLISTIC 
                   MISSILE DEFENSE PROGRAMS.

       Section 232(g) of the National Defense Authorization Act 
     for Fiscal Year 2002 (10 U.S.C. 2431 note) is amended to read 
     as follows:
       ``(g) Comptroller General Assessment.--(1) At the 
     conclusion of each of fiscal years 2002 through 2006, the 
     Comptroller General of the United States shall carry out an 
     assessment of the extent to which the Missile Defense Agency 
     achieved the goals established under subsection (c) for that 
     fiscal year for each ballistic missile defense program of the 
     Department of Defense.
       ``(2) Not later than February 15 of each of 2003 through 
     2007, the Comptroller General shall submit to the 
     congressional defense committees a report on the Comptroller 
     General's assessment under paragraph (1) with respect to the 
     preceding fiscal year.''.

     SEC. 234. BASELINES AND OPERATIONAL TEST AND EVALUATION FOR 
                   BALLISTIC MISSILE DEFENSE SYSTEM.

       (a) Testing Criteria.--Not later than February 1, 2005, the 
     Secretary of Defense, in consultation with the Director of 
     Operational Test and Evaluation, shall prescribe appropriate 
     criteria for operationally realistic testing of fieldable 
     prototypes developed under the ballistic missile defense 
     spiral development program. The Secretary shall submit a copy 
     of the prescribed criteria to the congressional defense 
     committees.
       (b) Use of Criteria.--(1) The Secretary of Defense shall 
     ensure that, not later than October 1, 2005, a test of the 
     ballistic missile defense system is conducted consistent with 
     the criteria prescribed under subsection (a).
       (2) The Secretary of Defense shall ensure that each block 
     configuration of the ballistic missile defense system is 
     tested consistent with the criteria prescribed under 
     subsection (a).
       (c) Relationship to Other Law.--Nothing in this section 
     shall be construed to exempt any spiral development program 
     of the Department of Defense, after completion of the spiral 
     development, from the applicability of any provision of 
     chapter 144 of title 10, United States Code, or section 139, 
     181, 2366, 2399, or 2400 of such title in accordance with the 
     terms and conditions of such provision.
       (d) Evaluation.--(1) The Director of Operational Test and 
     Evaluation shall evaluate the results of each test conducted 
     under subsection (a) as soon as practicable after the 
     completion of such test.
       (2) The Director shall submit to the Secretary of Defense 
     and the congressional defense committees a report on the 
     evaluation of each test conducted under subsection (a) upon 
     completion of the evaluation of such test under paragraph 
     (1).
       (e) Cost, Schedule, and Performance Baselines.--(1) The 
     Director of the Missile Defense Agency shall establish cost, 
     schedule, and performance baselines for each block 
     configuration of the Ballistic Missile Defense System being 
     fielded. The cost baseline for a block configuration shall 
     include full life cycle costs for the block configuration.
       (2) The Director shall include the baselines established 
     under paragraph (1) in the first Selected Acquisition Report 
     for the Ballistic Missile Defense System that is submitted to 
     Congress under section 2432 of title 10, United States Code, 
     after the establishment of such baselines.
       (3) The Director shall also include in the Selected 
     Acquisition Report submitted to Congress under paragraph (2) 
     the significant assumptions used in determining the 
     performance baseline under paragraph (1), including any 
     assumptions regarding threat missile countermeasures and 
     decoys.
       (f) Variations Against Baselines.--In the event the cost, 
     schedule, or performance of any block configuration of the 
     Ballistic Missile Defense System varies significantly (as 
     determined by the Director of the Ballistic Missile Defense 
     Agency) from the applicable baseline established under 
     subsection (d), the Director shall include such variation, 
     and the reasons for such variation, in the Selected 
     Acquisition Report submitted to Congress under section 2432 
     of title 10, United States Code.
       (g) Modifications of Baselines.--In the event the Director 
     of the Missile Defense Agency elects to undertake any 
     modification of a baseline established under subsection (d), 
     the Director shall submit to the congressional defense 
     committees a report setting forth the reasons for such 
     modification.

                       Subtitle D--Other Matters

     SEC. 241. ANNUAL REPORT ON SUBMARINE TECHNOLOGY INSERTION.

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

     SEC. 242. SENSE OF CONGRESS REGARDING FUNDING OF THE ADVANCED 
                   SHIPBUILDING ENTERPRISE UNDER THE NATIONAL 
                   SHIPBUILDING RESEARCH PROGRAM OF THE NAVY.

       (a) Findings.--Congress makes the following findings:
       (1) The budget for fiscal year 2005, as submitted to 
     Congress by the President, provides $10,300,000 for the 
     Advanced Shipbuilding Enterprise under the National 
     Shipbuilding Research Program of the Navy.
       (2) The Advanced Shipbuilding Enterprise is an innovative 
     program to encourage greater efficiency in the national 
     technology and industrial base.
       (3) The leaders of the United States shipbuilding industry 
     have embraced the Advanced Shipbuilding Enterprise as a 
     method for exploring and collaborating on innovation in 
     shipbuilding and ship repair that collectively benefits all 
     components of the industry.
       (b) Sense of Congress.--It is the sense of Congress--
       (1) that Congress--

[[Page H9197]]

       (A) strongly supports the innovative Advanced Shipbuilding 
     Enterprise under the National Shipbuilding Research Program 
     as an enterprise between the Navy and industry that has 
     yielded new processes and techniques that reduce the cost of 
     building and repairing ships in the United States; and
       (B) is concerned that the future-years defense program of 
     the Department of Defense that was submitted to Congress for 
     fiscal year 2005 does not reflect any funding for the 
     Advanced Shipbuilding Enterprise after fiscal year 2005; and
       (2) that the Secretary of Defense should continue to 
     provide in the future-years defense program for funding the 
     Advanced Shipbuilding Enterprise at a sustaining level in 
     order to support additional research to further reduce the 
     cost of designing, building, and repairing ships.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

Sec. 301. Operation and maintenance funding.
Sec. 302. Working capital funds.
Sec. 303. Other Department of Defense programs.

                  Subtitle B--Environmental Provisions

Sec. 311. Satisfaction of Superfund audit requirements by Inspector 
              General of the Department of Defense.
Sec. 312. Reimbursement of Environmental Protection Agency for certain 
              costs in connection with Moses Lake Wellfield Superfund 
              Site, Moses Lake, Washington.
Sec. 313. Increase in authorized amount of environmental remediation, 
              Front Royal, Virginia.
Sec. 314. Small boat harbor, Unalaska, Alaska.
Sec. 315. Report regarding encroachment issues affecting Utah Test and 
              Training Range, Utah.
Sec. 316. Comptroller General study and report on alternative 
              technologies to decontaminate groundwater at Department 
              of Defense installations.
Sec. 317. Comptroller General study and report on drinking water 
              contamination and related health effects at Camp Lejeune, 
              North Carolina.
Sec. 318. Sense of Congress regarding perchlorate contamination of 
              ground and surface water from Department of Defense 
              activities.

                 Subtitle C--Workplace and Depot Issues

Sec. 321. Simplification of annual reporting requirements concerning 
              funds expended for depot maintenance and repair 
              workloads.
Sec. 322. Repeal of annual reporting requirement concerning management 
              of depot employees.
Sec. 323. Extension of special treatment for certain expenditures 
              incurred in operation of Centers of Industrial and 
              Technical Excellence.
Sec. 324. Temporary authority for contractor performance of security-
              guard functions.
Sec. 325. Pilot program for purchase of certain municipal services for 
              Army installations.
Sec. 326. Bid protests by Federal employees in actions under Office of 
              Management and Budget Circular A-76.
Sec. 327. Limitations on conversion of work performed by Department of 
              Defense civilian employees to contractor performance.
Sec. 328. Competitive sourcing reporting requirement.

                   Subtitle D--Information Technology

Sec. 331. Preparation of Department of Defense plan for transition to 
              Internet Protocol version 6.
Sec. 332. Defense business enterprise architecture, system 
              accountability, and conditions for obligation of funds 
              for defense business system modernization.
Sec. 333. Report on maturity and effectiveness of the Global 
              Information Grid Bandwidth Expansion (GIG-BE).

             Subtitle E--Extensions of Program Authorities

Sec. 341. Two-year extension of Department of Defense 
              telecommunications benefit.
Sec. 342. Extension of Arsenal Support Program Initiative.
Sec. 343. Two-year extension of warranty claims recovery pilot program.

                       Subtitle F--Other Matters

Sec. 351. Reimbursement for certain protective, safety, or health 
              equipment purchased by or for members of the Armed Forces 
              deployed in contingency operations.
Sec. 352. Limitation on preparation or implementation of Mid-Range 
              Financial Improvement Plan pending report.
Sec. 353. Pilot program to authorize Army working-capital funded 
              facilities to engage in cooperative activities with non-
              Army entities.
Sec. 354. Transfer of excess Department of Defense personal property to 
              assist firefighting agencies.

              Subtitle A--Authorization of Appropriations

     SEC. 301. OPERATION AND MAINTENANCE FUNDING.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for the use of the Armed Forces and other 
     activities and agencies of the Department of Defense for 
     expenses, not otherwise provided for, for operation and 
     maintenance, in amounts as follows:
       (1) For the Army, $26,098,411,000.
       (2) For the Navy, $29,682,590,000.
       (3) For the Marine Corps, $3,648,115,000.
       (4) For the Air Force, $28,298,660,000.
       (5) For Defense-wide activities, $17,325,276,000.
       (6) For the Army Reserve, $2,008,128,000.
       (7) For the Naval Reserve, $1,240,038,000.
       (8) For the Marine Corps Reserve, $188,696,000
       (9) For the Air Force Reserve, $2,239,790,000
       (10) For the Army National Guard, $4,452,786,000.
       (11) For the Air National Guard, $4,503,338,000.
       (12) For the United States Court of Appeals for the Armed 
     Forces, $10,825,000.
       (13) For Environmental Restoration, Army, $400,948,000.
       (14) For Environmental Restoration, Navy, $266,820,000.
       (15) For Environmental Restoration, Air Force, 
     $397,368,000.
       (16) For Environmental Restoration, Defense-wide, 
     $23,684,000
       (17) For Environmental Restoration, Formerly Used Defense 
     Sites, $256,516,000.
       (18) For Overseas Humanitarian, Disaster, and Civic Aid 
     programs, $59,000,000.
       (19) For Cooperative Threat Reduction programs, 
     $409,200,000.
       (20) For the Overseas Contingency Operations Transfer Fund, 
     $10,000,000.

     SEC. 302. WORKING CAPITAL FUNDS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for the use of the Armed Forces and other 
     activities and agencies of the Department of Defense for 
     providing capital for working capital and revolving funds in 
     amounts as follows:
       (1) For the Defense Working Capital Funds, $451,886,000.
       (2) For the National Defense Sealift Fund, $1,269,252,000.
       (3) For the Defense Working Capital Fund, Defense 
     Commissary, $1,175,000,000.

     SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

       (a) Defense Health Program.--Funds are hereby authorized to 
     be appropriated for the Department of Defense for fiscal year 
     2005 for expenses, not otherwise provided for, for the 
     Defense Health Program, in the amount of $17,657,386,000, of 
     which--
       (1) $17,219,844,000 is for Operation and Maintenance;
       (2) $72,907,000 is for Research, Development, Test, and 
     Evaluation; and
       (3) $364,635,000 is for Procurement.
       (b) Chemical Agents and Munitions Destruction, Defense.--
     (1) Funds are hereby authorized to be appropriated for the 
     Department of Defense for fiscal year 2005 for expenses, not 
     otherwise provided for, for Chemical Agents and Munitions 
     Destruction, Defense, in the amount of $1,371,990,000, of 
     which--
       (A) $1,088,801,000 is for Operation and Maintenance;
       (B) $204,209,000 is for Research, Development, Test, and 
     Evaluation; and
       (C) $78,980,000 is for Procurement.
       (2) Amounts authorized to be appropriated under paragraph 
     (1) are authorized for--
       (A) the destruction of lethal chemical agents and munitions 
     in accordance with section 1412 of the Department of Defense 
     Authorization Act, 1986 (50 U.S.C. 1521); and
       (B) the destruction of chemical warfare materiel of the 
     United States that is not covered by section 1412 of such 
     Act.
       (c) Drug Interdiction and Counter-Drug Activities, Defense-
     wide.--Funds are hereby authorized to be appropriated for the 
     Department of Defense for fiscal year 2005 for expenses, not 
     otherwise provided for, for Drug Interdiction and Counter-
     Drug Activities, Defense-wide, in the amount of $852,947,000.
       (d) Defense Inspector General.--Funds are hereby authorized 
     to be appropriated for the Department of Defense for fiscal 
     year 2005 for expenses, not otherwise provided for, for the 
     Office of the Inspector General of the Department of Defense, 
     in the amount of $204,562,000, of which--
       (1) $202,362,000 is for Operation and Maintenance;
       (2) $2,100,000 is for Procurement; and
       (3) $100,000 is for Research, Development, Test, and 
     Evaluation.

                  Subtitle B--Environmental Provisions

     SEC. 311. SATISFACTION OF SUPERFUND AUDIT REQUIREMENTS BY 
                   INSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSE.

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

     SEC. 312. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY 
                   FOR CERTAIN COSTS IN CONNECTION WITH MOSES LAKE 
                   WELLFIELD SUPERFUND SITE, MOSES LAKE, 
                   WASHINGTON.

       (a) Authority To Reimburse.--(1) Using funds described in 
     subsection (b), the Secretary of Defense may transfer not 
     more than $524,926.54 to the Moses Lake Wellfield Superfund 
     Site 10-6J Special Account.
       (2) The payment under paragraph (1) is to reimburse the 
     Environmental Protection Agency for its costs, including 
     interest, incurred in overseeing a remedial investigation/
     feasibility study performed by the Department of the Army 
     under

[[Page H9198]]

     the Defense Environmental Restoration Program at the former 
     Larson Air Force Base, Moses Lake Superfund Site, Moses Lake, 
     Washington.
       (3) The reimbursement described in paragraph (2) is 
     provided for in the interagency agreement entered into by the 
     Department of the Army and the Environmental Protection 
     Agency for the Moses Lake Wellfield Superfund Site in March 
     1999.
       (b) Source of Funds.--Any payment under subsection (a) 
     shall be made using funds authorized to be appropriated by 
     section 301(17) for operation and maintenance for 
     Environmental Restoration, Formerly Used Defense Sites.
       (c) Use of Funds.--The Environmental Protection Agency 
     shall use the amount transferred under subsection (a) to pay 
     costs incurred by the Agency at the Moses Lake Wellfield 
     Superfund Site.

     SEC. 313. INCREASE IN AUTHORIZED AMOUNT OF ENVIRONMENTAL 
                   REMEDIATION, FRONT ROYAL, VIRGINIA.

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

     SEC. 314. SMALL BOAT HARBOR, UNALASKA, ALASKA.

       The Secretary of the Army shall carry out the small boat 
     harbor project in Unalaska, Alaska, at a total estimated cost 
     of $23,200,000, with an estimated Federal cost of $11,500,000 
     and an estimated non-Federal cost of $11,700,000, 
     substantially in accordance with the plans, and subject to 
     the conditions, recommended in a final report of the Chief of 
     Engineers if a favorable final report of the Chief for the 
     project is completed not later than December 31, 2004.

     SEC. 315. REPORT REGARDING ENCROACHMENT ISSUES AFFECTING UTAH 
                   TEST AND TRAINING RANGE, UTAH.

       (a) Report Required.--The Secretary of the Air Force shall 
     prepare a report that outlines current and anticipated 
     encroachments on the use and utility of the special use 
     airspace of the Utah Test and Training Range in the State of 
     Utah, including encroachments brought about through actions 
     of other Federal agencies. The Secretary shall include in the 
     report such recommendations as the Secretary considers 
     appropriate regarding any legislative initiatives necessary 
     to address encroachment problems identified by the Secretary 
     in the report.
       (b) Submission of Report.--Not later than one year after 
     the date of the enactment of this Act, the Secretary shall 
     submit the report to the Committee on Armed Services of the 
     House of Representatives and the Committee on Armed Services 
     of the Senate. It is the sense of Congress that the 
     recommendations contained in the report should be carefully 
     considered for future legislative action.
       (c) Prohibition on Ground Military Operations.--Nothing in 
     this section shall be construed to permit a military 
     operation to be conducted on the ground in a covered 
     wilderness study area in the Utah Test and Training Range.
       (d) Communications and Tracking Systems.--Nothing in this 
     section shall be construed to prevent any required 
     maintenance of existing communications, instrumentation, or 
     electronic tracking systems (or the infrastructure supporting 
     such systems) necessary for effective testing and training to 
     meet military requirements in the Utah Test and Training 
     Range.

     SEC. 316. COMPTROLLER GENERAL STUDY AND REPORT ON ALTERNATIVE 
                   TECHNOLOGIES TO DECONTAMINATE GROUNDWATER AT 
                   DEPARTMENT OF DEFENSE INSTALLATIONS.

       (a) Comptroller General Study.--The Comptroller General 
     shall conduct a study to determine whether cost-effective 
     technologies are available to the Department of Defense for 
     the cleanup of groundwater contamination at Department 
     installations in lieu of traditional methods, such as pump 
     and treat, used to respond to groundwater contamination.
       (b) Elements of Study.--In conducting the study under 
     subsection (a), the Comptroller General shall--
       (1) identify current technologies being used or field 
     tested by the Department of Defense to treat groundwater at 
     Department installations;
       (2) identify cost-effective technologies for the cleanup of 
     groundwater contamination that--
       (A) are being researched, are under development by 
     commercial vendors, or are available commercially and being 
     used outside the Department; and
       (B) have potential for use by the Department to address 
     groundwater contamination;
       (3) evaluate the potential benefits and limitations of 
     using the technologies identified under paragraphs (1) and 
     (2); and
       (4) consider the barriers, such as cost, capability, or 
     legal restrictions, to using the technologies identified 
     under paragraph (2).
       (c) Report Required.--Not later than April 1, 2005, the 
     Comptroller General shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives a report containing the results 
     of the study, including information regarding the matters 
     specified in subsection (b) and any recommendations, 
     including recommendations for administrative or legislative 
     action, that the Comptroller General considers appropriate.

     SEC. 317. COMPTROLLER GENERAL STUDY AND REPORT ON DRINKING 
                   WATER CONTAMINATION AND RELATED HEALTH EFFECTS 
                   AT CAMP LEJEUNE, NORTH CAROLINA.

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

     SEC. 318. SENSE OF CONGRESS REGARDING PERCHLORATE 
                   CONTAMINATION OF GROUND AND SURFACE WATER FROM 
                   DEPARTMENT OF DEFENSE ACTIVITIES.

       It is the sense of Congress that the Secretary of Defense 
     should--
       (1) develop a plan for the remediation of perchlorate 
     contamination resulting from the activities of the Department 
     of Defense to ensure that the Department is prepared to 
     respond quickly and appropriately once the United States 
     establishes a drinking water standard for perchlorate;
       (2) continue remediation activities for perchlorate 
     contamination at those sites where perchlorate contamination 
     poses an imminent and substantial endangerment to public 
     health and welfare and where the Department is undertaking 
     site-specific remedial action as of the date of the enactment 
     of this Act;
       (3) develop a plan for the remediation of perchlorate 
     contamination resulting from the activities of the Department 
     of Defense in cases in which, notwithstanding the lack of a 
     drinking water standard for perchlorate, such contamination 
     is present in ground or surface water at levels that the 
     Secretary of Defense determines pose a hazard to human 
     health; and
       (4) continue the process of evaluating and prioritizing 
     perchlorate contamination sites without waiting for the 
     establishment of the Federal drinking water standard for 
     perchlorate.

                 Subtitle C--Workplace and Depot Issues

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

       Subsection (d) of section 2466 of title 10, United States 
     Code, is amended to read as follows:
       ``(d) Annual Report and Review.--(1) Not later than April 1 
     of each year, the Secretary of Defense shall submit to 
     Congress a report identifying, for each of the armed forces 
     (other than the Coast Guard) and each Defense Agency, the 
     percentage of the funds referred to in subsection (a) that 
     was expended during the preceding fiscal year, and are 
     projected to be expended during the current fiscal year and 
     the ensuing fiscal year, for performance of depot-level 
     maintenance and repair workloads by the public and private 
     sectors.
       ``(2) Not later than 90 days after the date on which the 
     Secretary submits a report under paragraph (1), the 
     Comptroller General shall submit to Congress the Comptroller 
     General's views on whether--
       ``(A) the Department of Defense complied with the 
     requirements of subsection (a) during the preceding fiscal 
     year covered by the report; and
       ``(B) the expenditure projections for the current fiscal 
     year and the ensuing fiscal year are reasonable.''.

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

       (a) Repeal.--Section 2472 of title 10, United States Code, 
     is amended--

[[Page H9199]]

       (1) by striking ``(a) Prohibition on Management by End 
     Strength.--''; and
       (2) by striking subsection (b).
       (b) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

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

       (2) The table of sections at the beginning of chapter 146 
     of such title is amended by striking the item relating to 
     section 2472 and inserting the following new item:

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

     SEC. 323. EXTENSION OF SPECIAL TREATMENT FOR CERTAIN 
                   EXPENDITURES INCURRED IN OPERATION OF CENTERS 
                   OF INDUSTRIAL AND TECHNICAL EXCELLENCE.

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

     SEC. 324. TEMPORARY AUTHORITY FOR CONTRACTOR PERFORMANCE OF 
                   SECURITY-GUARD FUNCTIONS.

       (a) Conditional Extension of Authority.--Subsection (c) of 
     section 332 of the Bob Stump National Defense Authorization 
     Act for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2513) 
     is amended--
       (1) by inserting ``(1)'' after ``Authority.--''; and
       (2) by striking ``at the end of the three-year period'' and 
     all that follows through the period at the end of the 
     subsection and inserting the following: ``at the end of 
     September 30, 2006, except that such authority shall not be 
     in effect after December 1, 2005, if the Secretary fails to 
     submit to Congress the plan required by subsection (d)(4), 
     until the date on which the Secretary submits the plan.
       ``(2) No security-guard functions may be performed under 
     any contract entered into using the authority provided under 
     this section during any period in which the authority for 
     contractor performance of security-guard functions under this 
     section is not in effect under paragraph (1). The term of any 
     contract entered into using such authority may not extend 
     beyond September 30, 2006.''.
       (b) Reaffirmation and Revision of Reporting Requirement.--
     Subsection (d) of such section is amended to read as follows:
       ``(d) Report and Plan Required.--Not later than December 1, 
     2005, the Secretary of Defense shall submit to the 
     congressional defense committees a report that--
       ``(1) identifies each contract for the performance of 
     security-guard functions entered into on or before September 
     30, 2004, pursuant to the authority provided by subsection 
     (a), including information regarding--
       ``(A) each installation at which such security-guard 
     functions are performed or are to be performed;
       ``(B) the period and amount of such contract;
       ``(C) the number of security guards employed or to be 
     employed under such contract;
       ``(D) whether the contract was awarded pursuant to full and 
     open competition; and
       ``(E) the actions taken or to be taken within the 
     Department of Defense to ensure that the conditions 
     applicable under paragraph (1) of subsection (a) or 
     determined under paragraph (2) of such subsection are 
     satisfied;
       ``(2) identifies, for each military installation at which 
     such authority was used or is expected to be used, any 
     requirements for the performance of security-guard functions 
     described in subsection (a) that are expected to continue 
     after the date on which such authority expires;
       ``(3) identifies any limitation or constraint on the end 
     strength of the civilian workforce of the Department of 
     Defense that makes it difficult to meet requirements 
     identified under paragraph (2) by hiring personnel as 
     civilian employees of the Department of Defense; and
       ``(4) includes a plan for meeting such requirements, in a 
     manner consistent with applicable law, on a long-term 
     basis.''.

     SEC. 325. PILOT PROGRAM FOR PURCHASE OF CERTAIN MUNICIPAL 
                   SERVICES FOR ARMY INSTALLATIONS.

       (a) Pilot Program Authorized.--The Secretary of Army may 
     carry out a pilot program to procure one or more of the 
     municipal services specified in subsection (b) for an Army 
     installation from a county or municipality in which the 
     installation is located for the purpose of evaluating the 
     efficacy of procuring such services rather than providing 
     them directly.
       (b) Services Authorized for Procurement.--Only the 
     following services may be procured for a military 
     installation participating in the pilot program:
       (1) Refuse collection.
       (2) Refuse disposal.
       (3) Library services.
       (4) Recreation services.
       (5) Facility maintenance and repair.
       (6) Utilities.
       (c) Participating Installations.--Not more than two Army 
     installations may be selected to participate in the pilot 
     program, and only installations located in the United States 
     are eligible for selection.
       (d) Congressional Notification.--The Secretary may not 
     enter into a contract under the pilot program for the 
     procurement of municipal services until the Secretary 
     notifies the congressional defense committees of the proposed 
     contract and a period of 14 days elapses from the date the 
     notification is received by the committees.
       (e) Implementation Report.--(1) Not later than February 1, 
     2007, the Secretary shall submit to the congressional defense 
     committees and the Comptroller General a report describing 
     the implementation of the pilot program, evaluating the 
     efficacy of procuring municipal services for participating 
     installations from local counties or municipalities, and 
     containing any recommendations that the Secretary considers 
     appropriate regarding expansion or alteration of the program.
       (2) The Comptroller General shall submit to the 
     congressional defense committees an assessment of the 
     findings and recommendations contained in the report 
     submitted under paragraph (1).
       (f) Termination of Pilot Program.--The pilot program shall 
     terminate on September 30, 2010. Any contract entered into 
     under the pilot program shall terminate not later than that 
     date.

     SEC. 326. BID PROTESTS BY FEDERAL EMPLOYEES IN ACTIONS UNDER 
                   OFFICE OF MANAGEMENT AND BUDGET CIRCULAR A-76.

       (a) Treatment of Agency Tender Official as Interested 
     Party.--Section 3551(2) of title 31, United States Code, is 
     amended--
       (1) by inserting ``(A)'' after ``(2)''; and
       (2) by adding at the end the following new subparagraph:
       ``(B) The term includes the official responsible for 
     submitting the Federal agency tender in a public-private 
     competition conducted under Office of Management and Budget 
     Circular A-76 regarding an activity or function of a Federal 
     agency performed by more than 65 full-time equivalent 
     employees of the Federal agency.''.
       (b) Filing of Protest on Behalf of Federal Employees.--
     Section 3552 of such title is amended--
       (1) by inserting ``(a)'' before ``A protest''; and
       (2) by adding at the end the following new subsection:
       ``(b)(1) In the case of an agency tender official who is an 
     interested party under section 3551(2)(B) of this title, the 
     official may file a protest in connection with the public-
     private competition for which the official is an interested 
     party. At the request of a majority of the employees of the 
     Federal agency who are engaged in the performance of the 
     activity or function subject to such public-private 
     competition, the official shall file a protest in connection 
     with such public-private competition unless the official 
     determines that there is no reasonable basis for the protest.
       ``(2) The determination of an agency tender official under 
     paragraph (1) whether or not to file a protest is not subject 
     to administrative or judicial review. An agency tender 
     official shall provide written notification to Congress 
     whenever the official makes a determination under paragraph 
     (1) that there is no reasonable basis for a protest.''.
       (c) Intervention in Protest.--Section 3553 of such title is 
     amended by adding at the end the following new subsection:
       ``(g) If an interested party files a protest in connection 
     with a public-private competition described in section 
     3551(2)(B) of this title, a person representing a majority of 
     the employees of the Federal agency who are engaged in the 
     performance of the activity or function subject to the 
     public-private competition may intervene in protest.''.
       (d) Applicability.--The amendments made by this section 
     shall apply to protests filed under subchapter V of chapter 
     35 of title 31, United States Code, that relate to studies 
     initiated under Office of Management and Budget Circular A-76 
     on or after the end of the 90-day period beginning on the 
     date of the enactment of this Act.
       (e) Rule of Construction.--The amendments made by this 
     section shall not be construed to authorize the use of a 
     protest under subchapter V of chapter 35 of title 31, United 
     States Code, with regard to a decision made by an agency 
     tender official.

     SEC. 327. LIMITATIONS ON CONVERSION OF WORK PERFORMED BY 
                   DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES TO 
                   CONTRACTOR PERFORMANCE.

       (a) Required Cost-Savings Threshold for Conversion.--If a 
     public-private competition conducted under the Office of 
     Management and Budget Circular A-76 dated May 29, 2003 (68 
     Fed. Reg. 32134), regarding an activity or function performed 
     by civilian employees of the Department of Defense is 
     required to include a formal comparison of the cost of 
     civilian employee performance of the activity or function 
     with the cost of contractor performance, the Secretary of 
     Defense shall maintain the continued performance of the 
     activity or function by civilian employees unless the 
     competitive sourcing official determines that, over all 
     performance periods stated in the solicitation of offers for 
     performance of the activity or function, the cost of 
     performance of the activity or function by a contractor would 
     be less costly to the Department of Defense by an amount that 
     equals or exceeds the lesser of the following:
       (1) $10,000,000.
       (2) 10 percent of the most efficient organization's 
     personnel-related costs for performance of the activity or 
     function by civilian employees.
       (b) Prohibition on Modification of Functions to Permit 
     Streamlined A-76 Study.--The Secretary of Defense shall 
     ensure that no organization, function, or activity of the 
     Department of Defense is consolidated, restructured, 
     reengineered, or otherwise modified in any way for the 
     purpose of exempting any public-private competition conducted 
     under the Office of Management and Budget Circular A-76 dated 
     May 29, 2003 (68 Fed. Reg. 32134), regarding a commercial or 
     industrial type function of the Department of Defense from 
     the requirement to formally compare, in accordance with such 
     Circular, the cost of civilian employee performance of the 
     function with the cost of contractor performance.
       (c) Exception.--Subsection (a) does not apply in the case 
     of a public-private competition conducted as part of the 
     best-value source selection pilot program authorized by 
     section 336 of the National Defense Authorization Act for 
     Fiscal Year 2004 (Public Law 108-136; 10 U.S.C. 2461 note).

[[Page H9200]]

     SEC. 328. COMPETITIVE SOURCING REPORTING REQUIREMENT.

       Not later than February 1, 2005, the Inspector General of 
     the Department of Defense shall submit to Congress a report 
     addressing whether the Department of Defense--
       (1) employs a sufficient number of adequately trained 
     civilian employees--
       (A) to conduct satisfactorily, taking into account equity, 
     efficiency and expeditiousness, all of the public-private 
     competitions that are scheduled to be undertaken by the 
     Department of Defense during the next fiscal year (including 
     a sufficient number of employees to formulate satisfactorily 
     the performance work statements and most efficient 
     organization plans for the purposes of such competitions); 
     and
       (B) to administer any resulting contracts; and
       (2) has implemented a comprehensive and reliable system to 
     track and assess the cost and quality of the performance of 
     functions of the Department of Defense by service 
     contractors.

                   Subtitle D--Information Technology

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

       (a) Transition Plan Required.--The Secretary of Defense 
     shall prepare a plan detailing the Department of Defense 
     strategy to provide for the transition of the Department's 
     information technology systems to Internet Protocol version 6 
     from the present use of Internet Protocol version 4 and other 
     network protocols. In preparing the transition plan, the 
     Secretary shall compare private industry plans for the 
     transition to Internet Protocol version 6.
       (b) Elements of Plan.--The transition plan required by 
     subsection (a) shall include the following:
       (1) An outline of the networking and security system 
     equipment that will need to be replaced in the transition, 
     including the timing and costs of such replacement.
       (2) An assessment of how the current and new networks and 
     security systems will be managed.
       (3) An assessment of the potential impact of the 
     transition, including an overall cost estimate for the 
     transition and an estimate of the costs to be incurred by 
     each of the military departments and the Defense Agencies.
       (4) Any measures proposed to alleviate any adverse effects 
     of the transition.
       (c) Testing and Evaluation for Internet Protocol.--To 
     determine whether a change to the use of Internet Protocol 
     version 6 will support Department of Defense requirements, 
     the Secretary of Defense shall provide for rigorous, real-
     world, end-to-end testing of Internet Protocol version 6, as 
     proposed for use by the Department, to evaluate the 
     following:
       (1) The ability of Internet Protocol version 6, with its 
     ``best effort'' quality of service, to satisfactory support 
     the Department's multiple applications and other information 
     technology systems, including the use of Internet Protocol 
     version 6 over bandwidth-constrained tactical circuits.
       (2) The ability of the Department's networks using Internet 
     Protocol version 6 to respond to, and perform under, heavy 
     loading of the core networks.
       (d) Reports on Plan and Test Results.--(1) Not later than 
     March 31, 2005, the Secretary of Defense shall submit to the 
     congressional defense committees a report containing the 
     transition plan prepared under subsection (a).
       (2) Not later than September 30, 2005, the Director of 
     Operational Test and Evaluation shall submit to the 
     congressional defense committees a report containing an 
     update on the continuing test program and any test results.

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

       (a) In General.--(1) Chapter 131 of title 10, United States 
     Code, is amended by inserting before section 2223 the 
     following new section:

     ``Sec. 2222. Defense business systems: architecture, 
       accountability, and modernization

       ``(a) Conditions for Obligation of Funds for Defense 
     Business System Modernization.--Effective October 1, 2005, 
     funds appropriated to the Department of Defense may not be 
     obligated for a defense business system modernization that 
     will have a total cost in excess of $1,000,000 unless--
       ``(1) the approval authority designated for the defense 
     business system certifies to the Defense Business Systems 
     Management Committee established by section 186 of this title 
     that the defense business system modernization--
       ``(A) is in compliance with the enterprise architecture 
     developed under subsection (c);
       ``(B) is necessary to achieve a critical national security 
     capability or address a critical requirement in an area such 
     as safety or security; or
       ``(C) is necessary to prevent a significant adverse effect 
     on a project that is needed to achieve an essential 
     capability, taking into consideration the alternative 
     solutions for preventing such adverse effect; and
       ``(2) the certification by the approval authority is 
     approved by the Defense Business Systems Management 
     Committee.
       ``(b) Obligation of Funds in Violation of Requirements.--
     The obligation of Department of Defense funds for a business 
     system modernization in excess of the amount specified in 
     subsection (a) that has not been certified and approved in 
     accordance with such subsection is a violation of section 
     1341(a)(1)(A) of title 31.
       ``(c) Enterprise Architecture for Defense Business 
     Systems.--Not later than September 30, 2005, the Secretary of 
     Defense, acting through the Defense Business Systems 
     Management Committee, shall develop--
       ``(1) an enterprise architecture to cover all defense 
     business systems, and the functions and activities supported 
     by defense business systems, which shall be sufficiently 
     defined to effectively guide, constrain, and permit 
     implementation of interoperable defense business system 
     solutions and consistent with the policies and procedures 
     established by the Director of the Office of Management and 
     Budget, and
       ``(2) a transition plan for implementing the enterprise 
     architecture for defense business systems.
       ``(d) Composition of Enterprise Architecture.--The defense 
     business enterprise architecture developed under subsection 
     (c)(1) shall include the following:
       ``(1) An information infrastructure that, at a minimum, 
     would enable the Department of Defense to--
       ``(A) comply with all Federal accounting, financial 
     management, and reporting requirements;
       ``(B) routinely produce timely, accurate, and reliable 
     financial information for management purposes;
       ``(C) integrate budget, accounting, and program information 
     and systems; and
       ``(D) provide for the systematic measurement of 
     performance, including the ability to produce timely, 
     relevant, and reliable cost information.
       ``(2) Policies, procedures, data standards, and system 
     interface requirements that are to apply uniformly throughout 
     the Department of Defense.
       ``(e) Composition of Transition Plan.--(1) The transition 
     plan developed under subsection (c)(2) shall include the 
     following:
       ``(A) The acquisition strategy for new systems that are 
     expected to be needed to complete the defense business 
     enterprise architecture.
       ``(B) A listing of the defense business systems as of 
     December 2, 2002 (known as `legacy systems'), that will not 
     be part of the objective defense business enterprise 
     architecture, together with the schedule for terminating 
     those legacy systems that provides for reducing the use of 
     those legacy systems in phases.
       ``(C) A listing of the legacy systems (referred to in 
     subparagraph (B)) that will be a part of the objective 
     defense business system, together with a strategy for making 
     the modifications to those systems that will be needed to 
     ensure that such systems comply with the defense business 
     enterprise architecture.
       ``(2) Each of the strategies under paragraph (1) shall 
     include specific time-phased milestones, performance metrics, 
     and a statement of the financial and nonfinancial resource 
     needs.
       ``(f) Approval Authorities and Accountability for Defense 
     Business Systems.--The Secretary of Defense shall delegate 
     responsibility for review, approval, and oversight of the 
     planning, design, acquisition, deployment, operation, 
     maintenance, and modernization of defense business systems as 
     follows:
       ``(1) The Under Secretary of Defense for Acquisition, 
     Technology and Logistics shall be responsible and accountable 
     for any defense business system the primary purpose of which 
     is to support acquisition activities, logistics activities, 
     or installations and environment activities of the Department 
     of Defense.
       ``(2) The Under Secretary of Defense (Comptroller) shall be 
     responsible and accountable for any defense business system 
     the primary purpose of which is to support financial 
     management activities or strategic planning and budgeting 
     activities of the Department of Defense.
       ``(3) The Under Secretary of Defense for Personnel and 
     Readiness shall be responsible and accountable for any 
     defense business system the primary purpose of which is to 
     support human resource management activities of the 
     Department of Defense.
       ``(4) The Assistant Secretary of Defense for Networks and 
     Information Integration and the Chief Information Officer of 
     the Department of Defense shall be responsible and 
     accountable for any defense business system the primary 
     purpose of which is to support information technology 
     infrastructure or information assurance activities of the 
     Department of Defense.
       ``(5) The Deputy Secretary of Defense or an Under Secretary 
     of Defense, as designated by the Secretary of Defense, shall 
     be responsible for any defense business system the primary 
     purpose of which is to support any activity of the Department 
     of Defense not covered by paragraphs (1) through (4).
       ``(g) Defense Business System Investment Review.--(1) The 
     Secretary of Defense shall require each approval authority 
     designated under subsection (f) to establish, not later than 
     March 15, 2005, an investment review process, consistent with 
     section 11312 of title 40, to review the planning, design, 
     acquisition, development, deployment, operation, maintenance, 
     modernization, and project cost benefits and risks of all 
     defense business systems for which the approval authority is 
     responsible. The investment review process so established 
     shall specifically address the responsibilities of approval 
     authorities under subsection (a).
       ``(2) The review of defense business systems under the 
     investment review process shall include the following:
       ``(A) Review and approval by an investment review board of 
     each defense business system as an investment before the 
     obligation of funds on the system.
       ``(B) Periodic review, but not less than annually, of every 
     defense business system investment.
       ``(C) Representation on each investment review board by 
     appropriate officials from among the armed forces, combatant 
     commands, the Joint Chiefs of Staff, and Defense Agencies.
       ``(D) Use of threshold criteria to ensure an appropriate 
     level of review within the Department of Defense of, and 
     accountability for, defense business system investments 
     depending on scope, complexity, and cost.
       ``(E) Use of procedures for making certifications in 
     accordance with the requirements of subsection (a).
       ``(F) Use of procedures for ensuring consistency with the 
     guidance issued by the Secretary

[[Page H9201]]

     of Defense and the Defense Business Systems Management 
     Committee, as required by section 186(c) of this title, and 
     incorporation of common decision criteria, including 
     standards, requirements, and priorities that result in the 
     integration of defense business systems.
       ``(h) Budget Information.--In the materials that the 
     Secretary submits to Congress in support of the budget 
     submitted to Congress under section 1105 of title 31 for 
     fiscal year 2006 and fiscal years thereafter, the Secretary 
     of Defense shall include the following information:
       ``(1) Identification of each defense business system for 
     which funding is proposed in that budget.
       ``(2) Identification of all funds, by appropriation, 
     proposed in that budget for each such system, including--
       ``(A) funds for current services (to operate and maintain 
     the system); and
       ``(B) funds for business systems modernization, identified 
     for each specific appropriation.
       ``(3) For each such system, identification of the official 
     to whom authority for such system is delegated under 
     subsection (f).
       ``(4) For each such system, a description of each 
     certification made under subsection (d) with regard to such 
     system.
       ``(i) Congressional Reports.--Not later than March 15 of 
     each year from 2005 through 2009, the Secretary of Defense 
     shall submit to the congressional defense committees a report 
     on Department of Defense compliance with the requirements of 
     this section. The first report shall define plans and 
     commitments for meeting the requirements of subsection (a), 
     including specific milestones and performance measures. 
     Subsequent reports shall--
       ``(1) describe actions taken and planned for meeting the 
     requirements of subsection (a), including--
       ``(A) specific milestones and actual performance against 
     specified performance measures, and any revision of such 
     milestones and performance measures; and
       ``(B) specific actions on the defense business system 
     modernizations submitted for certification under such 
     subsection;
       ``(2) identify the number of defense business system 
     modernizations so certified;
       ``(3) identify any defense business system modernization 
     with an obligation in excess of $1,000,000 during the 
     preceding fiscal year that was not certified under subsection 
     (a), and the reasons for the waiver; and
       ``(4) discuss specific improvements in business operations 
     and cost savings resulting from successful defense business 
     systems modernization efforts.
       ``(j) Definitions.--In this section:
       ``(1) The term `approval authority', with respect to a 
     defense business system, means the Department of Defense 
     official responsible for the defense business system, as 
     designated by subsection (f).
       ``(2) The term `defense business system' means an 
     information system, other than a national security system, 
     operated by, for, or on behalf of the Department of Defense, 
     including financial systems, mixed systems, financial data 
     feeder systems, and information technology and information 
     assurance infrastructure, used to support business 
     activities, such as acquisition, financial management, 
     logistics, strategic planning and budgeting, installations 
     and environment, and human resource management.
       ``(3) The term `defense business system modernization' 
     means--
       ``(A) the acquisition or development of a new defense 
     business system; or
       ``(B) any significant modification or enhancement of an 
     existing defense business system (other than necessary to 
     maintain current services).
       ``(4) The term `enterprise architecture' has the meaning 
     given that term in section 3601(4) of title 44.
       ``(5) The terms `information system' and `information 
     technology' have the meanings given those terms in section 
     11101 of title 40.
       ``(6) The term `national security system' has the meaning 
     given that term in section 2315 of this title.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting before the item relating to section 
     2223 the following new item:

``2222. Defense business systems: architecture, accountability, and 
              modernization.''.

       (b) Defense Business System Management Committee.--(1) 
     Chapter 7 of such title is amended by adding at the end the 
     following new section:

     ``Sec. 186. Defense Business System Management Committee

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

``186. Defense Business System Management Committee.''.

       (c) Implementation Requirements.--Not later than 60 days 
     after the date of the enactment of this Act, the Secretary of 
     Defense shall--
       (1) complete the delegation of responsibility for the 
     review, approval, and oversight of the planning, design, 
     acquisition, deployment, operation, maintenance, and 
     modernization of defense business systems required by 
     subsection (f) of section 2222 of title 10, United States 
     Code, as added by subsection (a)(1); and
       (2) designate a vice chairman of the Defense Business 
     System Management Committee, as required by subsection (b) of 
     section 186 of such title, as added by subsection (b)(1).
       (d) Comptroller General Assessment.--Not later than 60 days 
     after the date on which the Secretary of Defense approves the 
     defense business enterprise architecture and transition plan 
     developed under section 2222 of title 10, United States Code, 
     as added by subsection (a)(1), and again each year not later 
     than 60 days after the submission of the annual report 
     required under subsection (i), the Comptroller General shall 
     submit to the congressional defense committees an assessment 
     of the extent to which the actions taken by the Department 
     comply with the requirements of such section.
       (e) Relation to Annual Registration Requirements.--Nothing 
     in sections 186 and 2222 of title 10, United States Code, as 
     added by this section, shall be construed to alter the 
     requirements of section 8083 of the Department of Defense 
     Appropriations Act, 2005 (Public Law 108-287; 118 Stat. 989), 
     with regard to information technology systems (as defined in 
     subsection (d) of such section).
       (f) Repeal of Obsolete Financial Management Enterprise 
     Architecture Requirements.--Section 1004 of the Bob Stump 
     National Defense Authorization Act for Fiscal Year 2003 
     (Public Law 107-314; 10 U.S.C. 113 note) is repealed.

     SEC. 333. REPORT ON MATURITY AND EFFECTIVENESS OF THE GLOBAL 
                   INFORMATION GRID BANDWIDTH EXPANSION (GIG-BE).

       (a) Report Required.--Not later that 180 days after the 
     date of the enactment of this Act, the Secretary of Defense 
     shall submit to the congressional defense committees a report 
     on a test program to demonstrate the maturity and 
     effectiveness of the Global Information Grid-Bandwidth 
     Expansion (hereinafter in this section referred to as ``GIG-
     BE'').
       (b) Content of Report.--In the report under subsection (a), 
     the Secretary of Defense shall include the following:
       (1) The Secretary's determination as to whether the results 
     of the test program described in subsection (a) demonstrate 
     compliance of the GIG-BE architecture with the overall goals 
     of the GIG-BE program.
       (2) Identification of--
       (A) the extent to which the GIG-BE architecture does not 
     meet the overall goals of the GIG-BE program; and
       (B) the components of that architecture that are not yet 
     sufficiently developed to achieve the overall goals of that 
     program.
       (3) A plan for achieving compliance referred to in 
     paragraph (1), together with cost estimates for carrying out 
     that plan.
       (4) Documentation of the equipment and network 
     configuration used in the test program to demonstrate real-
     world scenarios for the operation of the GIG-BE within the 
     continental United States.

             Subtitle E--Extensions of Program Authorities

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

       Section 344(c) of the National Defense Authorization Act 
     for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1448) is 
     amended by striking ``September 30, 2004'' and inserting 
     ``September 30, 2006''.

     SEC. 342. EXTENSION OF ARSENAL SUPPORT PROGRAM INITIATIVE.

       (a) Duration of Program.--Subsection (a) of section 343 of 
     the Floyd D. Spence National Defense Authorization Act for 
     Fiscal Year 2001 (as

[[Page H9202]]

     enacted into law by Public Law 106-398; 10 U.S.C. 4551 note) 
     is amended by striking ``2004'' and inserting ``2008''.
       (b) Additional Report Required.--Subsection (g) of such 
     section is amended--
       (1) in paragraph (1), by striking ``2004'' and inserting 
     ``2008''; and
       (2) in paragraph (2), by striking ``2003'' and inserting 
     ``2007''.

     SEC. 343. TWO-YEAR EXTENSION OF WARRANTY CLAIMS RECOVERY 
                   PILOT PROGRAM.

       Section 391 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 10 U.S.C. 2304 note) is 
     amended--
       (1) in subsection (f), by striking ``September 30, 2004'' 
     and inserting ``September 30, 2006''; and
       (2) by adding at the end the following new subsection:
       ``(g) Reporting Requirement.--Not later than February 1, 
     2006, the Secretary of Defense shall submit to Congress a 
     report on the pilot program, including--
       ``(1) a description of the extent to which commercial firms 
     have been used to provide the services specified in 
     subsection (b) and the type of services procured;
       ``(2) a description of any problems that have limited the 
     ability of the Secretary to utilize the pilot program to 
     procure such services; and
       ``(3) the recommendation of the Secretary regarding whether 
     the pilot program should be made permanent or extended beyond 
     September 30, 2006.''.

                       Subtitle F--Other Matters

     SEC. 351. REIMBURSEMENT FOR CERTAIN PROTECTIVE, SAFETY, OR 
                   HEALTH EQUIPMENT PURCHASED BY OR FOR MEMBERS OF 
                   THE ARMED FORCES DEPLOYED IN CONTINGENCY 
                   OPERATIONS.

       (a) Reimbursement Required.--The Secretary of Defense shall 
     reimburse a member of the Armed Forces for the cost 
     (including any shipping cost) of any protective, safety, or 
     health equipment that was purchased by the member or by 
     another person on behalf of the member for the personal use 
     of the member in anticipation of, or during, the deployment 
     of the member in connection with Operation Noble Eagle, 
     Operation Enduring Freedom, or Operation Iraqi Freedom, but 
     only if--
       (1) the Secretary of Defense certifies that the protective, 
     safety, or health equipment was critical to the protection, 
     safety, or health of the member;
       (2) the member was not issued the protective, safety, or 
     health equipment before the member became engaged in 
     operations in areas or situations described in section 
     310(a)(2) of title 37, United States Code; and
       (3) the protective, safety, or health equipment was 
     purchased by the member during the period beginning on 
     September 11, 2001, and ending on July 31, 2004.
       (b) Amount of Reimbursement.--The amount of reimbursement 
     provided under subsection (a) per item of protective, safety, 
     or health equipment purchased by a member of the Armed Forces 
     may not exceed $1,100.
       (c) Submission of Reimbursement Claims.--Claims for 
     reimbursement for the cost of protective, safety, or health 
     equipment purchased by a member of the Armed Forces shall be 
     submitted to the Secretary of Defense under this section not 
     later than one year after the date on which the implementing 
     rules required by subsection (d) take effect.
       (d) Rulemaking.--Not later than 120 days after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     issue rules to expedite the provision of reimbursement under 
     subsection (a). In conducting such rulemaking, the Secretary 
     shall address the circumstances under which the United States 
     will assume title or ownership of any protective, safety, or 
     health equipment for which reimbursement is made.

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

       Amounts authorized to be appropriated to the Department of 
     Defense for fiscal year 2005 for operation and maintenance 
     may not be obligated for the purpose of preparing or 
     implementing the Mid-Range Financial Improvement Plan until 
     the Secretary of Defense submits to the congressional defense 
     committees a report containing the following:
       (1) A determination that the enterprise architecture for 
     defense business systems and the transition plan for 
     implementing the enterprise architecture have been developed, 
     as required by subsection (c) of section 2222 of title 10, 
     United States Code, as added by section 332(a).
       (2) An explanation of the manner in which the operation and 
     maintenance funds will be used for each of the military 
     departments and the Defense Agencies to prepare or implement 
     the Mid-Range Financial Improvement Plan during that fiscal 
     year.
       (3) An estimate of the costs for future fiscal years for 
     each of the military departments and the Defense Agencies to 
     prepare and implement the Mid-Range Financial Improvement 
     Plan.

     SEC. 353. PILOT PROGRAM TO AUTHORIZE ARMY WORKING-CAPITAL 
                   FUNDED FACILITIES TO ENGAGE IN COOPERATIVE 
                   ACTIVITIES WITH NON-ARMY ENTITIES.

       (a) Cooperative Arrangements Authorized.--Chapter 433 of 
     title 10, United States Code, is amended by adding at the end 
     the following new section:

     ``Sec. 4544. Army industrial facilities: cooperative 
       activities with non-Army entities

       ``(a) Cooperative Arrangements Authorized.--A working-
     capital funded Army industrial facility may enter into a 
     contract or other cooperative arrangement with a non-Army 
     entity to carry out with the non-Army entity a military or 
     commercial project described in subsection (b), subject to 
     the conditions prescribed in subsection (c).
       ``(b) Authorized Activities.--A cooperative arrangement 
     entered into by an Army industrial facility under subsection 
     (a) may provide for any of the following activities:
       ``(1) The sale of articles manufactured by the facility or 
     services performed by the facility to persons outside the 
     Department of the Army.
       ``(2) The performance of work by a non-Army entity at the 
     facility.
       ``(3) The performance of work by the facility for a non-
     Army entity.
       ``(4) The sharing of work by the facility and a non-Army 
     entity.
       ``(5) The leasing, or use under a facilities use contract 
     or otherwise, of the facility (including excess capacity) or 
     equipment (including excess equipment) of the facility by a 
     non-Army entity.
       ``(6) The preparation and submission of joint offers by the 
     facility and a non-Army entity for competitive procurements 
     entered into with Federal agency.
       ``(c) Conditions.--An activity authorized by subsection (b) 
     may be carried out at an Army industrial facility under a 
     cooperative arrangement entered into under subsection (a) 
     only under the following conditions:
       ``(1) In the case of an article to be manufactured or 
     services to be performed by the facility, the articles can be 
     substantially manufactured, or the services can be 
     substantially performed, by the facility without 
     subcontracting for more than incidental performance.
       ``(2) The activity does not interfere with performance of--
       ``(A) work by the facility for the Department of Defense; 
     or
       ``(B) a military mission of the facility.
       ``(3) The activity meets one of the following objectives:
       ``(A) Maximized utilization of the capacity of the 
     facility.
       ``(B) Reduction or elimination of the cost of ownership of 
     the facility.
       ``(C) Reduction in the cost of manufacturing or maintaining 
     Department of Defense products at the facility.
       ``(D) Preservation of skills or equipment related to a core 
     competency of the facility.
       ``(4) The non-Army entity agrees to hold harmless and 
     indemnify the United States from any liability or claim for 
     damages or injury to any person or property arising out of 
     the activity, including any damages or injury arising out of 
     a decision by the Secretary of the Army or the Secretary of 
     Defense to suspend or terminate an activity, or any portion 
     thereof, during a war or national emergency or to require the 
     facility to perform other work or provide other services on a 
     priority basis, except--
       ``(A) in any case of willful misconduct or gross 
     negligence; and
       ``(B) in the case of a claim by a purchaser of articles or 
     services under this section that damages or injury arose from 
     the failure of the United States to comply with quality, 
     schedule, or cost performance requirements in the contract to 
     carry out the activity.
       ``(d) Arangement Methods and Authorities.--To establish a 
     cooperative arrangement under subsection (a) with a non-Army 
     entity, the approval authority described in subsection (e) 
     for an Army industrial facility may--
       ``(1) enter into a firm, fixed-price contract (or, if 
     agreed to by the non-Army entity, a cost reimbursement 
     contract) for a sale of articles or services or use of 
     equipment or facilities;
       ``(2) enter into a multiyear contract for a period not to 
     exceed five years, unless a longer period is specifically 
     authorized by law;
       ``(3) charge the non-Army entity the amounts necessary to 
     recover the full costs of the articles or services provided, 
     including capital improvement costs, and equipment 
     depreciation costs associated with providing the articles, 
     services, equipment, or facilities;
       ``(4) authorize the non-Army entity to use incremental 
     funding to pay for the articles, services, or use of 
     equipment or facilities; and
       ``(5) accept payment-in-kind.
       ``(e) Approval Authority.--The authority of an Army 
     industrial facility to enter into a cooperative arrangement 
     under subsection (a) shall be exercised at the level of the 
     commander of the major subordinate command of the Army that 
     has responsibility for the facility. The commander may 
     approve such an arrangement on a case-by-case basis or a 
     class basis.
       ``(f) Commercial Sales.--Except in the case of work 
     performed for the Department of Defense, for a contract of 
     the Department of Defense, for foreign military sales, or for 
     authorized foreign direct commercial sales (defense articles 
     or defense services sold to a foreign government or 
     international organization under export controls), a sale of 
     articles or services may be made under this section only if 
     the approval authority described in subsection (e) determines 
     that the articles or services are not available from a 
     commercial source located in the United States in the 
     required quantity or quality, or within the time required.
       ``(g) Exclusion From Depot-Level Maintenance and Repair 
     Percentage Limitation.--Amounts expended for the performance 
     of a depot-level maintenance and repair workload by non-
     Federal Government personnel at an Army industrial facility 
     shall not be counted for purposes of applying the percentage 
     limitation in section 2466(a) of this title if the personnel 
     are provided by a non-Army entity pursuant to a cooperative 
     arrangement entered into under subsection (a).
       ``(h) Relationship to Other Laws.--Nothing in this section 
     shall be construed to affect the application of--
       ``(1) foreign military sales and the export controls 
     provided for in sections 30 and 38 of the Arms Export Control 
     Act (22 U.S.C. 2770 and 2778) to activities of a cooperative 
     arrangement entered into under subsection (a); and

[[Page H9203]]

       ``(2) section 2667 of this title to leases of non-excess 
     property in the administration of such an arrangement.
       ``(i) Definitions.--In this section:
       ``(1) The term `Army industrial facility' includes an 
     ammunition plant, an arsenal, a depot, and a manufacturing 
     plant.
       ``(2) The term `non-Army entity' includes the following:
       ``(A) A Federal agency (other than the Department of the 
     Army).
       ``(B) An entity in industry or commercial sales.
       ``(C) A State or political subdivision of a State.
       ``(D) An institution of higher education or vocational 
     training institution.
       ``(3) The term `incremental funding' means a series of 
     partial payments that--
       ``(A) are made as the work on manufacture or articles is 
     being performed or services are being performed or equipment 
     or facilities are used, as the case may be; and
       ``(B) result in full payment being completed as the 
     required work is being completed.
       ``(4) The term `full costs', with respect to articles or 
     services provided under a cooperative arrangement entered 
     into under subsection (a), means the variable costs and the 
     fixed costs that are directly related to the production of 
     the articles or the provision of the services.
       ``(5) The term `variable costs' means the costs that are 
     expected to fluctuate directly with the volume of sales or 
     services provided or the use of equipment or facilities.
       ``(j) Expiration of Authority.--The authority to enter into 
     a cooperative arrangement under subsection (a) expires 
     September 30, 2009, and arrangements entered into under such 
     subsection shall terminate not later than that date.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``4544. Army industrial facilities: cooperative activities with non-
              Army entities.''.

     SEC. 354. TRANSFER OF EXCESS DEPARTMENT OF DEFENSE PERSONAL 
                   PROPERTY TO ASSIST FIREFIGHTING AGENCIES.

       Section 2576b of title 10, United States Code, is amended--
       (1) in subsection (a), by striking ``may'' and inserting 
     ``shall''; and
       (2) in subsection (b), by striking ``may'' and inserting 
     ``shall''.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent active duty end strength minimum 
              levels.
Sec. 403. Additional authority for increases of Army and Marine Corps 
              active duty personnel end strengths for fiscal years 2005 
              through 2009.
Sec. 404. Exclusion of service academy permanent and career professors 
              from a limitation on certain officer grade strengths.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
              reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2005 limitation on number of non-dual status 
              technicians.
Sec. 415. Maximum number of Reserve personnel authorized to be on 
              active duty for operational support.
Sec. 416. Accounting and management of reserve component personnel 
              performing active duty or full-time National Guard duty 
              for operational support.

              Subtitle C--Authorizations of Appropriations

Sec. 421. Military personnel.
Sec. 422. Armed Forces Retirement Home.

                       Subtitle A--Active Forces

     SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

       (a) In General.--The Armed Forces are authorized strengths 
     for active duty personnel as of September 30, 2005, as 
     follows:
       (1) The Army, 502,400.
       (2) The Navy, 365,900.
       (3) The Marine Corps, 178,000.
       (4) The Air Force, 359,700.
       (b) Limitation.--(1) The authorized strength for the Army 
     provided in paragraph (1) of subsection (a) for active duty 
     personnel for fiscal year 2005 is subject to the condition 
     that costs of active duty personnel of the Army for that 
     fiscal year in excess of 482,400 shall be paid out of funds 
     authorized to be appropriated for that fiscal year for a 
     contingent emergency reserve fund or as an emergency 
     supplemental appropriation.
       (2) The authorized strength for the Marine Corps provided 
     in paragraph (3) of subsection (a) for active duty personnel 
     for fiscal year 2005 is subject to the condition that costs 
     of active duty personnel of the Marine Corps for that fiscal 
     year in excess of 175,000 shall be paid out of funds 
     authorized to be appropriated for that fiscal year for a 
     contingent emergency reserve fund or as an emergency 
     supplemental appropriation.

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

       Section 691(b) of title 10, United States Code, is amended 
     by striking paragraphs (1) through (4) and inserting the 
     following:
       ``(1) For the Army, 502,400.
       ``(2) For the Navy, 365,900.
       ``(3) For the Marine Corps, 178,000.
       ``(4) For the Air Force, 359,700.''.

     SEC. 403. ADDITIONAL AUTHORITY FOR INCREASES OF ARMY ACTIVE 
                   DUTY PERSONNEL END STRENGTHS FOR FISCAL YEARS 
                   2005 THROUGH 2009.

       (a) Authority.--During fiscal years 2005 through 2009, the 
     Secretary of Defense is authorized to increase by up to 
     30,000 the end strength authorized for the Army, and by up to 
     9,000 the end strength authorized for the Marine Corps, above 
     the levels authorized for those services in the National 
     Defense Authorization Act for Fiscal Year 2004, as 
     necessary--
       (1) to support the operational mission of the Army and 
     Marine Corps in Iraq and Afghanistan; and
       (2) with respect to end strengths for the Army, to achieve 
     transformational reorganization objectives of the Army, 
     including objectives for increased numbers of combat 
     brigades, unit manning, force stabilization and shaping, and 
     rebalancing of the active and reserve component forces of the 
     Army.
       (b) Relationship to Presidential Waiver Authority.--Nothing 
     in this section shall be construed to limit the President's 
     authority under section 123a of title 10, United States Code, 
     to waive any statutory end strength in a time of war or 
     national emergency.
       (c) Relationship to Other Variance Authority.--The 
     authority under subsection (a) is in addition to the 
     authority to vary authorized end strengths that is provided 
     in subsections (e) and (f) of section 115 of title 10, United 
     States Code.
       (d) Budget Treatment.--(1) If the Secretary of Defense 
     plans to increase the Army or Marine Corps active duty end 
     strength for a fiscal year under subsection (a) of this 
     section or pursuant to a suspension of end-strength 
     limitation under section 123a of title 10, United States 
     Code, then the budget for the Department of Defense for such 
     fiscal year as submitted to Congress shall specify the 
     amounts necessary for funding the active duty end strength of 
     the Army in excess of 482,400 and the Marine Corps in excess 
     of 175,000 (the end strengths authorized for active duty 
     personnel of the Army and Marine Corps, respectively, for 
     fiscal year 2004 in paragraphs (1) and (3) of section 401 of 
     the National Defense Authorization Act for Fiscal Year 2004 
     (Public Law 108-136; 117 Stat. 1450)).
       (2) If the amount proposed for the Department of Defense 
     for fiscal year 2006 within budget function 050 (National 
     Defense) includes amounts necessary for funding an active 
     duty end strength of the Army in excess of 482,400, or an 
     active duty end strength of the Marine Corps in excess of 
     175,000, for that fiscal year, the specification of amounts 
     necessary for funding such end strength (as required under 
     paragraph (1)) shall include the following additional 
     information:
       (A) A display of the following amounts:
       (i) The amount that is to be funded out of the amounts 
     proposed for the Department of Defense within budget function 
     050 (National Defense) other than out of amounts for the Army 
     and Marine Corps.
       (ii) The amount that is to be funded out of the amounts 
     proposed for the Army and Marine Corps within budget function 
     050 (National Defense).
       (iii) The estimated amounts that are to be funded out of 
     emergency reserve funds and supplemental appropriations for 
     fiscal year 2006.
       (B) A detailed justification for reliance on each funding 
     source described in subparagraph (A).
       (C) A detailed discussion of which programs and plans of 
     the Army and Marine Corps funded in the proposed budget for 
     fiscal year 2006 must be modified if the funding sources 
     relied on, as presented under subparagraph (A), must be 
     changed.
       (D) The projected Army and Marine Corps active duty end 
     strengths for each of fiscal years 2006 through 2010, 
     together with a detailed enumeration of the component costs 
     of the projected end strengths for each such fiscal year.

     SEC. 404. EXCLUSION OF SERVICE ACADEMY PERMANENT AND CAREER 
                   PROFESSORS FROM A LIMITATION ON CERTAIN OFFICER 
                   GRADE STRENGTHS.

       Section 523(b) of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(8) Permanent professors of the United States Military 
     Academy and the United States Air Force Academy and 
     professors of the United States Naval Academy who are career 
     military professors (as defined in regulations prescribed by 
     the Secretary of the Navy), but not to exceed 50 from any 
     such academy.''.

                       Subtitle B--Reserve Forces

     SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

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

     Whenever such units or such individual members are released 
     from active duty during any

[[Page H9204]]

     fiscal year, the end strength prescribed for such fiscal year 
     for the Selected Reserve of such reserve component shall be 
     increased proportionately by the total authorized strengths 
     of such units and by the total number of such individual 
     members.

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

       Within the end strengths prescribed in section 411(a), the 
     reserve components of the Armed Forces are authorized, as of 
     September 30, 2005, the following number of Reserves to be 
     serving on full-time active duty or full-time duty, in the 
     case of members of the National Guard, for the purpose of 
     organizing, administering, recruiting, instructing, or 
     training the reserve components:
       (1) The Army National Guard of the United States, 26,602.
       (2) The Army Reserve, 14,970.
       (3) The Naval Reserve, 14,152.
       (4) The Marine Corps Reserve, 2,261.
       (5) The Air National Guard of the United States, 12,253.
       (6) The Air Force Reserve, 1,900.

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

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

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

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

     SEC. 415. MAXIMUM NUMBER OF RESERVE PERSONNEL AUTHORIZED TO 
                   BE ON ACTIVE DUTY FOR OPERATIONAL SUPPORT.

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

     SEC. 416. ACCOUNTING AND MANAGEMENT OF RESERVE COMPONENT 
                   PERSONNEL PERFORMING ACTIVE DUTY OR FULL-TIME 
                   NATIONAL GUARD DUTY FOR OPERATIONAL SUPPORT.

       (a) Strength Authorizations.--Section 115 of title 10, 
     United States Code, is amended--
       (1) in subsection (a)(1)(A), by inserting ``unless on 
     active duty pursuant to subsection (b)'' after ``active-duty 
     personnel'';
       (2) in subsection (a)(1)(B), by inserting ``unless on 
     active duty or full-time National Guard duty pursuant to 
     subsection (b)'' after ``reserve personnel'';
       (3) by redesignating subsections (b), (c), (d), (e), (f), 
     (g) and (h) as subsections (c), (d), (e), (f), (g), (h) and 
     (i), respectively; and
       (4) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Certain Reserves on Active Duty To Be Authorized by 
     Law.--(1) Congress shall annually authorize the maximum 
     number of members of a reserve component permitted to be on 
     active duty or full-time National Guard duty at any given 
     time who are called or ordered to--
       ``(A) active duty under section 12301(d) of this title for 
     the purpose of providing operational support, as prescribed 
     in regulation issued by the Secretary of Defense;
       ``(B) full-time National Guard duty under section 502(f)(2) 
     of title 32 for the purpose of providing operational support 
     when authorized by the Secretary of Defense;
       ``(C) active duty under section 12301(d) of this title or 
     full-time National Guard duty under section 502(f)(2) of 
     title 32 for the purpose of preparing for and performing 
     funeral honors functions for funerals of veterans under 
     section 1491 of this title;
       ``(D) active duty or retained on active duty under sections 
     12301(g) of this title while in a captive status; or
       ``(E) active duty or retained on active duty under 12301(h) 
     or 12322 of this title for the purpose of medical evaluation 
     or treatment.
       ``(2) A member of a reserve component who exceeds either of 
     the following limits shall be included in the strength 
     authorized under subparagraph (A) or subparagraph (B), as 
     appropriate, of subsection (a)(1):
       ``(A) A call or order to active duty or full-time National 
     Guard duty that specifies a period greater than three years.
       ``(B) The cumulative periods of active duty and full-time 
     National Guard duty performed by the member exceed 1095 days 
     in the previous 1460 days.
       ``(3) In determining the period of active service under 
     paragraph (2), the following periods of active service 
     performed by a member shall not be included:
       ``(A) All periods of active duty performed by a member who 
     has not previously served in the Selected Reserve of the 
     Ready Reserve.
       ``(B) All periods of active duty or full-time National 
     Guard duty for which the member is exempt from strength 
     accounting under paragraphs (1) through (8) of subsection 
     (i).''.
       (b) Limitation on Appropriations.--Subsection (c) of such 
     section (as redesignated by subsection (a)(3)) is amended--
       (1) by striking ``or'' at the end of paragraph (1);
       (2) by striking the period at the end of paragraph (2) and 
     inserting ``; or''; and
       (3) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) the use of reserve component personnel to perform 
     active duty or full-time National Guard duty under subsection 
     (b) unless the strength for such personnel for that reserve 
     component for that fiscal year has been authorized by law.''.
       (c) Authority for Secretary of Defense Variances in Maximum 
     Strengths.--Subsection (f) of such section (as redesignated 
     by subsection (a)(3)) is amended--
       (1) by striking ``End'' in the heading;
       (2) by striking ``and'' at the end of paragraph (2);
       (3) by striking the period at the end of paragraph (3) and 
     inserting ``; and''; and
       (4) by adding at the end the following new paragraph:
       ``(4) increase the maximum strength authorized pursuant to 
     subsection (b)(1) for a fiscal year for certain reserves on 
     active duty for any of the reserve components by a number 
     equal to not more than 10 percent of that strength.''.
       (d) Conforming Amendments to Section 115.--Such section is 
     further amended as follows:
       (1) Subsection (e) (as redesignated by subsection (a)(3)) 
     is amended--
       (A) in paragraph (1), by striking ``subsection (a) or (c)'' 
     and inserting ``subsection (a) or (d)''; and
       (B) in paragraph (2)--
       (i) by striking ``subsections (a) and (c)''; and inserting 
     ``subsections (a) and (d)'';
       (ii) by striking ``pursuant to subsection (e)) and 
     subsection (c)'' and inserting ``pursuant to subsection (f)) 
     and subsection (d)'' each place it appears.
       (2) Subsection (g) (as redesignated by subsection (a)(3)) 
     is amended by striking ``subsection (e)(1)'' in paragraph (2) 
     and inserting ``subsection (f)(1)''.
       (3) Subsection (i) (as redesignated by subsection (a)(3)) 
     is amended to read as follows:
       ``(i) Certain Personnel Excluded From Counting for Active-
     Duty End Strengths.--In counting personnel for the purpose of 
     the end strengths authorized pursuant to subsection (a)(1), 
     persons in the following categories shall be excluded:
       ``(1) Members of a reserve component ordered to active duty 
     under section 12301(a) of this title.
       ``(2) Members of a reserve component in an active status 
     ordered to active duty under section 12301(b) of this title.
       ``(3) Members of the Ready Reserve ordered to active duty 
     under section 12302 of this title.
       ``(4) Members of the Selected Reserve of the Ready Reserve 
     or members of the Individual Ready Reserve mobilization 
     category described in section 10144(b) of this title ordered 
     to active duty under section 12304 of this title.
       ``(5) Members of the National Guard called into Federal 
     service under section 12406 of this title.
       ``(6) Members of the militia called into Federal service 
     under chapter 15 of this title.
       ``(7) Members of the National Guard on full-time National 
     Guard duty under section 502(f)(1) of title 32.
       ``(8) Members of reserve components on active duty for 
     training or full-time National Guard duty for training.
       ``(9) Members of the Selected Reserve of the Ready Reserve 
     on active duty to support programs described in section 
     1203(b) of the Cooperative Threat Reduction Act of 1993 (22 
     U.S.C. 5952(b)).
       ``(10) Members of the National Guard on active duty or 
     full-time National Guard duty for the purpose of carrying out 
     drug interdiction and counter-drug activities under section 
     112 of title 32.
       ``(11) Members of a reserve component on active duty under 
     section 10(b)(2) of the Military Selective Service Act (50 
     U.S.C. App. 460(b)(2)) for the administration of the 
     Selective Service System.
       ``(12) Members of the National Guard on full-time National 
     Guard duty for the purpose of providing command, 
     administrative, training, or support services for the 
     National Guard Challenge Program authorized by section 509 of 
     title 32.''.
       (e) Military to Military Contact Strength Accounting.--
     Subsection (f) of section 168 of such title is amended to 
     read as follows:
       ``(f) Active Duty End Strengths.--A member of a reserve 
     component who is engaged in activities authorized under this 
     section shall not be counted for purposes of the following 
     personnel strength limitations:
       ``(1) The end strength for active-duty personnel authorized 
     pursuant to section 115(a)(1) of this title for the fiscal 
     year in which the member carries out the activities referred 
     to under this section.

[[Page H9205]]

       ``(2) The authorized daily average for members in pay 
     grades E-8 and E-9 under section 517 of this title for the 
     calendar year in which the member carries out such 
     activities.
       ``(3) The authorized strengths for commissioned officers 
     under section 523 of this title for the fiscal year in which 
     the member carries out such activities.''.
       (f) E-8 and E-9 Strength Accounting.--Subsection (a) of 
     section 517 of such title is amended by striking ``(other 
     than for training) in connection with organizing, 
     administering, recruiting, instructing, or training the 
     reserve component of an armed force.'' and inserting ``as 
     authorized under section 115(a)(1)(B) or 115(b) of this 
     title, or excluded from counting for active duty end 
     strengths under section 115(i) of this title.''.
       (g) Field Grade Officer Strength Accounting.--(1) Paragraph 
     (1) of section 523(b) of such title is amended to read as 
     follows:
       (1) Reserve officers--
       ``(A) on active duty as authorized under section 
     115(a)(1)(B) or 115(b)(1) of this title, or excluded from 
     counting for active duty end strengths under section 115(i) 
     of this title;
       ``(B) on active duty under section 10211, 10302 through 
     10305, or 12402 of this title or under section 708 of title 
     32; or
       ``(C) on full-time National Guard duty.''.
       (2) Paragraph (7) of such section is amended by striking 
     ``Reserve or retired officers'' and inserting ``Retired 
     officers''.
       (h) Active Guard and Reserve Field Grade Officer Strength 
     Accounting.--Paragraph (2) of section 12011(e) of such title 
     is amended to read as follows:
       ``(2) Full-time National Guard duty (other than for 
     training) under section 502(f) of title 32, except for duty 
     under section 115(b)(1)(B) and (C) of this title and section 
     115(i)(9) of this title.''.
       (i) Warrant Officer Active-Duty List Exclusion.--Paragraph 
     (1) of section 582 of such title is amended to read as 
     follows:
       ``(1) Reserve warrant officers--
       ``(A) on active duty as authorized under section 
     115(a)(1)(B) or 115(b)(1) of this title, or excluded from 
     counting for active duty end strengths under section 115(i) 
     of this title; or
       ``(B) on full-time National Guard duty.''.
       (j) Officer Active-Duty List, Applicability of Chapter.--
     Paragraph (1) of section 641 of such title is amended to read 
     as follows:
       ``(1) Reserve officers--
       ``(A) on active duty authorized under section 115(a)(1)(B) 
     or 115(b)(1) of this title, or excluded from counting for 
     active duty end strengths under section 115(i) of this title;
       ``(B) on active duty under section 3038, 5143, 5144, 8038, 
     10211, 10301 through 10305, 10502, 10505, 10506(a), 10506(b), 
     10507, or 12402 of this title or section 708 of title 32; or
       ``(C) on full-time National Guard duty.''.
       (k) Strength Accounting for Members Performing Drug 
     Interdiction and Counter-Drug Activities.--Section 112 of 
     title 32, United States Code, is amended--
       (1) by striking subsection (e);
       (2) by redesignating subsections (f), (g), (h) and (i) as 
     subsections (e), (f), (g) and (h) respectively; and
       (3) in paragraph (1) of subsection (e), as redesignated by 
     paragraph (2), by striking ``for a period of more than 180 
     days'' each place it appears.
       (l) Report.--Not later than June 1, 2005, the Secretary of 
     Defense shall report to the Committee on Armed Services of 
     the Senate and the Committee on Armed Services of the House 
     of Representatives the Secretary's recommendations regarding 
     the exemptions provided in paragraphs (8) through (11) by 
     section 115(i) of title 10, United States Code, as amended by 
     this section. The recommendations shall address the manner in 
     personnel covered by those exemptions shall be accounted for 
     in authorizations provided by section 115 of such title. The 
     objective of the analysis should be to terminate the need for 
     such exemptions after September 30, 2006.
       (m) Regulations.--The Secretary of Defense shall prescribe 
     by regulation the meaning of the term ``operational support'' 
     for purposes of paragraph (1) of subsection (b) of section 
     115 of title 10, United States Code, as added by subsection 
     (a).

              Subtitle C--Authorizations of Appropriations

     SEC. 421. MILITARY PERSONNEL.

       There is hereby authorized to be appropriated to the 
     Department of Defense for military personnel for fiscal year 
     2005 a total of $106,542,982,000. The authorization in the 
     preceding sentence supersedes any other authorization of 
     appropriations (definite or indefinite) for such purpose for 
     fiscal year 2005.

     SEC. 422. ARMED FORCES RETIREMENT HOME.

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

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501.  Transition of active-duty list officer force to a force of 
              all regular officers.
Sec. 502.  Repeal of requirement that Deputy Chiefs and Assistant 
              Chiefs of Naval Operations be selected from officers in 
              the line of the Navy.
Sec. 503.  Limitation on number of officers frocked to major general 
              and rear admiral.
Sec. 504.  Distribution in grade of Marine Corps reserve officers in an 
              active status in grades below brigadier general
Sec. 505.  Authority for Federal recognition of National Guard 
              commissioned officers appointed from former Coast Guard 
              personnel.
Sec. 506.  Study regarding promotion eligibility of retired officers 
              recalled to active duty.
Sec. 507.  Succession for office of Chief, National Guard Bureau.
Sec. 508.  Redesignation of Vice Chief of the National Guard Bureau as 
              Director of the Joint Staff of the National Guard Bureau.

              Subtitle B--Reserve Component Policy Matters

Sec. 511.  Modification of stated purpose of the reserve components.
Sec. 512.  Homeland defense activities conducted by the National Guard 
              under authority of title 32.
Sec. 513.  Commission on the National Guard and Reserves.
Sec. 514.  Repeal of exclusion of active duty for training from 
              authority to order Reserves to active duty.
Sec. 515.  Army program for assignment of active component advisers to 
              units of the Selected Reserve.
Sec. 516.  Authority to accept certain voluntary services.
Sec. 517.  Authority to redesignate the Naval Reserve as the Navy 
              Reserve.
Sec. 518.  Comptroller General assessment of integration of active and 
              reserve components of the Navy.
Sec. 519.  Limitation on number of Starbase academies in a State.
Sec. 520. Recognition items for certain reserve component personnel.

            Subtitle C--Reserve Component Personnel Matters

Sec. 521.  Status under disability retirement system for reserve 
              members released from active duty due to inability to 
              perform within 30 days of call to active duty.
Sec. 522.  Requirement for retention of Reserves on active duty to 
              qualify for retired pay not applicable to nonregular 
              service retirement system.
Sec. 523.  Federal civil service military leave for Reserve and 
              National Guard civilian technicians.
Sec. 524.  Expanded educational assistance authority for officers 
              commissioned through ROTC program at military junior 
              colleges.
Sec. 525. Repeal of sunset provision for financial assistance program 
              for students not eligible for advanced training.
Sec. 526.  Effect of appointment or commission as officer on 
              eligibility for Selected Reserve education loan repayment 
              program for enlisted members.
Sec. 527. Educational assistance for certain reserve component members 
              who perform active service.
Sec. 528.  Sense of Congress on guidance concerning treatment of 
              employer-provided compensation and other benefits 
              voluntarily provided to employees who are activated 
              Reservists.

    Subtitle D--Joint Officer Management and Professional Military 
                               Education

Sec. 531.  Strategic plan to link joint officer development to overall 
              missions and goals of Department of Defense.
Sec. 532.  Improvement to professional military education in the 
              Department of Defense.
Sec. 533.  Joint requirements for promotion to flag or general officer 
              grade.
Sec. 534.  Clarification of tours of duty qualifying as a joint duty 
              assignment.
Sec. 535.  Two-year extension of temporary standard for promotion 
              policy objectives for joint officers.
Sec. 536.  Two-year extension of authority to waive requirement that 
              Reserve Chiefs and National Guard Directors have 
              significant joint duty experience.

                 Subtitle E--Military Service Academies

Sec. 541.  Revision to conditions on service of officers as service 
              academy superintendents.
Sec. 542.  Academic qualifications of the dean of the faculty of United 
              States Air Force Academy.
Sec. 543.  Board of Visitors of United States Air Force Academy.
Sec. 544.  Appropriated funds for service academy athletic and 
              recreational extracurricular programs to be treated in 
              same manner as for military morale, welfare, and 
              recreation progams.
Sec. 545.  Codification of prohibition on imposition of certain charges 
              and fees at the service academies.

            Subtitle F--Other Education and Training Matters

Sec. 551.  College First delayed enlistment program.
Sec. 552.  Senior Reserve Officers' Training Corps and recruiter access 
              at institutions of higher education.
Sec. 553.  Tuition assistance for officers.
Sec. 554.  Increased maximum period for leave of absence for pursuit of 
              a program of education in a health care profession.
Sec. 555.  Eligibility of cadets and midshipmen for medical and dental 
              care and disability benefits.
Sec. 556.  Transfer of authority to confer degrees upon graduates of 
              the Community College of the Air Force. 
Sec. 557.  Change in titles of leadership positions at the Naval 
              Postgraduate School.

[[Page H9206]]

   Subtitle G--Assistance to Local Educational Agencies for Defense 
                          Dependents Education

Sec. 558.  Continuation of impact aid assistance on behalf of 
              dependents of certain members despite change in status of 
              member.
Sec. 559.  Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 560.  Impact aid for children with severe disabilities.

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

Sec. 561.  Award of medal of honor to individual interred in the Tomb 
              of the Unknowns as representative of casualties of a war.
Sec. 562.  Plan for revised criteria and eligibility requirements for 
              award of Combat Infantryman Badge and Combat Medical 
              Badge for service in Korea after July 28, 1953.
Sec. 563.  Authority to appoint Brigadier General Charles E. Yeager, 
              United States Air Force (retired), to the grade of major 
              general on the retired list.
Sec. 564.  Posthumous commission of William Mitchell in the grade of 
              major general in the Army.

                      Subtitle I--Military Voting

Sec. 566.  Federal write-in ballots for absentee military voters 
              located in the United States.
Sec. 567.  Repeal of requirement to conduct electronic voting 
              demonstration project for the Federal election to be held 
              in November 2004.
Sec. 568.  Reports on operation of Federal voting assistance program 
              and military postal system.

                  Subtitle J--Military Justice Matters

Sec. 571.  Review on how sexual offenses are covered by Uniform Code of 
              Military Justice.
Sec. 572.  Waiver of recoupment of time lost for confinement in 
              connection with a trial.
Sec. 573.  Processing of forensic evidence collection kits and 
              acquisition of sufficient stocks of such kits.
Sec. 574.  Authorities of the Judge Advocates General.

             Subtitle K--Sexual Assault in the Armed Forces

Sec. 576.  Examination of sexual assault in the Armed Forces by the 
              Defense Task Force established to examine sexual 
              harassment and violence at the military service 
              academies.
Sec. 577.  Department of Defense policy and procedures on prevention 
              and response to sexual assaults involving members of the 
              Armed Forces.

           Subtitle L--Management and Administrative Matters

Sec. 581.  Three-year extension of limitation on reductions of 
              personnel of agencies responsible for review and 
              correction of military records.
Sec. 582.  Staffing for Defense Prisoner of War/Missing Personnel 
              Office (DPMO).
Sec. 583.  Permanent ID cards for retiree dependents age 75 and older.
Sec. 584.  Authority to provide civilian clothing to members traveling 
              in connection with medical evacuation.
Sec. 585.  Authority to accept donation of frequent traveler miles, 
              credits, and tickets to facilitate rest and recuperation 
              travel of deployed members of the Armed Forces and their 
              families.
Sec. 586.  Annual report identifying reasons for discharges from the 
              Armed Forces during preceding fiscal year.
Sec. 587.  Study of blended wing concept for the Air Force.
Sec. 588.  Sense of Congress regarding return of members to active duty 
              service upon rehabilitation from service-related 
              injuries.

                       Subtitle M--Other Matters

Sec. 591.  Protection of Armed Forces personnel from retaliatory 
              actions for communications made through the chain of 
              command.
Sec. 592.  Implementation plan for accession of persons with 
              specialized skills.
Sec. 593.  Enhanced screening methods and process improvements for 
              recruitment of home schooled and National Guard Challenge 
              program GED recipients.
Sec. 594.  Redesignation of National Guard Challenge Program as 
              National Guard Youth Challenge Program.
Sec. 595.  Reports on certain milestones relating to Department of 
              Defense transformation.
Sec. 596.  Report on issues relating to removal of remains of persons 
              interred in United States military cemeteries overseas.
Sec. 597.  Comptroller General reports on closure of Department of 
              Defense dependent elementary and secondary schools and 
              commissary stores.
Sec. 598.  Comptroller General report on transition assistance programs 
              for members separating from the Armed Forces.
Sec. 599.  Study on coordination of job training standards with 
              certification standards for military occupational 
              specialties.

                  Subtitle A--Officer Personnel Policy

     SEC. 501. TRANSITION OF ACTIVE-DUTY LIST OFFICER FORCE TO A 
                   FORCE OF ALL REGULAR OFFICERS.

       (a) Original Appointments as Commissioned Officers.--(1) 
     Section 532 of title 10, United States Code, is amended by 
     striking subsection (e).
       (2) Subsection (a)(2) of such section is amended by 
     striking ``fifty-fifth birthday'' and inserting ``sixty-
     second birthday''.
       (3)(A) Such section is further amended by adding at the end 
     the following new subsection:
       ``(f) The Secretary of Defense may waive the requirement of 
     paragraph (1) of subsection (a) with respect to a person who 
     has been lawfully admitted to the United States for permanent 
     residence when the Secretary determines that the national 
     security so requires, but only for an original appointment in 
     a grade below the grade of major or lieutenant commander.''.
       (B) Section 619(d) of such title is amended by adding at 
     the end the following new paragraph:
       ``(5) An officer in the grade of captain or, in the case of 
     the Navy, lieutenant who is not a citizen of the United 
     States.''.
       (4) Section 531(a) of such title is amended to read as 
     follows:
       ``(a)(1) Original appointments in the grades of second 
     lieutenant, first lieutenant, and captain in the Regular 
     Army, Regular Air Force, and Regular Marine Corps and in the 
     grades of ensign, lieutenant (junior grade), and lieutenant 
     in the Regular Navy shall be made by the President alone.
       ``(2) Original appointments in the grades of major, 
     lieutenant colonel, and colonel in the Regular Army, Regular 
     Air Force, and Regular Marine Corps and in the grades of 
     lieutenant commander, commander, and captain in the Regular 
     Navy shall be made by the President, by and with the advice 
     and consent of the Senate.''.
       (b) Repeal of Total Strength Limitations for Active-Duty 
     Regular Commissioned Officers.--(1) Section 522 of such title 
     is repealed.
       (2) The table of sections at the beginning of chapter 32 of 
     such title is amended by striking the item relating to 
     section 522.
       (c) Force Shaping Authority.--(1)(A) Subchapter V of 
     chapter 36 of such title is amended by adding at the end the 
     following new section:

     ``Sec. 647. Force shaping authority

       ``(a) Authority.--The Secretary concerned may, solely for 
     the purpose of restructuring an armed force under the 
     jurisdiction of that Secretary--
       ``(1) discharge an officer described in subsection (b); or
       ``(2) transfer such an officer from the active-duty list of 
     that armed force to the reserve active-status list of a 
     reserve component of that armed force.
       ``(b) Covered Officers.--(1) The authority under this 
     section may be exercised in the case of an officer who--
       ``(A) has completed not more than 5 years of service as a 
     commissioned officer in the armed forces; or
       ``(B) has completed more than 5 years of service as a 
     commissioned officer in the armed forces, but has not 
     completed a minimum service obligation applicable to that 
     member.
       ``(2) In this subsection, the term `minimum service 
     obligation' means the initial period of required active duty 
     service together with any additional period of required 
     active duty service incurred during the initial period of 
     required active duty service.
       ``(c) Appointment of Transferred Officers.--An officer of 
     the Regular Army, Regular Air Force, Regular Navy, or Regular 
     Marine Corps who is transferred to a reserve active-status 
     list under this section shall be discharged from the regular 
     component concerned and appointed as a reserve commissioned 
     officer under section 12203 of this title.
       ``(d) Regulations.--The Secretary concerned shall prescribe 
     regulations for the exercise of the Secretary's authority 
     under this section.''.
       (B) The table of sections at the beginning of such 
     subchapter is amended by adding at the end the following new 
     item:

``647. Force shaping authority.''.

       (2) Section 1174(e)(2)(B) of such title is amended by 
     inserting after ``obligated service'' the following: ``, 
     unless the member is an officer discharged or released under 
     the authority of section 647 of this title''.
       (3) Section 12201(a) of such title is amended--
       (A) by inserting ``(1)'' after ``(a)'';
       (B) in the first sentence, by inserting ``, except as 
     provided in paragraph (2),'' after ``the armed force 
     concerned and''; and
       (C) by adding at the end the following new paragraph:
       ``(2) An officer transferred from the active-duty list of 
     an armed force to a reserve active-status list of an armed 
     force under section 647 of this title is not required to 
     subscribe to the oath referred to in paragraph (1) in order 
     to qualify for an appointment under that paragraph.''.
       (4) Section 12203 of such title is amended--
       (A) by redesignating subsection (b) as subsection (c); and
       (B) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Subject to the authority, direction, and control of 
     the President, the Secretary concerned may appoint as a 
     reserve commissioned officer any regular officer transferred 
     from the active-duty list of an armed force to the reserve 
     active-status list of a reserve component under section 647 
     of this title, notwithstanding the requirements of subsection 
     (a).''.
       (5) Section 531 of such title is amended by adding at the 
     end the following new subsection:
       ``(c) Subject to the authority, direction, and control of 
     the President, an original appointment as a commissioned 
     officer in the Regular

[[Page H9207]]

     Army, Regular Air Force, Regular Navy, or Regular Marine 
     Corps may be made by the Secretary concerned in the case of a 
     reserve commissioned officer upon the transfer of such 
     officer from the reserve active-status list of a reserve 
     component of the armed forces to the active-duty list of an 
     armed force, notwithstanding the requirements of subsection 
     (a).''.
       (d) Active-Duty Ready Reserve Officers Not on Active-Duty 
     List.--Section 641(1)(F) of such title is amended by striking 
     ``section 12304'' and inserting ``sections 12302 and 12304''.
       (e) All Regular Officer Appointments for Students of the 
     University of Health Sciences.--Section 2114(b) of such title 
     is amended by striking ``Notwithstanding any other provision 
     of law, they shall serve'' in the second sentence and all 
     that follows through ``if qualified,'' in the third sentence 
     and inserting ``They shall be appointed as regular officers 
     in the grade of second lieutenant or ensign and shall serve 
     on active duty in that grade. Upon graduation they shall be 
     required to serve on active duty''.
       (f) Termination of Requirement of 6 Years Service in a 
     Reserve Component for Nonregular Service Retirement 
     Eligibility.--Section 12731(a)(3) of such title is amended by 
     inserting after ``(3)'' the following: ``in the case of a 
     person who completed the service requirements of paragraph 
     (2) before the end of the 180-day period beginning on the 
     date of the enactment of the National Defense Authorization 
     Act for Fiscal Year 2005,''.
       (g) Effective Date.--(1) Except as provided in paragraph 
     (2), the amendments made by this section shall take effect on 
     the first day of the first month beginning more than 180 days 
     after the date of the enactment of this Act.
       (2) The amendment made by subsection (a)(1) shall take 
     effect on May 1, 2005.

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

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

     SEC. 503. LIMITATION ON NUMBER OF OFFICERS FROCKED TO MAJOR 
                   GENERAL AND REAR ADMIRAL.

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

     SEC. 504. DISTRIBUTION IN GRADE OF MARINE CORPS RESERVE 
                   OFFICERS IN AN ACTIVE STATUS IN GRADES BELOW 
                   BRIGADIER GENERAL

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

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

     SEC. 505. AUTHORITY FOR FEDERAL RECOGNITION OF NATIONAL GUARD 
                   COMMISSIONED OFFICERS APPOINTED FROM FORMER 
                   COAST GUARD PERSONNEL.

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

     SEC. 506. STUDY REGARDING PROMOTION ELIGIBILITY OF RETIRED 
                   OFFICERS RECALLED TO ACTIVE DUTY.

       (a) Requirement for Study.--The Secretary of Defense shall 
     carry out a study to determine whether it would be equitable 
     for retired officers on active duty, but not on the active-
     duty list by reason of section 582(2) or 641(4) of title 10, 
     United States Code, to be eligible for consideration for 
     promotion under chapter 33A of such title, in the case of 
     warrant officers, or chapter 36 of such title, in the case of 
     officers other than warrant officers.
       (b) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the results of the study under subsection (a). 
     The report shall include a discussion of the Secretary's 
     determination regarding the issue covered by the study, the 
     rationale for the Secretary's determination, and any 
     recommended legislation that the Secretary considers 
     appropriate regarding that issue.

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

       (a) Designation of Senior Officer in National Guard 
     Bureau.--Section 10502 of title 10, United States Code, is 
     amended by adding at the end the following new subsection:
       ``(e) Succession.--(1) Unless otherwise directed by the 
     President or the Secretary of Defense, the senior of the two 
     officers specified in paragraph (2) shall serve as the acting 
     Chief of the National Guard Bureau during any period that--
       ``(A) there is a vacancy in the position of Chief of the 
     National Guard Bureau; or
       ``(B) the Chief is unable to perform the duties of that 
     office.
       ``(2) The officers specified in this paragraph are the 
     following:
       ``(A) The senior officer of the Army National Guard of the 
     United States on duty with the National Guard Bureau.
       ``(B) The senior officer of the Air National Guard of the 
     United States on duty with the National Guard Bureau.''.
       (b) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 10502. Chief of the National Guard Bureau: 
       appointment; adviser on National Guard matters; grade; 
       succession''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 1011 of such title is 
     amended to read as follows:

``10502. Chief of the National Guard Bureau: appointment; adviser on 
              National Guard matters; grade; succession.''.

       (c) Conforming Repeal.--Subsections (d) and (e) of section 
     10505 of such title are repealed.

     SEC. 508. REDESIGNATION OF VICE CHIEF OF THE NATIONAL GUARD 
                   BUREAU AS DIRECTOR OF THE JOINT STAFF OF THE 
                   NATIONAL GUARD BUREAU.

       (a) Redesignation of Position.--Subsection (a)(1) of 
     section 10505 of title 10, United States Code, is amended by 
     striking ``Vice Chief of the National Guard Bureau'' and 
     inserting ``Director of the Joint Staff of the National Guard 
     Bureau''.
       (b) Conforming Amendments.--(1) Subsections (a)(3)(A), 
     (a)(3)(B), (b), and (c) of section 10505 of title 10, United 
     States Code, are amended by striking ``Vice Chief of the 
     National Guard Bureau'' and inserting ``Director of the Joint 
     Staff of the National Guard Bureau''.
       (2) Subsection (a)(3)(B) of such section, as amended by 
     paragraph (1), is further amended by striking ``as the Vice 
     Chief'' and inserting ``as the Director''.
       (3) Paragraphs (2) and (4) of subsection (a) of such 
     section are amended by striking ``Chief and Vice Chief of the 
     National Guard Bureau'' and inserting ``Chief of the National 
     Guard Bureau and the Director of the Joint Staff of the 
     National Guard Bureau''.
       (4) Section 10506(a)(1) of such title is amended by 
     striking ``Chief and Vice Chief of the National Guard 
     Bureau'' and inserting ``Chief of the National Guard Bureau 
     and the Director of the Joint Staff of the National Guard 
     Bureau''.
       (c) Clerical Amendments.--(1) The heading for section 10505 
     of such title is amended to read as follows:

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

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 1011 of such title is 
     amended to read as follows:

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

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

              Subtitle B--Reserve Component Policy Matters

     SEC. 511. MODIFICATION OF STATED PURPOSE OF THE RESERVE 
                   COMPONENTS.

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

     SEC. 512. HOMELAND DEFENSE ACTIVITIES CONDUCTED BY THE 
                   NATIONAL GUARD UNDER AUTHORITY OF TITLE 32.

       (a) In General.--(1) Title 32, United States Code, is 
     amended by adding at the end the following new chapter:

                ``CHAPTER 9--HOMELAND DEFENSE ACTIVITIES

``Sec.
``901. Definitions.
``902. Homeland defense activities: funds.
``903. Regulations.
``904. Homeland defense duty.
``905. Funding assistance.
``906. Requests for funding assistance.
``907. Relationship to State duty.
``908. Annual report.

     ``Sec. 901. Definitions

       ``In this chapter:
       ``(1) The term `homeland defense activity' means an 
     activity undertaken for the military protection of the 
     territory or domestic population of the United States, or of 
     infrastructure or other assets of the United States 
     determined by the Secretary of Defense as being critical to 
     national security, from a threat or aggression against the 
     United States.
       ``(2) The term `State' means each of the several States, 
     the District of Columbia, the Commonwealth of Puerto Rico, or 
     a territory or possession of the United States.

     ``Sec. 902. Homeland defense activities: funds

       ``(a) The Secretary of Defense may provide funds to a 
     Governor to employ National Guard units or members to conduct 
     homeland defense activities that the Secretary, determines to 
     be necessary and appropriate for participation by the 
     National Guard units or members, as the case may be.

     ``Sec. 903. Regulations

       ``The Secretary of Defense shall prescribe regulations to 
     implement this chapter.

     ``Sec. 904. Homeland defense duty

       ``(a) Full-Time National Guard Duty.--All duty performed 
     under this chapter shall be considered to be full-time 
     National Guard duty

[[Page H9208]]

     under section 502(f) of this title. Members of the National 
     Guard performing full-time National Guard duty in the Active 
     Guard and Reserve Program may support or execute homeland 
     defense activities performed by the National Guard under this 
     chapter.
       ``(b) Duration.--The period for which a member of the 
     National Guard performs duty under this chapter shall be 
     limited to 180 days. The Governor of the State may, with the 
     concurrence of the Secretary of Defense, extend the period 
     one time for an additional 90 days to meet extraordinary 
     circumstances.
       ``(c) Relationship to Required Training.--A member of the 
     National Guard performing duty under this chapter shall, in 
     addition to performing such duty, participate in the training 
     required under section 502(a) of this title. The pay, 
     allowances, and other benefits of the member while 
     participating in the training shall be the same as those to 
     which the member is entitled while performing the duty under 
     this chapter. The member is not entitled to additional pay, 
     allowances, or other benefits for participation in training 
     required under section 502(a)(1) of this title.
       ``(d) Readiness.--To ensure that the use of units and 
     personnel of the National Guard of a State for homeland 
     defense activities does not degrade the training and 
     readiness of such units and personnel, the following 
     requirements shall apply in determining the homeland defense 
     activities that units and personnel of the National Guard of 
     a State may perform:
       ``(1) The performance of the activities is not to affect 
     adversely the quality of that training or otherwise interfere 
     with the ability of a member or unit of the National Guard to 
     perform the military functions of the member or unit.
       ``(2) The performance of the activities is not to degrade 
     the military skills of the members of the National Guard 
     performing those activities.

     ``Sec. 905. Funding assistance

       ``In the case of any homeland defense activity for which 
     the Secretary of Defense determines under section 902 of this 
     title that participation of units or members of the National 
     Guard of a State is necessary and appropriate, the Secretary 
     may provide funds to that State in an amount that the 
     Secretary determines is appropriate for the following costs 
     of the participation in that activity from funds available to 
     the Department for related purposes:
       ``(1) The pay, allowances, clothing, subsistence, 
     gratuities, travel, and related expenses of personnel of the 
     National Guard of that State.
       ``(2) The operation and maintenance of the equipment and 
     facilities of the National Guard of that State.
       ``(3) The procurement of services and equipment, and the 
     leasing of equipment, for the National Guard of that State.

     ``Sec. 906. Requests for funding assistance

       ``A Governor of a State may request funding assistance for 
     the homeland defense activities of the National Guard of that 
     State from the Secretary of Defense. Any such request shall 
     include the following:
       ``(1) The specific intended homeland defense activities of 
     the National Guard of that State.
       ``(2) An explanation of why participation of National Guard 
     units or members, as the case may be, in the homeland defense 
     activities is necessary and appropriate.
       ``(3) A certification that homeland defense activities are 
     to be conducted at a time when the personnel involved are not 
     in Federal service.

     ``Sec. 907. Relationship to State duty

       ``Nothing in this chapter shall be construed as a 
     limitation on the authority of any unit of the National Guard 
     of a State, when such unit is not in Federal service, to 
     perform functions authorized to be performed by the National 
     Guard by the laws of the State concerned.

     ``Sec. 908. Annual report

       ``(a) Requirement for Report.--After the end of each fiscal 
     year, the Secretary of Defense shall submit to the 
     congressional defense committees a report regarding any 
     assistance provided and activities carried out under this 
     chapter during that fiscal year. The report for a fiscal year 
     shall be submitted not later than March 31 of the year 
     following the year in which such fiscal year ended.
       ``(b) Content.--The report for a fiscal year shall include 
     the following matters:
       ``(1) The numbers of members of the National Guard excluded 
     under subsection (i) of section 115 of title 10 from being 
     counted for the purpose of end-strengths authorized pursuant 
     to subsection (a)(1) of such section.
       ``(2) A description of the homeland defense activities 
     conducted with funds provided under this chapter.
       ``(3) An accounting of the amount of the funds provided to 
     each State.
       ``(4) A description of the effect on military training and 
     readiness of using units and personnel of the National Guard 
     to perform homeland defense activities under this chapter.''.
       (2) The table of chapters at the beginning of such title is 
     amended by adding at the end the following new item:

``9. Homeland Defense Activities.............................901''.....

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

     SEC. 513. COMMISSION ON THE NATIONAL GUARD AND RESERVES.

       (a) Establishment.--There is established a commission to be 
     known as the ``Commission on the National Guard and 
     Reserves''.
       (b) Composition.--(1) The Commission shall be composed of 
     13 members appointed as follows:
       (A) Three members appointed by the chairman of the 
     Committee on Armed Services of the Senate.
       (B) Three members appointed by the chairman of the 
     Committee on Armed Services of the House of Representatives.
       (C) Two members appointed by the ranking minority member of 
     the Committee on Armed Services of the Senate.
       (D) Two members appointed by the ranking minority member of 
     the Committee on Armed Service of the House of 
     Representatives.
       (E) Three members appointed by the Secretary of Defense.
       (2) The members of the Commission shall be appointed from 
     among persons who have knowledge and expertise in the 
     following areas:
       (A) National security.
       (B) Roles and missions of any of the Armed Forces.
       (C) The mission, operations, and organization of the 
     National Guard of the United States.
       (D) The mission, operations, and organization of the other 
     reserve components of the Armed Forces.
       (E) Military readiness of the Armed Forces.
       (F) Personnel pay and other forms of compensation.
       (G) Other personnel benefits, including health care.
       (3) Members of the Commission shall be appointed for the 
     life of the Commission. A vacancy in the membership of the 
     Commission shall not affect the powers of the Commission, but 
     shall be filled in the same manner as the original 
     appointment.
       (4) The Secretary of Defense shall designate a member of 
     the Commission to be chairman of the Commission.
       (c) Duties.--(1) The Commission shall carry out a study of 
     the following matters:
       (A) The roles and missions of the National Guard and the 
     other reserve components of the Armed Forces.
       (B) The compensation and other benefits, including health 
     care benefits, that are provided for members of the reserve 
     components under the laws of the United States.
       (2) In carrying out the study under paragraph (1), the 
     Commission shall do the following:
       (A) Assess the current roles and missions of the reserve 
     components and identify appropriate potential future roles 
     and missions for the reserve components.
       (B) Assess the capabilities of the reserve components and 
     determine how the units and personnel of the reserve 
     components may be best used to support the military 
     operations of the Armed Forces and the achievement of 
     national security objectives, including homeland defense, of 
     the United States.
       (C) Assess the Department of Defense plan for 
     implementation of section 115(b) of title 10, United States 
     Code, as added by section 404(a)(4).
       (D) Assess--
       (i) the current organization and structure of the National 
     Guard and the other reserve components; and
       (ii) the plans of the Department of Defense and the Armed 
     Forces for future organization and structure of the National 
     Guard and the other reserve components.
       (E) Assess the manner in which the National Guard and the 
     other reserve components are currently organized and funded 
     for training and identify an organizational and funding 
     structure for training that best supports the achievement of 
     training objectives and operational readiness.
       (F) Assess the effectiveness of the policies and programs 
     of the National Guard and the other reserve components for 
     achieving operational readiness and personnel readiness, 
     including medical and personal readiness.
       (G) Assess--
       (i) the adequacy and appropriateness of the compensation 
     and benefits currently provided for the members of the 
     National Guard and the other reserve components, including 
     the availability of health care benefits and health 
     insurance; and
       (ii) the effects of proposed changes in compensation and 
     benefits on military careers in both the regular and the 
     reserve components of the Armed Forces.
       (H) Identify various feasible options for improving the 
     compensation and other benefits available to the members of 
     the National Guard and the members of the other reserve 
     components and assess--
       (i) the cost-effectiveness of such options; and
       (ii) the foreseeable effects of such options on readiness, 
     recruitment, and retention of personnel for careers in the 
     regular and reserve components the Armed Forces.
       (I) Assess the traditional military career paths for 
     members of the National Guard and the other reserve 
     components and identify alternative career paths that could 
     enhance professional development.
       (J) Assess the adequacy of the funding provided for the 
     National Guard and the other reserve components for several 
     previous fiscal years, including the funding provided for 
     National Guard and reserve component equipment and the 
     funding provided for National Guard and other reserve 
     component personnel in active duty military personnel 
     accounts and reserve military personnel accounts.
       (d) First Meeting.--The Commission shall hold its first 
     meeting not later than 30 days after the date on which all 
     members of the Commission have been appointed.
       (e) Administrative and Procedural Authorities.--(1) 
     Sections 955, 956, 957 (other than subsection (f)), 958, and 
     959 of the National Defense Authorization Act for Fiscal Year 
     1994 (Public Law 103-160; 10 U.S.C 111

[[Page H9209]]

     note) shall apply to the Commission, except that in applying 
     section 957(a) of such Act to the Commission, ``level IV of 
     the Executive Schedule'' shall be substituted for ``level V 
     of the Executive Schedule''.
       (2) The following provisions of law do not apply to the 
     Commission:
       (A) Section 3161 of title 5, United States Code.
       (B) The Federal Advisory Committee Act (5 U.S.C. App.).
       (f) Reports.--(1) Not later than three months after the 
     first meeting of the Commission, the Commission shall submit 
     to the Committees on Armed Services of the Senate and the 
     House of Representatives a report setting forth--
       (A) a strategic plan for the work of the Commission;
       (B) a discussion of the activities of the Commission; and
       (C) any initial findings of the Commission.
       (2) Not later than one year after the first meeting of the 
     Commission, the Commission shall submit a final report to the 
     committees of Congress referred to in paragraph (1) and to 
     the Secretary of Defense. The final report shall include any 
     recommendations that the Commission determines appropriate, 
     including any recommended legislation, policies, regulations, 
     directives, and practices.
       (g) Termination.--The Commission shall terminate 90 days 
     after the date on which the final report is submitted under 
     subsection (f)(2).
       (h) Annual Review.--(1) The Secretary of Defense shall 
     annually review the reserve components of the Armed Forces 
     with regard to--
       (A) the roles and missions of the reserve components; and
       (B) the compensation and other benefits, including health 
     care benefits, that are provided for members of the reserve 
     components under the laws of the United States.
       (2) The Secretary shall submit a report of the annual 
     review, together with any comments and recommendations that 
     the Secretary considers appropriate, to the Committee on 
     Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives.
       (3) The first review under paragraph (1) shall take place 
     during fiscal year 2006.

     SEC. 514. REPEAL OF EXCLUSION OF ACTIVE DUTY FOR TRAINING 
                   FROM AUTHORITY TO ORDER RESERVES TO ACTIVE 
                   DUTY.

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

     SEC. 515. ARMY PROGRAM FOR ASSIGNMENT OF ACTIVE COMPONENT 
                   ADVISERS TO UNITS OF THE SELECTED RESERVE.

       (a) Change in Minimum Number Required to be Assigned.--
     Section 414(c)(1) of the National Defense Authorization Act 
     for Fiscal Years 1992 and 1993 (10 U.S.C. 12001 note) is 
     amended by striking ``5,000'' and inserting ``3,500''.
       (b) Limitation on Reductions.--Notwithstanding the 
     amendment made by subsection (a), the Secretary of the Army 
     may not reduce the number of active component Reserve support 
     personnel below the number of such personnel as of the date 
     of the enactment of this Act until the report required by 
     subsection (c) has been submitted.
       (c) Report.--Not later than March 31, 2005, the Secretary 
     of the Army shall submit to the Committees on Armed Services 
     of the Senate and House of Representatives a report on the 
     support by active components of the Army for training and 
     readiness of the Army National Guard and Army Reserve. The 
     report shall include an evaluation and determination of each 
     of the following:
       (1) The effect on the ability of the Army to improve such 
     training and readiness resulting from the reduction under the 
     amendment made by subsection (a) in the minimum number of 
     active component Reserve support personnel.
       (2) The adequacy of having 3,500 members of the Army (the 
     minimum number required under the law as so amended) assigned 
     as active component Reserve support personnel in order to 
     meet emerging training requirements in the Army reserve 
     components in connection with unit and force structure 
     conversions and preparations for wartime deployment.
       (3) The nature and effectiveness of efforts by the Army to 
     reallocate the 3,500 personnel assigned as active component 
     Reserve support personnel to higher priority requirements and 
     to expand the use of reservists on active duty to meet 
     reserve component training needs.
       (4) Whether the Army is planning further reductions in the 
     number of active component Reserve support personnel and, if 
     so, the scope and rationale for those reductions.
       (5) Whether an increase in Army reserve component full-time 
     support personnel will be required to replace the loss of 
     active component Reserve support personnel.
       (d) Definition.--In this section, the term ``active 
     component Reserve support personnel'' means the active 
     component Army personnel assigned as advisers to units of the 
     Selected Reserve of the Ready Reserve of the Army pursuant to 
     section 414 of the National Defense Authorization Act for 
     Fiscal Years 1992 and 1993 (10 U.S.C. 12001 note).

     SEC. 516. AUTHORITY TO ACCEPT CERTAIN VOLUNTARY SERVICES.

       Section 1588 of title 10, United States Code, is amended--
       (1) in subsection (a), by adding at the end the following 
     new paragraph:
       ``(8) Voluntary services to support programs of a committee 
     of the Employer Support of the Guard and Reserve as 
     authorized by the Secretary of Defense.''; and
       (2) in subsection (f)(1), by striking ``subsection (a)(3)'' 
     and inserting ``paragraph (3) or (8) of subsection (a)''.

     SEC. 517. AUTHORITY TO REDESIGNATE THE NAVAL RESERVE AS THE 
                   NAVY RESERVE.

       (a) Authority of Secretary of the Navy.--The Secretary of 
     the Navy may, with the approval of the President, redesignate 
     the reserve component known as the Naval Reserve as the 
     ``Navy Reserve''. Any such redesignation shall be effective 
     on a date specified by the Secretary, which date may not be 
     earlier than the date that is 180 days after the date on 
     which the Secretary submits recommended legislation under 
     subsection (c).
       (b) Publication of Redesignation.--If the Secretary of the 
     Navy exercises the authority to redesignate the Naval Reserve 
     under subsection (a), the Secretary shall promptly publish in 
     the Federal Register and submit to the Congress notice of the 
     redesignation, including the effective date of the 
     redesignation.
       (c) Conforming Legislation.--If the Secretary of the Navy 
     exercises the authority to redesignate the Naval Reserve 
     under subsection (a), the Secretary shall submit to the 
     Congress recommended legislation that identifies each 
     specific provision of law that refers to the Naval Reserve 
     and sets forth an amendment to that specific provision of law 
     to conform the reference to the new designation.
       (d) References.--If the Secretary of the Navy exercises the 
     authority to redesignate the Naval Reserve under subsection 
     (a), then on and after the effective date of the 
     redesignation, any reference in any law, map, regulation, 
     document, paper, or other record of the United States to the 
     Naval Reserve shall be deemed to be a reference to the Navy 
     Reserve.

     SEC. 518. COMPTROLLER GENERAL ASSESSMENT OF INTEGRATION OF 
                   ACTIVE AND RESERVE COMPONENTS OF THE NAVY.

       (a) Assessment.--The Comptroller General shall review the 
     plan of the Secretary of the Navy for, and implementation by 
     the Secretary of, initiatives undertaken within the Navy to 
     improve the integration of the active and reserve components 
     of the Navy in peacetime and wartime operations resulting 
     from--
       (1) the Naval Reserve Redesign Study carried out by the 
     Navy: and
       (2) the zero-based review of reserve component force 
     structure undertaken by the commander of the Fleet Forces 
     Command of the Navy during fiscal year 2004.
       (b) Report.--No later than March 31, 2005, the Comptroller 
     General shall submit to the Committees on Armed Services of 
     the Senate and House of Representatives a report on the 
     results of the review under subsection (a). The Comptroller 
     General shall include in the report recommendations for 
     improved active and reserve component integration in the 
     Navy.
       (c) Matters to be Examined.--In conducting the review under 
     subsection (a), the Comptroller General shall examine the 
     following:
       (1) The criteria the Navy used to determine the following 
     with respect to integration of the active and reserve 
     components of the Navy:
       (A) The future mix of active and reserve component force 
     structure.
       (B) Organization of command and control elements.
       (C) Manpower levels.
       (D) Basing changes.
       (2) The extent to which the plans of the Navy for improving 
     the integration of the active and reserve components of the 
     Navy considered each of the following:
       (A) The new Fleet Response Plan of the Navy.
       (B) The flexible deployment concept.
       (C) Global operations.
       (D) Emerging mission requirements.
       (E) Other evolving initiatives.
       (3) The manner in which the timing of the execution of 
     planned active and reserve integration initiatives will 
     correlate with the funding of those initiatives, including 
     consideration of an evaluation of the adequacy of the funding 
     allocated to those integration initiatives.
       (4) For naval aviation forces, the extent to which the 
     active and reserve component integration plans of the Navy 
     will affect factors such as--
       (A) common training and readiness standards for active and 
     reserve forces;

[[Page H9210]]

       (B) reserve component access to the same equipment as the 
     active component;
       (C) relationships between command and headquarters elements 
     of active and reserve forces; and
       (D) trends in the use by the Navy of units referred to as 
     ``associate'' units or ``blended'' units.
       (E) Basing criteria of future aviation forces.
       (F) Employment of Naval Reserve aviation forces and 
     personnel in peacetime and wartime operations.

     SEC. 519. LIMITATION ON NUMBER OF STARBASE ACADEMIES IN A 
                   STATE.

       Paragraph (3) of section 2193b(c) of title 10, United 
     States Code, is amended to read as follows:
       ``(3)(A) Except as otherwise provided under subparagraph 
     (B), the Secretary may not support the establishment in any 
     State of more than two academies under the program.
       ``(B) The Secretary may support the establishment and 
     operation of an academy in a State in excess of two academies 
     in that State if the Secretary expressly waives, in writing, 
     the limitation in subparagraph (A) with respect to that 
     State. In the case of any such waiver, appropriated funds may 
     be used for the establishment and operation of an academy in 
     excess of two in that State only to the extent that 
     appropriated funds are expressly available for that purpose. 
     Any such waiver shall be made under criteria to be prescribed 
     by the Secretary.''.

     SEC. 520. RECOGNITION ITEMS FOR CERTAIN RESERVE COMPONENT 
                   PERSONNEL.

       (a) Army Reserve.--(1) Chapter 1805 of title 10, United 
     States Code, is amended by adding at the end the following 
     new section:

     ``Sec. 18506. Recruitment and retention: availability of 
       funds for recognition items for Army Reserve personnel

       ``(a) Availability of Funds.--(1) Under regulations 
     prescribed by the Secretary of the Army, funds authorized to 
     be appropriated to the Army Reserve and available for 
     recruitment and retention of military personnel may be 
     obligated and expended for recognition items that are 
     distributed to members of the Army Reserve and to members of 
     their families and other individuals recognized as providing 
     support that substantially facilitates service in the Army 
     Reserve.
       ``(2) The purpose of the distribution of such items shall 
     be to enhance the recruitment and retention of members of the 
     Army Reserve.
       ``(b) Provision of Meals and Refreshments.--For purposes of 
     section 520c of this title and any regulation prescribed to 
     implement that section, functions conducted for the purpose 
     of presenting recognition items described in subsection (a) 
     shall be treated as recruiting functions and recipients of 
     such items shall be treated as persons who are the objects of 
     recruiting efforts.
       ``(c) Limitation on Value.--The value of items referred to 
     in subsection (a) that are distributed to any single member 
     of the Army Reserve at any one time may not exceed $50.
       ``(d) Termination of Authority.--The authority under this 
     section shall expire December 31, 2005.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``18506. Recruitment and retention: availability of funds for 
              recognition items for Army Reserve personnel.''.

       (b) Use of Funds to Promote Retention in the National 
     Guard.--(1) Chapter 7 of title 32, United States Code, is 
     amended by adding at the end the following new section:

     ``Sec. 717. Presentation of recognition items for retention 
       purposes

       ``(a) Expenditures for Recognition Items.--Under 
     regulations prescribed by the Secretary of the Army and the 
     Secretary of the Air Force, funds appropriated for the Army 
     National Guard or Air National Guard for the purpose of 
     recruitment and retention of military personnel may be 
     expended to procure recognition items of nominal or modest 
     value for retention purposes and to present such items to 
     members of the National Guard and to members of their 
     families and other individuals recognized as providing 
     support that substantially facilitates service in the 
     National Guard.
       ``(b) Provision of Meals and Refreshments.--For purposes of 
     section 520c of title 10 and any regulation prescribed to 
     implement that section, functions conducted for the purpose 
     of presenting recognition items described in subsection (a) 
     shall be treated as recruiting functions and recipients of 
     such items shall be treated as persons who are the objects of 
     recruiting efforts.
       ``(c) Relation to Other Law.--The authority provided in 
     this section is in addition to other provision of law 
     authorizing the use of appropriations for recruitment and 
     retention purposes.
       ``(d) Definition.--The term `recognition items of nominal 
     or modest value' means commemorative coins, medals, trophies, 
     badges, flags, posters, paintings, or other similar items 
     that are valued at less than $50 per item and are designed to 
     recognize or commemorate service in the armed forces or 
     National Guard.
       ``(e) Termination of Authority.--The authority under this 
     section shall expire December 31, 2005.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``717. Presentation of recognition items for retention purposes.''.

       (c) Effective Date.--Section 18506 of title 10, United 
     States Code, as added by subsection (a), and section 717 of 
     title 32, United States Code, as added by subsection (b), 
     shall take effect as of November 24, 2003, and as if included 
     in the National Defense Authorization Act for Fiscal Year 
     2004 (Public Law 108-136).

            Subtitle C--Reserve Component Personnel Matters

     SEC. 521. STATUS UNDER DISABILITY RETIREMENT SYSTEM FOR 
                   RESERVE MEMBERS RELEASED FROM ACTIVE DUTY DUE 
                   TO INABILITY TO PERFORM WITHIN 30 DAYS OF CALL 
                   TO ACTIVE DUTY.

       (a) In General.--Chapter 61 of title 10, United States 
     Code, is amended by inserting after section 1206 the 
     following new section:

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

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

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

     SEC. 522. REQUIREMENT FOR RETENTION OF RESERVES ON ACTIVE 
                   DUTY TO QUALIFY FOR RETIRED PAY NOT APPLICABLE 
                   TO NONREGULAR SERVICE RETIREMENT SYSTEM.

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

     SEC. 523. FEDERAL CIVIL SERVICE MILITARY LEAVE FOR RESERVE 
                   AND NATIONAL GUARD CIVILIAN TECHNICIANS.

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

     SEC. 524. EXPANDED EDUCATIONAL ASSISTANCE AUTHORITY FOR 
                   OFFICERS COMMISSIONED THROUGH ROTC PROGRAM AT 
                   MILITARY JUNIOR COLLEGES.

       (a) Financial Assistance Program for Service on Active 
     Duty.--Section 2107(c) of title 10, United States Code, is 
     amended by adding at the end the following new paragraph:
       ``(5)(A) The Secretary of the Army, under regulations and 
     criteria established by the Secretary, may provide an 
     individual who received a commission as a Reserve officer in 
     the Army from a military junior college through a program 
     under this chapter and who does not have a baccalaureate 
     degree with financial assistance for pursuit of a 
     baccalaureate degree.
       ``(B) Such assistance is in addition to any financial 
     assistance provided under paragraph (1), (3), or (4).
       ``(C) The agreement and reimbursement requirements 
     established in section 2005 of this title are applicable to 
     financial assistance under this paragraph.
       ``(D) An officer receiving financial assistance under this 
     paragraph shall be attached to a unit of the Army as 
     determined by the Secretary and shall be considered to be a 
     member of the Senior Reserve Officers' Training Corps on 
     inactive duty for training, as defined in section 101(23) of 
     title 38.
       ``(E) A qualified officer who did not previously receive 
     financial assistance under this section is eligible to 
     receive educational assistance under this paragraph.
       ``(F) A Reserve officer may not be called or ordered to 
     active duty for a deployment while participating in the 
     program under this paragraph.
       ``(G) Any service obligation incurred by an officer under 
     an agreement entered into under this paragraph shall be in 
     addition to any service obligation incurred by that officer 
     under any other provision of law or agreement.''.
       (b) Financial Assistance Program for Service in Troop 
     Program Units.--Section 2107a(c) of such title is amended by 
     adding at the end the following new paragraph:
       ``(4)(A) The Secretary of the Army may provide an 
     individual who received a commission as a Reserve officer in 
     the Army from a military junior college through a program 
     under this chapter and who does not have a baccalaureate 
     degree with financial assistance for pursuit of a 
     baccalaureate degree.
       ``(B) Such assistance is in addition to any provided under 
     paragraph (1) or (2).
       ``(C) The agreement and reimbursement requirements 
     established in section 2005 of this title are applicable to 
     financial assistance under this paragraph.
       ``(D) An officer receiving financial assistance under this 
     paragraph shall be attached to a unit of the Army as 
     determined by the Secretary and shall be considered to be a 
     member of the Senior Reserve Officers' Training Corps on 
     inactive

[[Page H9211]]

     duty for training, as defined in section 101(23) of title 38.
       ``(E) A qualified officer who did not previously receive 
     financial assistance under this section is eligible to 
     receive educational assistance under this paragraph.
       ``(F) A Reserve officer may not be called or ordered to 
     active duty for a deployment while participating in the 
     program under this paragraph.
       ``(G) Any service obligation incurred by an officer under 
     an agreement entered into under this paragraph shall be in 
     addition to any service obligation incurred by that officer 
     under any other provision of law or agreement.''.
       (c) Implementation Report.--Not later than March 31, 2007, 
     the Secretary of the Army shall submit to the Committee on 
     Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives a report providing 
     information on the experience of the Department of the Army 
     under paragraph (5) of section 2107(c) of title 10, United 
     States Code, as added by subsection (a), and under paragraph 
     (4) of section 2107a(c) of title 10, United States Code, as 
     added by subsection (b). The report shall include any 
     recommendations the Secretary considers necessary for the 
     improvement of the programs under those paragraphs.

     SEC. 525. REPEAL OF SUNSET PROVISION FOR FINANCIAL ASSISTANCE 
                   PROGRAM FOR STUDENTS NOT ELIGIBLE FOR ADVANCED 
                   TRAINING.

       Section 2103a of title 10, United States Code, is amended 
     by striking subsection (d).

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

       Section 16301(a) of title 10, United States Code, is 
     amended--
       (1) in paragraph (2), by striking ``The Secretary'' in the 
     first sentence and inserting ``Except as provided in 
     paragraph (3), the Secretary of Defense''; and
       (2) by adding at the end the following new paragraph:
       ``(3) In the case of a commitment made by the Secretary of 
     Defense after the date of the enactment of this paragraph to 
     repay a loan under paragraph (1) conditioned upon the 
     performance by the borrower of service as an enlisted member 
     under paragraph (2), the Secretary may repay the loan for 
     service performed by the borrower as an officer (rather than 
     as an enlisted member) in the case of a borrower who, after 
     such commitment is entered into and while performing service 
     as an enlisted member, accepts an appointment or commission 
     as a warrant officer or commissioned officer of the Selected 
     Reserve.''.

     SEC. 527. EDUCATIONAL ASSISTANCE FOR CERTAIN RESERVE 
                   COMPONENT MEMBERS WHO PERFORM ACTIVE SERVICE.

       (a) Establishment of Program.--Part IV of subtitle E of 
     title 10, United States Code, is amended by inserting after 
     chapter 1606 the following new chapter:

 ``CHAPTER 1607--EDUCATIONAL ASSISTANCE FOR RESERVE COMPONENT MEMBERS 
     SUPPORTING CONTINGENCY OPERATIONS AND CERTAIN OTHER OPERATIONS

`` Sec.
``16161. Purpose.
``16162. Educational assistance program.
``16163. Eligibility for educational assistance.
``16164. Time limitation for use of entitlement.
``16165. Termination of assistance.
``16166. Administration of program.

     ``Sec. 16161. Purpose

       ``The purpose of this chapter is to provide educational 
     assistance to members of the reserve components called or 
     ordered to active service in response to a war or national 
     emergency declared by the President or the Congress, in 
     recognition of the sacrifices that those members make in 
     answering the call to duty.

     ``Sec. 16162. Educational assistance program

       ``(a) Program Establishment.-- The Secretary of each 
     military department, under regulations prescribed by the 
     Secretary of Defense, and the Secretary of Homeland Security 
     with respect to the Coast Guard when it is not operating as a 
     service in the Navy, shall establish and maintain a program 
     as prescribed in this chapter to provide educational 
     assistance to members of the Ready Reserve of the armed 
     forces under the jurisdiction of the Secretary concerned.
       ``(b) Authorized Education Programs.--Educational 
     assistance may be provided under this chapter for pursuit of 
     any program of education that is an approved program of 
     education for purposes of chapter 30 of title 38.
       ``(c) Benefit Amount.--(1) The educational assistance 
     program established under subsection (a) shall provide for 
     payment by the Secretary concerned, through the Secretary of 
     Veterans Affairs, an educational assistance allowance to each 
     member entitled to educational assistance under this chapter 
     who is pursuing a program of education authorized under 
     subsection (b).
       ``(2) The educational assistance allowance provided under 
     this chapter shall be based on the applicable percent under 
     paragraph (4) to the applicable rate provided under section 
     3015 of title 38 for a member whose entitlement is based on 
     completion of an obligated period of active duty of three 
     years.
       ``(3) The educational assistance allowance provided under 
     this section for a person who is undertaking a program for 
     which a reduced rate is specified in chapter 30 of title 38, 
     that rate shall be further adjusted by the applicable percent 
     specified in paragraph (4).
       ``(4) The adjusted educational assistance allowance under 
     paragraph (2) or (3), as applicable, shall be--
       ``(A) 40 percent in the case of a member of a reserve 
     component who performed active service for 90 consecutive 
     days but less than one continuous year;
       ``(B) 60 percent in the case of a member of a reserve 
     component who performed active service for one continuous 
     year but less than two continuous years; or
       ``(C) 80 percent in the case of a member of a reserve 
     component who performed active service for two continuous 
     years or more.
       ``(d) Maximum Months of Assistance.--(1) Subject to section 
     3695 of title 38, the maximum number of months of educational 
     assistance that may be provided to any member under this 
     chapter is 36 (or the equivalent thereof in part-time 
     educational assistance).
       ``(2)(A) Notwithstanding any other provision of this 
     chapter or chapter 36 of title 38, any payment of an 
     educational assistance allowance described in subparagraph 
     (B) shall not--
       ``(i) be charged against the entitlement of any individual 
     under this chapter; or
       ``(ii) be counted toward the aggregate period for which 
     section 3695 of title 38 limits an individual's receipt of 
     assistance.
       ``(B) The payment of the educational assistance allowance 
     referred to in subparagraph (A) is the payment of such an 
     allowance to the individual for pursuit of a course or 
     courses under this chapter if the Secretary of Veterans 
     Affairs finds that the individual--
       ``(i) had to discontinue such course pursuit as a result of 
     being ordered to serve on active duty under section 12301(a), 
     12301(d), 12301(g), 12302, or 12304 of this title; and
       ``(ii) failed to receive credit or training time toward 
     completion of the individual's approved educational, 
     professional, or vocational objective as a result of having 
     to discontinue, as described in clause (i), the individual's 
     course pursuit.
       ``(C) The period for which, by reason of this subsection, 
     an educational assistance allowance is not charged against 
     entitlement or counted toward the applicable aggregate period 
     under section 3695 of title 38 shall not exceed the portion 
     of the period of enrollment in the course or courses for 
     which the individual failed to receive credit or with respect 
     to which the individual lost training time, as determined 
     under subparagraph (B)(ii).

     ``Sec. 16163. Eligibility for educational assistance

       ``(a) Eligibility.--On or after September 11, 2001, a 
     member of a reserve component is entitled to educational 
     assistance under this chapter if the member--
       ``(1) served on active duty in support of a contingency 
     operation for 90 consecutive days or more; or
       ``(2) in the case of a member of the Army National Guard of 
     the United States or Air National Guard of the United States, 
     performed full time National Guard duty under section 502(f) 
     of title 32 for 90 consecutive days or more when authorized 
     by the President or Secretary of Defense for the purpose of 
     responding to a national emergency declared by the President 
     and supported by Federal funds.
       ``(b) Disabled Members.--Notwithstanding the eligibility 
     requirements in subsection (a), a member who was ordered to 
     active service as prescribed under subsection (a)(1) or 
     (a)(2) but is released from duty before completing 90 
     consecutive days because of an injury, illness or disease 
     incurred or aggravated in the line of duty shall be entitled 
     to educational assistance under this chapter at the rate 
     prescribed in section 16162(c)(4)(A) of this title.
       ``(c) Written Notification.--(1) Each member who becomes 
     entitled to educational assistance under subsection (a) shall 
     be given a statement in writing prior to release from active 
     service that summarizes the provisions of this chapter and 
     stating clearly and prominently the substance of section 
     16165 of this title as such section may apply to the member.
       ``(2) At the request of the Secretary of Veterans Affairs, 
     the Secretary concerned shall transmit a notice of 
     entitlement for each such member to that Secretary.
       ``(d) Bar From Dual Eligibility.--A member who qualifies 
     for educational assistance under this chapter may not receive 
     credit for such service under both the program established by 
     chapter 30 of title 38 and the program established by this 
     chapter but shall make an irrevocable election (in such form 
     and manner as the Secretary of Veterans Affairs may 
     prescribe) as to the program to which such service is to be 
     credited.
       ``(e) Bar From Duplication of Educational Assistance 
     Allowance.--(1) Except as provided in paragraph (2), an 
     individual entitled to educational assistance under this 
     chapter who is also eligible for educational assistance under 
     chapter 1606 of this title, chapter 30, 31, 32, or 35 of 
     title 38, or under the Hostage Relief Act of 1980 (Public Law 
     96-449; 5 U.S.C. 5561 note) may not receive assistance under 
     more than one such programs and shall elect (in such form and 
     manner as the Secretary concerned may prescribe) under which 
     program the member elects to receive educational assistance.
       ``(2) The restriction on duplication of educational 
     assistance under paragraph (1) does not apply to the 
     entitlement of educational assistance under section 16131(i) 
     of this title.

     ``Sec. 16164. Time limitation for use of entitlement

       ``(a) Duration of Entitlement.--Except as provided in 
     subsection (b), a member remains entitled to educational 
     assistance under this chapter while serving--
       ``(1) in the Selected Reserve of the Ready Reserve, in the 
     case of a member called or ordered to active service while 
     serving in the Selected Reserve; or
       ``(2) in the Ready Reserve, in the case of a member ordered 
     to active duty while serving in the Ready Reserve (other than 
     the Selected Reserve).

[[Page H9212]]

       ``(b) Duration of Entitlement for Disabled Members.--(1) In 
     the case of a person who is separated from the Ready Reserve 
     because of a disability which was not the result of the 
     individual's own willful misconduct incurred on or after the 
     date on which such person became entitled to educational 
     assistance under this chapter, such person's entitlement to 
     educational assistance expires at the end of the 10-year 
     period beginning on the date on which such person became 
     entitled to such assistance.
       ``(2) The provisions of subsections (d) and (f) of section 
     3031 of title 38 shall apply to the period of entitlement 
     prescribed by paragraph (1).

     ``Sec. 16165. Termination of assistance

       ``Educational assistance may not be provided under this 
     chapter, or if being provided under this chapter, shall be 
     terminated--
       ``(1) if the member is receiving financial assistance under 
     section 2107 of this title as a member of the Senior Reserve 
     Officers' Training Corps program; or
       ``(2) when the member separates from the Ready Reserve, as 
     provided for under section 16164(a)(1) or section 
     16164(a)(2), as applicable, of this title.

     ``Sec. 16166. Administration of program

       ``(a) Administration.--Educational assistance under this 
     chapter shall be provided through the Department of Veterans 
     Affairs, under agreements to be entered into by the Secretary 
     of Defense, and by the Secretary of Homeland Security, with 
     the Secretary of Veterans Affairs. Such agreements shall 
     include administrative procedures to ensure the prompt and 
     timely transfer of funds from the Secretary concerned to the 
     Department of Veterans Affairs for the making of payments 
     under this chapter.
       ``(b) Program Management.--Except as otherwise provided in 
     this chapter, the provisions of sections 503, 511, 3470, 
     3471, 3474, 3476, 3482(g), 3483, and 3485 of title 38 and the 
     provisions of subchapters I and II of chapter 36 of such 
     title (with the exception of sections 3686(a), 3687, and 
     3692) shall be applicable to the provision of educational 
     assistance under this chapter. The term `eligible veteran' 
     and the term `person', as used in those provisions, shall be 
     deemed for the purpose of the application of those provisions 
     to this chapter to refer to a person eligible for educational 
     assistance under this chapter.
       ``(c) Flight Training.--The Secretary of Veterans Affairs 
     may approve the pursuit of flight training (in addition to a 
     course of flight training that may be approved under section 
     3680A(b) of title 38) by an individual entitled to 
     educational assistance under this chapter if--
       ``(1) such training is generally accepted as necessary for 
     the attainment of a recognized vocational objective in the 
     field of aviation;
       ``(2) the individual possesses a valid private pilot 
     certificate and meets, on the day the member begins a course 
     of flight training, the medical requirements necessary for a 
     commercial pilot certificate; and
       ``(3) the flight school courses meet Federal Aviation 
     Administration standards for such courses and are approved by 
     the Federal Aviation Administration and the State approving 
     agency.
       ``(d) Trust Fund.--Amounts for payments for benefits under 
     this chapter shall be derived from the Department of Defense 
     Education Benefits Fund under section 2006 of this title.''.
       (b) Conforming Amendments.--(1) Section 2006(b) of such 
     title is amended--
       (A) in paragraph (1), by striking ``chapter 1606'' and 
     inserting ``chapters 1606 and 1607, including funds provided 
     by the Secretary of Homeland Security for education 
     liabilities for the Coast Guard when it is not operating as a 
     service in the Department of the Navy''; and
       (B) in paragraph (2)(C), by striking ``for educational 
     assistance under chapter 1606'' and inserting ``(including 
     funds from the Department in which the Coast Guard is 
     operating) for educational assistance under chapters 1606 and 
     1607''.
       (2) Section 3695(a)(5) of title 38, United States Code, is 
     amended by inserting ``1607,'' after ``1606,''.
       (c) Clerical Amendment.--The tables of chapters at the 
     beginning of subtitle E of title 10, United States Code, and 
     at the beginning of part IV of such subtitle, are amended by 
     inserting after the item relating to chapter 1606 the 
     following new item:

``1607. Educational Assistance for Reserve Component Members Supporting 
    Contingency Operations and Certain Other Operations........16161''.

     SEC. 528. SENSE OF CONGRESS ON GUIDANCE CONCERNING TREATMENT 
                   OF EMPLOYER-PROVIDED COMPENSATION AND OTHER 
                   BENEFITS VOLUNTARILY PROVIDED TO EMPLOYEES WHO 
                   ARE ACTIVATED RESERVISTS.

       (a) Sense of Congress.--It is the sense of Congress--
       (1) that the Secretary of the Treasury should provide 
     guidance with respect to treatment under the internal revenue 
     laws of payments made by employers to activated Reservist 
     employees under voluntary Reserve-employee differential pay 
     arrangements, benefits provided by employers to such 
     employees, and contributions by employers to employer-
     provided retirement savings plans related thereto; and
       (2) that the guidance provided under paragraph (1) should, 
     to the extent possible within the Secretary's authority, be 
     consistent with the goal of promoting and ensuring the 
     validity of voluntary differential pay arrangements, 
     benefits, and contributions referred to in that paragraph.
       (b) Definitions.--For purposes of this section:
       (1) Voluntary reserve-employee differential pay 
     arrangement.--The term ``voluntary Reserve-employee 
     differential pay arrangement'' means an arrangement by which 
     an employer of an activated Reservist employee voluntarily 
     agrees to pay, and pays, to that employee, while on active 
     duty, amounts equivalent to the difference (or some portion 
     of the difference) between (A) the compensation of that 
     employee paid by the employer at the time of the employee's 
     activation for such active duty, and (B) that employee's 
     military compensation.
       (2) Activated reservist employee.--The term ``activated 
     Reservist employee'' means a member of a reserve component of 
     the Armed Forces who is on active duty under a call or order 
     to active duty (other than for training) and who at the time 
     of such call or order is employed in a position subject to 
     chapter 43 of title 38, United States Code (referred to as 
     the Uniformed Services Employment and Reemployment Rights Act 
     of 1994 (USERRA)).

    Subtitle D--Joint Officer Management and Professional Military 
                               Education

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

       (a) Plan Required.--(1) The Secretary of Defense shall 
     develop a strategic plan for joint officer management and 
     joint professional military education that links joint 
     officer development to the accomplishment of the overall 
     missions and goals of the Department of Defense, as set forth 
     in the most recent national military strategy under section 
     153(d) of title 10, United States Code. Such plan shall be 
     developed for the purpose of ensuring that sufficient numbers 
     of officers fully qualified in occupational specialties 
     involving combat operations are available as necessary to 
     meet the needs of the Department for qualified officers who 
     are operationally effective in the joint environment.
       (2) The Secretary shall develop the strategic plan with the 
     advice of the Chairman of the Joint Chiefs of Staff.
       (b) Matters to be Included.--As part of the strategic plan 
     under subsection (a), the Secretary shall include the 
     following:
       (1) A statement of the levels of joint officer resources 
     needed to be available to properly support the overall 
     missions of the Department of Defense, with such resources to 
     be specified by the number of officers with the joint 
     specialty, the number of officers required for service in 
     joint duty assignment positions, and the training and 
     education resources required.
       (2) An assessment of the available and projected joint 
     officer development resources (including officers, 
     educational and training resources, and availability of joint 
     duty assignment positions and tours of duty) necessary to 
     achieve the levels specified under paragraph (1).
       (3) Identification of any problems or issues arising from 
     linking resources for joint officer development to 
     accomplishment of the objective of meeting the levels 
     specified under paragraph (1) to resolve those problems and 
     issues and plans.
       (4) A description of the process for identification of the 
     present and future requirements for joint specialty officers.
       (5) A description of the career development and management 
     of joint specialty officers and of any changes to be made to 
     facilitate achievement of the levels of resources specified 
     in paragraph (1), including additional education 
     requirements, promotion opportunities, and assignments to 
     fill joint assignments.
       (6) An assessment of any problems or issues (and proposed 
     solutions for any such problems and issues) arising from 
     linking promotion eligibility to completion of joint 
     professional military education.
       (7) An assessment of any problems or issues (and proposed 
     solutions for any such problems and issues) arising from 
     linking prescribed lengths of joint duty assignments to 
     qualification as joint specialty officers.
       (8) An assessment of any problems or issues (and proposed 
     solutions for any such problems and issues) arising from 
     current law regarding expected rates of promotion for joint 
     specialty officers and officers who are serving in, or have 
     served in, joint duty assignments (other than those serving 
     in, or who have served in, the Joint Staff and joint 
     specialty officers).
       (9) An assessment of any problems or issues (and proposed 
     solutions for any such problems and issues) arising from 
     current applicability of scientific and technical 
     qualification waivers for designation as joint specialty 
     officers.
       (10) An assessment of the viability of the use of 
     incentives (such as awarding ribbons) to any person who 
     successfully completes a joint professional military 
     education program of instruction.
       (11) An assessment of the feasibility and utility of a 
     comprehensive written examination as part of the evaluation 
     criteria for selection of officers for full-time attendance 
     at an intermediate or senior level service school.
       (12) An assessment of the effects on the overall 
     educational experience at the National Defense University of 
     a small increase in the number of private-sector civilians 
     eligible to enroll in instruction at the National Defense 
     University .
       (13) An assessment of the propriety and implications in 
     providing joint specialty officer qualification to all 
     qualifying reserve offices who have achieved the statutory 
     prerequisites.
       (c) Inclusion of Reserve Component Officers.--In developing 
     the strategic plan required by subsection (a), the Secretary 
     shall include joint officer development for officers on the 
     reserve active-status list in the plan.
       (d) Report.--The Secretary shall submit the plan developed 
     under this section to the Committees on Armed Services of the 
     Senate and House of Representatives not later than January 
     15, 2006.
       (e) Additional Assessment.--Not later than January 15, 
     2007, the Secretary of Defense shall submit to the Committees 
     on Armed Services of the Senate and House of Representatives, 
     as a follow-on to the report under subsection (d), a

[[Page H9213]]

     report providing an assessment of, and initiatives to 
     improve, the performance in joint matters of the following:
       (1) Senior civilian officers and employees in the Office of 
     the Secretary of Defense, the Defense Agencies, and the 
     military departments.
       (2) Senior noncommissioned officers.
       (3) Senior leadership in the reserve components.

     SEC. 532. IMPROVEMENT TO PROFESSIONAL MILITARY EDUCATION IN 
                   THE DEPARTMENT OF DEFENSE.

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

             ``CHAPTER 107--PROFESSIONAL MILITARY EDUCATION

``Sec.
``2151. Definitions.
``2152. Professional military education: general requirements.
``2153. Capstone course: newly selected general and flag officers.
``2154. Joint professional military education: three-phase approach.
``2155. Joint professional military education phase II program of 
              instruction.
``2156. Joint Forces Staff College: duration of principal course of 
              instruction.
``2157. Annual report to Congress.

     ``Sec. 2151. Definitions

       ``(a) Joint Professional Military Education.--Joint 
     professional military education consists of the rigorous and 
     thorough instruction and examination of officers of the armed 
     forces in an environment designed to promote a theoretical 
     and practical in-depth understanding of joint matters and, 
     specifically, of the subject matter covered. The subject 
     matter to be covered by joint professional military education 
     shall include at least the following:
       ``(1) National Military Strategy.
       ``(2) Joint planning at all levels of war.
       ``(3) Joint doctrine.
       ``(4) Joint command and control.
       ``(5) Joint force and joint requirements development.
       ``(b) Other Definitions.--In this chapter:
       ``(1) The term `senior level service school' means any of 
     the following:
       ``(A) The Army War College.
       ``(B) The College of Naval Warfare.
       ``(C) The Air War College.
       ``(D) The Marine Corps War College.
       ``(2) The term `intermediate level service school' means 
     any of the following:
       ``(A) The United States Army Command and General Staff 
     College.
       ``(B) The College of Naval Command and Staff.
       ``(C) The Air Command and Staff College.
       ``(D) The Marine Corps Command and Staff College.

     ``Sec. 2152. Joint professional military education: general 
       requirements

       ``(a) In General.--The Secretary of Defense shall implement 
     a comprehensive framework for the joint professional military 
     education of officers, including officers nominated under 
     section 661 of this title for the joint specialty.

     ``Sec. 2153. Capstone course: newly selected general and flag 
       officers

       ``(a) Requirement.--Each officer selected for promotion to 
     the grade of brigadier general or, in the case of the Navy, 
     rear admiral (lower half) shall be required, after such 
     selection, to attend a military education course designed 
     specifically to prepare new general and flag officers to work 
     with the other armed forces.
       ``(b) Waiver Authority.--(1) Subject to paragraph (2), the 
     Secretary of Defense may waive subsection (a)--
       ``(A) in the case of an officer whose immediately previous 
     assignment was in a joint duty assignment and who is 
     thoroughly familiar with joint matters;
       ``(B) when necessary for the good of the service;
       ``(C) in the case of an officer whose proposed selection 
     for promotion is based primarily upon scientific and 
     technical qualifications for which joint requirements do not 
     exist (as determined under regulations prescribed under 
     section 619(e)(4) of this title); and
       ``(D) in the case of a medical officer, dental officer, 
     veterinary officer, medical service officer, nurse, 
     biomedical science officer, or chaplain.
       ``(2) The authority of the Secretary of Defense to grant a 
     waiver under paragraph (1) may only be delegated to the 
     Deputy Secretary of Defense, an Under Secretary of Defense, 
     or an Assistant Secretary of Defense. Such a waiver may be 
     granted only on a case-by-case basis in the case of an 
     individual officer.

     ``Sec. 2154. Joint professional military education: three-
       phase approach

       ``(a) Three-Phase Approach.--The Secretary of Defense shall 
     implement a three-phase approach to joint professional 
     military education, as follows:
       ``(1) There shall be a course of instruction, designated 
     and certified by the Secretary of Defense with the advice and 
     assistance of the Chairman of the Joint Chiefs of Staff as 
     Phase I instruction, consisting of all the elements of a 
     joint professional military education (as specified in 
     section 2151(a) of this title), in addition to the principal 
     curriculum taught to all officers at an intermediate level 
     service school.
       ``(2) There shall be a course of instruction, designated 
     and certified by the Secretary of Defense with the advice and 
     assistance of the Chairman of the Joint Chiefs of Staff as 
     Phase II instruction, consisting of a joint professional 
     military education curriculum taught in residence at--
       ``(A) the Joint Forces Staff College; or
       ``(B) a senior level service school that has been 
     designated and certified by the Secretary of Defense as a 
     joint professional military education institution.
       ``(3) There shall be a course of instruction, designated 
     and certified by the Secretary of Defense with the advice and 
     assistance of the Chairman of the Joint Chiefs of Staff as 
     the Capstone course, for officers selected for promotion to 
     the grade of brigadier general or, in the case of the Navy, 
     rear admiral (lower half) and offered in accordance with 
     section 2153 of this title.
       ``(b) Sequenced Approach.--The Secretary shall require the 
     sequencing of joint professional military education so that 
     the standard sequence of assignments for such education 
     requires an officer to complete Phase I instruction before 
     proceeding to Phase II instruction, as provided in section 
     2155(a) of this title.

     ``Sec. 2155. Joint professional military education phase II 
       program of instruction

       ``(a) Prerequisite of Completion of Joint Professional 
     Military Education I Program of Instruction.--(1) After 
     September 30, 2009, an officer of the armed forces may not be 
     accepted for, or assigned to, a program of instruction 
     designated by the Secretary of Defense as joint professional 
     military education Phase II unless the officer has 
     successfully completed a program of instruction designated by 
     the Secretary of Defense as joint professional military 
     education Phase I.
       ``(2) The Chairman of the Joint Chiefs of Staff may grant 
     exceptions to the requirement under paragraph (1). Such an 
     exception may be granted only on a case-by-case basis under 
     exceptional circumstances, as determined by the Chairman. An 
     officer selected to receive such an exception shall have 
     knowledge of joint matters and other aspects of the Phase I 
     curriculum that, to the satisfaction of the Chairman, 
     qualifies the officer to meet the minimum requirements 
     established for entry into Phase II instruction without first 
     completing Phase I instruction. The number of officers 
     selected to attend an offering of the principal course of 
     instruction at the Joint Forces Staff College or a senior 
     level service school designated by the Secretary of Defense 
     as a joint professional military education institution who 
     have not completed Phase I instruction should comprise no 
     more than 10 percent of the total number of officers 
     selected.
       ``(b) Phase II Requirements.--The Secretary shall require 
     that the curriculum for Phase II joint professional military 
     education at any school--
       ``(1) focus on developing joint operational expertise and 
     perspectives and honing joint warfighting skills; and
       ``(2) be structured --
       ``(A) so as to adequately prepare students to perform 
     effectively in an assignment to a joint, multiservice 
     organization; and
       ``(B) so that students progress from a basic knowledge of 
     joint matters learned in Phase I instruction to the level of 
     expertise necessary for successful performance in the joint 
     arena.
       ``(c) Curriculum Content.--In addition to the subjects 
     specified in section 2151(a) of this title, the curriculum 
     for Phase II joint professional military education shall 
     include the following:
       ``(1) National security strategy.
       ``(2) Theater strategy and campaigning.
       ``(3) Joint planning processes and systems.
       ``(4) Joint, interagency, and multinational capabilities 
     and the integration of those capabilities.
       ``(d) Student Ratio; Faculty Ratio.--Not later than 
     September 30, 2009, for courses of instruction in a Phase II 
     program of instruction that is offered at senior level 
     service school that has been designated by the Secretary of 
     Defense as a joint professional military education 
     institution--
       ``(1) the percentage of students enrolled in any such 
     course who are officers of the armed force that administers 
     the school may not exceed 60 percent, with the remaining 
     services proportionally represented; and
       ``(2) of the faculty at the school who are active-duty 
     officers who provide instruction in such courses, the 
     percentage who are officers of the armed force that 
     administers the school may not exceed 60 percent, with the 
     remaining services proportionally represented.

     ``Sec. 2156. Joint Forces Staff College: duration of 
       principal course of instruction

       ``(a) Duration.--The duration of the principal course of 
     instruction offered at the Joint Forces Staff College may not 
     be less than 10 weeks of resident instruction.
       ``(b) Definition.--In this section, the term `principal 
     course of instruction' means any course of instruction 
     offered at the Joint Forces Staff College as Phase II joint 
     professional military education.

     ``Sec. 2157. Annual report to Congress

       ``The Secretary of Defense shall include in the annual 
     report of the Secretary to Congress under section 113(c) of 
     this title, for the period covered by the report, the 
     following information (which shall be shown for the 
     Department of Defense as a whole and separately for the Army, 
     Navy, Air Force, and Marine Corps and each reserve 
     component):
       ``(1) The number of officers who successfully completed a 
     joint professional military education phase II course and 
     were not selected for promotion.
       ``(2) The number of officer students and faculty members 
     assigned by each service to the professional military schools 
     of the other services and to the joint schools.''.
       (b) Transfer of Other Provisions.--Subsections (b) and (c) 
     of section 663 of title 10, United States Code, are 
     transferred to section 2152 of such title, as added by 
     subsection (a), and added at the end thereof.

[[Page H9214]]

       (c) Conforming Amendments.--(1) Section 663 of such title, 
     as amended by subsection (b), is further amended--
       (A) by striking subsections (a) and (e); and
       (B) by striking ``(d) Post-Education Joint Duty 
     Assignments.--(1) The'' and inserting ``(a) Joint Specialty 
     Officers.--The'';
       (C) by striking ``(2)(A) The Secretary'' and inserting 
     ``(b) Other Officers.--(1) The Secretary'';
       (D) by striking ``in subparagraph (B)'' and inserting ``in 
     paragraph (2)'';
       (E) by striking ``(B) The Secretary'' and inserting ``(2) 
     The Secretary''; and
       (F) by striking ``in subparagraph (A)'' and inserting ``in 
     paragraph (1)''.
       (2)(A) The heading of such section is amended to read as 
     follows:

     ``Sec. 663. Joint duty assignments after completion of joint 
       professional military education''.

       (B) The item relating to that section in the table of 
     sections at the beginning of chapter 38 of such title is 
     amended to read as follows:

``663. Joint duty assignments after completion of joint professional 
              military education.''.

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

``106A. Educational Assistance for Persons Enlisting for Activ2141 y...

``107. Professional Military Education  ....................2151''.....

     SEC. 533. JOINT REQUIREMENTS FOR PROMOTION TO FLAG OR GENERAL 
                   OFFICER GRADE.

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

     SEC. 534. CLARIFICATION OF TOURS OF DUTY QUALIFYING AS A 
                   JOINT DUTY ASSIGNMENT.

       (a) Joint Duty Assignment List.--Subsection (b)(2) of 
     section 668 of title 10, United States Code, is amended by 
     striking ``a list'' in the matter preceding subparagraph (A) 
     and inserting ``a joint duty assignment list''.
       (b) Consecutive Tours of Duty in Joint Duty Assignments.--
     Subsection (c) of such section is amended by striking 
     ``within the same organization''.
       (c) Effective Date.--The amendment made by subsection (b) 
     shall not apply in the case of a joint duty assignment 
     completed by an officer before the date of the enactment of 
     this Act, except in the case of an officer who has continued 
     in joint duty assignments, without a break in service in such 
     assignments, between the end of such assignment and the date 
     of the enactment of this Act.

     SEC. 535. TWO-YEAR EXTENSION OF TEMPORARY STANDARD FOR 
                   PROMOTION POLICY OBJECTIVES FOR JOINT OFFICERS.

       Section 662(a)(2) of title 10, United States Code, is 
     amended by striking ``December 27, 2004'' in subparagraphs 
     (A) and (B) and inserting ``December 27, 2006''.

     SEC. 536. TWO-YEAR EXTENSION OF AUTHORITY TO WAIVE 
                   REQUIREMENT THAT RESERVE CHIEFS AND NATIONAL 
                   GUARD DIRECTORS HAVE SIGNIFICANT JOINT DUTY 
                   EXPERIENCE.

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

                 Subtitle E--Military Service Academies

     SEC. 541. REVISION TO CONDITIONS ON SERVICE OF OFFICERS AS 
                   SERVICE ACADEMY SUPERINTENDENTS.

       (a) Authority to Waive Requirement That Officers Retire 
     After Service as Superintendent.--Title 10, United States 
     Code, is amended as follows:
       (1) Military academy.--Section 3921 is amended--
       (A) by inserting ``(a) Mandatory Retirement.--'' before 
     ``Upon the''; and
       (B) by adding at the end the following:
       ``(b) Waiver Authority.--The Secretary of Defense may waive 
     the requirement in subsection (a) for good cause. In each 
     case in which such a waiver is granted for an officer, the 
     Secretary shall submit to the Committees on Armed Services of 
     the Senate and the House of Representatives a written 
     notification of the waiver, with a statement of the reasons 
     supporting the decision that the officer not retire, and a 
     written notification of the intent of the President to 
     nominate the officer for reassignment.''.
       (2) Naval academy.--Section 6371 is amended--
       (A) by inserting ``(a) Mandatory Retirement.--'' before 
     ``Upon the''; and
       (B) by adding at the end the following:
       ``(b) Waiver Authority.--The Secretary of Defense may waive 
     the requirement in subsection (a) for good cause. In each 
     case in which such a waiver is granted for an officer, the 
     Secretary shall submit to the Committees on Armed Services of 
     the Senate and the House of Representatives a written 
     notification of the waiver, with a statement of the reasons 
     supporting the decision that the officer not retire, and a 
     written notification of the intent of the President to 
     nominate the officer for reassignment.''.
       (3) Air Force Academy.--Section 8921 is amended--
       (A) by inserting ``(a) Mandatory Retirement.--'' before 
     ``Upon the''; and
       (B) by adding at the end the following:
       ``(b) Waiver Authority.--The Secretary of Defense may waive 
     the requirement in subsection (a) for good cause. In each 
     case in which such a waiver is granted for an officer, the 
     Secretary shall submit to the Committees on Armed Services of 
     the Senate and the House of Representatives a written 
     notification of the waiver, with a statement of the reasons 
     supporting the decision that the officer not retire, and a 
     written notification of the intent of the President to 
     nominate the officer for reassignment.''.
       (b) Minimum Three-Year Tour of Duty as Superintendent.--
     Title 10, United States Code, is amended as follows:
       (1) Military academy.--Section 4333a is amended--
       (A) by inserting ``(a) Retirement.--'' before ``As a'';
       (B) by inserting before the period at the end the 
     following: ``pursuant to section 3921(a) of this title, 
     unless such retirement is waived under section 3921(b) of 
     this title''; and
       (C) by adding at the end the following:
       ``(b) Minimum Tour of Duty.--An officer who is detailed to 
     the position of Superintendent of the Academy shall be so 
     detailed for a period of not less than three years. In any 
     case in which an officer serving as Superintendent is 
     reassigned or retires before having completed three years 
     service as Superintendent, or otherwise leaves that position 
     (other than due to death) without having completed three 
     years service in that position, the Secretary of the Army 
     shall submit to Congress notice that such officer left the 
     position of Superintendent without having completed three 
     years service in that position, together with a statement of 
     the reasons why that officer did not complete three years 
     service in that position.''.
       (2) Naval academy.--Section 6951a is amended--
       (A) by inserting before the period at the end of subsection 
     (b) the following: ``pursuant to section 6371(a) of this 
     title, unless such retirement is waived under section 6371(b) 
     of this title''; and
       (B) by adding at the end the following new subsection:
       ``(c) An officer who is detailed to the position of 
     Superintendent shall be so detailed for a period of not less 
     than three years. In any case in which an officer serving as 
     Superintendent is reassigned or retires before having 
     completed three years service as Superintendent, or otherwise 
     leaves that position (other than due to death) without having 
     completed three years service in that position, the Secretary 
     of the Navy shall submit to Congress notice that such officer 
     left the position of Superintendent without having completed 
     three years service in that position, together with a 
     statement of the reasons why that officer did not complete 
     three years service in that position.''.
       (3) Air force academy.--Section 9333a is amended--
       (A) by inserting ``(a) Retirement.--'' before ``As a'';
       (B) by inserting before the period at the end the 
     following: ``pursuant to section 8921(a) of this title, 
     unless such retirement is waived under section 8921(b) of 
     this title''; and
       (C) by adding at the end the following:
       ``(b) Minimum Tour of Duty.--An officer who is detailed to 
     the position of Superintendent of the Academy shall be so 
     detailed for a period of not less than three years. In any 
     case in which an officer serving as Superintendent is 
     reassigned or retires before having completed three years 
     service as Superintendent, or otherwise leaves that position 
     (other than due to death) without having completed three 
     years service in that position, the Secretary of the Air 
     Force shall submit to Congress notice that such officer left 
     the position of Superintendent without having completed three 
     years service in that position, together with a statement of 
     the reasons why that officer did not complete three years 
     service in that position.''.
       (c) Clerical Amendments.--Title 10, United States Code, is 
     amended as follows:
       (1)(A) The heading for section 3921 is amended to read as 
     follows:

     ``Sec. 3921. Mandatory retirement: Superintendent of the 
       United States Military Academy; waiver authority''.

       (B) The item relating to that section in the table of 
     sections at the beginning of chapter 367 is amended to read 
     as follows:

``3921. Mandatory retirement: Superintendent of the United States 
              Military Academy; waiver authority.''
       (2)(A) The heading for section 6371 is amended to read as 
     follows:

[[Page H9215]]

     ``Sec. 6371. Mandatory retirement: Superintendent of the 
       United States Naval Academy; waiver authority''.

       (B) The item relating to that section in the table of 
     sections at the beginning of chapter 573 is amended to read 
     as follows:

``6371. Mandatory retirement: Superintendent of the United States Naval 
              Academy; waiver authority.''.
       (3)(A) The heading for section 8921 is amended to read as 
     follows:

     ``Sec. 8921. Mandatory retirement: Superintendent of the 
       United States Air Force Academy; waiver authority''.

       (B) The item relating to that section in the table of 
     sections at the beginning of chapter 867 is amended to read 
     as follows:

``8921. Mandatory retirement: Superintendent of the United States Air 
              Force Academy; waiver authority.''.

     SEC. 542. ACADEMIC QUALIFICATIONS OF THE DEAN OF THE FACULTY 
                   OF UNITED STATES AIR FORCE ACADEMY.

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

     SEC. 543. BOARD OF VISITORS OF UNITED STATES AIR FORCE 
                   ACADEMY.

       Section 9355 of title 10, United States Code, is amended to 
     read as follows:

     ``Sec. 9355. Board of Visitors

       ``(a) A Board of Visitors to the Academy is constituted 
     annually. The Board consists of the following members:
       ``(1) Six persons designated by the President.
       ``(2) The chairman of the Committee on Armed Services of 
     the House of Representatives, or his designee.
       ``(3) Four persons designated by the Speaker of the House 
     of Representatives, three of whom shall be members of the 
     House of Representatives and the fourth of whom may not be a 
     member of the House of Representatives.
       ``(4) The chairman of the Committee on Armed Services of 
     the Senate, or his designee.
       ``(5) Three other members of the Senate designated by the 
     Vice President or the President pro tempore of the Senate, 
     two of whom are members of the Committee on Appropriations of 
     the Senate.
       ``(b)(1) The persons designated by the President serve for 
     three years each except that any member whose term of office 
     has expired shall continue to serve until his successor is 
     designated. The President shall designate persons each year 
     to succeed the members designated by the President whose 
     terms expire that year.
       ``(2) At least two of the members designated by the 
     President shall be graduates of the Academy.
       ``(c)(1) If a member of the Board dies or resigns or is 
     terminated as a member of the board under paragraph (2), a 
     successor shall be designated for the unexpired portion of 
     the term by the official who designated the member.
       ``(2)(A) If a member of the Board fails to attend two 
     successive Board meetings, except in a case in which an 
     absence is approved in advance, for good cause, by the Board 
     chairman, such failure shall be grounds for termination from 
     membership on the Board. A person designated for membership 
     on the Board shall be provided notice of the provisions of 
     this paragraph at the time of such designation.
       ``(B) Termination of membership on the Board under 
     subparagraph (A)--
       ``(i) in the case of a member of the Board who is not a 
     member of Congress, may be made by the Board chairman; and
       ``(ii) in the case of a member of the Board who is a member 
     of Congress, may be made only by the official who designated 
     the member.
       ``(C) When a member of the Board is subject to termination 
     from membership on the Board under subparagraph (A), the 
     Board chairman shall notify the official who designated the 
     member. Upon receipt of such a notification with respect to a 
     member of the Board who is a member of Congress, the official 
     who designated the member shall take such action as that 
     official considers appropriate.
       ``(d) The Board should meet at least four times a year, 
     with at least two of those meetings at the Academy. The Board 
     or its members may make other visits to the Academy in 
     connection with the duties of the Board. Board meetings 
     should last at least one full day. Board members shall have 
     access to the Academy grounds and the cadets, faculty, staff, 
     and other personnel of the Academy for the purposes of the 
     duties of the Board.
       ``(e)(1) The Board shall inquire into the morale, 
     discipline, and social climate, the curriculum, instruction, 
     physical equipment, fiscal affairs, academic methods, and 
     other matters relating to the Academy that the Board decides 
     to consider.
       ``(2) The Secretary of the Air Force and the Superintendent 
     of the Academy shall provide the Board candid and complete 
     disclosure, consistent with applicable laws concerning 
     disclosure of information, with respect to institutional 
     problems.
       ``(3) The Board shall recommend appropriate action.
       ``(f) The Board shall prepare a semiannual report 
     containing its views and recommendations pertaining to the 
     Academy, based on its meeting since the last such report and 
     any other considerations it determines relevant. Each such 
     report shall be submitted concurrently to the Secretary of 
     Defense, through the Secretary of the Air Force, and to the 
     Committee on Armed Services of the Senate and the Committee 
     on Armed Services of the House of Representatives.
       ``(g) Upon approval by the Secretary, the Board may call in 
     advisers for consultation.
       ``(h) While performing duties as a member of the Board, 
     each member of the Board and each adviser shall be reimbursed 
     under Government travel regulations for travel expenses.''.

     SEC. 544. APPROPRIATED FUNDS FOR SERVICE ACADEMY ATHLETIC AND 
                   RECREATIONAL EXTRACURRICULAR PROGRAMS TO BE 
                   TREATED IN SAME MANNER AS FOR MILITARY MORALE, 
                   WELFARE, AND RECREATION PROGAMS.

       (a) United States Military Academy.--(1) Chapter 403 of 
     title 10, United States Code, is amended by adding at the end 
     the following new section:

     ``Sec. 4359. Mixed-funded athletic and recreational 
       extracurricular programs: authority to manage appropriated 
       funds in same manner as nonappropriated funds

       ``(a) Authority.--In the case of an Academy mixed-funded 
     athletic or recreational extracurricular program, the 
     Secretary of the Army may designate funds appropriated to the 
     Department of the Army and available for that program to be 
     treated as nonappropriated funds and expended for that 
     program in accordance with laws applicable to the expenditure 
     of nonappropriated funds. Appropriated funds so designated 
     shall be considered to be nonappropriated funds for all 
     purposes and shall remain available until expended.
       ``(b) Covered Programs.--In this section, the term `Academy 
     mixed-funded athletic or recreational extracurricular 
     program' means an athletic or recreational extracurricular 
     program of the Academy to which each of the following 
     applies:
       ``(1) The program is not considered a morale, welfare, or 
     recreation program.
       ``(2) The program is supported through appropriated funds.
       ``(3) The program is supported by a nonappropriated fund 
     instrumentality.
       ``(4) The program is not a private organization and is not 
     operated by a private organization.''.
       (2) The table of sections at the beginning of such title is 
     amended by adding at the end the following new item:

``4359. Mixed-funded athletic and recreational extracurricular 
              programs: authority to manage appropriated funds in same 
              manner as nonappropriated funds.''.

       (b) United States Naval Academy.--(1) Chapter 603 of title 
     10, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 6978. Mixed-funded athletic and recreational 
       extracurricular programs: authority to manage appropriated 
       funds in same manner as nonappropriated funds

       ``(a) Authority.--In the case of a Naval Academy mixed-
     funded athletic or recreational extracurricular program, the 
     Secretary of the Navy may designate funds appropriated to the 
     Department of the Navy and available for that program to be 
     treated as nonappropriated funds and expended for that 
     program in accordance with laws applicable to the expenditure 
     of nonappropriated funds. Appropriated funds so designated 
     shall be considered to be nonappropriated funds for all 
     purposes and shall remain available until expended.
       ``(b) Covered Programs.--In this section, the term `Naval 
     Academy mixed-funded athletic or recreational extracurricular 
     program' means an athletic or recreational extracurricular 
     program of the Naval Academy to which each of the following 
     applies:
       ``(1) The program is not considered a morale, welfare, or 
     recreation program.
       ``(2) The program is supported through appropriated funds.
       ``(3) The program is supported by a nonappropriated fund 
     instrumentality.
       ``(4) The program is not a private organization and is not 
     operated by a private organization.''.
       (2) The table of sections at the beginning of such title is 
     amended by adding at the end the following new item:

``6978. Mixed-funded athletic and recreational extracurricular 
              programs: authority to manage appropriated funds in same 
              manner as nonappropriated funds.''.

       (c) United States Air Force Academy.--(1) Chapter 903 of 
     title 10, United States Code, is amended by adding at the end 
     the following new section:

     ``Sec. 9359. Mixed-funded athletic and recreational 
       extracurricular programs: authority to manage appropriated 
       funds in same manner as nonappropriated funds

       ``(a) Authority.--In the case of an Academy mixed-funded 
     athletic or recreational extracurricular program, the 
     Secretary of the Air Force may designate funds appropriated 
     to the Department of the Air Force and available for that 
     program to be treated as nonappropriated funds and expended 
     for that program in accordance with laws applicable to the 
     expenditure of nonappropriated funds. Appropriated funds so 
     designated shall be considered to be nonappropriated funds 
     for all purposes and shall remain available until expended.
       ``(b) Covered Programs.--In this section, the term `Academy 
     mixed-funded athletic or recreational extracurricular 
     program' means an athletic or recreational extracurricular 
     program of the Academy to which each of the following 
     applies:
       ``(1) The program is not considered a morale, welfare, or 
     recreation program.
       ``(2) The program is supported through appropriated funds.
       ``(3) The program is supported by a nonappropriated fund 
     instrumentality.
       ``(4) The program is not a private organization and is not 
     operated by a private organization.''.

[[Page H9216]]

       (2) The table of sections at the beginning of such title is 
     amended by adding at the end the following new item:

``9359. Mixed-funded athletic and recreational extracurricular 
              programs: authority to manage appropriated funds in same 
              manner as nonappropriated funds.''.

       (d) Effective Date and Applicability.--Sections 4359, 6978, 
     and 9359 of title 10, United States Code, shall apply only 
     with respect to funds appropriated for fiscal years after 
     fiscal year 2004.

     SEC. 545. CODIFICATION OF PROHIBITION ON IMPOSITION OF 
                   CERTAIN CHARGES AND FEES AT THE SERVICE 
                   ACADEMIES.

       (a) United States Military Academy.--(1) Chapter 403 of 
     title 10, United States Code, as amended by 544(a)(1), is 
     further amended by adding at the end the following new 
     section:

     ``Sec. 4360. Cadets: charges and fees for attendance; 
       limitation

       ``(a) Prohibition.--Except as provided in subsection (b), 
     no charge or fee for tuition, room, or board for attendance 
     at the Academy may be imposed unless the charge or fee is 
     specifically authorized by a law enacted after October 5, 
     1994.
       ``(b) Exception.--The prohibition specified in subsection 
     (a) does not apply with respect to any item or service 
     provided to cadets for which a charge or fee is imposed as of 
     October 5, 1994. The Secretary of Defense shall notify 
     Congress of any change made by the Academy in the amount of a 
     charge or fee authorized under this subsection.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding after the item added by section 
     544(a)(2) the following new item:

``4360. Cadets: charges and fees for attendance; limitation.''.

       (b) United States Naval Academy.--(1) Chapter 603 of title 
     10, United States Code, as amended by 544(b)(1), is further 
     amended by adding at the end the following new section:

     ``Sec. 6979. Midshipmen: charges and fees for attendance; 
       limitation

       ``(a) Prohibition.--Except as provided in subsection (b), 
     no charge or fee for tuition, room, or board for attendance 
     at the Naval Academy may be imposed unless the charge or fee 
     is specifically authorized by a law enacted after October 5, 
     1994.
       ``(b) Exception.--The prohibition specified in subsection 
     (a) does not apply with respect to any item or service 
     provided to midshipmen for which a charge or fee is imposed 
     as of October 5, 1994. The Secretary of Defense shall notify 
     Congress of any change made by the Naval Academy in the 
     amount of a charge or fee authorized under this 
     subsection.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding after the item added by section 
     544(b)(2) the following new item:

``6979. Midshipmen: charges and fees for attendance; limitation.''.

       (c) United States Air Force Academy.--(1) Chapter 903 title 
     10, United States Code, as amended by 544(c)(1), is further 
     amended by adding at the end the following new section:

     ``Sec. 9360. Cadets: charges and fees for attendance; 
       limitation

       ``(a) Prohibition.--Except as provided in subsection (b), 
     no charge or fee for tuition, room, or board for attendance 
     at the Academy may be imposed unless the charge or fee is 
     specifically authorized by a law enacted after October 5, 
     1994.
       ``(b) Exception.--The prohibition specified in subsection 
     (a) does not apply with respect to any item or service 
     provided to cadets for which a charge or fee is imposed as of 
     October 5, 1994. The Secretary of Defense shall notify 
     Congress of any change made by the Academy in the amount of a 
     charge or fee authorized under this subsection.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding after the item added by section 
     544(c)(2) the following new item:

``9360. Cadets: charges and fees for attendance; limitation.''.

       (d) United States Coast Guard Academy.--(1) Chapter 9 of 
     title 14, United States Code, is amended by adding at the end 
     the following new section:

     ``Sec. 197. Cadets: charges and fees for attendance; 
       limitation

       ``(a) Prohibition.--Except as provided in subsection (b), 
     no charge or fee for tuition, room, or board for attendance 
     at the Academy may be imposed unless the charge or fee is 
     specifically authorized by a law enacted after October 5, 
     1994.
       ``(b) Exception.--The prohibition specified in subsection 
     (a) does not apply with respect to any item or service 
     provided to cadets for which a charge or fee is imposed as of 
     October 5, 1994. The Secretary of Homeland Security shall 
     notify Congress of any change made by the Academy in the 
     amount of a charge or fee authorized under this 
     subsection.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``197. Cadets: charges and fees for attendance; limitation.''.

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

            Subtitle F--Other Education and Training Matters

     SEC. 551. COLLEGE FIRST DELAYED ENLISTMENT PROGRAM.

       (a) Codification and Extension of Army Program.--(1) 
     Chapter 31 of title 10, United States Code, is amended by 
     inserting after section 510 the following new section:

     ``Sec. 511. College First Program

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

[[Page H9217]]

     item relating to section 510 the following new item:

``511. College First Program.''.

       (b) Continuation for Army of Prior Army College First 
     Program.--The Secretary of the Army shall treat the program 
     under section 511 of title 10, United States Code, as added 
     by subsection (a), as a continuation of the program under 
     section 573 of the National Defense Authorization Act for 
     Fiscal Year 2000 (10 U.S.C. 513 note), and for such purpose 
     the Secretary may treat such section 511 as having been 
     enacted on October 1, 2004.

     SEC. 552. SENIOR RESERVE OFFICERS' TRAINING CORPS AND 
                   RECRUITER ACCESS AT INSTITUTIONS OF HIGHER 
                   EDUCATION.

       (a) Equal Treatment of Military Recruiters With Other 
     Recruiters.--Subsection (b)(1) of section 983 of title 10, 
     United States Code, is amended--
       (1) by striking ``entry to campuses'' and inserting 
     ``access to campuses''; and
       (2) by inserting before the semicolon at the end the 
     following: ``in a manner that is at least equal in quality 
     and scope to the access to campuses and to students that is 
     provided to any other employer''.
       (b) Prohibition of Funding for Post-secondary Schools That 
     Prevent ROTC Access or Military Recruiting.--(1) Subsection 
     (d) of such section is amended--
       (A) in paragraph (1)--
       (i) by striking ``limitation established in subsection (a) 
     applies'' and inserting ``limitations established in 
     subsections (a) and (b) apply'';
       (ii) in subparagraph (B), by inserting ``for any department 
     or agency for which regular appropriations are made'' after 
     ``made available''; and
       (iii) by adding at the end the following new subparagraphs:
       ``(C) Any funds made available for the Department of 
     Homeland Security.
       ``(D) Any funds made available for the National Nuclear 
     Security Administration of the Department of Energy.
       ``(E) Any funds made available for the Department of 
     Transportation.
       ``(F) Any funds made available for the Central Intelligence 
     Agency.''; and
       (B) by striking paragraph (2).
       (2)(A) Subsection (b) of such section is amended by 
     striking ``subsection (d)(2)'' and inserting ``subsection 
     (d)(1)''.
       (B) Subsection (e) of such section is amended by inserting 
     ``, to the head of each other department and agency the funds 
     of which are subject to the determination,'' after 
     ``Secretary of Education''.
       (c) Codification and Extension of Exclusion Of Amounts to 
     Cover Individual Payments.--Subsection (d) of such section, 
     as amended by subsection (b)(1), is further amended--
       (1) by striking ``The'' after ``(1)'' and inserting 
     ``Except as provided in paragraph (2), the''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Any Federal funding specified in paragraph (1) that 
     is provided to an institution of higher education, or to an 
     individual, to be available solely for student financial 
     assistance, related administrative costs, or costs associated 
     with attendance, may be used for the purpose for which the 
     funding is provided.''.
       (d) Conforming Amendments.--Subsections (a) and (b) of such 
     section are amended by striking ``(including a grant of funds 
     to be available for student aid)''.
       (e) Conforming Repeal of Codified Provision.--Section 8120 
     of the Department of Defense Appropriations Act, 2000 (Public 
     Law 106-79; 10 U.S.C. 983 note), is repealed.
       (f) Effective Date.--The amendments made by this section 
     shall apply with respect to funds appropriated for fiscal 
     year 2005 and thereafter.

     SEC. 553. TUITION ASSISTANCE FOR OFFICERS.

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

     SEC. 554. INCREASED MAXIMUM PERIOD FOR LEAVE OF ABSENCE FOR 
                   PURSUIT OF A PROGRAM OF EDUCATION IN A HEALTH 
                   CARE PROFESSION.

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

     SEC. 555. ELIGIBILITY OF CADETS AND MIDSHIPMEN FOR MEDICAL 
                   AND DENTAL CARE AND DISABILITY BENEFITS.

       (a) Medical and Dental Care.--(1) Chapter 55 of title 10, 
     United States Code, is amended by inserting after section 
     1074a the following new section:

     ``Sec. 1074b. Medical and dental care: Academy cadets and 
       midshipmen; members of, and designated applicants for 
       membership in, Senior ROTC

       ``(a) Eligibility.--Under joint regulations prescribed by 
     the administering Secretaries, the following persons are, 
     except as provided in subsection (c), entitled to the 
     benefits described in subsection (b):
       ``(1) A cadet at the United States Military Academy, the 
     United States Air Force Academy, or the Coast Guard Academy, 
     and a midshipman at the United States Naval Academy, who 
     incurs or aggravates an injury, illness, or disease in the 
     line of duty.
       ``(2) A member of, and a designated applicant for 
     membership in, the Senior Reserve Officers' Training Corps 
     who incurs or aggravates an injury, illness, or disease--
       ``(A) in the line of duty while performing duties under 
     section 2109 of this title;
       ``(B) while traveling directly to or from the place at 
     which that member or applicant is to perform or has performed 
     duties pursuant to section 2109 of this title; or
       ``(C) in the line of duty while remaining overnight 
     immediately before the commencement of duties performed 
     pursuant to section 2109 of this title or, while remaining 
     overnight, between successive periods of performing duties 
     pursuant to section 2109 of this title, at or in the vicinity 
     of the site of the duties performed pursuant to section 2109 
     of this title, if the site is outside reasonable commuting 
     distance from the residence of the member or designated 
     applicant.
       ``(b) Benefits.--A person eligible for benefits under 
     subsection (a) for an injury, illness, or disease is entitled 
     to--
       ``(1) the medical and dental care under this chapter that 
     is appropriate for the treatment of the injury, illness, or 
     disease until the injury, illness, disease, or any resulting 
     disability cannot be materially improved by further 
     hospitalization or treatment; and
       ``(2) meals during hospitalization.
       ``(c) Exception for Gross Negligence or Misconduct.--A 
     person is not entitled to benefits under subsection (b) for 
     an injury, illness, or disease, or the aggravation of an 
     injury, illness, or disease that is a result of the gross 
     negligence or the misconduct of that person.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1074a the following new item:

``1074b. Medical and dental care: Academy cadets and midshipmen; 
              members of, and designated applicants for membership in, 
              Senior ROTC.''.
       (b) Eligibility of Academy Cadets and Midshipmen for 
     Disability Retired Pay.--(1) Section 1217 of title 10, United 
     States Code, is amended to read as follows:

     ``Sec. 1217. Academy cadets and midshipmen: applicability of 
       chapter

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

``1217. Academy cadets and midshipmen: applicability of chapter.''.

     SEC. 556. TRANSFER OF AUTHORITY TO CONFER DEGREES UPON 
                   GRADUATES OF THE COMMUNITY COLLEGE OF THE AIR 
                   FORCE.

       (a) Transfer to Commander of Air University.--Subsection 
     (a) of section 9317 of title 10, United States Code, is 
     amended--
       (1) by striking ``may confer--'' and inserting ``may confer 
     academic degrees as follows:'';
       (2) by striking ``the'' in paragraphs (1), (2), and (3) 
     after the paragraph designation and inserting ``The'';
       (3) by striking the semicolon at the end of paragraph (1) 
     and inserting a period;
       (4) by striking ``; and'' at the end of paragraph (2) and 
     inserting a period; and
       (5) by adding at the end the following new paragraph:
       ``(4) An academic degree at the level of associate upon 
     graduates of the Community College of the Air Force who 
     fulfill the requirements for that degree.''.
       (b) Conforming Amendment.--Subsection (c) of section 9315 
     of such title is amended to read as follows:
       ``(c) Associate Degrees.--(1) Subject to paragraph (2), an 
     academic degree at the level of associate may be conferred 
     under section 9317 of this title upon any enlisted member who 
     has

[[Page H9218]]

     completed a program prescribed by the Community College of 
     the Air Force.
       ``(2) No degree may be conferred upon any enlisted member 
     under this section unless the Secretary of Education 
     determines that the standards for the award of academic 
     degrees in agencies of the United States have been met.''.
       (c) Clerical Amendments.--(1) The heading of section 9317 
     of such title is amended to read as follows:

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

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 901 of such title is 
     amended to read as follows:

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

     SEC. 557. CHANGE IN TITLES OF LEADERSHIP POSITIONS AT THE 
                   NAVAL POSTGRADUATE SCHOOL.

       (a) Designation of President.--(1) The position of 
     Superintendent of the Naval Postgraduate School is 
     redesignated as President of the Naval Postgraduate School.
       (2) Any reference to the Superintendent of the Naval 
     Postgraduate School in any law, rule, regulation, document, 
     record, or other paper of the United States shall be deemed 
     to be a reference to the President of the Naval Postgraduate 
     School.
       (3)(A) Section 7042 of title 10, United States Code, is 
     amended by striking ``Superintendent'' each place it appears 
     in the text and inserting ``President''.
       (B) The heading of such section is amended to read as 
     follows:

     ``Sec. 7042. President; assistants''.

       (4)(A) Section 7044 of such title is amended by striking 
     ``Superintendent'' and inserting ``President of the school''.
       (B) Sections 7048(a) and 7049(e) of such title are amended 
     by striking ``Superintendent'' and inserting ``President''.
       (b) Designation of Provost and Academic Dean.--(1) The 
     position of Academic Dean of the Naval Postgraduate School is 
     redesignated as Provost and Academic Dean of the Naval 
     Postgraduate School.
       (2) Any reference to the Academic Dean of the Naval 
     Postgraduate School in any law, rule, regulation, document, 
     record, or other paper of the United States shall be deemed 
     to be a reference to the Provost and Academic Dean of the 
     Naval Postgraduate School.
       (3)(A) Subsection (a) of section 7043 of title 10, United 
     States Code, is amended to read as follows:
       ``(a) There is at the Naval Postgraduate School the 
     civilian position of Provost and Academic Dean. The Provost 
     and Academic Dean shall be appointed, to serve for periods of 
     not more than five years, by the Secretary of the Navy. 
     Before making an appointment to the position of Provost and 
     Academic Dean, the Secretary shall consult with the Board of 
     Advisors for the Naval Postgraduate School and shall consider 
     any recommendation of the leadership and faculty of the Naval 
     Postgraduate School regarding an appointment to that 
     position.''.
       (B) The heading of such section is amended to read as 
     follows:

     ``Sec. 7043. Provost and Academic Dean''.

       (4) Sections 7043(b) and 7081(a) of title 10, United States 
     Code, are amended by striking ``Academic Dean'' and inserting 
     ``Provost and Academic Dean''.
       (5)(A) Section 5102(c)(10) of title 5, United States Code, 
     is amended by striking ``Academic Dean of the Postgraduate 
     School of the Naval Academy'' and inserting ``Provost and 
     Academic Dean of the Naval Postgraduate School''.
       (B) Subsection (b) of such section is amended by striking 
     ``Academic Dean'' and inserting ``Provost and Academic 
     Dean''.
       (c) Clerical Amendments.--The table of sections at the 
     beginning of chapter 605 of such title 10, United States 
     Code, is amended by striking the items related to sections 
     7042 and 7043 and inserting the following new items:

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

   Subtitle G--Assistance to Local Educational Agencies for Defense 
                          Dependents Education

     SEC. 558. CONTINUATION OF IMPACT AID ASSISTANCE ON BEHALF OF 
                   DEPENDENTS OF CERTAIN MEMBERS DESPITE CHANGE IN 
                   STATUS OF MEMBER.

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

     SEC. 559. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT 
                   BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED 
                   FORCES AND DEPARTMENT OF DEFENSE CIVILIAN 
                   EMPLOYEES.

       (a) Continuation of Department of Defense Program for 
     Fiscal Year 2005.--Of the amount authorized to be 
     appropriated pursuant to section 301(5) for operation and 
     maintenance for Defense-wide activities, $30,000,000 shall be 
     available only for the purpose of providing educational 
     agencies assistance to local educational agencies.
       (b) Notification.--Not later than June 30, 2005, the 
     Secretary of Defense shall notify each local educational 
     agency that is eligible for educational agencies assistance 
     for fiscal year 2005 of--
       (1) that agency's eligibility for the assistance; and
       (2) the amount of the assistance for which that agency is 
     eligible.
       (c) Disbursement of Funds.--The Secretary of Defense shall 
     disburse funds made available under subsection (a) not later 
     than 30 days after the date on which notification to the 
     eligible local educational agencies is provided pursuant to 
     subsection (b).
       (d) Definitions.--In this section:
       (1) The term ``educational agencies assistance'' means 
     assistance authorized under section 386(b) of the National 
     Defense Authorization Act for Fiscal Year 1993 (Public Law 
     102-484; 20 U.S.C. 7703 note).
       (2) The term ``local educational agency'' has the meaning 
     given that term in section 8013(9) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7713(9)).
       (3) The term ``basic support payment'' means a payment 
     authorized under section 8003(b)(1) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7703(b)(1)).

     SEC. 560. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

       Of the amount authorized to be appropriated pursuant to 
     section 301(5) for operation and maintenance for Defense-wide 
     activities, $5,000,000 shall be available for payments under 
     section 363 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-77; 20 U.S.C. 7703a).

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

     SEC. 561. AWARD OF MEDAL OF HONOR TO INDIVIDUAL INTERRED IN 
                   THE TOMB OF THE UNKNOWNS AS REPRESENTATIVE OF 
                   CASUALTIES OF A WAR.

       (a) Award to Individual as Representative.--Chapter 57 of 
     title 10, United States Code, is amended by adding at the end 
     the following new section:

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

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

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

     SEC. 562. PLAN FOR REVISED CRITERIA AND ELIGIBILITY 
                   REQUIREMENTS FOR AWARD OF COMBAT INFANTRYMAN 
                   BADGE AND COMBAT MEDICAL BADGE FOR SERVICE IN 
                   KOREA AFTER JULY 28, 1953.

       (a) Requirement for Plan.--Not later than 90 days after the 
     date of the enactment of this Act, the Secretary of the Army 
     shall submit to the Committees on Armed Services of the 
     Senate and the House of Representatives a plan for revising 
     the Army's criteria and eligibility requirements for award of 
     the Combat Infantryman Badge and the Combat Medical Badge for 
     service in the Republic of Korea after July 28, 1953, to 
     fulfill the purpose stated in subsection (b).
       (b) Purpose of Revised Criteria and Eligibility 
     Requirements.--The purpose for revising the criteria and 
     eligibility requirements for award of the Combat Infantryman 
     Badge and the Combat Medical Badge for service in the 
     Republic of Korea after July 28, 1953, is to ensure fairness 
     in the standards applied to Army personnel in the awarding of 
     such badges for Army service in the Republic of Korea in 
     comparison to the standards applied to Army personnel in the 
     awarding of such badges for Army service in other areas of 
     operations.

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

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

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

       (a) Authority.--The President, by and with the advice and 
     consent of the Senate, may issue posthumously a commission as 
     major general, United States Army, in the name of the late 
     William Mitchell, formerly a colonel, United States Army, who 
     resigned his commission on February 1, 1926.
       (b) Date of Commission.--A commission issued under 
     subsection (a) shall issue as of the date of the death of 
     William Mitchell on February 19, 1936.

[[Page H9219]]

       (c) Prohibition of Benefits.--No person is entitled to 
     receive any bonus, gratuity, pay, allowance, or other 
     financial benefit by reason of the enactment of this section.

                      Subtitle I--Military Voting

     SEC. 566. FEDERAL WRITE-IN BALLOTS FOR ABSENTEE MILITARY 
                   VOTERS LOCATED IN THE UNITED STATES.

       (a) Duties of Presidential Designee.--Section 101(b)(3) of 
     the Uniformed and Overseas Citizens Absentee Voting Act (42 
     U.S.C. 1973ff(b)(3)) is amended by striking ``overseas 
     voters'' and inserting ``absent uniformed services voters and 
     overseas voters''.
       (b) State Responsibilities.--Section 102(a)(3) of such Act 
     (42 U.S.C. 1973ff-1(a)(3)) is amended by striking ``overseas 
     voters'' and inserting ``absent uniformed services voters and 
     overseas voters''.
       (c) Federal Write-In Absentee Ballot.--Section 103 of such 
     Act (42 U.S.C. 1973ff-2) is amended--
       (1) in subsection (a), by striking ``overseas voters'' and 
     inserting ``absent uniformed services voters and overseas 
     voters'';
       (2) in subsection (b), by striking the second sentence and 
     inserting the following new sentence: ``A Federal write-in 
     absentee ballot of an absent uniformed services voter or 
     overseas voter shall not be counted--
       ``(1) in the case of a ballot submitted by an overseas 
     voter who is not an absent uniformed services voter, if the 
     ballot is submitted from any location in the United States;
       ``(2) if the application of the absent uniformed services 
     voter or overseas voter for a State absentee ballot is 
     received by the appropriate State election official after the 
     later of--
       ``(A) the deadline of the State for receipt of such 
     application; or
       ``(B) the date that is 30 days before the general election; 
     or
       ``(3) if a State absentee ballot of the absent uniformed 
     services voter or overseas voter is received by the 
     appropriate State election official not later than the 
     deadline for receipt of the State absentee ballot under State 
     law.'';
       (3) in subsection (c)(1), by striking ``overseas voter'' 
     and inserting ``absent uniformed services voter or overseas 
     voter'';
       (4) in subsection (d), by striking ``overseas voter'' both 
     places it appears and inserting ``absent uniformed services 
     voter or overseas voter''; and
       (5) in subsection (e)(2), by striking ``overseas voters'' 
     and inserting ``absent uniformed services voters and overseas 
     voters''.
       (d) Conforming Amendments.--(1) The heading of section 103 
     of such Act is amended to read as follows:

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

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

     SEC. 567. REPEAL OF REQUIREMENT TO CONDUCT ELECTRONIC VOTING 
                   DEMONSTRATION PROJECT FOR THE FEDERAL ELECTION 
                   TO BE HELD IN NOVEMBER 2004.

       The first sentence of section 1604(a)(2) of the National 
     Defense Authorization Act for Fiscal Year 2002 (Public Law 
     107-107; 115 Stat. 1277; 42 U.S.C. 1977ff note) is amended by 
     striking ``until the regularly scheduled general election for 
     Federal office for November 2004'' and inserting the 
     following: ``until the first regularly scheduled general 
     election for Federal office which occurs after the Election 
     Assistance Commission notifies the Secretary that the 
     Commission has established electronic absentee voting 
     guidelines and certifies that it will assist the Secretary in 
     carrying out the project''.

     SEC. 568. REPORTS ON OPERATION OF FEDERAL VOTING ASSISTANCE 
                   PROGRAM AND MILITARY POSTAL SYSTEM.

       (a) Reports on Program and System.--(1) Not later than 60 
     days after the date of the enactment of this Act, the 
     Secretary of Defense shall submit to Congress a report on the 
     actions that the Secretary has taken to ensure that the 
     Federal Voting Assistance Program carried out under the 
     Uniformed and Overseas Citizens Absentee Voting Act (42 
     U.S.C. 1973ff et seq.) functions effectively to support 
     absentee voting by members of the Armed Forces deployed 
     outside the United States in support of Operation Iraqi 
     Freedom, Operation Enduring Freedom, and all other 
     contingency operations.
       (2) Not later than 60 days after the date of the submission 
     of the report required by paragraph (1), the Secretary of 
     Defense shall submit to Congress a report on the actions that 
     the Secretary has taken to ensure that the military postal 
     system functions effectively to support the morale of members 
     referred to in such paragraph and their ability to vote by 
     absentee ballot.
       (b) Report on Implementation of Postal System 
     Improvements.--Not later than 90 days after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to Congress a report specifying--
       (1) the actions taken to implement the recommendations of 
     the Military Postal Service Agency Task Force, dated 28 
     August 2000; and
       (2) in the case of each recommendation not implemented or 
     not fully implemented as of the date of the submission of the 
     report, the reasons for not implementing or not fully 
     implementing the recommendation, as the case may be.

                  Subtitle J--Military Justice Matters

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

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

     SEC. 572. WAIVER OF RECOUPMENT OF TIME LOST FOR CONFINEMENT 
                   IN CONNECTION WITH A TRIAL.

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

     SEC. 573. PROCESSING OF FORENSIC EVIDENCE COLLECTION KITS AND 
                   ACQUISITION OF SUFFICIENT STOCKS OF SUCH KITS.

       (a) Elimination of Backlog, Etc.--The Secretary of Defense 
     shall take such steps as may be necessary to ensure that--
       (1) the United States Army Criminal Investigation 
     Laboratory has the personnel and resources to effectively 
     process forensic evidence used by the Department of Defense 
     within 60 days of receipt by the laboratory of such evidence;
       (2) consistent policies are established among the Armed 
     Forces to reduce the time period between the collection of 
     forensic evidence and the receipt and processing of such 
     evidence by United States Army Criminal Investigation 
     Laboratory; and
       (3) there is an adequate supply of forensic evidence 
     collection kits--
       (A) for all United States military installations, including 
     the military service academies; and
       (B) for units of the Armed Forces deployed in theaters of 
     operation.
       (b) Training.--The Secretary shall take such measures as 
     the Secretary considers appropriate to ensure that personnel 
     are appropriately trained--
       (1) in the use of forensic evidence collection kits; and
       (2) in the prescribed procedures to ensure protection of 
     the chain of custody of such kits once used.

     SEC. 574. AUTHORITIES OF THE JUDGE ADVOCATES GENERAL.

       (a) Department of the Army.--Section 3037 of title 10, 
     United States Code, is amended--
       (1) in subsection (a), by striking the second and third 
     sentences and inserting ``The term of office of the Judge 
     Advocate General and the Assistant Judge Advocate General is 
     four years.''; and
       (2) by adding at the end the following new subsection:
       ``(e) No officer or employee of the Department of Defense 
     may interfere with--
       ``(1) the ability of the Judge Advocate General to give 
     independent legal advice to the Secretary of the Army or the 
     Chief of Staff of the Army; or
       ``(2) the ability of judge advocates of the Army assigned 
     or attached to, or performing duty with, military units to 
     give independent legal advice to commanders.''.
       (b) Department of the Navy.--(1) Section 5148 of such title 
     is amended by adding at the end the following new subsection:
       ``(e) No officer or employee of the Department of Defense 
     may interfere with--
       ``(1) the ability of the Judge Advocate General to give 
     independent legal advice to the Secretary of the Navy or the 
     Chief of Naval Operations; or
       ``(2) the ability of judge advocates of the Navy assigned 
     or attached to, or performing duty with, military units to 
     give independent legal advice to commanders.''.
       (2) Section 5046 of such title is amended by adding at the 
     end the following new subsection:
       ``(c) No officer or employee of the Department of Defense 
     may interfere with--
       ``(1) the ability of the Staff Judge Advocate to the 
     Commandant of the Marine Corps to give independent legal 
     advice to the Commandant of the Marine Corps; or
       ``(2) the ability of judge advocates of the Marine Corps 
     assigned or attached to, or performing duty with, military 
     units to give independent legal advice to commanders.''.
       (c) Department of the Air Force.--Section 8037 of title 10, 
     United States Code, is amended--
       (1) in subsection (a), by striking ``, but may be'' in the 
     second sentence and all that follows in that sentence through 
     ``President'';
       (2) in subsection (c)--
       (A) by striking ``shall'' in the matter preceding paragraph 
     (1);

[[Page H9220]]

       (B) by striking paragraph (2);
       (C) by redesignating paragraph (1) as paragraph (3) and in 
     that paragraph--
       (i) inserting ``shall'' before ``receive,''; and
       (ii) by striking ``; and'' at the end and inserting a 
     period; and
       (D) by inserting before paragraph (3), as so redesignated, 
     the following new paragraphs:
       ``(1) is the legal adviser of the Secretary of the Air 
     Force and of all officers and agencies of the Department of 
     the Air Force;
       ``(2) shall direct the officers of the Air Force designated 
     as judge advocates in the performance of their duties; and'';
       (3) in subsection (d)(1), by striking ``, but may be'' in 
     the second sentence and all that follows in that sentence 
     through ``President''; and
       (4) by adding at the end the following new subsection:
       ``(f) No officer or employee of the Department of Defense 
     may interfere with--
       ``(1) the ability of the Judge Advocate General to give 
     independent legal advice to the Secretary of the Air Force or 
     the Chief of Staff of the Air Force; or
       ``(2) the ability of officers of the Air Force who are 
     designated as judge advocates who are assigned or attached 
     to, or performing duty with, military units to give 
     independent legal advice to commanders.''.
       (d) Independent Review.--(1) The Secretary of Defense shall 
     establish an independent panel of outside experts to conduct 
     a study and review of the relationships between the legal 
     elements of each of the military departments and to prepare a 
     report setting forth the panel's recommendations as to 
     statutory, regulatory, and policy changes that the panel 
     considers to be desirable to improve the effectiveness of 
     those relationships and to enhance the legal support provided 
     to the leadership of each military department and each of the 
     Armed Forces.
       (2) The panel shall be composed of seven members, appointed 
     by the Secretary of Defense from among private United States 
     citizens who have substantial expertise in military law and 
     the organization and functioning of the military departments. 
     No more than one member of the panel may have served as the 
     Judge Advocate General of an Armed Force, and no more than 
     one member of the panel may have served as the General 
     Counsel of a military department.
       (3) The Secretary of Defense shall designate the chairman 
     of the panel from among the members of the panel other than a 
     member who has served as a Judge Advocate General or as a 
     military department General Counsel.
       (4) Members shall be appointed for the life of the panel. 
     Any vacancy in the panel shall be filled in the same manner 
     as the original appointment.
       (5) The panel shall meet at the call of the chairman.
       (6) All original appointments to the panel shall be made by 
     January 15, 2005. The chairman shall convene the first 
     meeting of the panel not later than February 1, 2005.
       (7) In carrying out the study and review required by 
     paragraph (1), the panel shall--
       (A) review the history of relationships between the 
     uniformed and civilian legal elements of each of the Armed 
     Forces;
       (B) analyze the division of duties and responsibilities 
     between those elements in each of the Armed Forces;
       (C) review the situation with respect to civilian attorneys 
     outside the offices of the service general counsels and their 
     relationships to the Judge Advocates General and the General 
     Counsels;
       (D) consider whether the ability of judge advocates to give 
     independent, professional legal advice to their service 
     staffs and to commanders at all levels in the field is 
     adequately provided for by policy and law; and
       (E) consider whether the Judge Advocates General and 
     General Counsels possess the necessary authority to exercise 
     professional supervision over judge advocates, civilian 
     attorneys, and other legal personnel practicing under their 
     cognizance in the performance of their duties.
       (8) Not later than April 15, 2005, the panel shall submit a 
     report on the study and review required by paragraph (1) to 
     the Secretary of Defense. The report shall include the 
     findings and conclusions of the panel as a result of the 
     study and review, together with any recommendations for 
     legislative or administrative action that the panel considers 
     appropriate. The Secretary of Defense shall transmit the 
     report, together with any comments the Secretary wishes to 
     provide, to the Committees on Armed Services of the Senate 
     and House of Representatives not later than May 1, 2005.
       (9) In this section, the term ``Armed Forces'' does not 
     include the Coast Guard.

             Subtitle K--Sexual Assault in the Armed Forces

     SEC. 576. EXAMINATION OF SEXUAL ASSAULT IN THE ARMED FORCES 
                   BY THE DEFENSE TASK FORCE ESTABLISHED TO 
                   EXAMINE SEXUAL HARASSMENT AND VIOLENCE AT THE 
                   MILITARY SERVICE ACADEMIES.

       (a) Extension of Task Force.--(1) The task force in the 
     Department of Defense established by the Secretary of Defense 
     pursuant to section 526 of the National Defense Authorization 
     Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1466) 
     to examine matters relating to sexual harassment and violence 
     at the United States Military Academy and United States Naval 
     Academy shall continue in existence for a period of at least 
     18 months after the date as of which the task force would 
     otherwise be terminated pursuant to subsection (i) of that 
     section.
       (2) Upon the completion of the functions of the task force 
     referred to in paragraph (1) pursuant to section 526 of the 
     National Defense Authorization Act for Fiscal Year 2004, the 
     name of the task force shall be changed to the Defense Task 
     Force on Sexual Assault in the Military Services, and the 
     task force shall then carry out the functions specified in 
     this section. The task force shall not begin to carry out the 
     functions specified in this section until it has completed 
     its functions under such section 526.
       (3) Before the task force extended under this subsection 
     begins to carry out the functions specified in this section, 
     the Secretary of Defense may, consistent with the 
     qualifications required by section 526(f) of Public Law 108-
     136, change the composition of the task force as the 
     Secretary considers appropriate for the effective performance 
     of such functions, except that--
       (1) any change initiated by the Secretary in the membership 
     of the task force under this paragraph may not take effect 
     before the task force has completed its functions under 
     section 526 of Public Law 108-136; and
       (2) the total number of members of the task force may not 
     exceed 14.
       (b) Examination of Matters Relating to Sexual Assault in 
     the Armed Forces.--The task force shall conduct an 
     examination of matters relating to sexual assault in cases in 
     which members of the Armed Forces are either victims or 
     commit acts of sexual assault.
       (c) Recommendations.--The Task Force shall include in its 
     report under subsection (e) recommendations of ways by which 
     civilian officials within the Department of Defense and 
     leadership within the Armed Forces may more effectively 
     address matters relating to sexual assault. That report shall 
     include an assessment of, and recommendations (including any 
     recommendations for changes in law) for measures to improve, 
     with respect to sexual assault, the following:
       (1) Victim care and advocacy programs.
       (2) Effective prevention.
       (3) Collaboration among military investigative 
     organizations with responsibility or jurisdiction.
       (4) Coordination and resource sharing between military and 
     civilian communities, including local support organizations.
       (5) Reporting procedures, data collection, tracking of 
     cases, and use of data on sexual assault by senior military 
     and civilian leaders.
       (6) Oversight of sexual assault programs, including 
     development of measures of the effectiveness of those 
     programs in responding to victim needs.
       (7) Military justice issues.
       (8) Progress in developing means to investigate and 
     prosecute assailants who are foreign nationals.
       (9) Adequacy of resources supporting sexual assault 
     prevention and victim advocacy programs, particularly for 
     deployed units and personnel.
       (10) Training of military and civilian personnel 
     responsible for implementation of sexual assault policies.
       (11) Programs and policies, including those related to 
     confidentiality, designed to encourage victims to seek 
     services and report offenses.
       (12) Other issues identified by the task force relating to 
     sexual assault.
       (d) Methodology.--In carrying out its examination under 
     subsection (b) and in formulating its recommendations under 
     subsection (c), the task force shall consider the findings 
     and recommendations of previous reviews and investigations of 
     sexual assault conducted by the Department of Defense and the 
     Armed Forces.
       (e) Report.--(1) Not later than one year after the 
     initiation of its examination under subsection (b), the task 
     force shall submit to the Secretary of Defense and the 
     Secretaries of the Army, Navy, and Air Force a report on the 
     activities of the task force and on the activities of the 
     Department of Defense and the Armed Forces to respond to 
     sexual assault.
       (2) The report shall include the following:
       (A) A description of any barrier to implementation of 
     improvements as a result of previous efforts to address 
     sexual assault.
       (B) Other areas of concern not previously addressed in 
     prior reports.
       (C) The findings and conclusions of the task force.
       (D) Any recommendations for changes to policy and law that 
     the task force considers appropriate.
       (3) Within 90 days after receipt of the report under 
     paragraph (1), the Secretary of Defense shall submit the 
     report, together with the Secretary's evaluation of the 
     report, to the Committees on Armed Services of the Senate and 
     House of Representatives.
       (f) Termination.--The task force shall terminate 90 days 
     after the date on which the report of the task force is 
     submitted to the Committees on Armed Services of the Senate 
     and House of Representatives pursuant to subsection (e)(3).

     SEC. 577. DEPARTMENT OF DEFENSE POLICY AND PROCEDURES ON 
                   PREVENTION AND RESPONSE TO SEXUAL ASSAULTS 
                   INVOLVING MEMBERS OF THE ARMED FORCES.

       (a) Comprehensive Policy on Prevention and Response to 
     Sexual Assaults.--(1) Not later than January 1, 2005, the 
     Secretary of Defense shall develop a comprehensive policy for 
     the Department of Defense on the prevention of and response 
     to sexual assaults involving members of the Armed Forces.
       (2) The policy shall be based on the recommendations of the 
     Department of Defense Task Force on Care for Victims of 
     Sexual Assaults and on such other matters as the Secretary 
     considers appropriate.
       (3) Before developing the comprehensive policy required by 
     paragraph (1), the Secretary of Defense shall develop a 
     definition of sexual assault. The definition so developed 
     shall be used in the comprehensive policy under paragraph (1) 
     and otherwise within the Department of Defense and Coast 
     Guard in matters involving members of the Armed Forces. The 
     definition shall be uniform for all the Armed Forces and 
     shall be developed in consultation with the Secretaries of 
     the military departments and the Secretary of Homeland 
     Security with respect to the Coast Guard.

[[Page H9221]]

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

           Subtitle L--Management and Administrative Matters

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

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

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

       (a) Report When Staffing is Below Prescribed Level.--
     Subparagraph (B) of section 1501(a)(5) of title 10, United 
     States Code, is amended--
       (1) by inserting ``(i)'' after ``(B)'';
       (2) by inserting ``, whether temporary or permanent,'' 
     after ``civilian personnel''; and
       (3) by adding at the end the following:
       ``(ii) If for any reason the number of military and 
     civilian personnel assigned or detailed to the office should 
     fall below the required level under clause (i), the Secretary 
     of Defense shall promptly notify the Committees on Armed 
     Services of the Senate and House of Representatives of the 
     number of personnel so assigned or detailed and of the 
     Secretary's plan to restore the staffing level of the office 
     to at least the required minimum number under clause (i). The 
     Secretary shall publish such notice and plan in the Federal 
     Register.''.
       (b) GAO Study.--Not later than 180 days after the date of 
     the enactment of this Act, the Comptroller General shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on Armed Services of the House of 
     Representatives a report providing an assessment of staffing 
     and funding levels for the Defense Prisoner of War/Missing 
     Personnel Office. The report shall include--
       (1) a description of changes, over the period from the 
     inception of the office to the time of the submission of the 
     report, in the missions and mission requirements of the 
     office, together with a comparison of personnel and funding 
     requirements of the office over that period with actual 
     manning and funding levels over that period; and
       (2) the Comptroller General's assessment of the adequacy of 
     current manning and funding levels for that office in light 
     of current mission requirements.

     SEC. 583. PERMANENT ID CARDS FOR RETIREE DEPENDENTS AGE 75 
                   AND OLDER.

       (a) In General.--(1) Chapter 53 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 1060b. Military ID cards: dependents and survivors of 
       retirees; issuance of permanent ID card after attaining 75 
       years of age

       ``(a) Permanent ID Card After Age 75.--In issuing military 
     ID cards to retiree dependents, the Secretary concerned shall 
     issue a permanent ID card (not subject to renewal) to any 
     such retiree dependent who has attained 75 years of age. Such 
     a permanent ID card shall be issued upon the expiration, 
     after the retiree dependent attains 75 years of age, of any 
     earlier, renewable military ID card or, if earlier, upon the 
     request of such a retiree dependent after attaining age 75.
       ``(b) Definitions.--In this section:
       ``(1) The term `military ID card' means a card or other 
     form of identification used for purposes of demonstrating 
     eligibility for any benefit from the Department of Defense.
       ``(2) The term `retiree dependent' means a person who is a 
     dependent of a retired member of the uniformed services, or a 
     survivor of a deceased retired member of the uniformed 
     services, who is eligible for any benefit from the Department 
     of Defense.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``1060b. Military ID cards: dependents and survivors of retirees; 
              issuance of permanent ID card after attaining 75 years of 
              age.''.

       (b) Effective Date.--Section 1060b of title 10, United 
     States Code, as added by subsection (a), shall take effect on 
     October 1, 2004.

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

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

[[Page H9222]]

     travel status from a medical facility to another location 
     approved by the Secretary.''.
       (b) Effective Date.--Subsection (a) of section 1047 of 
     title 10, United States Code, as added by subsection (a), 
     shall take effect as of October 1, 2004, and (subject to 
     subsection (c)) shall apply with respect to clothing 
     furnished, and reimbursement for clothing purchased, on or 
     after that date.
       (c) Retroactive Application.--With respect to the period 
     beginning on October 1, 2004, and ending on the date of the 
     enactment of this Act, the Secretary of Defense shall provide 
     for subsection (a) of section 1047 of title 10, United States 
     Code, as added by subsection (a), to be applied as a 
     continuation of the authority provided in section 1319 of the 
     Emergency Wartime Supplemental Appropriations Act, 2003 
     (Public Law 108-11; 117 Stat. 571), as continued in effect 
     during fiscal year 2004 by section 1103 of the Emergency 
     Supplemental Appropriations Act for Defense and for the 
     Reconstruction of Iraq and Afghanistan, 2004 (Public Law 108-
     106; 117 Stat. 1214).

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

       (a) Operation Hero Miles.--(1) Chapter 155 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

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

       ``(a) Authority to Accept Donation of Travel Benefits.--
     Subject to subsection (c), the Secretary of Defense may 
     accept from any person or government agency the donation of 
     travel benefits for the purposes of use under subsection (d).
       ``(b) Travel Benefit Defined.--In the section, the term 
     `travel benefit' means frequent traveler miles, credits for 
     tickets, or tickets for air or surface transportation issued 
     by an air carrier or a surface carrier, respectively, that 
     serves the public.
       ``(c) Condition on Authority to Accept Donation.--The 
     Secretary may accept a donation of a travel benefit under 
     this section only if the air or surface carrier that is the 
     source of the benefit consents to such donation. Any such 
     donation shall be under such terms and conditions as the 
     surface carrier may specify, and the travel benefit so 
     donated may be used only in accordance with the rules 
     established by the carrier.
       ``(d) Use of Donated Travel Benefits.--A travel benefit 
     accepted under this section may be used only for the purpose 
     of--
       ``(1) facilitating the travel of a member of the armed 
     forces who--
       ``(A) is deployed on active duty outside the United States 
     away from the permanent duty station of the member in support 
     of a contingency operation; and
       ``(B) is granted, during such deployment, rest and 
     recuperative leave, emergency leave, convalescent leave, or 
     another form of leave authorized for the member; or
       ``(2) in the case of a member of the armed forces 
     recuperating from an injury or illness incurred or aggravated 
     in the line of duty during such a deployment, facilitating 
     the travel of family members of the member in order to be 
     reunited with the member.
       ``(e) Administration.--(1) The Secretary shall designate a 
     single office in the Department of Defense to carry out this 
     section. That office shall develop rules and procedures to 
     facilitate the acceptance and distribution of travel benefits 
     under this section.
       ``(2) For the use of travel benefits under subsection 
     (d)(2) by family members of a member of the armed forces, the 
     Secretary may, as the Secretary determines appropriate, 
     limit--
       ``(A) eligibility to family members who, by reason of 
     affinity, degree of consanguinity, or otherwise, are 
     sufficiently close in relationship to the member of the armed 
     forces to justify the travel assistance;
       ``(B) the number of family members who may travel; and
       ``(C) the number of trips that family members may take.
       ``(3) The Secretary of Defense may, in an exceptional case, 
     authorize a person not described in subsection (d)(2) to use 
     a travel benefit accepted under this subsection to visit a 
     member of the armed forces described in subsection (d)(1) if 
     that person has a notably close relationship with the member. 
     The travel benefit may be used by such person only in 
     accordance with such conditions and restrictions as the 
     Secretary determines appropriate and the rules established by 
     the air carrier or surface carrier that is the source of the 
     travel benefit.
       ``(f) Services of Nonprofit Organization.--The Secretary of 
     Defense may enter into an agreement with a nonprofit 
     organization to use the services of the organization--
       ``(1) to promote the donation of travel benefits under this 
     section, except that amounts appropriated to the Department 
     of Defense may not be expended for this purpose; and
       ``(2) to assist in administering the collection, 
     distribution, and use of travel benefits under this section.
       ``(g) Family Member Defined.--In this section, the term 
     `family member' has the meaning given that term in section 
     411h(b)(1) of title 37.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``2613. Acceptance of frequent traveler miles, credits, and tickets; 
              use to facilitate rest and recuperation travel of 
              deployed members and their families.''.
       (b) Tax Treatment of Travel Benefits Donated for Operation 
     Hero Miles.--
       (1) Exclusion from gross income.--Subsection (b) of section 
     134 of the Internal Revenue Code of 1986 (defining qualified 
     military benefit) is amended by adding at the end the 
     following new paragraph:
       ``(5) Travel benefits under operation hero miles.--The term 
     `qualified military benefit' includes a travel benefit 
     provided under section 2613 of title 10, United States Code 
     (as in effect on the date of the enactment of this 
     paragraph).''.
       (2) Conforming amendments.--
       (A) Section 134(b)(3)(A) of such Code is amended by 
     striking ``paragraph (4)'' and inserting ``paragraphs (4) and 
     (5)''.
       (B) Section 3121(a)(18) of such Code is amended by striking 
     ``or 134(b)(4)'' and inserting ``134(b)(4), or 134(b)(5)''.
       (C) Section 3306(b)(13) of such Code is amended by striking 
     ``or 134(b)(4)'' and inserting ``134(b)(4), or 134(b)(5)''.
       (D) Section 3401(a)(18) of such Code is amended by striking 
     ``or 134(b)(4)'' and inserting ``134(b)(4), or 134(b)(5)''.
       (3) Effective date.--The amendments made by this subsection 
     shall apply to travel benefits provided after the date of the 
     enactment of this Act.

     SEC. 586. ANNUAL REPORT IDENTIFYING REASONS FOR DISCHARGES 
                   FROM THE ARMED FORCES DURING PRECEDING FISCAL 
                   YEAR.

       (a) Report Required.--Not later than March 1 each year 
     through 2011, the Secretary of Defense shall submit to the 
     Committees on Armed Services of the Senate and House of 
     Representatives a report on discharges from the Army, Navy, 
     Air Force, and Marine Corps during the preceding fiscal year.
       (b) Matters To Be Included.--Each such report shall show, 
     in the aggregate and for each of those Armed Forces, the 
     following:
       (1) The total number of persons discharged during the 
     preceding fiscal year.
       (2) For each separation code, and for each reenlistment 
     eligibility code, used by the Armed Forces, the number of 
     those discharged persons assigned that code.
       (3) For the persons assigned each such separation code, 
     classification of discharges by age, by sex, by race, by 
     military rank or grade, by time in service, by unit (shown at 
     the small unit level), by military occupational specialty (or 
     the equivalent), and by reenlistment eligibility code.
       (c) Use of Generic Separation Codes.--In preparing the 
     reports under this section, the Secretary shall use a generic 
     interservice separation code that provides similar, and 
     consistent, data across the services.

     SEC. 587. STUDY OF BLENDED WING CONCEPT FOR THE AIR FORCE.

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

     SEC. 588. SENSE OF CONGRESS REGARDING RETURN OF MEMBERS TO 
                   ACTIVE DUTY SERVICE UPON REHABILITATION FROM 
                   SERVICE-RELATED INJURIES.

       (a) Findings.--Congress makes the following findings:
       (1) The generation of young people currently serving on 
     active duty in the Armed Forces, which history will record as 
     being among the greatest, has shown in remarkable numbers an 
     individual resolve to recover from injuries incurred in such 
     service and to return to active service in the Armed Forces.
       (2) Since September 11, 2001, numerous brave soldiers, 
     sailors, airmen, and Marines have incurred serious combat 
     injuries, including (as of June 2004) approximately 100 
     members of the Armed Forces who have been fitted with 
     artificial limbs as a result of devastating injuries 
     sustained in combat overseas.
       (3) In cases involving combat-related injuries and other 
     service-related injuries, it is possible, as a result of 
     advances in technology and extensive rehabilitative services, 
     to restore to members of the Armed Forces sustaining such 
     injuries the capability to resume the performance of active 
     military service, including, in a few cases, the capability 
     to participate directly in the performance of combat 
     missions.
       (b) Sense of Congress.--It is the sense of Congress that--
       (1) a member of the Armed Forces who on the member's own 
     initiative is highly motivated to return to active duty 
     service following rehabilitation from injuries incurred in 
     service in the Armed Forces should, after appropriate medical 
     review and physical disability evaluation, be given the 
     opportunity to present the member's case for continuing to 
     serve on active duty in varied military capacities;
       (2) other than appropriate medical review and physical 
     disability evaluation, there should be no barrier in policy 
     or law to such a member having the option to return to 
     military service on active duty; and
       (3) the Secretary of Defense should develop specific 
     protocols that include options for such members to return to 
     active duty service and to be retrained to perform military 
     missions for which they are fully capable.

[[Page H9223]]

                       Subtitle M--Other Matters

     SEC. 591. PROTECTION OF ARMED FORCES PERSONNEL FROM 
                   RETALIATORY ACTIONS FOR COMMUNICATIONS MADE 
                   THROUGH THE CHAIN OF COMMAND.

       (a) Protected Communications.--Section 1034(b)(1)(B) of 
     title 10, United States Code, is amended--
       (1) by striking ``or'' at the end of clause (iii)''; and
       (2) by striking clause (iv) and inserting the following:
       ``(iv) any person or organization in the chain of command; 
     or
       ``(v) any other person or organization designated pursuant 
     to regulations or other established administrative procedures 
     for such communications.''.
       (b) Effective Date.--The amendments made by this section 
     apply with respect to any unfavorable personnel action taken 
     or threatened, and any withholding of or threat to withhold a 
     favorable personnel action, on or after the date of the 
     enactment of this Act.

     SEC. 592. IMPLEMENTATION PLAN FOR ACCESSION OF PERSONS WITH 
                   SPECIALIZED SKILLS.

       (a) Plan for Accession of Persons With Specialized 
     Skills.--(1) Not later than 180 days after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to Congress a plan for implementation of authority, if 
     subsequently provided by law, to allow for accession into the 
     Armed Forces, on a special or lateral-entry basis, of persons 
     with specialized skills, for duty involving the use of such 
     skills.
       (2) The plan under paragraph (1) shall address matters such 
     as projected numbers of enlistments and appointments, initial 
     rank or grade, projected enlistment and re-enlistment bonuses 
     and pays, projected length of service obligation (if any), 
     minimum time of active duty requirements, the potential 
     effect the use of such authority would have on other special 
     or lateral-entry programs (such as those applicable to 
     physicians), and such other matters as the Secretary 
     considers appropriate.
       (3) The Secretary shall include with the plan submitted 
     under paragraph (1) a comparison of that plan with an 
     alternative for meeting the specialized skills required by 
     the Armed Forces through the use of civilain contractor 
     personnel.
       (b) Civilian Skills Corps Feasibility Study.--(1) The 
     Secretary of Defense shall conduct a feasibility study of how 
     to implement a system that would make civilian volunteers, 
     with skills determined by the Secretary to be critical, 
     rapidly available for use in, or in support of, units of the 
     Armed Force on a temporary basis to meet no-notice, or short-
     notice, operational requirements. In conducting the study, 
     the Secretary shall examine a range of options, including--
       (A) a system that would embed on short notice in military 
     units civilian volunteers who were not part of the military, 
     but who possessed highly required skills that were in short 
     supply in the Armed Forces; and
       (B) a system to provide for the accession into the active 
     or reserve components of persons with critical skills 
     required by the Armed Forces for whom the Secretary could 
     prescribe varying lengths of service and training 
     requirements.
       (2) The Secretary shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives a report on the results of the 
     study under paragraph (1) not later than March 31, 2005.

     SEC. 593. ENHANCED SCREENING METHODS AND PROCESS IMPROVEMENTS 
                   FOR RECRUITMENT OF HOME SCHOOLED AND NATIONAL 
                   GUARD CHALLENGE PROGRAM GED RECIPIENTS.

       (a) Enhanced Screeing Methods and Process Improvements.--
     (1) The Secretary of the Army shall carry out an initiative--
       (A) to develop screening methods and process improvements 
     for recruiting specified GED recipients so as to achieve 
     attrition patterns, among the GED recipients so recruited, 
     that match attrition patterns for Army recruits who are high 
     school diploma graduates; and
       (B) subject to subsection (b), to implement such screening 
     methods and process improvements on a test basis.
       (2) For purposes of this section, the term ``specified GED 
     recipients'' means persons who receive a General Educational 
     Development (GED) certificate as a result of home schooling 
     or the completion of a program under the National Guard 
     Challenge program.
       (b) Secretary of Defense Review.--Before the screening 
     methods and process improvements developed under subsection 
     (a)(1) are put into effect under subsection (a)(2), the 
     Secretary of Defense shall review the proposed screening 
     methods and process improvements. Based on such review, the 
     Secretary of Defense either shall approve the use of such 
     screening methods and process improvements for testing (with 
     such modifications as the Secretary may direct) or shall 
     disapprove the use of such methods and process improvements 
     on a test basis.
       (c) Secretary of Defense Decision.--If the Secretary of 
     Defense determines under subsection (b) that the screening 
     methods and process improvements developed under subsection 
     (a)(1) should be implemented on a test basis, then upon 
     completion of the test period, the Secretary of Defense 
     shall, after reviewing the results of the test program, 
     determine whether the new screening methods and process 
     improvements developed by the Army should be extended 
     throughout the Department for recruit candidates identified 
     by the new procedures to be considered tier 1 recruits.
       (d) Reports.--(1) If the Secretary of Defense determines 
     under subsection (b) that the screening methods and process 
     improvements developed under subsection (a)(1) should not be 
     implemented on a test basis, the Secretary of Defense shall, 
     not later than 90 days thereafter, notify the Committee on 
     Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives of such 
     determination, together with the reasons of the Secretary for 
     such determination.
       (2) If the Secretary of Defense determines under subsection 
     (b) that the screening methods and process improvements 
     developed under subsection (a)(1) should be implemented on a 
     test basis, the Secretary of the Army shall submit to the 
     committees specified in paragraph (1) a report on the results 
     of the testing. The report shall be submitted not later than 
     March 31, 2009, except that if the Secretary of Defense 
     directs an earlier termination of the testing initiative, the 
     Secretary of the Army shall submit the report under this 
     paragraph not later than 180 days after such termination. 
     Such report shall include the determination of the Secretary 
     of Defense under subsection (c). If that determination is 
     that the methods and processes tested should not be extended 
     to the other services, the report shall include the 
     Secretary's rationale for not recommending such extension.

     SEC. 594. REDESIGNATION OF NATIONAL GUARD CHALLENGE PROGRAM 
                   AS NATIONAL GUARD YOUTH CHALLENGE PROGRAM.

       (a) Redesignation.--Section 509 of title 32, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) by striking ``National Guard Challenge Program'' the 
     first place it appears and inserting ``National Guard Youth 
     Challenge Program''; and
       (B) by striking ``National Guard Challenge Program'' the 
     second place it appears and inserting ``Program'';
       (2) by striking ``National Guard Challenge Program'' each 
     place it appears in subsections (b) through (k) and 
     subsection (m) and inserting ``Program'';
       (3) by striking ``program'' each place it appears in 
     subsections (b), (g), (i)(2)(A), (j), (k), and (m) and 
     inserting ``Program''; and
       (4) in subsection (l), by adding at the end the following 
     new paragraph:
       ``(3) The term `Program' means the National Guard Youth 
     Challenge Program carried out pursuant to this section.''.
       (b) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

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

       (2) The table of sections at the beginning of chapter 5 of 
     such title is amended by striking the item relating to 
     section 509 and inserting the following new item:

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

     SEC. 595. REPORTS ON CERTAIN MILESTONES RELATING TO 
                   DEPARTMENT OF DEFENSE TRANSFORMATION.

       (a) Military-to-Civilian Conversions.--Not later than 
     January 31, 2005, the Secretary of Defense shall submit to 
     the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of Representatives a 
     report providing information as to the number of positions in 
     the Department of Defense that were converted during fiscal 
     year 2004 from performance by military personnel to 
     performance by civilian personnel of the Department of 
     Defense or contractor personnel. The report shall include the 
     following:
       (1) A description of the skill sets of the military 
     positions converted.
       (2) Specification of the total cost of the conversions and 
     how that cost is being met.
       (3) The number of positions in the Department of Defense 
     projected for such conversion during the period from March 1, 
     2005, through January 31, 2006.
       (b) Military-to-Military Conversions.--Not later than March 
     31 of each of 2005, 2006, and 2007, the Secretary of Defense 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report on--
       (1) the number of units, by type, converted from one 
     primary military capability to another during the previous 
     fiscal year and, for each such unit, what the new unit 
     designation and new military capabilities are;
       (2) the number of military personnel, by military skill, 
     who have converted during the previous fiscal year from one 
     primary military skill to another, with a listing of the 
     military skills to which the individuals converted;
       (3) a description of the military unit and military 
     personnel conversions planned for the upcoming fiscal year; 
     and
       (4) a statement of whether the overall unit and military 
     personnel conversions planned for the previous fiscal year 
     were met, and for each such planned conversion, the reasons 
     why the planned conversion was or was not met.
       (c) Army Transformation to Brigade Structure.--The 
     Secretary of the Army shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives an annual report on the status 
     of the internal transformation of the Army from a division-
     orientated force to a brigade-orientated force. Such report 
     shall be submitted not later than March 31 of each year, 
     except that the requirement to submit such annual report 
     shall terminate when the Secretary of the Army submits to 
     those committees the Secretary's certification that the 
     transformation of the Army to a brigade-orientated force has 
     been completed. Upon the submission of such certification, 
     the Secretary shall publish in the Federal Register notice of 
     that certification and that the statutory requirement to 
     submit an annual report under this subsection has terminated.

[[Page H9224]]

     SEC. 596. REPORT ON ISSUES RELATING TO REMOVAL OF REMAINS OF 
                   PERSONS INTERRED IN UNITED STATES MILITARY 
                   CEMETERIES OVERSEAS.

       (a) Study.--The Secretary of the Army shall examine the 
     issues relating to requests for disinterment of remains of 
     persons buried in United States overseas military cemeteries. 
     The examination shall include the following:
       (1) A review of the historical facts involved in 
     establishing the United States overseas military cemeteries 
     and in determining the criteria for interment in those 
     cemeteries.
       (2) An examination of the processes for ensuring that the 
     initial disposition decision with respect to the remains of 
     any decedent was carried out, together with a review and 
     explanation of the existing policy and procedures regarding 
     request for disinterment and any exceptions that have been 
     made.
       (3) An analysis of the potential reasons for justifying 
     disinterment of remains from those cemeteries, including 
     error, misunderstanding, and change of decision by the 
     original responsible next of kin or other family member or 
     group of family members.
       (4) An analysis of the potential impact on the operation of 
     United States overseas military cemeteries of permitting 
     disinterment of remains from those cemeteries
       (b) Report.--Not later than September 30, 2005, the 
     Secretary shall submit to the Committee on Armed Services of 
     the Senate and the Committee on Armed Services of the House 
     of Representatives a report on the results of the examination 
     under subsection (a). The report shall include the following:
       (1) The matters specified in paragraphs (1), (2), (3), and 
     (4) of subsection (a).
       (2) A description of the changes to policy criteria and 
     procedures that would be necessary to support a system for 
     requesting and authorizing disinterment of such remains.
       (3) The recommendations of the Secretary of the Army and 
     the American Battle Monuments Commission for changing current 
     policy and procedures with respect to such disinterments.
       (c) Consultation With ABMC.--The Secretary shall carry out 
     the examination under subsection (a) and prepare the report 
     under subsection (b) in consultation with the American Battle 
     Monuments Commission.
       (d) ABMC Assistance.--The American Battle Monuments 
     Commission shall provide the Secretary of the Army such 
     assistance as the Secretary may require in carrying out this 
     section.
       (e) Definitions.--For purposes of this section:
       (1) The term ``United States overseas military cemetery'' 
     means a cemetery located in a foreign country that is 
     administered by the Secretary of a military department or the 
     American Battle Monuments Commission.
       (2) The term ``initial disposition decision'', with respect 
     to the remains of a person who died outside the United States 
     and was interred in a United States overseas military 
     cemetery, means a decision by a family member (or other 
     designated person) as to the disposition (in accordance with 
     laws and regulations in effect at the time) of the remains of 
     the deceased person, such decision being to have the remains 
     interred in a United States overseas military cemetery 
     (rather than to have those remains transported to the United 
     States for interment or other disposition in the United 
     States).

     SEC. 597. COMPTROLLER GENERAL REPORTS ON CLOSURE OF 
                   DEPARTMENT OF DEFENSE DEPENDENT ELEMENTARY AND 
                   SECONDARY SCHOOLS AND COMMISSARY STORES.

       (a) Report on Defense Dependent Schools.--The Comptroller 
     General shall prepare a report containing--
       (1) an assessment by the Comptroller General of the policy 
     of the Department of Defense, and the criteria utilized by 
     the Department, regarding the closure of Department of 
     Defense dependent elementary and secondary schools, including 
     whether or not such policy and criteria are consistent with 
     Department policies and procedures on the preservation of the 
     quality of life of members of the Armed Forces and their 
     dependents; and
       (2) an assessment by the Comptroller General of any current 
     or on-going studies or assessments of the Department with 
     respect to any of the schools.
       (b) Report on Commissary Stores.--The Comptroller General 
     shall prepare a report containing--
       (1) an assessment by the Comptroller General of the policy 
     of the Department of Defense, and the criteria utilized by 
     the Department, regarding the closure of commissary stores, 
     including whether or not such policy and criteria are 
     consistent with Department policies and procedures on the 
     preservation of the quality of life of members of the Armed 
     Forces and their dependents; and
       (2) an assessment by the Comptroller General of any current 
     or on-going studies or assessments of the Department with 
     respect to any of the commissary stores.
       (c) Submission of Reports.--The Comptroller General shall 
     submit the reports required by this section to the Committee 
     on Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives not later than 180 
     days after the date of the enactment of this Act.

     SEC. 598. COMPTROLLER GENERAL REPORT ON TRANSITION ASSISTANCE 
                   PROGRAMS FOR MEMBERS SEPARATING FROM THE ARMED 
                   FORCES.

       (a) Report Required.--Not later than 180 days after the 
     date of the enactment of this Act, the Comptroller General 
     shall submit to Congress a report evaluating the programs of 
     the Department of Defense and other Federal agencies under 
     which transition assistance is provided to members of the 
     Armed Forces who are separating from active duty service.
       (b) Elements of Report.--(1) With regard to the transition 
     assistance programs under section 1142 and 1144 of title 10, 
     United States Code, the report required by subsection (a) 
     shall include--
       (A) an analysis of the extent to which such programs are 
     meeting the current needs of members of the Armed Forces as 
     they are discharged or released from active duty;
       (B) a discussion of the original purposes of the programs;
       (C) a discussion of how the programs are currently being 
     administered in relationship to those purposes;
       (D) an assessment of whether the programs are adequate to 
     meet the current needs of members of the reserve components; 
     and
       (E) such recommendations as the Comptroller General 
     considers appropriate for improving such programs, including 
     any recommendation regarding whether participation by members 
     of the Armed Forces in such programs should be required.
       (2) The report shall include an analysis of any differences 
     among the Armed Forces and among the commands of military 
     installations of the Armed Forces regarding how transition 
     assistance is being provided under the transition assistance 
     programs and such recommendations as the Comptroller General 
     considers appropriate--
       (A) to achieve uniformity in the provision of assistance 
     under such programs; and
       (B) to ensure that the transition assistance is provided 
     under such programs to members of the Armed Forces who are 
     being separated at medical facilities of the uniformed 
     services or Department of Veterans Affairs medical centers 
     and to Armed Forces personnel on a temporary disability 
     retired list under section 1202 or 1205 of title 10, United 
     States Code.
       (3) The report shall include--
       (A) an analysis of the relationship between the Department 
     of Defense transition assistance programs and the transition 
     assistance programs of the Department of Veterans Affairs and 
     the Department of Labor, including the relationship between 
     the benefits delivery at discharge program carried out 
     jointly by the Department of Defense and the Department of 
     Veterans Affairs and the other transition assistance 
     programs; and
       (B) an assessment of the quality and thoroughness of 
     information being provided during preseparation briefings 
     under such transition assistance programs regarding the full 
     range of benefits available to qualified members of the Armed 
     Forces under programs operated by the Department of Veterans 
     Affairs and the requirements for qualifying for those 
     benefits.
       (4) The report shall specify the rates of participation of 
     members of the Armed Forces in the transition assistance 
     programs and include such recommendations as the Comptroller 
     General considers appropriate to increase such participation 
     rates, including any recommendations regarding revisions of 
     such programs that could result in increased participation by 
     members.
       (5) The report shall include--
       (A) an assessment of whether the transition assistance 
     information provided to members of the Armed Forces omits any 
     transition information that would be beneficial to members;
       (B) an assessment of the extent to which information is 
     provided under the transition assistance programs regarding 
     participation in Federal procurement opportunities available 
     at prime contract and subcontract levels to veterans with 
     service-connected disabilities and other veterans; and
       (C) such recommendations as the Comptroller General 
     considers appropriate regarding additional information that 
     should be provided and any other recommendations that the 
     Comptroller General considers appropriate for enhancing the 
     provision of counseling on such procurement opportunities.
       (6) The report shall include--
       (A) an assessment of the extent to which representatives of 
     military service organizations and veterans' service 
     organizations are afforded opportunities to participate, and 
     do participate, in preseparation briefings under transition 
     assistance programs;
       (B) an assessment of the effectiveness and usefulness of 
     the role that military service organizations and veterans' 
     service organizations are playing in the preseparation 
     briefing process; and
       (C) such recommendations as the Comptroller General 
     considers appropriate regarding whether such organizations 
     should be given a more formal role in the preseparation 
     briefing process and how representatives of such 
     organizations could better be used to disseminate transition 
     assistance information and provide preseparation counseling 
     to members of the Armed Forces, including members who are 
     being released from active duty for continuation of service 
     in a reserve component.
       (7) The report shall include an analysis of the use of 
     post-deployment and predischarge health screenings and such 
     recommendations as the Comptroller General considers 
     appropriate regarding whether and how to integrate the health 
     screening process and the transition assistance programs into 
     a single, coordinated preseparation program for members of 
     the Armed Forces being discharged or released from active 
     duty.
       (8) The report shall include an analysis of the processes 
     of the Armed Forces for conducting physical examinations of 
     members of the Armed Forces in connection with discharge and 
     release from active duty, including--
       (A) how post-deployment questionnaires are used;
       (B) the extent to which members of the Armed Forces waive 
     the physical examinations; and
       (C) how, and the extent to which, members of the Armed 
     Forces are referred for follow-up health care.
       (9) The report shall include a discussion of the current 
     process by which mental health

[[Page H9225]]

     screenings are conducted, follow-up mental health care is 
     provided for, and services are provided in cases of post-
     traumatic stress disorder and related conditions for members 
     of the Armed Forces in connection with discharge and release 
     from active duty, together with--
       (A) for each of the Armed Forces, the programs that are in 
     place to identify and treat cases of post-traumatic stress 
     disorder and related conditions; and
       (B) for persons returning from deployments in connection 
     with Operation Enduring Freedom and Operation Iraqi Freedom--
       (i) the number of persons treated as a result of such 
     screenings; and
       (ii) the types of interventions.
       (c) Acquisition of Supporting Information.--In preparing 
     the report under subsection (a), the Comptroller General 
     shall seek to obtain views from the following persons:
       (1) The Secretary of Defense and the Secretaries of the 
     military departments.
       (2) The Secretary of Veterans Affairs.
       (3) The Secretary of Labor.
       (4) Members of the Armed Forces who have received 
     transition assistance under the programs covered by the 
     report and members of the Armed Forces who have declined to 
     accept transition assistance offered under such programs.
       (5) Representatives of military service organizations and 
     representatives of veterans' service organizations.
       (6) Persons having expertise in health care (including 
     mental health care) provided under the Defense Health 
     Program, including Department of Defense personnel, 
     Department of Veterans Affairs personnel, and persons in the 
     private sector.

     SEC. 599. STUDY ON COORDINATION OF JOB TRAINING STANDARDS 
                   WITH CERTIFICATION STANDARDS FOR MILITARY 
                   OCCUPATIONAL SPECIALTIES.

       (a) Study Required.--The Secretary of Defense and the 
     Secretary of Labor shall jointly carry out a study to 
     determine ways to coordinate the standards applied by the 
     Armed Forces for the training and certification of members of 
     the Armed Forces in military occupational specialties with 
     the standards that are applied to corresponding civilian 
     occupations by occupational licensing or certification 
     agencies of governments and occupational certification 
     agencies in the private sector.
       (b) Submission of Report.--Not later than 180 days after 
     the date of the enactment of this Act, the Secretary of Labor 
     shall submit to Congress a report containing the results of 
     the study under subsection (a).

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2005.
Sec. 602. Relationship between eligibility to receive supplemental 
              subsistence allowance and eligibility to receive imminent 
              danger pay, family separation allowance, and certain 
              Federal assistance.
Sec. 603. Authority to provide family separation basic allowance for 
              housing.
Sec. 604. Geographic basis for housing allowance during short-
              assignment permanent changes of station for education or 
              training.
Sec. 605. Immediate lump-sum reimbursement for unusual nonrecurring 
              expenses incurred for duty outside the continental United 
              States.
Sec. 606. Authority for certain members deployed in combat zones to 
              receive limited advances on future basic pay.
Sec. 607. Repeal of requirement that members entitled to basic 
              allowance for subsistence pay subsistence charges while 
              hospitalized.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay 
              authorities for reserve forces.
Sec. 612. One-year extension of certain bonus and special pay 
              authorities for certain health care professionals.
Sec. 613. One-year extension of special pay and bonus authorities for 
              nuclear officers.
Sec. 614. One-year extension of other bonus and special pay 
              authorities.
Sec. 615. Authority to provide hazardous duty incentive pay to military 
              firefighters.
Sec. 616. Reduced service obligation for nurses receiving nurse 
              accession bonus.
Sec. 617. Assignment incentive pay.
Sec. 618. Modification of active and reserve component reenlistment and 
              enlistment bonus authorities.
Sec. 619. Bonus for certain initial service of officers in the Selected 
              Reserve.
Sec. 620. Revision of authority to provide foreign language proficiency 
              pay.
Sec. 621. Eligibility of enlisted members to qualify for critical 
              skills retention bonus while serving on indefinite 
              reenlistment.
Sec. 622. Eligibility of reserve component members for incentive bonus 
              for conversion to military occupational specialty to ease 
              personnel shortage.
Sec. 623. Permanent increase in authorized amounts for imminent danger 
              special pay and family separation allowance.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Travel and transportation allowances for family members to 
              attend burial ceremony or memorial service of member who 
              dies on duty.
Sec. 632. Transportation of family members incident to serious illness 
              or injury of members of the uniformed services.
Sec. 633. Reimbursement for certain lodging costs incurred in 
              connection with dependent student travel.

             Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Computation of high-36 month average for reserve component 
              members retired for disability while on active duty or 
              dying while on active duty.
Sec. 642. Repeal of phase-in of concurrent receipt of retired pay and 
              veterans' disability compensation for military retirees 
              with service-connected disabilities rated as 100 percent.
Sec. 643. Death benefits enhancement.
Sec. 644. Phased elimination of two-tier annuity computation for 
              surviving spouses under Survivor Benefit Plan.
Sec. 645. One-year open enrollment period for Survivor Benefit Plan 
              commencing October 1, 2005.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

Sec. 651. Consolidation and reorganization of legislative provisions 
              regarding defense commissary system and exchanges and 
              other morale, welfare, and recreation activities.
Sec. 652. Consistent State treatment of Department of Defense 
              Nonappropriated Fund Health Benefits Program.

                       Subtitle F--Other Matters

Sec. 661. Eligibility of members for reimbursement of expenses incurred 
              for adoption placements made by foreign governments.
Sec. 662. Clarification of education loans qualifying for education 
              loan repayment program for reserve component health 
              professions officers.
Sec. 663. Receipt of pay by reservists from civilian employers while on 
              active duty in connection with a contingency operation.
Sec. 664. Relief for mobilized reservists from certain Federal 
              agricultural loan obligations.
Sec. 665. Survey and analysis of effect of extended and frequent 
              mobilization of reservists for active duty service on 
              reservist income.
Sec. 666. Study of disability benefits for veterans of service in the 
              Armed Forces with service-connected disabilities.

                     Subtitle A--Pay and Allowances

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

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

     SEC. 602. RELATIONSHIP BETWEEN ELIGIBILITY TO RECEIVE 
                   SUPPLEMENTAL SUBSISTENCE ALLOWANCE AND 
                   ELIGIBILITY TO RECEIVE IMMINENT DANGER PAY, 
                   FAMILY SEPARATION ALLOWANCE, AND CERTAIN 
                   FEDERAL ASSISTANCE.

       (a) Entitlement Not Affected by Receipt of Imminent Danger 
     Pay and Family Separation Allowance.--Subsection (b) of 
     section 402a of title 37, United States Code, is amended--
       (1) in paragraph (2), by striking ``the Secretary--'' and 
     all that follows through ``shall take into consideration'' 
     and inserting ``the Secretary concerned shall take into 
     consideration''; and
       (2) by adding at the end the following new paragraph:
       ``(3) In determining whether a member meets the eligibility 
     criteria under paragraph (1), the Secretary concerned shall 
     not take into consideration--
       ``(A) the amount of the supplemental subsistence allowance 
     that is payable under this section;
       ``(B) the amount of any special pay that is payable to the 
     member under section 310 of this section, relating to duty 
     subject to hostile fire or imminent danger; or
       ``(C) the amount of any family separation allowance that is 
     payable to the member under section 427 of this title.''.
       (b) Relation to Other Federal Assistance.--Such section is 
     further amended--
       (1) by redesignating subsections (g) and (h) as subsections 
     (h) and (i), respectively; and
       (2) by inserting after subsection (f) the following new 
     subsection (g):
       ``(g) Eligibility for Other Federal Assistance.--(1) A 
     child or spouse of a member of the armed forces receiving the 
     supplemental subsistence allowance under this section who, 
     except on account of the receipt of such allowance, would be 
     eligible to receive a benefit described in paragraph (2) 
     shall be considered to be eligible for that benefit 
     notwithstanding the receipt of such allowance.
       ``(2) The benefits referred to in paragraph (1) are as 
     follows:
       ``(A) Assistance provided under the Richard B. Russell 
     National School Lunch Act (42 U.S.C. 1751 et seq.).
       ``(B) Assistance provided under the Child Nutrition Act of 
     1966 (42 U.S.C. 1771 et seq.).
       ``(C) A service provided under the Head Start Act (42 
     U.S.C. 9831 et seq.).

[[Page H9226]]

       ``(D) Assistance under the Child Care and Development Block 
     Grant Act of 1990 (42 U.S.C. 9858 et seq.).
       ``(3) A household that includes a member of the armed 
     forces receiving the supplemental subsistence allowance under 
     this section and that, except on account of the receipt of 
     such allowance, would be eligible to receive a benefit under 
     the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 
     8621 et seq.) shall be considered to be eligible for that 
     benefit notwithstanding the receipt of such allowance.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply in determining, on or after the date of the 
     enactment of this Act, the eligibility of a person for a 
     supplemental subsistence allowance under section 402a of 
     title 37, United States Code, or for Federal assistance under 
     a law specified in subsection (g) of such section, as so 
     amended.

     SEC. 603. AUTHORITY TO PROVIDE FAMILY SEPARATION BASIC 
                   ALLOWANCE FOR HOUSING.

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

     SEC. 604. GEOGRAPHIC BASIS FOR HOUSING ALLOWANCE DURING 
                   SHORT-ASSIGNMENT PERMANENT CHANGES OF STATION 
                   FOR EDUCATION OR TRAINING.

       Section 403(d) of title 37, United States Code, as amended 
     by section 603, is further amended--
       (1) in the subsection heading, by striking ``Are Unable 
     To'' and inserting ``Do Not''; and
       (2) in paragraph (3), by adding at the end the following 
     new subparagraph:
       ``(C) If the member is reassigned for a permanent change of 
     station or permanent change of assignment from a duty station 
     in the United States to another duty station in the United 
     States for a period of not more than one year for the purpose 
     of participating in professional military education or 
     training classes, the amount of the basic allowance for 
     housing for the member may be based on whichever of the 
     following areas the Secretary concerned determines will 
     provide the more equitable basis for the allowance:
       ``(i) The area of the duty station to which the member is 
     reassigned.
       ``(ii) The area in which the dependents reside, but only if 
     the dependents reside in that area when the member departs 
     for the duty station to which the member is reassigned and 
     only for the period during which the dependents reside in 
     that area.
       ``(iii) The area of the former duty station of the member, 
     if different than the area in which the dependents reside.''.

     SEC. 605. IMMEDIATE LUMP-SUM REIMBURSEMENT FOR UNUSUAL 
                   NONRECURRING EXPENSES INCURRED FOR DUTY OUTSIDE 
                   THE CONTINENTAL UNITED STATES.

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

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

       (3) The table of sections at the beginning of chapter 7 of 
     such title is amended by striking the item relating to 
     section 405 and inserting the following new item:

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

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

       (a) Advancement of Basic Pay.--Chapter 3 of title 37, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 212. Advancement of basic pay: members deployed in 
       combat zone for more than one year

       ``(a) Eligibility; Amount Advanced.--If a member of the 
     armed forces is assigned to duty in an area for which special 
     pay under section 310 of this title is available and the 
     assignment is pursuant to orders specifying an assignment of 
     one year or more (or the assignment is extended beyond one 
     year), the member may request, during the period of the 
     assignment, the advanced payment of not more than three 
     months of the basic pay of the member.
       ``(b) Consideration of Request.--A request by a member 
     described in subsection (a) for the advanced payment of a 
     single month of basic pay shall be granted. The Secretary 
     concerned may grant a member's request for a second or third 
     month of advanced basic pay during the assignment upon a 
     showing of financial hardship.
       ``(c) Recoupment of Advanced Pay.--The Secretary concerned 
     shall recoup an advance made on the basic pay of a member 
     under this section in equal installments over a one-year 
     period beginning as provided in subsection (d). If the member 
     is serving on active duty for any month during the recoupment 
     period, the amount of the installment for the month shall be 
     deducted from the basic pay of the member for that month. The 
     estate of a deceased member shall not be required to repay 
     any portion of the advanced pay paid to the member and not 
     repaid before the death of the member.
       ``(d) Commencement of Recoupment.--The recoupment period 
     for an advancement of basic pay to a member under this 
     section shall commence on the first day of the first month 
     beginning on or after the date on which the member receives 
     the advanced pay.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``212. Advancement of basic pay: members deployed in combat zone for 
              more than one year.''.

     SEC. 607. REPEAL OF REQUIREMENT THAT MEMBERS ENTITLED TO 
                   BASIC ALLOWANCE FOR SUBSISTENCE PAY SUBSISTENCE 
                   CHARGES WHILE HOSPITALIZED.

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

           Subtitle B--Bonuses and Special and Incentive Pays

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

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

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

       (a) Nurse Officer Candidate Accession Program.--Section 
     2130a(a)(1) of title 10, United States Code, is amended by 
     striking ``December 31, 2004'' and inserting ``December 31, 
     2005''.
       (b) Repayment of Education Loans for Certain Health 
     Professionals Who Serve in the Selected Reserve.--Section 
     16302(d) of such title is amended by striking ``January 1, 
     2005'' and inserting ``January 1, 2006''.
       (c) Accession Bonus for Registered Nurses.--Section 
     302d(a)(1) of title 37, United States Code, is amended by 
     striking ``December 31, 2004'' and inserting ``December 31, 
     2005''.
       (d) Incentive Special Pay for Nurse Anesthetists.--Section 
     302e(a)(1) of such title is amended by striking ``December 
     31, 2004'' and inserting ``December 31, 2005''.
       (e) Special Pay for Selected Reserve Health Professionals 
     in Critically Short Wartime Specialties.--Section 302g(f ) of 
     such title is amended by striking ``December 31, 2004'' and 
     inserting ``December 31, 2005''.
       (f) Accession Bonus for Dental Officers.--Section 
     302h(a)(1) of such title is amended by striking ``December 
     31, 2004'' and inserting ``December 31, 2005''.
       (g) Accession Bonus for Pharmacy Officers.--Section 302j(a) 
     of such title is amended by striking ``the date of the 
     enactment of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 and ending on 
     September 30, 2004'' and inserting ``October 30, 2000, and 
     ending on December 31, 2005''.

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

       (a) Special Pay for Nuclear-Qualified Officers Extending 
     Period of Active Service.--Section 312(e) of title 37, United 
     States Code, is amended by striking ``December 31, 2004'' and 
     inserting ``December 31, 2005''.
       (b) Nuclear Career Accession Bonus.--Section 312b(c) of 
     such title is amended by striking

[[Page H9227]]

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

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

       (a) Aviation Officer Retention Bonus.--Section 301b(a) of 
     title 37, United States Code, is amended by striking 
     ``December 31, 2004'' and inserting ``December 31, 2005''.
       (b) Assignment Incentive Pay.--Section 307a(f) of such 
     title is amended by striking ``December 31, 2005'' and 
     inserting ``December 31, 2006''.
       (c) Reenlistment Bonus for Active Members.--Section 308(g) 
     of such title is amended by striking ``December 31, 2004'' 
     and inserting ``December 31, 2005''.
       (d) Enlistment Bonus for Active Members.--Section 309(e) of 
     such title is amended by striking ``December 31, 2004'' and 
     inserting ``December 31, 2005''.
       (e) Retention Bonus for Members With Critical Military 
     Skills.--Section 323(i) of such title is amended by striking 
     ``December 31, 2004'' and inserting ``December 31, 2005''.
       (f) Accession Bonus for New Officers in Critical Skills.--
     Section 324(g) of such title is amended by striking 
     ``December 31, 2004'' and inserting ``December 31, 2005''.

     SEC. 615. AUTHORITY TO PROVIDE HAZARDOUS DUTY INCENTIVE PAY 
                   TO MILITARY FIREFIGHTERS.

       Section 301 of title 37, United States Code, is amended--
       (1) in subsection (d), by inserting ``(1)'' after ``(d)'';
       (2) by redesignating subsection (e) as paragraph (2) of 
     subsection (d); and
       (3) by inserting after subsection (d) the following new 
     subsection (e):
       ``(e) A member of a uniformed service who is entitled to 
     basic pay may be paid incentive pay under this subsection, at 
     a monthly rate not to exceed $150, for any month during which 
     the member performs duty involving regular participation as a 
     firefighting crew member, as determined by the Secretary 
     concerned.''.

     SEC. 616. REDUCED SERVICE OBLIGATION FOR NURSES RECEIVING 
                   NURSE ACCESSION BONUS.

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

     SEC. 617. ASSIGNMENT INCENTIVE PAY.

       (a) Discretionary Written Agreements.--Subsection (b) of 
     section 307a of title 37, United States Code, is amended to 
     read as follows:
       ``(b) Written Agreement.--The Secretary concerned may 
     require a member performing service in an assignment 
     designated under subsection (a) to enter into a written 
     agreement with the Secretary in order to qualify for 
     incentive pay under this section. The written agreement shall 
     specify the period for which the incentive pay will be paid 
     to the member and, subject to subsection (c), the monthly 
     rate of the incentive pay.''.
       (b) Discontinuation Upon Commencement of Terminal Leave.--
     Subsection (e) of such section is amended by striking ``by 
     reason of'' and all that follows through the period at the 
     end and inserting ``by reason of--
       ``(1) temporary duty performed by the member pursuant to 
     orders; or
       ``(2) absence of the member for authorized leave, other 
     than leave authorized for a period ending upon the discharge 
     of the member or the release of the member from active 
     duty.''.
       (c) Effective Date.--Paragraph (2) of section 307a(e) of 
     title 37, United States Code, as added by subsection (b), 
     shall apply with respect to authorized leave occurring on or 
     after the date of the enactment of this Act.

     SEC. 618. MODIFICATION OF ACTIVE AND RESERVE COMPONENT 
                   REENLISTMENT AND ENLISTMENT BONUS AUTHORITIES.

       (a) Active-Duty Reenlistment Bonus.--(1) Paragraph (1) of 
     subsection (a) of section 308 of title 37, United States 
     Code, is amended--
       (A) in the matter preceding subparagraph (A), by striking 
     ``A member'' and inserting ``The Secretary concerned may pay 
     a bonus under paragraph (2) to a member'';
       (B) in subparagraph (A), by striking ``fourteen years'' and 
     inserting ``16 years'';
       (C) in subparagraph (D), by striking the semicolon at the 
     end and inserting a period; and
       (D) by striking ``may be paid a bonus as provided in 
     paragraph (2).''.
       (2) Paragraph (3) of such subsection is amended by striking 
     ``16 years'' and inserting ``18 years''.
       (b) Selected Reserve Reenlistment Bonus.--(1) Subsection 
     (a) of section 308b of title 37, United States Code, is 
     amended--
       (A) in the matter preceding paragraph (1), by striking ``An 
     enlisted member'' and inserting ``The Secretary concerned may 
     pay a bonus under subsection (b) to an enlisted member'';
       (B) in paragraph (1), by striking ``less than 14 years'' 
     and inserting ``not more than 16 years'';
       (C) in paragraph (2), by striking the semicolon at the end 
     and inserting a period; and
       (D) by striking ``may be paid a bonus as provided in 
     subsection (b).''.
       (2) Subsection (b)(1) of such section is amended--
       (A) in subparagraph (A), by striking ``$5,000'' and 
     inserting ``$15,000'';
       (B) in subparagraph (B), by striking ``$2,500'' and 
     inserting ``$7,500''; and
       (C) in subparagraph (C), by striking ``$2,000'' and 
     inserting ``$6,000''.
       (3) Paragraph (2) of subsection (b) of such section is 
     amended to read as follows:
       ``(2) Bonus payments authorized under this section may be 
     paid in either a lump sum or in installments. If the bonus is 
     paid in installments, the initial payment shall be not less 
     than 50 percent of the total bonus amount. The Secretary 
     concerned shall prescribe the amount of each subsequent 
     installment payment and the schedule for making the 
     installment payments.''.
       (4) Subsection (c) of such section is amended--
       (A) in the subsection heading, by striking ``; Limitation 
     on Number of Bonuses''; and
       (B) by striking paragraph (2) and redesignating paragraph 
     (3) as paragraph (2).
       (c) Selected Reserve Enlistment Bonus.--(1) Subsection (b) 
     of section 308c of title 37, United States Code, is amended 
     by striking ``$8,000'' and inserting ``$10,000''.
       (2) Subsection (f) of such section is amended to read as 
     follows:
       ``(f) A member entitled to a bonus under this section who 
     is called or ordered to active duty shall be paid, during 
     that period of active duty, any amount of the bonus that 
     becomes payable to the member during that period of active 
     duty.''.
       (d) Ready Reserve Enlistment Bonus for Persons Without 
     Prior Service.--Section 308g(b) of title 37, United States 
     Code, is amended--
       (1) by striking ``$1,000'' and inserting ``$3,000''; and
       (2) by adding at the end the following new sentence: ``A 
     person entitled to a bonus under this section who is called 
     or ordered to active duty shall be paid, during that period 
     of active duty, any amount of the bonus that becomes payable 
     to the member during that period of active duty.''.
       (e) Prior Service Ready Reserve Bonus.--Section 308h(b) of 
     title 37, United States Code, is amended--
       (1) in paragraph (2)(A), by striking ``$1,500'' and 
     inserting ``$3,000'';
       (2) in paragraph (2)(B), by striking ``$750'' and inserting 
     ``$1,500''; and
       (3) by adding at the end the following new paragraph:
       ``(4) A person entitled to a bonus under this section who 
     is called or ordered to active duty shall be paid, during 
     that period of active duty, any amount of the bonus that 
     becomes payable to the member during that period of active 
     duty.''.
       (f) Prior Service Enlistment Bonus for Selected Reserve.--
     (1) Subsection (a)(2)(A) of section 308i of title 37, United 
     States Code, is amended by striking ``less than 14 years'' 
     and inserting ``not more than 16 years''.
       (2) Paragraph (1) of subsection (b) of such section is 
     amended--
       (A) in subparagraph (A), by striking ``$8,000'' and 
     inserting ``$15,000'';
       (B) in subparagraph (B), by striking ``$4,000'' and 
     inserting ``$7,500''; and
       (C) in subparagraph (C), by striking ``$3,500'' and 
     inserting ``$6,000''.
       (3) Such subsection is further amended by adding at the end 
     the following new paragraph:
       ``(3) A person entitled to a bonus under this section who 
     is called or ordered to active duty shall be paid, during 
     that period of active duty, any amount of the bonus that 
     becomes payable to the member during that period of active 
     duty.''.
       (g) Effective Date.--The amendment made by subsection 
     (a)(2) shall apply only with respect to the computation of a 
     bonus under section 308(a)(2)(A) of title 37, United States 
     Code, made on or after the date of the enactment of this Act.

     SEC. 619. BONUS FOR CERTAIN INITIAL SERVICE OF OFFICERS IN 
                   THE SELECTED RESERVE.

       (a) Authority.--Chapter 5 of title 37, United States Code, 
     is amended by inserting after section 308i the following new 
     section:

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

       ``(a) Affiliation Bonus.--(1) The Secretary concerned may 
     pay an affiliation bonus under this section to an eligible 
     officer in any of the armed forces who enters into an 
     agreement with the Secretary to serve, for the period 
     specified in the agreement, in the Selected Reserve of the 
     Ready Reserve of an armed force under the Secretary's 
     jurisdiction--
       ``(A) in a critical officer skill designated under 
     paragraph (3); or
       ``(B) to meet a manpower shortage in--
       ``(i) a unit of that Selected Reserve; or
       ``(ii) a particular pay grade in that armed force.
       ``(2) An officer is eligible for an affiliation bonus under 
     this section if the officer--
       ``(A) either--
       ``(i) is serving on active duty for a period of more than 
     30 days; or
       ``(ii) is a member of a reserve component not on active 
     duty and, if the member formerly served on active duty, was 
     released from active duty under honorable conditions;
       ``(B) has not previously served in the Selected Reserve of 
     the Ready Reserve; and
       ``(C) is not entitled to receive retired or retainer pay.
       ``(3)(A) The Secretary concerned shall designate for an 
     armed force under the Secretary's jurisdiction the critical 
     officer skills to which the bonus authority under this 
     subsection is to be applied.
       ``(B) A skill may be designated as a critical officer skill 
     for an armed force under subparagraph (A) if, to meet 
     requirements of that armed force, it is critical for that 
     armed force to have a sufficient number of officers who are 
     qualified in that skill.
       ``(4) An affiliation bonus payable pursuant to an agreement 
     under this section to an eligible

[[Page H9228]]

     officer accrues on the date on which the person is assigned 
     to a unit or position in the Selected Reserve pursuant to 
     such agreement.
       ``(b) Accession Bonus.--(1) The Secretary concerned may pay 
     an accession bonus under this section to an eligible person 
     who enters into an agreement with the Secretary--
       ``(A) to accept an appointment as an officer in the armed 
     forces; and
       ``(B) to serve in the Selected Reserve of the Ready Reserve 
     in a skill designated under paragraph (2) for a period 
     specified in the agreement.
       ``(2)(A) The Secretary concerned shall designate for an 
     armed force under the Secretary's jurisdiction the officer 
     skills to which the authority under this subsection is to be 
     applied.
       ``(B) A skill may be designated for an armed force under 
     subparagraph (A) if, to mitigate a current or projected 
     significant shortage of personnel in that armed force who are 
     qualified in that skill, it is critical to increase the 
     number of persons accessed into that armed force who are 
     qualified in that skill or are to be trained in that skill.
       ``(3) An accession bonus payable to a person pursuant to an 
     agreement under this section accrues on the date on which 
     that agreement is accepted by the Secretary concerned.
       ``(c) Period of Obligated Service.--An agreement entered 
     into with the Secretary concerned under this section shall 
     require the person entering into that agreement to serve in 
     the Selected Reserve for a specified period. The period 
     specified in the agreement shall be any period not less than 
     three years that the Secretary concerned determines 
     appropriate to meet the needs of the reserve component in 
     which the service is to be performed.
       ``(d) Amount.--The amount of a bonus under this section may 
     be any amount not in excess of $6,000 that the Secretary 
     concerned determines appropriate.
       ``(e) Payment.--(1) Upon acceptance of a written agreement 
     by the Secretary concerned under this section, the total 
     amount of the bonus payable under the agreement becomes 
     fixed. The agreement shall specify whether the bonus is to be 
     paid in one lump sum or in installments.
       ``(2) A person entitled to a bonus under this section who 
     is called or ordered to active duty shall be paid, during 
     that period of active duty, any amount of the bonus that 
     becomes payable to the member during that period of active 
     duty.
       ``(f) Relation to Other Accession Bonus Authority.--A 
     person may not receive an affiliation bonus or accession 
     bonus under this section and financial assistance under 
     chapter 1608, 1609, or 1611 of title 10, or under section 
     302g of this title, for the same period of service.
       ``(g) Repayment for Failure To Commence or Complete 
     Obligated Service.--(1) A person who, after receiving all or 
     part of the bonus under an agreement entered into by that 
     person under this section, does not accept a commission or an 
     appointment as an officer or does not commence to participate 
     or does not satisfactorily participate in the Selected 
     Reserve for the total period of service specified in the 
     agreement shall repay to the United States such compensation 
     or benefit, except under conditions prescribed by the 
     Secretary concerned.
       ``(2) The Secretary concerned shall include in each 
     agreement entered into by the Secretary under this section 
     the requirements that apply for any repayment under this 
     subsection, including the method for computing the amount of 
     the repayment and any exceptions.
       ``(3) An obligation to repay the United States imposed 
     under paragraph (1) is for all purposes a debt owed to the 
     United States. A discharge in bankruptcy under title 11 that 
     is entered less than five years after the termination of an 
     agreement entered into under this section does not discharge 
     a person from a debt arising under an agreement entered into 
     under this subsection or a debt arising under paragraph 
     (1).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 308i the following new item:

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

     SEC. 620. REVISION OF AUTHORITY TO PROVIDE FOREIGN LANGUAGE 
                   PROFICIENCY PAY.

       (a) In General.--(1) Section 316 of title 37, United States 
     Code, is amended to read as follows:

     ``Sec. 316. Special pay and bonus for members with foreign 
       language proficiency

       ``(a) Availability of Special Pay.--Subject to subsection 
     (c), the Secretary concerned may pay monthly special pay 
     under this section to a member of the uniformed services who 
     is entitled to basic pay under section 204 of this title and 
     who--
       ``(1) is qualified in a uniformed services specialty 
     requiring proficiency in a foreign language identified by the 
     Secretary concerned as a foreign language in which it is 
     necessary to have personnel proficient because of national 
     defense or public health considerations;
       ``(2) received training, under regulations prescribed by 
     the Secretary concerned, designed to develop a proficiency in 
     such a foreign language;
       ``(3) is assigned to duties requiring a proficiency in such 
     a foreign language; or
       ``(4) is proficient in a foreign language for which the 
     uniformed service may have a critical need, as determined by 
     the Secretary concerned.
       ``(b) Availability of Bonus.--Subject to subsection (c), 
     the Secretary concerned may pay an annual bonus under this 
     section to a member of a reserve component who satisfies the 
     eligibility requirements specified in paragraph (1), (2), 
     (3), or (4) of subsection (a).
       ``(c) Certification of Proficiency.--To be eligible to 
     receive special pay or a bonus under this section, a member 
     described in subsection (a) or (b) must be certified by the 
     Secretary concerned as being proficient in the foreign 
     language for which the special pay or bonus is offered. The 
     certification of the member shall expire at the end of the 
     one-year period beginning on the first day of the first month 
     beginning on or after the certification date.
       ``(d) Special Pay and Bonus Amounts.--(1) The monthly rate 
     for special pay paid under subsection (a) may not exceed 
     $1,000.
       ``(2) The maximum amount of the bonus paid to a member 
     under subsection (b) may not exceed $6,000 for the one-year 
     period covered by the certification of the member. The 
     Secretary concerned may pay the bonus in a single lump sum at 
     the beginning of the certification period or in installments 
     during the certification period.
       ``(e) Relationship to Other Pay or Allowance.--(1) Except 
     as provided in paragraph (2), special pay or a bonus paid 
     under this section is in addition to any other pay or 
     allowance payable to a member under any other provision of 
     law.
       ``(2) If a member of a reserve component serving on active 
     duty receives special pay under subsection (a) for any month 
     occurring during a certification period in which the member 
     received, or is receiving, a bonus under subsection (b), the 
     amount of the special pay paid to the member for the month 
     shall be reduced by an amount equal to \1/12\ of the bonus 
     amount.
       ``(f) Certification Interrupted by Contingency Operation.--
     (1) Notwithstanding subsection (c), the Secretary concerned 
     may waive the certification requirement under such subsection 
     and pay monthly special pay or a bonus under this section to 
     a member who--
       ``(A) is assigned to duty in connection with a contingency 
     operation;
       ``(B) is unable to schedule or complete the certification 
     required by subsection (c) because of that assignment; and
       ``(C) except for the lack of such certification, satisfies 
     the eligibility requirements for receipt of special pay under 
     subsection (a) or a bonus under subsection (b), whichever 
     applies to the member.
       ``(2) For purposes of providing an annual bonus to a member 
     under the authority of this subsection, the Secretary 
     concerned may treat the date on which the member was assigned 
     to duty in connection with the contingency operation as 
     equivalent to a certification date. In the case of a member 
     whose certification will expire during such a duty 
     assignment, the Secretary shall commence the next one-year 
     certification period on the date on which the prior 
     certification period expires.
       ``(3) A member who is paid special pay or a bonus under the 
     authority of this subsection shall complete the certification 
     required by subsection (c) for the foreign language for which 
     the special pay or bonus was paid not later than the end of 
     the 180-day period beginning on the date on which the member 
     is released from the assignment in connection with the 
     contingency operation. The Secretary concerned may extend 
     that period for a member in accordance with regulations 
     prescribed under subsection (h).
       ``(4) If a member fails to obtain the required 
     certification under subsection (c) before the end of the 
     period provided under paragraph (3), the Secretary concerned 
     may require the member to repay all or a portion of the bonus 
     in the manner provided in subsection (g).
       ``(g) Repayment of Bonus.--(1) The Secretary concerned may 
     require a member who receives a bonus under this section, but 
     who does not satisfy an eligibility requirement specified in 
     paragraph (1), (2), (3), or (4) of subsection (a) for the 
     entire certification period, to repay to the United States an 
     amount which bears the same ratio to the total amount of the 
     bonus paid to the member as the unsatisfied portion of the 
     certification period bears to the entire certification 
     period.
       ``(2) An obligation to repay the United States imposed 
     under paragraph (1) or subsection (f)(4) is for all purposes 
     a debt owed to the United States. A discharge in bankruptcy 
     under title 11 that is entered for the member less than five 
     years after the expiration of the certification period does 
     not discharge the member from a debt arising under this 
     paragraph. This paragraph applies to any case commenced under 
     title 11 after the date of the enactment of this section.
       ``(h) Regulations.--This section shall be administered 
     under regulations prescribed by the Secretary of Defense for 
     the armed forces under the jurisdiction of the Secretary, by 
     the Secretary of Homeland Security for the Coast Guard when 
     the Coast Guard is not operating as a service in the Navy, by 
     the Secretary of Health and Human Services for the 
     Commissioned Corps of the Public Health Service, and by the 
     Secretary of Commerce for the National Oceanic and 
     Atmospheric Administration.''.
       (2) The table of sections at the beginning of chapter 5 of 
     such title is amended by striking the item relating to 
     section 316 and inserting the following new item:

``316. Special pay and bonus for members with foreign language 
              proficiency.''.

       (b) Conforming Amendments.--(1) Section 316a of title 37, 
     United States Code, is repealed.
       (2) The table of sections at the beginning of chapter 5 of 
     such title is amended by striking the item relating to 
     section 316a.

     SEC. 621. ELIGIBILITY OF ENLISTED MEMBERS TO QUALIFY FOR 
                   CRITICAL SKILLS RETENTION BONUS WHILE SERVING 
                   ON INDEFINITE REENLISTMENT.

       Section 323(a) of title 37, United States Code, is 
     amended--
       (1) by striking ``or'' at the end of paragraph (1);
       (2) in paragraph (2)--
       (A) by inserting ``other than an enlisted member referred 
     to in paragraph (3),'' after ``enlisted member,''; and

[[Page H9229]]

       (B) by striking the period at the end and inserting ``; 
     or''; and
       (3) by adding at the end the following new paragraph:
       ``(3) in the case of an enlisted member serving pursuant to 
     an indefinite reenlistment, the member executes a written 
     agreement to remain on active duty for a period of at least 
     one year.''.

     SEC. 622. ELIGIBILITY OF RESERVE COMPONENT MEMBERS FOR 
                   INCENTIVE BONUS FOR CONVERSION TO MILITARY 
                   OCCUPATIONAL SPECIALTY TO EASE PERSONNEL 
                   SHORTAGE.

       (a) Eligibility.--Section 326 of title 37, United States 
     Code, is amended--
       (1) in subsection (a), by inserting ``of a regular or 
     reserve component'' after ``an eligible member'';
       (2) in subsection (b)--
       (A) by striking ``if--'' and all that follows through ``at 
     the time'' and inserting ``if, at the time''; and
       (B) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively; and
       (3) in subsection (c)(2), by inserting ``regular or reserve 
     component of the'' after ``chief personnel officer of the''.
       (b) Amount of Bonus.--Subsection (c)(1) of such section is 
     amended by inserting before the period at the end the 
     following: ``, in the case of a member of a regular component 
     of the armed forces, and $2,000, in the case of a member of a 
     reserve component of the armed forces''.

     SEC. 623. PERMANENT INCREASE IN AUTHORIZED AMOUNTS FOR 
                   IMMINENT DANGER SPECIAL PAY AND FAMILY 
                   SEPARATION ALLOWANCE.

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

            Subtitle C--Travel and Transportation Allowances

     SEC. 631. TRAVEL AND TRANSPORTATION ALLOWANCES FOR FAMILY 
                   MEMBERS TO ATTEND BURIAL CEREMONY OR MEMORIAL 
                   SERVICE OF MEMBER WHO DIES ON DUTY.

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

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

       (a) Removal of Limitation on Number of Family Members.--
     Subsection (a)(1) of section 411h of title 37, United States 
     Code, is amended--
       (1) by striking ``two family members'' and inserting 
     ``three family members''; and
       (2) by adding at the end the following new sentence: ``In 
     circumstances determined to be appropriate by the Secretary 
     concerned, the Secretary may waive the limitation on the 
     number of family members provided travel and transportation 
     under this section.''.
       (b) Availability of Per Diem.--Such section is further 
     amended--
       (1) in subsection (a)(1), by inserting ``travel and'' 
     before ``transportation''; and
       (2) in subsection (c)--
       (A) by inserting ``(1)'' after ``(c)'' ; and
       (B) by adding at the end the following new paragraph:
       ``(2) In addition to the transportation authorized by 
     subsection (a), the Secretary concerned may provide a per 
     diem allowance or reimbursement for the actual and necessary 
     expenses of the travel, or a combination thereof, but not to 
     exceed the rates established under section 404(d) of this 
     title.''.
       (c) Effective Date.--Section 411h of title 37, United 
     States Code, as amended by this section, shall apply to 
     travel and transportation authorized under such section that 
     is provided on or after October 1, 2004, to family members of 
     a member of the Armed Forces who is ill or injured as 
     described in such section.

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

       Section 430(b) of title 37, United States Code, is 
     amended--
       (1) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and
       (2) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) The allowance authorized under paragraph (1) for the 
     travel of an eligible dependent may include reimbursement for 
     costs incurred by or on behalf of the dependent for lodging 
     of the dependent that is necessitated by an interruption in 
     the travel caused by extraordinary circumstances prescribed 
     in the regulations under subsection (a). The amount of the 
     reimbursement shall be determined using the rate applicable 
     to such circumstances.''.

             Subtitle D--Retired Pay and Survivor Benefits

     SEC. 641. COMPUTATION OF HIGH-36 MONTH AVERAGE FOR RESERVE 
                   COMPONENT MEMBERS RETIRED FOR DISABILITY WHILE 
                   ON ACTIVE DUTY OR DYING WHILE ON ACTIVE DUTY.

       (a) Computation of High-36 Month Average.--Subsection (c) 
     of section 1407 of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(3) Special Rule for Reserve Component Members.--In the 
     case of a member of a reserve component who is entitled to 
     retired pay under section 1201 or 1202 of this title, the 
     member's high-three average (notwithstanding paragraphs (1) 
     and (2)) is computed in the same manner as prescribed in 
     paragraphs (2) and (3) of subsection (d) for a member 
     entitled to retired pay under section 1204 or 1205 of this 
     title.''.
       (b) Effective Date.--Paragraph (3) of section 1407(c) of 
     title 10, United States Code, as added by subsection (a), 
     shall take effect--
       (1) for purposes of determining an annuity under subchapter 
     II or III of chapter 73 of that title, with respect to deaths 
     on active duty on or after September 10, 2001; and
       (2) for purposes of determining the amount of retired pay 
     of a member of a reserve component entitled to retired pay 
     under section 1201 or 1202 of such title, with respect to 
     such entitlement that becomes effective on or after the date 
     of the enactment of this Act.

     SEC. 642. REPEAL OF PHASE-IN OF CONCURRENT RECEIPT OF RETIRED 
                   PAY AND VETERANS' DISABILITY COMPENSATION FOR 
                   MILITARY RETIREES WITH SERVICE-CONNECTED 
                   DISABILITIES RATED AS 100 PERCENT.

       (a) Termination of Phase-In at End of 2004.--Subsection 
     (a)(1) of section 1414 of title 10, United States Code, is 
     amended by inserting before the period at the end the 
     following: ``, except that in the case of a qualified retiree 
     receiving veterans' disability compensation for a disability 
     rated as 100 percent, payment of retired pay to such veteran 
     is subject to subsection (c) only during the period beginning 
     on January 1, 2004, and ending on December 31, 2004''.
       (b) Conforming Amendment.--Subsection (c) of such section 
     is amended in the matter preceding paragraph (1) by inserting 
     ``that pursuant to the second sentence of subsection (a)(1) 
     is subject to this subsection'' after ``a qualified 
     retiree''.

     SEC. 643. DEATH BENEFITS ENHANCEMENT.

       (a) Actions on Fiscal Year 2004 Death Benefits Study.--(1) 
     The Secretary of Defense shall expedite the completion and 
     submission of the report, which was due on March 1, 2004, of 
     the results of the study of the Federal death benefits for 
     survivors of deceased members of the Armed Forces required by 
     section 647(b) of the National Defense Authorization Act for 
     Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1520).
       (2) The President should promptly transmit to Congress any 
     recommendation for legislation, together with a request for 
     appropriations, that the President determines necessary to 
     implement any death benefits enhancements that are 
     recommended in the report referred to in paragraph(1).
       (b) Increases of Death Gratuity Consistent With Increases 
     of Rates of Basic Pay.--Section 1478 of title 10, United 
     States Code, is amended--
       (1) in subsection (a), by inserting ``(as adjusted under 
     subsection (c))'' before the period at the end of the first 
     sentence; and
       (2) by adding at the end the following new subsection:
       ``(c) Effective on the date on which rates of basic pay 
     under section 204 of title 37 are increased under section 
     1009 of that title or any other provision of law, the amount 
     of the death gratuity in effect under subsection (a) shall be 
     increased by the same overall average percentage of the 
     increase in the rates of basic pay taking effect on that 
     date.''.
       (c) Fiscal Year 2005 Actions.--At the same time that the 
     President transmits to Congress the budget for fiscal year 
     2006 under section 1105(a) of title 31, United States Code, 
     the President shall transmit to Congress assessments and 
     recommendations regarding legislation on proposals that would 
     provide enhanced death benefits for survivors of deceased 
     members of the uniformed services. Those assessments and 
     recommendations regarding legislation shall include 
     provisions for the following:
       (1) Revision of the Servicemembers' Group Life Insurance 
     program under chapter 19 of title 38, United States Code, to 
     provide for--
       (A) an increase in the maximum benefit amount provided 
     under that program from $250,000 to $350,000;
       (B) an increase, each fiscal year, in that maximum benefit 
     amount by the same overall average percentage increase that 
     takes effect during such fiscal year in the rates of basic 
     pay under section 204 of title 37, United States Code; and
       (C) a minimum benefit amount of $100,000 at no cost to the 
     insured members of the uniformed services who elect the 
     maximum coverage, together with an increase in such minimum 
     benefit each fiscal year by the same percentage increase as 
     is described in subparagraph (B).
       (2) An additional set of death benefits for each member of 
     the uniformed services who dies in the line of duty while on 
     active duty that includes, at a minimum, an additional death 
     gratuity in the amount that--

[[Page H9230]]

       (A) in the case of a member not described in subparagraph 
     (B), is equal to the sum of--
       (i) the total amount of the basic pay to which the deceased 
     member would have been entitled under section 204 of title 
     37, United States Code, if the member had not died and had 
     continued to serve on active duty for an additional year; and
       (ii) the total amount of all allowances and special pays 
     that the member would have been entitled to receive under 
     title 37, United States Code, over the one-year period 
     beginning on the member's date of death as if the member had 
     not died and had continued to serve on active duty for an 
     additional year with the unit to which the member was 
     assigned or detailed on such date; and
       (B) in the case of a member who dies as a result of an 
     injury caused by or incurred while exposed to hostile action 
     (including any hostile fire or explosion and any hostile 
     action from a terrorist source), is equal to twice the amount 
     calculated under subparagraph (A).
       (3) Any other new death benefits or enhancement of existing 
     death benefits that the President recommends.
       (4) Retroactive applicability of the benefits referred to 
     in paragraph (2) and, as appropriate, the benefits 
     recommended under paragraph (3) so as to provide the 
     benefits--
       (A) for members of the uniformed services who die in line 
     of duty on or after October 7, 2001, of a cause incurred or 
     aggravated while deployed in support of Operation Enduring 
     Freedom; and
       (B) for members of the uniformed services who die in line 
     of duty on or after March 19, 2003, of a cause incurred or 
     aggravated while deployed in support of Operation Iraqi 
     Freedom.
       (d) Consultation.--The President shall consult with the 
     Secretary of Defense and the Secretary of Veterans Affairs in 
     developing the assessments and recommendations required under 
     subsection (c).
       (e) Fiscal Year 2006 Budget Submission.--The budget for 
     fiscal year 2006 that is transmitted to Congress under 
     section 1105(a) of title 31, United States Code, shall 
     include assessments and recommendations on legislation (other 
     than draft appropriations) that includes provisions that, on 
     the basis of the assumption that any draft legislation 
     transmitted under subsection (c) would be enacted and would 
     take effect in fiscal year 2006--
       (1) would offset fully the increased outlays that would 
     result from enactment of the provisions of any draft 
     legislation transmitted under subsection (c), for fiscal year 
     2006 and each of the succeeding nine fiscal years;
       (2) expressly state that they are proposed for the purpose 
     of the offset described in paragraph (1); and
       (3) are included in full in the estimates that are made by 
     the Director of the Congressional Budget Office and the 
     Director of the Office of Management and Budget under section 
     252(d) of the Balanced Budget and Emergency Deficit Control 
     Act of 1985 (2 U.S.C. 902(d)) with respect to the fiscal 
     years referred to in paragraph (1).
       (f) Early Submission of Proposal for Additional Death 
     Benefits.--Congress urges the President to transmit any draft 
     of legislation for the additional set of death benefits under 
     paragraph (2) of subsection (c) before the time for 
     submission required under that subsection and as soon as is 
     practicable after the date of the enactment of this Act.

     SEC. 644. PHASED ELIMINATION OF TWO-TIER ANNUITY COMPUTATION 
                   FOR SURVIVING SPOUSES UNDER SURVIVOR BENEFIT 
                   PLAN.

       (a) Phased Increase in Basic Annuity.--
       (1) Standard annuity.--
       (A) Increase to 55 percent.--Clause (i) of subsection 
     (a)(1)(B) of section 1451 of title 10, United States Code, is 
     amended by striking ``35 percent of the base amount.'' and 
     inserting ``the product of the base amount and the percent 
     applicable to the month, as follows:
       ``(I) For a month before October 2005, the applicable 
     percent is 35 percent.
       ``(II) For months after September 2005 and before April 
     2006, the applicable percent is 40 percent.
       ``(III) For months after March 2006 and before April 2007, 
     the applicable percent is 45 percent.
       ``(IV) For months after March 2007 and before April 2008, 
     the applicable percent is 50 percent.
       ``(V) For months after March 2008, the applicable percent 
     is 55 percent.''.
       (B) Coordination with savings provision under prior law.--
     Clause (ii) of such subsection is amended by striking ``, at 
     the time the beneficiary becomes entitled to the annuity,''.
       (2) Reserve-component annuity.--Subsection (a)(2)(B)(i)(I) 
     of such section is amended by striking ``35 percent'' and 
     inserting ``the percent specified under subsection 
     (a)(1)(B)(i) as being applicable for the month''.
       (3) Survivors of eligible persons dying on active duty, 
     etc.--
       (A) Increase to 55 percent.--Clause (i) of subsection 
     (c)(1)(B) of such section is amended--
       (i) by striking ``35 percent'' and inserting ``the 
     applicable percent''; and
       (ii) by adding at the end the following: ``The percent 
     applicable for a month under the preceding sentence is the 
     percent specified under subsection (a)(1)(B)(i) as being 
     applicable for that month.''.
       (B) Coordination with savings provision under prior law.--
     Clause (ii) of such subsection is amended by striking ``, at 
     the time the beneficiary becomes entitled to the annuity,''.
       (4) Clerical amendment.--The heading for subsection 
     (d)(2)(A) of such section is amended to read as follows: 
     ``Computation of annuity.--''.
       (b) Corresponding Phased Elimination of Supplemental 
     Annuity.--
       (1) Phased reduction of supplemental annuity.--Section 
     1457(b) of title 10, United States Code, is amended--
       (A) by striking ``5, 10, 15, or 20 percent'' and inserting 
     ``the applicable percent''; and
       (B) by inserting after the first sentence the following: 
     ``The percent used for the computation shall be an even 
     multiple of 5 percent and, whatever the percent specified in 
     the election, may not exceed 20 percent for months before 
     October 2005, 15 percent for months after September 2005 and 
     before April 2006, 10 percent for months after March 2006 and 
     before April 2007, and 5 percent for months after March 2007 
     and before April 2008.''.
       (2) Repeal upon implementation of 55 percent sbp annuity.--
     Effective on April 1, 2008, chapter 73 of such title is 
     amended--
       (A) by striking subchapter III; and
       (B) by striking the item relating to subchapter III in the 
     table of subchapters at the beginning of that chapter.
       (c) Recomputation of Annuities.--
       (1) Periodic recomputation required.--Effective on the 
     first day of each month specified in paragraph (2)--
       (A) each annuity under section 1450 of title 10, United 
     States Code, that commenced before that month, is computed 
     under a provision of section 1451 of that title amended by 
     subsection (a), and is payable for that month shall be 
     recomputed so as to be equal to the amount that would be in 
     effect if the percent applicable for that month under that 
     provision, as so amended, had been used for the initial 
     computation of the annuity; and
       (B) each supplemental survivor annuity under section 1457 
     of such title that commenced before that month and is payable 
     for that month shall be recomputed so as to be equal to the 
     amount that would be in effect if the percent applicable for 
     that month under that section, as amended by this section, 
     had been used for the initial computation of the supplemental 
     survivor annuity.
       (2) Time for recomputation.--The requirement under 
     paragraph (1) for recomputation of certain annuities applies 
     with respect to the following months:
       (A) October 2005.
       (B) April 2006.
       (C) April 2007.
       (D) April 2008.
       (d) Termination of Retired Pay Reductions for Supplemental 
     Survivor Annuities.--(1) Except as provided in paragraph (2), 
     there shall be no reduction in retired pay under section 1460 
     of title 10, United States Code, for any month beginning 
     after the date of the enactment of this Act.
       (2) Reductions in retired pay under section 1460 of title 
     10, United States Code, shall be made for months after 
     September 2005 in the case of coverage under subchapter III 
     of chapter 73 of title 10, United States Code, that is 
     provided (for new coverage or increased coverage) through an 
     election under the open season provided by section 645. The 
     Secretary of Defense shall take such actions as are 
     necessitated by the amendments made by subsection (b) and the 
     requirements of subsection (c)(1)(B) to ensure that 
     reductions in retired pay under section 1460 of title 10, 
     United States Code, pursuant to the preceding sentence are 
     adjusted to achieve the objectives set forth in subsection 
     (b) of that section.

     SEC. 645. ONE-YEAR OPEN ENROLLMENT PERIOD FOR SURVIVOR 
                   BENEFIT PLAN COMMENCING OCTOBER 1, 2005.

       (a) Persons Not Currently Participating in Survivor Benefit 
     Plan.--
       (1) Election of sbp coverage.--An eligible retired or 
     former member may elect to participate in the Survivor 
     Benefit Plan during the open enrollment period specified in 
     subsection (f).
       (2) Election of supplemental annuity coverage.--An eligible 
     retired or former member who elects under paragraph (1) to 
     participate in the Survivor Benefit Plan at the maximum level 
     may also elect during the open enrollment period to 
     participate in the Supplemental Survivor Benefit Plan.
       (3) Eligible retired or former member.--For purposes of 
     paragraphs (1) and (2), an eligible retired or former member 
     is a member or former member of the uniformed services who on 
     the day before the first day of the open enrollment period is 
     not a participant in the Survivor Benefit Plan and--
       (A) is entitled to retired pay; or
       (B) would be entitled to retired pay under chapter 1223 of 
     title 10, United States Code, but for the fact that such 
     member or former member is under 60 years of age.
       (4) Status under sbp of persons making elections.--
       (A) Standard annuity.--A person making an election under 
     paragraph (1) by reason of eligibility under paragraph (3)(A) 
     shall be treated for all purposes as providing a standard 
     annuity under the Survivor Benefit Plan.
       (B) Reserve-component annuity.--A person making an election 
     under paragraph (1) by reason of eligibility under paragraph 
     (3)(B) shall be treated for all purposes as providing a 
     reserve-component annuity under the Survivor Benefit Plan.
       (b) Election To Increase Coverage Under SBP.--A person who 
     on the day before the first day of the open enrollment period 
     is a participant in the Survivor Benefit Plan but is not 
     participating at the maximum base amount or is providing 
     coverage under the Plan for a dependent child and not for the 
     person's spouse or former spouse may, during the open 
     enrollment period, elect to--
       (1) participate in the Plan at a higher base amount (not in 
     excess of the participant's retired pay); or
       (2) provide annuity coverage under the Plan for the 
     person's spouse or former spouse at a base amount not less 
     than the base amount provided for the dependent child.
       (c) Election for Current SBP Participants To Participate in 
     Supplemental SBP.--

[[Page H9231]]

       (1) Election.--A person who is eligible to make an election 
     under this paragraph may elect during the open enrollment 
     period to participate in the Supplemental Survivor Benefit 
     Plan.
       (2) Persons eligible.--Except as provided in paragraph (3), 
     a person is eligible to make an election under paragraph (1) 
     if on the day before the first day of the open enrollment 
     period the person is a participant in the Survivor Benefit 
     Plan at the maximum level, or during the open enrollment 
     period the person increases the level of such participation 
     to the maximum level under subsection (b) of this section, 
     and under that Plan is providing annuity coverage for the 
     person's spouse or a former spouse.
       (3) Limitation on eligibility for certain sbp participants 
     not affected by two-tier annuity computation.--A person is 
     not eligible to make an election under paragraph (1) if (as 
     determined by the Secretary concerned) the annuity of a 
     spouse or former spouse beneficiary of that person under the 
     Survivor Benefit Plan is to be computed under section 1451(e) 
     of title 10, United States Code. However, such a person may 
     during the open enrollment period waive the right to have 
     that annuity computed under such section 1451(e). Any such 
     election is irrevocable. A person making such a waiver may 
     make an election under paragraph (1) as in the case of any 
     other participant in the Survivor Benefit Plan.
       (d) Manner of Making Elections.--An election under this 
     section shall be made in writing, signed by the person making 
     the election, and received by the Secretary concerned before 
     the end of the open enrollment period. Any such election 
     shall be made subject to the same conditions, and with the 
     same opportunities for designation of beneficiaries and 
     specification of base amount, that apply under the Survivor 
     Benefit Plan or the Supplemental Survivor Benefit Plan, as 
     the case may be. A person making an election under subsection 
     (a) to provide a reserve-component annuity shall make a 
     designation described in section 1448(e) of title 10, United 
     States Code.
       (e) Effective Date for Elections.--Any such election shall 
     be effective as of the first day of the first calendar month 
     following the month in which the election is received by the 
     Secretary concerned.
       (f) Open Enrollment Period.--The open enrollment period 
     under this section is the one-year period beginning on 
     October 1, 2005.
       (g) Effect of Death of Person Making Election Within Two 
     Years of Making Election.--If a person making an election 
     under this section dies before the end of the two-year period 
     beginning on the effective date of the election, the election 
     is void and the amount of any reduction in retired pay of the 
     person that is attributable to the election shall be paid in 
     a lump sum to the person who would have been the deceased 
     person's beneficiary under the voided election if the 
     deceased person had died after the end of such two-year 
     period.
       (h) Applicability of Certain Provisions of Law.--The 
     provisions of sections 1449, 1453, and 1454 of title 10, 
     United States Code, are applicable to a person making an 
     election, and to an election, under this section in the same 
     manner as if the election were made under the Survivor 
     Benefit Plan or the Supplemental Survivor Benefit Plan, as 
     the case may be.
       (i) Premium for Open Enrollment Election.--
       (1) Premiums to be charged.--The Secretary of Defense shall 
     prescribe in regulations premiums which a person electing 
     under this section shall be required to pay for participating 
     in the Survivor Benefit Plan pursuant to the election. The 
     total amount of the premiums to be paid by a person under the 
     regulations shall be equal to the sum of--
       (A) the total amount by which the retired pay of the person 
     would have been reduced before the effective date of the 
     election if the person had elected to participate in the 
     Survivor Benefit Plan (for the same base amount specified in 
     the election) at the first opportunity that was afforded the 
     member to participate under chapter 73 of title 10, United 
     States Code;
       (B) interest on the amounts by which the retired pay of the 
     person would have been so reduced, computed from the dates on 
     which the retired pay would have been so reduced at such rate 
     or rates and according to such methodology as the Secretary 
     of Defense determines reasonable; and
       (C) any additional amount that the Secretary determines 
     necessary to protect the actuarial soundness of the 
     Department of Defense Military Retirement Fund against any 
     increased risk for the fund that is associated with the 
     election.
       (2) Premiums to be credited to retirement fund.--Premiums 
     paid under the regulations under paragraph (1) shall be 
     credited to the Department of Defense Military Retirement 
     Fund.
       (h) Definitions.--In this section:
       (1) The term ``Survivor Benefit Plan'' means the program 
     established under subchapter II of chapter 73 of title 10, 
     United States Code.
       (2) The term ``Supplemental Survivor Benefit Plan'' means 
     the program established under subchapter III of chapter 73 of 
     title 10, United States Code.
       (3) The term ``retired pay'' includes retainer pay paid 
     under section 6330 of title 10, United States Code.
       (4) The terms ``uniformed services'' and ``Secretary 
     concerned'' have the meanings given those terms in section 
     101 of title 37, United States Code.
       (5) The term ``Department of Defense Military Retirement 
     Fund'' means the Department of Defense Military Retirement 
     Fund established under section 1461(a) of title 10, United 
     States Code.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

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

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

``Subchapter                                                       Sec.
``I. Defense Commissary and Exchange Systems...................2481....

``II. Relationship, Continuation, and Common Policies of Defense 
    Commissary and Exchange Systems............................2487....

``III. Morale, Welfare, and Recreation Programs and Nonappropriated 
    Fund Instrumentalities.....................................2491....

        ``SUBCHAPTER I--DEFENSE COMMISSARY AND EXCHANGE SYSTEMS

``Sec.
``2481. Defense commissary and exchange systems: existence and purpose
``2482. Commissary stores: criteria for establishment or closure; store 
              size.
``2483. Commissary stores: use of appropriated funds to cover operating 
              expenses.
``2484. Commissary stores: merchandise that may be sold; uniform 
              surcharges and pricing.
``2485. Commissary stores: operation.

     ``Sec. 2481. Defense commissary and exchange systems: 
       existence and purpose

       ``(a) Separate Systems.--The Secretary of Defense shall 
     operate, in the manner provided by this chapter and other 
     provisions of law, a world-wide system of commissary stores 
     and a separate world-wide system of exchange stores. The 
     stores of each system may sell, at reduced prices, food and 
     other merchandise to members of the uniformed services on 
     active duty, members of the uniformed services entitled to 
     retired pay, dependents of such members, and persons 
     authorized to use the system under chapter 54 of this title.
       ``(b) Purpose of Systems.--The defense commissary system 
     and the exchange system are intended to enhance the quality 
     of life of members of the uniformed services, retired 
     members, and dependents of such members, and to support 
     military readiness, recruitment, and retention.
       ``(c) Oversight.--(1) The Secretary of Defense shall 
     designate a senior official of the Department of Defense to 
     oversee the operation of both the defense commissary system 
     and the exchange system.
       ``(2) The Secretary of Defense shall establish an executive 
     governing body to provide advice to the senior official 
     designated under paragraph (1) regarding the operation of the 
     defense commissary and exchange systems and to ensure the 
     complementary operation of the systems.
       ``(d) Reduced Prices Defined.--In this section, the term 
     `reduced prices' means prices for food and other merchandise 
     determined using the price setting process specified in 
     section 2484 of this title.

     ``Sec. 2482. Commissary stores: criteria for establishment or 
       closure; store size

       ``(a) Primary Consideration for Establishment.--The needs 
     of members of the armed forces on active duty and the needs 
     of dependents of such members shall be the primary 
     consideration whenever the Secretary of Defense--
       ``(1) assesses the need to establish a commissary store; 
     and
       ``(2) selects the actual location for the store.
       ``(b) Store Size.--In determining the size of a commissary 
     store, the Secretary of Defense shall take into consideration 
     the number of all authorized patrons of the defense 
     commissary system who are likely to use the store.
       ``(c) Closure Considerations.--(1) Whenever assessing 
     whether to close a commissary store, the effect of the 
     closure on the quality of life of members and dependents 
     referred to in subsection (a) who use the store and on the 
     welfare and security of the military community in which the 
     commissary is located shall be a primary consideration.
       ``(2) Whenever assessing whether to close a commissary 
     store, the Secretary of Defense shall also consider the 
     effect of the closure on the quality of life of members of 
     the reserve components of the armed forces.
       ``(d) Congressional Notification.--(1) The closure of a 
     commissary store shall not take effect until the end of the 
     90-day period beginning on the date on which the Secretary of 
     Defense submits to Congress written notice of the reasons 
     supporting the closure. The written notice shall include an 
     assessment of the impact closure will have on the quality of 
     life for military patrons and the welfare and security of the 
     military community in which the commissary is located.
       ``(2) Paragraph (1) shall not apply in the case of the 
     closure of a commissary store as part of the closure of a 
     military installation under a base closure law.'';
       (4) by inserting sections 2483 and 2484, as redesignated by 
     paragraph (2), after section 2482, as added by paragraph (3);
       (5) in section 2484, as redesignated by paragraph (2)--
       (A) by striking subsections (a), (b), (c), and (g);
       (B) by redesignating subsections (d), (e), and (f) as 
     subsections (e), (f), and (g), respectively;
       (C) by inserting before subsection (f), as so redesignated, 
     the following new subsections:
       ``(a) In General.--As provided in section 2481(a) of this 
     title, commissary stores are intended to be similar to 
     commercial grocery stores

[[Page H9232]]

     and may sell merchandise similar to that sold in commercial 
     grocery stores.
       ``(b) Authorized Commissary Merchandise Categories.--
     Merchandise sold in, at, or by commissary stores may include 
     items in the following categories:
       ``(1) Meat, poultry, seafood, and fresh-water fish.
       ``(2) Nonalcoholic beverages.
       ``(3) Produce.
       ``(4) Grocery food, whether stored chilled, frozen, or at 
     room temperature.
       ``(5) Dairy products.
       ``(6) Bakery and delicatessen items.
       ``(7) Nonfood grocery items.
       ``(8) Tobacco products.
       ``(9) Health and beauty aids.
       ``(10) Magazines and periodicals.
       ``(c) Inclusion of Other Merchandise Items.--(1) The 
     Secretary of Defense may authorize the sale in, at, or by 
     commissary stores of merchandise not covered by a category 
     specified in subsection (b). The Secretary shall notify 
     Congress of all merchandise authorized for sale pursuant to 
     this paragraph, as well as the removal of any such 
     authorization.
       ``(2) Notwithstanding paragraph (1), the Department of 
     Defense military resale system shall continue to maintain the 
     exclusive right to operate convenience stores, shopettes, and 
     troop stores, including such stores established to support 
     contingency operations.
       ``(3) A military exchange shall be the vendor for the sale 
     of tobacco products in commissary stores and may be the 
     vendor for such merchandise as may be authorized for sale in 
     commissary stores under paragraph (1). Subsections (d) and 
     (e) shall not apply to the pricing of such an item when a 
     military exchange serves as the vendor of the item. 
     Commissary store and exchange prices shall be comparable for 
     such an item.
       ``(d) Uniform Sales Price Surcharge.--The Secretary of 
     Defense shall apply a uniform surcharge equal to five percent 
     on the sales prices established under subsection (e) for each 
     item of merchandise sold in, at, or by commissary stores.'';
       (D) in subsection (e), as so redesignated, by striking 
     ``(consistent with this section and section 2685 of this 
     title)'' in paragraph (1);
       (E) in subsection (g), as so redesignated, by striking 
     ``Subsections (c) and (d)'' and inserting ``Subsections (d) 
     and (e)''; and
       (F) by adding at the end the following new subsection:
       ``(h) Use of Surcharge for Construction, Repair, 
     Improvement, and Maintenance.--(1)(A) The Secretary of 
     Defense may use the proceeds from the surcharges imposed 
     under subsection (d) only--
       ``(i) to acquire (including acquisition by lease), 
     construct, convert, expand, improve, repair, maintain, and 
     equip the physical infrastructure of commissary stores and 
     central product processing facilities of the defense 
     commissary system; and
       ``(ii) to cover environmental evaluation and construction 
     costs related to activities described in clause (i), 
     including costs for surveys, administration, overhead, 
     planning, and design.
       ``(B) In subparagraph (A), the term `physical 
     infrastructure' includes real property, utilities, and 
     equipment (installed and free standing and including computer 
     equipment), necessary to provide a complete and usable 
     commissary store or central product processing facility.
       ``(2)(A) The Secretary of Defense may authorize a 
     nonappropriated fund instrumentality of the United States to 
     enter into a contract for construction of a shopping mall or 
     similar facility for a commissary store and one or more 
     nonappropriated fund instrumentality activities. The 
     Secretary may use the proceeds of surcharges under subsection 
     (d) to reimburse the nonappropriated fund instrumentality for 
     the portion of the cost of the contract that is attributable 
     to construction of the commissary store or to pay the 
     contractor directly for that portion of such cost.
       ``(B) In subparagraph (A), the term `construction', with 
     respect to a facility, includes acquisition, conversion, 
     expansion, installation, or other improvement of the 
     facility.
       ``(3) The Secretary of Defense, with the approval of the 
     Director of the Office of Management and Budget, may obligate 
     anticipated proceeds from the surcharges under subsection (d) 
     for any use specified in paragraph (1) or (2), without regard 
     to fiscal year limitations, if the Secretary determines that 
     such obligation is necessary to carry out any use of such 
     adjustments or surcharges specified in such paragraph.
       ``(4) Revenues received by the Secretary of Defense from 
     the following sources or activities of commissary store 
     facilities shall be available for the purposes set forth in 
     paragraphs (1), (2), and (3):
       ``(A) Sale of recyclable materials.
       ``(B) Sale of excess and surplus property.
       ``(C) License fees.
       ``(D) Royalties.
       ``(E) Fees paid by sources of products in order to obtain 
     favorable display of the products for resale, known as 
     business related management fees.'';
       (6) by inserting section 2485, as redesignated by paragraph 
     (2), after section 2484, as amended by paragraph (5); and
       (7) in section 2485, as redesignated by paragraph (2)--
       (A) in subsection (b)(2), by striking ``section 2484'' and 
     inserting ``section 2483'';
       (B) in subsection (c)(2), by adding at the end the 
     following new sentences: ``The chairman of the governing 
     board shall be a commissioned officer or member of the senior 
     executive service who has demonstrated experience or 
     knowledge relevant to the management of the defense 
     commissary system. In selecting other members of the 
     governing board, the Secretary shall give priority to persons 
     with experience related to logistics, military personnel, 
     military entitlements or other experiences of value of 
     management of commissaries.''; and
       (C) by adding at the end the following new subsections:
       ``(d) Assignment of Active Duty Members.--(1) Except as 
     provided in paragraph (2), members of the armed forces on 
     active duty may not be assigned to the operation of a 
     commissary store.
       ``(2)(A) The Secretary of Defense may assign an officer on 
     the active-duty list to serve as the Director of the Defense 
     Commissary Agency.
       ``(B) Not more than 18 members (in addition to the officer 
     referred to in subparagraph (A)) of the armed forces on 
     active duty may be assigned to the Defense Commissary Agency. 
     Members who may be assigned under this subparagraph to 
     regional headquarters of the agency shall be limited to 
     enlisted members assigned to duty as advisers in the regional 
     headquarters responsible for overseas commissaries and to 
     veterinary specialists.
       ``(e) Reimbursement for Use of Commissary Facilities by 
     Military Departments.--(1) The Secretary of a military 
     department shall pay the Defense Commissary Agency the amount 
     determined under paragraph (2) for any use of a commissary 
     facility by the military department for a purpose other than 
     commissary sales or operations in support of commissary 
     sales.
       ``(2) The amount payable under paragraph (1) for use of a 
     commissary facility by a military department shall be equal 
     to the share of depreciation of the facility that is 
     attributable to that use, as determined under regulations 
     prescribed by the Secretary of Defense.
       ``(3) The Director of the Defense Commissary Agency shall 
     credit amounts paid under paragraph (1) for use of a facility 
     to an appropriate account to which proceeds of a surcharge 
     applied under section 2484(d) of this title are credited.
       ``(4) This subsection applies with respect to a commissary 
     facility that is acquired, constructed, converted, expanded, 
     installed, or otherwise improved (in whole or in part) with 
     the proceeds of a surcharge applied under section 2484(d) of 
     this title.
       ``(f) Donation of Unusable Food.--(1) The Secretary of 
     Defense may donate food described in paragraph (2) to any of 
     the following entities:
       ``(A) A charitable nonprofit food bank that is designated 
     by the Secretary of Defense or the Secretary of Health and 
     Human Services as authorized to receive such donations.
       ``(B) A State or local agency that is designated by the 
     Secretary of Defense or the Secretary of Health and Human 
     Services as authorized to receive such donations.
       ``(C) A chapter or other local unit of a recognized 
     national veterans organization that provides services to 
     persons without adequate shelter and is designated by the 
     Secretary of Veterans Affairs as authorized to receive such 
     donations.
       ``(D) A not-for-profit organization that provides care for 
     homeless veterans and is designated by the Secretary of 
     Veterans Affairs as authorized to receive such donations.
       ``(2) Food that may be donated under this subsection is 
     commissary store food, mess food, meals ready-to-eat (MREs), 
     rations known as humanitarian daily rations (HDRs), and other 
     food available to the Secretary of Defense that--
       ``(A) is certified as edible by appropriate food inspection 
     technicians;
       ``(B) would otherwise be destroyed as unusable; and
       ``(C) in the case of commissary store food, is unmarketable 
     and unsaleable.
       ``(3) In the case of commissary store food, a donation 
     under this subsection shall take place at the site of the 
     commissary store that is donating the food.
       ``(4) This subsection does not authorize any service 
     (including transportation) to be provided in connection with 
     a donation under this subsection.
       ``(g) Collection of Dishonored Checks.--(1) The Secretary 
     of Defense may impose a charge for the collection of a check 
     accepted at a commissary store that is not honored by the 
     financial institution on which the check is drawn. The 
     imposition and amounts of charges shall be consistent with 
     practices of commercial grocery stores regarding dishonored 
     checks.
       ``(2)(A) The following persons are liable to the United 
     States for the amount of a check referred to in paragraph (1) 
     that is returned unpaid to the United States, together with 
     any charge imposed under that paragraph:
       ``(i) The person who presented the check.
       ``(ii) Any person whose status and relationship to the 
     person who presented the check provide the basis for that 
     person's eligibility to make purchases at a commissary store.
       ``(B) Any amount for which a person is liable under 
     subparagraph (A) may be collected by deducting and 
     withholding such amount from any amounts payable to that 
     person by the United States.
       ``(3) Amounts collected as charges imposed under paragraph 
     (1) shall be credited to the commissary trust revolving fund.
       ``(4) Appropriated funds may be used to pay any costs 
     incurred in the collection of checks and charges referred to 
     in paragraph (1). An appropriation account charged a cost 
     under the preceding sentence shall be reimbursed the amount 
     of that cost out of funds in the commissary trust revolving 
     fund.
       ``(5) In this subsection, the term `commissary trust 
     revolving fund' means the trust revolving fund maintained by 
     the Department of Defense for surcharge collections and 
     proceeds of sales of commissary stores.
       ``(h) Release of Certain Commercially Valuable Information 
     to Public.--(1) The Secretary of Defense may limit the 
     release to the public of any information described in 
     paragraph (2) if the Secretary determines that it is in the 
     best interest of the Department of Defense to

[[Page H9233]]

     limit the release of such information. If the Secretary 
     determines to limit the release of any such information, the 
     Secretary may provide for limited release of such information 
     in accordance with paragraph (3).
       ``(2) Paragraph (1) applies to the following:
       ``(A) Information contained in the computerized business 
     systems of commissary stores or the Defense Commissary Agency 
     that is collected through or in connection with the use of 
     electronic scanners in commissary stores, including the 
     following information:
       ``(i) Data relating to sales of goods or services.
       ``(ii) Demographic information on customers.
       ``(iii) Any other information pertaining to commissary 
     transactions and operations.
       ``(B) Business programs, systems, and applications 
     (including software) relating to commissary operations that 
     were developed with funding derived from commissary 
     surcharges.
       ``(3)(A) The Secretary of Defense may, using competitive 
     procedures, enter into a contract to sell information 
     described in paragraph (2).
       ``(B) The Secretary of Defense may release, without charge, 
     information on an item sold in commissary stores to the 
     manufacturer or producer of that item or an agent of the 
     manufacturer or producer.
       ``(C) The Secretary of Defense shall establish performance 
     benchmarks and shall submit information on customer 
     satisfaction and performance data to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives.
       ``(D) The Secretary of Defense may, by contract entered 
     into with a business, grant to the business a license to use 
     business programs referred to in paragraph (2)(B), including 
     software used in or comprising any such program. The fee 
     charged for the license shall be based on the costs of 
     similar programs developed and marketed by businesses in the 
     private sector, determined by means of surveys.
       ``(E) Each contract entered into under this paragraph shall 
     specify the amount to be paid for information released or a 
     license granted under the contract, as the case may be.
       ``(4) Information described in paragraph (2) may not be 
     released, under paragraph (3) or otherwise, in a form that 
     identifies any customer or that provides information making 
     it possible to identify any customer.
       ``(5) Amounts received by the Secretary under this section 
     shall be credited to funds derived from commissary surcharges 
     applied under section 2484(e) of this title, shall be merged 
     with those funds, and shall be available for the same 
     purposes as the funds with which merged.''.
       (b) Relation Between Defense Commissary and Exchange 
     Systems.--Chapter 147 of title 10, United States Code, is 
     further amended--
       (1) by inserting after section 2485, as amended by 
     subsection (a)(7), the following:

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

``Sec.
``2487. Relationship between defense commissary system and exchange 
              stores system.
``2488. Combined exchange and commissary stores.
``2489. Overseas commissary and exchange stores: access and purchase 
              restrictions.

     ``Sec. 2487. Relationship between defense commissary system 
       and exchange stores system

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

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

``Sec.
``2491. Uniform funding and management of morale, welfare, and 
              recreation programs.
``2491a. Department of Defense golf courses: limitation on use of 
              appropriated funds.
``2491b. Use of appropriated funds for operation of Armed Forces 
              Recreation Center, Europe: limitation.
``2491c. Retention of morale, welfare, and recreation funds by military 
              installations: limitation.
``2492. Nonappropriated fund instrumentalities: contracts with other 
              agencies and instrumentalities to provide and obtain 
              goods and services.
``2493. Fisher Houses: administration as nonappropriated fund 
              instrumentality.
``2494. Nonappropriated fund instrumentalities: furnishing utility 
              services for morale, welfare, and recreation purposes.
``2495. Nonappropriated fund instrumentalities: purchase of alcoholic 
              beverages.
``2495a. Overseas package stores: treatment of United States wines.
``2495b. Sale or rental of sexually explicit material prohibited.'';
       (2) by redesignating section 2494 as section 2491 and 
     inserting such section after the table of sections at the 
     beginning of subchapter III, as added by paragraph (1);
       (3) by redesignating section 2482a as section 2492 and 
     inserting such section before section 2493;
       (4) by inserting after section 2493 the following new 
     section:

     ``Sec. 2494. Nonappropriated fund instrumentalities: 
       furnishing utility services for morale, welfare, and 
       recreation purposes

       ``Appropriations for the Department of Defense may be used 
     to provide utility services for--
       ``(1) buildings on military installations authorized by 
     regulation to be used for morale, welfare, and recreation 
     purposes; and
       ``(2) other morale, welfare, and recreation activities for 
     members of the armed forces.''; and
       (5) by inserting sections 2495, 2495a, and 2495b, as 
     redesignated by subsection (b)(2), after section 2494, as 
     added by paragraph (4).
       (d) Inclusion of Other Title 10 Provisions.--Sections 2246, 
     2247, and 2219 of title 10, United States Code, are--
       (1) transferred to chapter 147 of such title;
       (2) inserted after section 2491, as redesignated and moved 
     by subsection (c)(2); and
       (3) redesignated as sections 2491a, 2491b, and 2491c, 
     respectively.
       (e) Conforming Amendments.--(1) Section 977 of title 10, 
     United States Code, is repealed.
       (2) Section 2868 of such title is amended by striking 
     ``for--'' and all that follows through the period at the end 
     and inserting ``for buildings constructed at private cost, as 
     authorized by law.''.
       (3) Section 367 of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261; 
     112 Stat. 1987; 10 U.S.C. 2482 note) is repealed.
       (f) Clerical Amendments.--(1) The table of sections at the 
     beginning of chapter 49 of title 10, United States Code, is 
     amended by striking the item relating to section 977.
       (2) The table of sections at the beginning of chapter 131 
     of such title is amended by striking the item relating to 
     section 2219.
       (3) The table of sections at the beginning of subchapter I 
     of chapter 134 of such title is amended by striking the items 
     relating to sections 2246 and 2247.
       (g) Test Program of Sale of Certain Items in Commissary 
     Stores.--(1) The Secretary of Defense may conduct a test 
     program involving the sale of telephone cards, film, and one-
     time use cameras in not less than 10 commissary stores for a 
     period selected by the Secretary, but not less than six 
     months.
       (2) Within 90 days after the completion of the first year 
     of the test program or within 90 days after the completion of 
     the test program, whichever occurs first, the Secretary shall 
     submit to the Committee on Armed Services of the Senate and 
     the Committee on Armed Services of the House of 
     Representatives a report containing the results of the test 
     program. The report shall include an analysis of the impact 
     of the sale of such items on the exchange dividend and such 
     recommendations as the Secretary considers appropriate 
     regarding legislative changes necessary to expand the sale of 
     such items in commissary stores.
       (h) Comptroller General Study.--(1) The Comptroller General 
     shall conduct a study evaluating the impact that the 
     expansion of the categories of merchandise authorized for 
     sale in commissary stores has on the exchange dividend. The 
     Comptroller General shall determine the amounts derived from 
     exchange sales and allocated as exchange dividends during the 
     five-year period ending on September 30, 2004, and the 
     morale, welfare, and recreation programs supported using such 
     dividends.
       (2) The Secretary shall submit the results of the study to 
     the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of Representatives 
     not later than March 31, 2006.

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

       Section 349 of the National Defense Authorization Act for 
     Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 1587 note) is 
     amended by adding at the end the following new subsection:
       ``(c) Treatment of Program as Federal Health Benefit 
     Program.--(1) No State tax, fee, other monetary payment, or 
     State health plan requirement, may be imposed, directly or 
     indirectly, on the Nonappropriated Fund Uniform Health 
     Benefits Program of the Department of Defense, or on a 
     carrier or an underwriting or plan administration contractor 
     of the Program, to the same extent as such prohibition 
     applies to the health insurance program authorized by chapter 
     89 of title 5, United States Code, under section 8909(f) of 
     such title.
       ``(2) Paragraph (1) shall not be construed to exempt the 
     Nonappropriated Fund Uniform

[[Page H9234]]

     Health Benefits Program of the Department of Defense, or any 
     carrier or underwriting or plan administration contractor of 
     the Program from the imposition, payment, or collection of a 
     tax, fee, or other monetary payment on the net income or 
     profit accruing to, or realized by, the Program or by such 
     carrier or contractor from business conducted under the 
     Program, so long as the tax, fee, or payment is applicable to 
     a broad range of business activity.
       ``(3) In this subsection, the term `State' means each of 
     the several States, the District of Columbia, the 
     Commonwealth of Puerto Rico, the United States Virgin 
     Islands, Guam, American Samoa, and the Commonwealth of the 
     Northern Mariana Islands, and any political subdivision or 
     other non-Federal authority thereof.''.

                       Subtitle F--Other Matters

     SEC. 661. ELIGIBILITY OF MEMBERS FOR REIMBURSEMENT OF 
                   EXPENSES INCURRED FOR ADOPTION PLACEMENTS MADE 
                   BY FOREIGN GOVERNMENTS.

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

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

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

     SEC. 663. RECEIPT OF PAY BY RESERVISTS FROM CIVILIAN 
                   EMPLOYERS WHILE ON ACTIVE DUTY IN CONNECTION 
                   WITH A CONTINGENCY OPERATION.

       Section 209 of title 18, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(h) This section does not prohibit a member of the 
     reserve components of the armed forces on active duty 
     pursuant to a call or order to active duty under a provision 
     of law referred to in section 101(a)(13) of title 10 from 
     receiving from any person that employed such member before 
     the call or order to active duty any payment of any part of 
     the salary or wages that such person would have paid the 
     member if the member's employment had not been interrupted by 
     such call or order to active duty.''.

     SEC. 664. RELIEF FOR MOBILIZED RESERVISTS FROM CERTAIN 
                   FEDERAL AGRICULTURAL LOAN OBLIGATIONS.

       The Consolidated Farm and Rural Development Act is amended 
     by inserting after section 331F (7 U.S.C. 1981f) the 
     following new section:

     ``SEC. 332. RELIEF FOR MOBILIZED MILITARY RESERVISTS FROM 
                   CERTAIN AGRICULTURAL LOAN OBLIGATIONS.

       ``(a) Definition of Mobilized Military Reservist.--In this 
     section, the term `mobilized military reservist' means an 
     individual who--
       ``(1) is on active duty under section 688, 12301(a), 
     12301(g), 12302, 12304, 12306, or 12406, or chapter 15 of 
     title 10, United States Code, or any other provision of law 
     during a war or during a national emergency declared by the 
     President or Congress, regardless of the location at which 
     the active duty service is performed; or
       ``(2) in the case of a member of the National Guard, is on 
     full-time National Guard duty (as defined in section 
     101(d)(5) of title 10, United States Code) under a call to 
     active service authorized by the President or the Secretary 
     of Defense for a period of more than 30 consecutive days 
     under section 502(f) of title 32, United States Code, for 
     purposes of responding to a national emergency declared by 
     the President and supported by Federal funds.
       ``(b) Forgiveness of Interest Payments Due While Borrower 
     Is a Mobilized Military Reservist.--Any requirement that a 
     borrower of a direct loan made under this title make any 
     interest payment on the loan that would otherwise be required 
     to be made while the borrower is a mobilized military 
     reservist is rescinded.
       ``(c) Deferral of Principal Payments Due While or After 
     Borrower Is a Mobilized Military Reservist.--The due date of 
     any payment of principal on a direct loan made to a borrower 
     under this title that would otherwise be required to be made 
     while or after the borrower is a mobilized military reservist 
     is deferred for a period equal in length to the period for 
     which the borrower is a mobilized military reservist.
       ``(d) Nonaccrual of Interest.--Interest on a direct loan 
     made to a borrower described in this section shall not accrue 
     during the period the borrower is a mobilized military 
     reservist.
       ``(e) Borrower Not Considered To Be Delinquent or Receiving 
     Debt Forgiveness.--Notwithstanding section 373 or any other 
     provision of this title, a borrower who receives assistance 
     under this section shall not, as a result of the assistance, 
     be considered to be delinquent or receiving debt forgiveness 
     for purposes of receiving a direct or guaranteed loan under 
     this title.''.

     SEC. 665. SURVEY AND ANALYSIS OF EFFECT OF EXTENDED AND 
                   FREQUENT MOBILIZATION OF RESERVISTS FOR ACTIVE 
                   DUTY SERVICE ON RESERVIST INCOME.

       (a) Survey of Mobilized Reservists to Determine 
     Differential Between Private Sector Income and Military 
     Compensation.--(1) The Secretary of Defense shall conduct a 
     survey involving members of the reserve components who serve, 
     or have served, on active duty in support of a contingency 
     operation at any time during the period beginning on 
     September 11, 2001, and ending on September 30, 2005, to 
     determine the extent to which such members sustained a 
     reduction in monthly income during their period of active 
     duty service compared to their average monthly civilian 
     income during the 12 months preceding their mobilization.
       (2) To the extent practicable, at least 50 percent of the 
     total number of members of the reserve components who have 
     served on active duty in support of a contingency operation 
     at any time during the period specified in paragraph (1) 
     should be included in the survey. To participate in the 
     survey, a member shall agree to make available to the 
     Secretary such information as the Secretary may require to 
     accurately calculate the average monthly civilian income of 
     the member.
       (b) Calculation of Income Differential.--In the case of 
     each member participating in the survey under subsection (a) 
     whose total monthly military compensation during the active 
     duty service of the member was less, or appeared to be less, 
     than the average monthly civilian income of the member, the 
     Secretary of Defense, in cooperation with the member, shall 
     calculate the monthly active-duty income differential for the 
     member.
       (c) Collection of Demographic Data.--The Secretary of 
     Defense shall collect demographic data regarding each member 
     of a reserve component who participates in the survey under 
     subsection (a), including, at a minimum, data on the 
     following:
       (1) Reserve component.
       (2) Unit of assignment.
       (3) Grade.
       (4) Age.
       (5) Years of service.
       (6) Sex.
       (7) Marital status.
       (8) Number of dependents.
       (9) General category of private-sector employment, as 
     determined by the Secretary, but to include an employment 
     category to cover members who are self-employed.
       (10) Military occupational specialty, including specifying 
     all surveyed members who are serving in a critical wartime 
     specialty.
       (11) Length of service on active duty during the most 
     recent mobilization.
       (12) Number of times mobilized since September 11, 2001.
       (d) Consideration of Average Monthly Reserve Service 
     Income.--The Secretary of Defense shall collect data to 
     calculate the average monthly reserve service income of 
     members of the reserve components before their mobilization, 
     and consider such data by grade, general category of military 
     occupational specialty, and years of service. The Secretary 
     shall also consider the effect that the receipt of average 
     monthly reserve service income by reserve component members 
     before mobilization should have on any obligation of the 
     United States to eliminate or at least reduce the monthly 
     active-duty income differential suffered by members serving 
     on active duty in support of a contingency operation.
       (e) Effect of Income Loss on Retention.--The Secretary of 
     Defense shall include in the survey under subsection (a) a 
     question intended to solicit information from members of the 
     reserve components participating in the survey regarding the 
     likely effect that a reoccurring monthly active-duty income 
     differential while serving on active duty would have on their 
     decision to remain in Armed Forces.
       (f) Analysis of Survey Data.--(1) At a minimum, the 
     Secretary of Defense shall determine, for each variable 
     listed in paragraphs (2) through (12) of subsection (c), the 
     number of members of the reserve components surveyed under 
     subsection (a) who sustained a monthly active-duty income 
     differential for any month during their active duty service 
     and compare and contrast that number with the number of 
     members who did not experience a monthly active-duty income 
     differential.
       (2) The Secretary shall also determine the average amount 
     of the active-duty income differential by reserve component 
     for each variable within the characteristics listed in 
     paragraphs (2) through (12) of subsection (c).
       (g) Submission of Survey Results and Recommendations.--(1) 
     Not later than January 31, 2006, the Secretary of Defense 
     shall submit to Congress and the Comptroller General a report 
     containing the results of the surveys conducted under 
     subsection (a), including the results of the analysis of 
     survey data required by subsection (f). The Secretary shall 
     include such recommendations as the Secretary considers 
     appropriate regarding alternatives for restoring income lost 
     by members of the reserve components who sustained a monthly 
     active-duty income differential during their active duty 
     service.
       (2) Not later than 90 days after receiving the report of 
     the Secretary of Defense submitted under paragraph (1), the 
     Comptroller General shall submit to Congress an assessment of 
     the findings and recommendations of the Secretary contained 
     in the report.
       (h) Definitions Used in Conducting Survey and 
     Calculations.--In this section:
       (1) The term ``monthly active-duty income differential'', 
     with respect to a member of a reserve component who 
     participates in the survey under subsection (a), means the 
     difference between--
       (A) the the average monthly civilian income of the member; 
     and
       (B) the total monthly military compensation of the member 
     during the active duty service of the member.
       (2) The term ``total monthly military compensation'', with 
     respect to a member of a reserve component who participates 
     in the survey, means the amount, computed on a monthly basis, 
     of the sum of--

[[Page H9235]]

       (A) the amount of the regular military compensation (RMC), 
     as defined in section 101(25) of title 37, United States 
     Code, of the member during the period specified in subsection 
     (a)(1); and
       (B) any amount of special pay or incentive pay and any 
     allowance (other than an allowance included in regular 
     military compensation) that is paid to the member on a 
     monthly basis during the period specified in subsection 
     (a)(1).
       (3) The term ``average monthly civilian income'', with 
     respect to a member of a reserve component who participates 
     in the survey, means the amount, determined by the Secretary 
     of Defense, of the earned income of the member for the 12 
     months preceding the first mobilization of the member for 
     active duty service in support of a contingency operation 
     during the period specified in subsection (a)(1), divided by 
     12.
       (4) The term ``average monthly reserve service income'', 
     with respect to a member of a reserve component who 
     participates in the survey, means the amount, determined by 
     the Secretary of Defense, of the regular military 
     compensation, compensation under section 206 of title 37, 
     United States Code, and any special pays and allowances 
     referred to in paragraph (3)(B) received by the member during 
     the 12 months preceding the first mobilization of the member 
     for active duty service in support of a contingency operation 
     during the period specified in subsection (a)(1), divided by 
     12.

     SEC. 666. STUDY OF DISABILITY BENEFITS FOR VETERANS OF 
                   SERVICE IN THE ARMED FORCES WITH SERVICE-
                   CONNECTED DISABILITIES.

       (a) Requirement for Study.--(1) The Secretary of Defense 
     shall conduct a study of the totality of all current and 
     projected disability benefits that are available to disabled 
     members and former members of the Armed Forces for service-
     connected disabilities and, on the basis of the results of 
     such study, determine the adequacy of those benefits.
       (2) In carrying out the study, the Secretary shall--
       (A) compare the disability benefits for members of the 
     Armed Forces with commercial and other private-sector 
     disability benefits plans that are provided for other persons 
     in the United States who are disabled by causes other than 
     service in the Armed Forces; and
       (B) identify and assess the changes to Department of 
     Defense personnel policies needed to enhance the financial 
     and nonfinancial benefits that are provided to members and 
     former members of the Armed Forces for service-connected 
     disabilities.
       (b) Coordination.--In carrying out the study under 
     subsection (a) and preparing the report under subsection (c), 
     the Secretary of Defense shall--
       (1) consult with the Secretary of Veterans Affairs and take 
     into consideration the veterans disability benefits programs 
     that are administered by the Secretary of Veterans Affairs; 
     and
       (2) consult with, and obtain the assistance of, the 
     Veterans' Disability Benefits Commission established under 
     title XV of the National Defense Authorization Act for Fiscal 
     Year 2004 (Public Law 108-136; 117 Stat. 1676).
       (c) Report.--Not later than 150 days after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     a report on the results of the study under this section to 
     the committees of Congress specified in subsection (e). The 
     report shall include the following:
       (1) The Secretary's assessments, analyses, and conclusions 
     resulting from the study.
       (2) Recommended legislation to address the deficiencies in 
     the system of Federal Government disability benefits for 
     disabled members and former members of the Armed Forces that 
     are identified in the course of the study.
       (3) An estimate of the costs of improvements in the system 
     of disability benefits that are provided for in the 
     recommended legislation.
       (d) GAO Study.--(1) The Comptroller General shall conduct a 
     study to identify the disability benefits that are payable 
     under Federal, State, and local laws for employees of the 
     Federal Government, State governments, and local governments. 
     In carrying out the study, the Comptroller General shall, to 
     the extent feasible, pay particular attention to the 
     disability benefits that are provided for disabilities 
     incurred in the performance of jobs in which employees 
     perform tasks with risks that are analogous to the risks 
     associated with the performance of military tasks by members 
     of the Armed Forces.
       (2) Not later than November 1, 2005, the Comptroller 
     General shall submit a report on the results of the study 
     under paragraph (1) to the committees of Congress specified 
     in subsection (e).
       (e) Recipients of Report.--The committees of Congress to 
     which the reports under subsections (d) and (e) are to be 
     submitted are as follows:
       (1) The Committee on Armed Services and the Committee on 
     Veterans' Affairs of the Senate.
       (2) The Committee on Armed Services and the Committee on 
     Veterans' Affairs of the House of Representatives.

                   TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

Sec. 701. TRICARE coverage for members of reserve components who commit 
              to continued service in the Selected Reserve after 
              release from active duty.
Sec. 702. Comptroller General report on the cost and feasibility of 
              providing private health insurance stipends for members 
              of the Ready Reserves.
Sec. 703. Permanent earlier eligibility date for TRICARE benefits for 
              members of reserve components and their dependents.
Sec. 704. Waiver of certain deductibles under TRICARE program for 
              members on active duty for a period of more than 30 days.
Sec. 705. Authority for payment by United States of additional amounts 
              billed by health care providers to activated Reserves.
Sec. 706. Permanent extension of transitional health care benefits and 
              addition of requirement for preseparation physical 
              examination. 

                Subtitle B--Other Benefits Improvements

Sec. 711. Opportunity for young child dependent of deceased member to 
              become eligible for enrollment in a TRICARE dental plan.
Sec. 712. Comptroller General report on provision of health, education, 
              and support services for Exceptional Family Member 
              Program enrollees.
Sec. 713. Continuation of sub-acute care for transition period. 
Sec. 714. Improvements to pharmacy benefits program 
Sec. 715. Professional accreditation of military dentists.
Sec. 716. Temporary authority for waiver of collection of payments due 
              for CHAMPUS benefits received by disabled persons unaware 
              of loss of CHAMPUS eligibility.
Sec. 717. Services of marriage and family therapists.
Sec. 718. Chiropractic health care benefits advisory committee.

           Subtitle C--Planning, Programming, and Management

Sec. 721. Pilot program for health care delivery.
Sec. 722. Study of provision of travel reimbursement to hospitals for 
              certain military disability retirees. 
Sec. 723. Study of mental health services. 
Sec. 724. Policy for timely notification of next of kin of members 
              seriously ill or injured in combat zones.
Sec. 725. Revised funding methodology for military retiree health care 
              benefits.
Sec. 726.  Grounds for presidential waiver of requirement for informed 
              consent or option to refuse regarding administration of 
              drugs not approved for general use.
Sec. 727. TRICARE program regional directors.

     Subtitle D--Medical Readiness Tracking and Health Surveillance

Sec. 731. Medical readiness plan and Joint Medical Readiness Oversight 
              Committee.
Sec. 732. Medical readiness of Reserves.
Sec. 733. Baseline Health Data Collection Program.
Sec. 734. Medical care and tracking and health surveillance in the 
              theater of operations.
Sec. 735. Declassification of information on exposures to environmental 
              hazards.
Sec. 736. Report on training on environmental hazards.
Sec. 737. Uniform policy for meeting mobilization-related medical care 
              needs at military installations.
Sec. 738. Full implementation of Medical Readiness Tracking and Health 
              Surveillance Program and Force Health Protection and 
              Readiness Program.
Sec. 739. Reports and Internet accessibility relating to health 
              matters. 

               Subtitle A--Enhanced Benefits for Reserves

     SEC. 701. TRICARE COVERAGE FOR MEMBERS OF RESERVE COMPONENTS 
                   WHO COMMIT TO CONTINUED SERVICE IN THE SELECTED 
                   RESERVE AFTER RELEASE FROM ACTIVE DUTY.

       (a) Eligibility.--(1) Chapter 55 of title 10, United States 
     Code, is amended by inserting after section 1076c the 
     following new section:

     ``Sec. 1076d. TRICARE program: coverage for members of 
       reserve components who commit to continued service in the 
       Selected Reserve after release from active duty

       ``(a) Eligibility.--A member of the Selected Reserve of the 
     Ready Reserve of a reserve component of the armed forces is 
     eligible for health benefits under TRICARE Standard as 
     provided in this section after the member completes service 
     on active duty to which the member was called or ordered for 
     a period of more than 30 days on or after September 11, 2001, 
     under a provision of law referred to in section 
     101(a)(13)(B), if the member--
       ``(1) served continuously on active duty for 90 or more 
     days pursuant to such call or order; and
       ``(2) on or before the date of the release from such 
     active-duty service, entered into an agreement with the 
     Secretary concerned to serve continuously in the Selected 
     Reserve for a period of one or more whole years following 
     such date.
       ``(b) Period of Coverage.--(1) TRICARE Standard coverage of 
     a member under this section, on the basis of active-duty 
     service performed as described in subsection (a), begins upon 
     the expiration of the member's entitlement to care and 
     benefits under section 1145(a) of this title that is based on 
     the same active-duty service.
       ``(2) Unless earlier terminated under paragraph (3), the 
     period for TRICARE Standard coverage of a member under this 
     section shall be equal to the lesser of--
       ``(A) one year, in the case of a member who is otherwise 
     eligible but does not serve continuously on active duty for 
     90 days as described in subsection (a) because of an injury, 
     illness, or disease incurred or aggravated while deployed;
       ``(B) one year for each consecutive period of 90 days of 
     continuous active-duty service described in subsection (a); 
     or

[[Page H9236]]

       ``(C) the number of whole years for which the member agrees 
     under paragraph (2) of such subsection to continue to serve 
     in the Selected Reserve after the coverage begins.
       ``(3) Eligibility for TRICARE Standard coverage of a member 
     under this section shall terminate upon the termination of 
     the member's service in the Selected Reserve.
       ``(c) Family Members.--While a member of a reserve 
     component is covered by TRICARE Standard under the section, 
     the members of the immediate family of such member are 
     eligible for TRICARE Standard coverage as dependents of the 
     member.
       ``(d) Premiums.--(1) A member of a reserve component 
     covered by TRICARE Standard under this section shall pay a 
     premium for that coverage.
       ``(2) The Secretary of Defense shall prescribe for the 
     purposes of this section one premium for TRICARE Standard 
     coverage of members without dependents and one premium for 
     TRICARE Standard coverage of members with dependents referred 
     to in subsection (f)(1). The premium prescribed for a 
     coverage shall apply uniformly to all covered members of the 
     reserve components.
       ``(3) The monthly amount of the premium in effect for a 
     month for TRICARE Standard coverage under this section shall 
     be the amount equal to 28 percent of the total monthly amount 
     that the Secretary determines on an appropriate actuarial 
     basis as being reasonable for that coverage.
       ``(4) The premiums payable by a member of a reserve 
     component under this subsection may be deducted and withheld 
     from basic pay payable to the member under section 204 of 
     title 37 or from compensation payable to the member under 
     section 206 of such title. The Secretary shall prescribe the 
     requirements and procedures applicable to the payment of 
     premiums.
       ``(5) Amounts collected as premiums under this subsection 
     shall be credited to the appropriation available for the 
     Defense Health Program Account under section 1100 of this 
     title, shall be merged with sums in such Account that are 
     available for the fiscal year in which collected, and shall 
     be available under subsection (b) of such section for such 
     fiscal year.
       ``(e) Relationship of Service Agreement to Other Service 
     Commitments.--The service agreement required of a member of a 
     reserve component under subsection (a)(2) is separate from 
     any other form of commitment of the member to a period of 
     obligated service in that reserve component and may cover any 
     part or all of the same period that is covered by another 
     commitment of the member to a period of obligated service in 
     that reserve component.
       ``(f) Definitions.--In this section:
       ``(1) The term `immediate family', with respect to a member 
     of a reserve component, means all of the member's dependents 
     described in subparagraphs (A), (D), and (I) of section 
     1072(2) of this title.
       ``(2) The term `TRICARE Standard' means the Civilian Health 
     and Medical Program of the Uniformed Services option under 
     the TRICARE program.
       ``(g) Regulations.--The Secretary of Defense, in 
     consultation with the other administering Secretaries, shall 
     prescribe regulations for the administration of this 
     section.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1076c the following new item:

``1076d. TRICARE program: coverage for members of reserve components 
              who commit to continued service in the Selected Reserve 
              after release from active duty.''.

       (b) Implementation.--(1) The Secretary of Defense shall 
     implement section 1076d of title 10, United States Code, not 
     later than 180 days after the date of the enactment of this 
     Act.
       (2)(A) A member of a reserve component of the Armed Forces 
     who performed active-duty service described in subsection (a) 
     of section 1076d of title 10, United States Code, for a 
     period beginning on or after September 11, 2001, and was 
     released from that active-duty service before the date of the 
     enactment of this Act, or is released from that active-duty 
     service on or within 180 days after the date of the enactment 
     of this Act, may, for the purpose of paragraph (2) of such 
     subsection, enter into an agreement described in such 
     paragraph not later than one year after the date of the 
     enactment of this Act. TRICARE Standard coverage (under such 
     section 1076d) of a member who enters into such an agreement 
     under this paragraph shall begin on the later of--
       (i) the date applicable to the member under subsection (b) 
     of such section; or
       (ii) the date of the agreement.
       (B) The Secretary of Defense shall take such action as is 
     necessary to ensure, to the maximum extent practicable, that 
     members of the reserve components eligible to enter into an 
     agreement as provided in subparagraph (A) actually receive 
     information on the opportunity and procedures for entering 
     into such an agreement together with a clear explanation of 
     the benefits that the members are eligible to receive as a 
     result of entering into such an agreement under section 1076d 
     of title 10, United States Code.

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

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

     SEC. 703. PERMANENT EARLIER ELIGIBILITY DATE FOR TRICARE 
                   BENEFITS FOR MEMBERS OF RESERVE COMPONENTS AND 
                   THEIR DEPENDENTS.

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

     SEC. 704. WAIVER OF CERTAIN DEDUCTIBLES UNDER TRICARE PROGRAM 
                   FOR MEMBERS ON ACTIVE DUTY FOR A PERIOD OF MORE 
                   THAN 30 DAYS.

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

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

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

     SEC. 706. PERMANENT EXTENSION OF TRANSITIONAL HEALTH CARE 
                   BENEFITS AND ADDITION OF REQUIREMENT FOR 
                   PRESEPARATION PHYSICAL EXAMINATION.

       (a) Permanent Requirement.--(1) Paragraph (3) of section 
     1145(a) of title 10, United States Code, is amended to read 
     as follows:
       ``(3) Transitional health care for a member under 
     subsection (a) shall be available for 180 days beginning on 
     the date on which the member is separated from active 
     duty.''.
       (2) The following provisions of law are repealed:
       (A) Section 704 of the National Defense Authorization Act 
     for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1527; 10 
     U.S.C. 1145 note).
       (B) Section 1117 of the Emergency Supplemental 
     Appropriations Act for Defense and for the Reconstruction of 
     Iraq and Afghanistan, 2004 (Public Law 108-106; 117 Stat. 
     1218; 10 U.S.C. 1145 note).
       (3) Paragraph (1) of such section 1145(a) is amended by 
     striking ``applicable''.
       (b) Requirement for Physical Examination.--Such section 
     1145(a), as amended by subsection (a), is further amended by 
     adding at the end the following new paragraph:
       ``(4)(A) The Secretary concerned shall require a member of 
     the armed forces scheduled to be separated from active duty 
     as described in paragraph (2) to undergo a physical 
     examination immediately before that separation. The physical 
     examination shall be conducted in accordance with regulations 
     prescribed by the Secretary of Defense.
       ``(B) Notwithstanding subparagraph (A), if a member of the 
     armed forces scheduled to be separated from active duty as 
     described in paragraph (2) has otherwise undergone a physical 
     examination within 12 months before the scheduled date of 
     separation from active duty, the requirement for a physical 
     examination under subparagraph (A) may be waived in 
     accordance with regulations prescribed under this paragraph. 
     Such regulations shall require that such a waiver may be 
     granted only with the consent of the member and with the 
     concurrence of the member's unit commander.''.

                Subtitle B--Other Benefits Improvements

     SEC. 711. OPPORTUNITY FOR YOUNG CHILD DEPENDENT OF DECEASED 
                   MEMBER TO BECOME ELIGIBLE FOR ENROLLMENT IN A 
                   TRICARE DENTAL PLAN.

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

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

       (a) Evaluation Requirement.--The Comptroller General shall 
     evaluate the effect of the Exceptional Family Member Program 
     (in this section referred to as ``EFMP'') on health, 
     education, and support services in selected civilian 
     communities near military installations with a high 
     concentration of EFMP enrollees.
       (b) Matters Covered.--The evaluation under subsection (a) 
     shall include a discussion of the following:

[[Page H9237]]

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

     SEC. 713. CONTINUATION OF SUB-ACUTE CARE FOR TRANSITION 
                   PERIOD.

       Section 1074j(b) of title 10, United States Code, is 
     amended by adding at the end the following new paragraph:
       ``(4) The Secretary of Defense may take such actions as are 
     necessary to ensure that there is an effective transition in 
     the furnishing of part-time or intermittent home health care 
     benefits for covered beneficiaries who were receiving such 
     benefits before the establishment of the program under this 
     section. The actions taken under this paragraph may include 
     the continuation of such benefits on an extended basis for 
     such time as the Secretary determines appropriate.''.

     SEC. 714. IMPROVEMENTS TO PHARMACY BENEFITS PROGRAM.

       (a) Requirement Relating to Prescription Drug Benefits for 
     Medicare-Eligible Enrollees.--Section 1074g(a)(6) of title 
     10, United States Code, is amended--
       (1) by inserting ``(A)'' after ``(6)''; and
       (2) by adding at the end the following:
       ``(B) For a medicare-eligible beneficiary, the cost-sharing 
     requirements may not be in excess of the cost-sharing 
     requirements applicable to all other beneficiaries covered by 
     section 1086 of this title. For purposes of the preceding 
     sentence, a medicare-eligible beneficiary is a beneficiary 
     eligible for health benefits under section 1086 of this title 
     pursuant to subsection (d)(2) of such section.''.
       (b) Improvement to Uniform Formulary Process.--Section 
     1974g(a)(2)(E)(i) of such title is amended by inserting 
     before the semicolon the following: ``and additional 
     determinations by the Pharmacy and Therapeutics Committee of 
     the relative clinical and cost effectiveness of the agents''.

     SEC. 715. PROFESSIONAL ACCREDITATION OF MILITARY DENTISTS.

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

     SEC. 716. TEMPORARY AUTHORITY FOR WAIVER OF COLLECTION OF 
                   PAYMENTS DUE FOR CHAMPUS BENEFITS RECEIVED BY 
                   DISABLED PERSONS UNAWARE OF LOSS OF CHAMPUS 
                   ELIGIBILITY.

       (a) Authority To Waive Debt.--(1) The Secretary of Defense, 
     in consultation with the other administering Secretaries, may 
     waive (in whole or in part) the collection of payments 
     otherwise due from a person described in subsection (b) for 
     health benefits received by such person under section 1086 of 
     title 10, United States Code, after the termination of that 
     person's eligibility for such benefits.
       (2) If the Secretary of Defense waives collection of 
     payments from a person under paragraph (1), the Secretary may 
     also authorize a continuation of benefits for such person 
     under such section 1086 for a period ending not later than 
     the end of the period specified in subsection (c) of this 
     section.
       (b) Eligible Persons.--A person is eligible for relief 
     under subsection (a)(1) if--
       (1) the person is described in paragraph (1) of subsection 
     (d) of section 1086 of title 10, United States Code;
       (2) except for such paragraph, the person would have been 
     eligible for the health benefits under such section; and
       (3) at the time of the receipt of such benefits--
       (A) the person satisfied the criteria specified in 
     paragraph (2)(B) of such subsection (d); and
       (B) the person was unaware of the loss of eligibility to 
     receive the health benefits.
       (c) Period of Applicability.--The authority provided under 
     this section to waive collection of payments and to continue 
     benefits shall apply, under terms and conditions prescribed 
     by the Secretary of Defense, to health benefits provided 
     under section 1086 of title 10, United States Code, during 
     the period beginning on July 1, 1999, and ending at the end 
     of December 31, 2004.
       (d) Administering Secretaries.--In this subsection, the 
     term ``administering Secretaries'' has the meaning given such 
     term in section 1072(3) of title 10, United States Code.

     SEC. 717. SERVICES OF MARRIAGE AND FAMILY THERAPISTS.

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

     SEC. 718. CHIROPRACTIC HEALTH CARE BENEFITS ADVISORY 
                   COMMITTEE.

       (a) Establishment.--Not later than 120 days after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     establish an oversight advisory committee to provide the 
     Secretary with advice and recommendations regarding the 
     continued development and implementation of an effective 
     program of chiropractic health care benefits for members of 
     the uniformed services on active duty.
       (b) Membership.--The advisory committee shall be composed 
     of members selected from among persons who, by reason of 
     education, training, and experience, are experts in 
     chiropractic health care, as follows:
       (1) Members appointed by the Secretary of Defense in such 
     number as the Secretary determines appropriate for carrying 
     out the duties of the advisory committee effectively, 
     including not fewer than three practicing representatives of 
     the chiropractic health care profession.
       (2) A representative of each of the uniformed services, as 
     designated by the administering Secretary concerned.
       (c) Chairman.--The Secretary of Defense shall designate one 
     member of the advisory committee to serve as the Chairman of 
     the advisory committee.
       (d) Meetings.--The advisory committee shall meet at the 
     call of the Chairman, but not fewer than three times each 
     fiscal year, beginning in fiscal year 2005.
       (e) Duties.--The advisory committee shall have the 
     following duties:
       (1) Review and evaluate the program of chiropractic health 
     care benefits provided to members of the uniformed services 
     on active duty under chapter 55 of title 10, United States 
     Code.
       (2) Provide the Secretary of Defense with advice and 
     recommendations as described in subsection (a).
       (3) Upon the Secretary's determination that the program of 
     chiropractic health care benefits referred to in paragraph 
     (1) has been fully implemented, prepare and submit to the 
     Secretary a report containing the advisory committee's 
     evaluation of the implementation of such program.
       (f) Report.--The Secretary of Defense, following receipt of 
     the report by the advisory committee under subsection (e)(3), 
     shall submit to the Committees on Armed Services of the 
     Senate and of the House of Representatives a report 
     containing the following:
       (1) A copy of the advisory committee report, together with 
     the Secretary's comments on the report.
       (2) An explanation of the criteria and rationale that the 
     Secretary used to determine that the program of chiropractic 
     health care benefits was fully implemented.
       (3) The Secretary's views with regard to the future 
     implementation of the program of chiropractic health care 
     benefits.
       (g) Applicability of Temporary Organizations Law.--(1) 
     Section 3161 of title 5, United States Code, shall apply to 
     the advisory committee under this section.
       (2) The Federal Advisory Committee Act (5 U.S.C. App.) 
     shall not apply to the oversight advisory committee under 
     this section.
       (h) Termination.--The advisory committee shall terminate 90 
     days after the date on which the Secretary submits the report 
     under subsection (f).

[[Page H9238]]

           Subtitle C--Planning, Programming, and Management

     SEC. 721. PILOT PROGRAM FOR HEALTH CARE DELIVERY.

       (a) Pilot Program.--The Secretary of Defense may conduct a 
     pilot program at two or more military installations for 
     purposes of testing initiatives that build cooperative health 
     care arrangements and agreements between military 
     installations and local and regional non-military health care 
     systems.
       (b) Requirements of Pilot Program.--In conducting the pilot 
     program, the Secretary of Defense shall--
       (1) identify and analyze health care delivery options 
     involving the private sector and health care services in 
     military facilities located on the installation;
       (2) determine the cost avoidance or savings resulting from 
     innovative partnerships between the Department of Defense and 
     the private sector;
       (3) study the potential, viability, cost efficiency, and 
     health care effectiveness of Department of Defense health 
     care providers delivering health care in civilian community 
     hospitals; and
       (4) determine the opportunities for and barriers to 
     coordinating and leveraging the use of existing health care 
     resources, including Federal, State, local, and contractor 
     assets.
       (c) Consultation Requirements.--The Secretary of Defense 
     shall develop the pilot program in consultation with the 
     Secretaries of the military departments, representatives from 
     the military installation selected for the pilot program, 
     Federal, State, and local entities, and the TRICARE managed 
     care support contractor with responsibility for that 
     installation.
       (d) Selection of Military Installation.--The pilot program 
     may be implemented at two or more military installations 
     selected by the Secretary of Defense. At least one of the 
     selected military installations shall meet the following 
     criteria:
       (1) The military installation has members of the Armed 
     Forces on active duty and members of reserve components of 
     the Armed Forces that use the installation as a training and 
     operational base, with members routinely deploying in support 
     of the global war on terrorism.
       (2) The number of members of the Armed Forces on active 
     duty permanently assigned to the military installation is 
     expected to increase over the next five years.
       (3) One or more cooperative arrangements exist at the 
     military installation with civilian health care entities in 
     the form of specialty care services in the military medical 
     treatment facility on the installation.
       (4) There is a military treatment facility on the 
     installation that does not have inpatient or trauma center 
     care capabilities.
       (5) There is a civilian community hospital near the 
     military installation with--
       (A) limited capability to expand inpatient care beds, 
     intensive care, and specialty services; and
       (B) limited or no capability to provide trauma care.
       (e) Duration of Pilot Program.--Implementation of the pilot 
     program developed under this section shall begin not later 
     than May 1, 2005, and shall be conducted during fiscal years 
     2005, 2006, and 2007.
       (f) Reports.--With respect to any pilot program conducted 
     under this section, the Secretary of Defense shall submit to 
     the Committees on Armed Services of the Senate and of the 
     House of Representatives--
       (1) an interim report on the program, not later than 60 
     days after commencement of the program; and
       (2) a final report describing the results of the program 
     with recommendations for a model health care delivery system 
     for other military installations, not later than July 1, 
     2007.

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

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

     SEC. 723. STUDY OF MENTAL HEALTH SERVICES.

       (a) Study Required.--The Comptroller General shall conduct 
     a study of mental health services available to members of the 
     Armed Forces.
       (b) Persons Covered.--The study shall evaluate the 
     availability and effectiveness of existing mental health 
     treatment and screening resources--
       (1) for members of the Armed Forces during a deployment to 
     a combat theater;
       (2) for members of the Armed Forces returning from a 
     deployment to a combat theater, both--
       (A) in the short-term, post-deployment period; and
       (B) in the long-term, following the post-deployment period;
       (3) for the families of members of the Armed Forces who 
     have been deployed to a combat theater during the time of the 
     deployment;
       (4) for the families of members of the Armed Forces who 
     have been deployed to a combat theater after the member has 
     returned from the deployment; and
       (5) for members of the Armed Forces and their families 
     described in this subsection who are members of reserve 
     components.
       (c) Assessment of Obstacles.--The study shall provide an 
     assessment of existing obstacles that prevent members of the 
     Armed Forces and military families in need of mental health 
     services from obtaining these services, including--
       (1) the extent to which existing confidentiality 
     regulations, or lack thereof, inhibit members of the Armed 
     Forces from seeking mental health treatment;
       (2) the implications that a decision to seek mental health 
     services can have on a military career;
       (3) the extent to which a social stigma exists within the 
     Armed Forces that prevents members of the Armed Forces and 
     military families from seeking mental health treatment within 
     the Department of Defense and the individual Armed Forces;
       (4) the extent to which logistical obstacles, particularly 
     with respect to members of the Armed Forces and families 
     residing in rural areas, deter members in need of mental 
     health services from obtaining them; and
       (5) the extent to which members of the Armed Forces and 
     their families are prevented or hampered from obtaining 
     mental health treatment due to the cost of such services.
       (d) Identification of Problems Unique to Reserves.--The 
     study shall identify potential problems in obtaining mental 
     health treatment that are unique to members of Reserve 
     components.
       (e) Report.--The Comptroller General shall submit to 
     Congress a report on the study conducted under this section 
     not later than March 31, 2005. The report shall contain the 
     results of the study and make specific recommendations--
       (1) for improving the effectiveness and accessibility of 
     mental health services provided by Department of Defense to 
     the persons listed in subsection (b), including 
     recommendations to ensure appropriate referrals and a 
     seamless transition to the care of the Department of Veterans 
     Affairs following separation from the Armed Forces; and
       (2) for removing or mitigating any obstacles identified 
     under subsection (c) and problems identified under subsection 
     (d).

     SEC. 724. POLICY FOR TIMELY NOTIFICATION OF NEXT OF KIN OF 
                   MEMBERS SERIOUSLY ILL OR INJURED IN COMBAT 
                   ZONES.

       (a) Policy Required.--The Secretary of Defense shall 
     prescribe the policy of the Department of Defense for 
     providing, in the case of the serious illness or injury of a 
     member of the Armed Forces in a combat zone, timely 
     notification to the next of kin of the member regarding the 
     illness or injury, including information on the condition of 
     the member and the location at which the member is receiving 
     treatment. In prescribing the policy, the Secretary shall 
     ensure respect for the expressed desires of individual 
     members of the Armed Forces regarding the notification of 
     next of kin and shall include standards of timeliness for 
     both the initial notification of next of kin under the policy 
     and subsequent updates regarding the condition and location 
     of the member.
       (b) Submission of Policy.--Not later than 120 days after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall submit to Congress a copy of the policy.

     SEC. 725. REVISED FUNDING METHODOLOGY FOR MILITARY RETIREE 
                   HEALTH CARE BENEFITS.

       (a) Revision.--Section 1116 of title 10, United States 
     Code, is amended to read as follows:

     ``Sec. 1116. Payments into the Fund

       ``(a) At the beginning of each fiscal year after September 
     30, 2005, the Secretary of the Treasury shall promptly pay 
     into the Fund from the General Fund of the Treasury--
       ``(1) the amount certified to the Secretary by the 
     Secretary of Defense under subsection (c), which shall be the 
     contribution to the Fund for that fiscal year required by 
     section 1115; and
       ``(2) the amount determined by each administering Secretary 
     under section 1111(c) as the contribution to the Fund on 
     behalf of the members of the uniformed services under the 
     jurisdiction of that Secretary.
       ``(b) At the beginning of each fiscal year, the Secretary 
     of Defense shall determine the sum of the following:
       ``(1) The amount of the payment for that year under the 
     amortization schedule determined by the Board of Actuaries 
     under section 1115(a) of this title for the amortization of 
     the original unfunded liability of the Fund.
       ``(2) The amount (including any negative amount) of the 
     Department of Defense contribution for that year as 
     determined by the Secretary of Defense under section 1115(b) 
     of this title.
       ``(3) The amount (including any negative amount) for that 
     year under the most recent amortization schedule determined 
     by the Secretary of Defense under section 1115(c)(2) of this 
     title for the amortization of any cumulative unfunded 
     liability (or any gain) to the Fund resulting from changes in 
     benefits.
       ``(4) The amount (including any negative amount) for that 
     year under the most recent amortization schedule determined 
     by the Secretary of Defense under section 1115(c)(3) of this 
     title for the amortization of any cumulative actuarial gain 
     or loss to the Fund resulting from actuarial assumption 
     changes.
       ``(5) The amount (including any negative amount) for that 
     year under the most recent amortization schedule determined 
     by the Secretary

[[Page H9239]]

     of Defense under section 1115(c)(4) of this title for the 
     amortization of any cumulative actuarial gain or loss to the 
     Fund resulting from actuarial experience.
       ``(c) The Secretary of Defense shall promptly certify the 
     amount determined under subsection (b) each year to the 
     Secretary of the Treasury.
       ``(d) At the same time as the Secretary of Defense makes 
     the certification under subsection (c), the Secretary shall 
     submit to the Committees on Armed Services of the Senate and 
     the House of Representatives the information provided to the 
     Secretary of the Treasury under that subsection.''.
       (b) Sense of Congress.--It is the sense of Congress that 
     any unsubscribed discretionary budget authority that accrues 
     within the national defense budget function as a result of 
     the amendments made by this section shall be applied to cover 
     the unbudgeted costs of--
       (1) increases in Army end strengths and modularization;
       (2) increases in Marine Corps end strengths and necessary 
     equipment; and
       (3) Navy shipbuilding requirements.
       (c) Conforming Amendments.--(1) Section 1111(c) of title 
     10, United States Code, is amended in the last sentence by 
     striking ``1116'' and all that follows through the end of the 
     sentence and inserting ``1115(b) of this title, and such 
     contributions shall be paid into the Fund as provided in 
     section 1116(a).''.
       (2) Section 1115(a) of such title is amended by striking 
     ``1116(c)'' and inserting ``1116''.
       (3) Section 1115(b) of such title is amended--
       (A) by striking ``(1) The Secretary of Defense'' and all 
     that follows through ``of this title.'' and inserting ``The 
     Secretary of Defense shall determine, before the beginning of 
     each fiscal year after September 30, 2005, the total amount 
     of the Department of Defense contribution to be made to the 
     Fund for that fiscal year for purposes of section 
     1116(b)(2).'';
       (B) by striking paragraph (2);
       (C) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively;
       (D) in each of paragraphs (1) and (2), as so redesignated, 
     by redesignating clauses (i) and (ii) as subparagraphs (A) 
     and (B), respectively; and
       (E) in paragraph (2)(B), as so redesignated, by striking 
     ``subparagraph (A)(ii)'' and inserting ``paragraph (1)(B)''.
       (4) Section 1115(c)(1) of such title is amended by striking 
     ``and section 1116(a) of this title''.
       (5) Section 1115(c)(5) of such title is amended by striking 
     ``1116(c)'' and inserting ``1116''.
       (d) Effective Date.--The amendments made by this section 
     shall take effect on October 1, 2005.

     SEC. 726. GROUNDS FOR PRESIDENTIAL WAIVER OF REQUIREMENT FOR 
                   INFORMED CONSENT OR OPTION TO REFUSE REGARDING 
                   ADMINISTRATION OF DRUGS NOT APPROVED FOR 
                   GENERAL USE.

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

     SEC. 727. TRICARE PROGRAM REGIONAL DIRECTORS.

       (a) Recommendations for Selection Process for TRICARE 
     Program Regional Directors.--(1) The Secretary of Defense 
     shall develop recommendations for a process for the selection 
     of regional directors for TRICARE program administrative 
     regions from among nominees and applicants for the position 
     in accordance with this section.
       (2) The recommendations developed under paragraph (1) shall 
     provide for a process for--
       (A) the Secretary of each military department to nominate, 
     for each regional director position, one commissioned officer 
     in a grade above colonel, or, in the case of the Navy, 
     captain, or member of the Senior Executive Service under the 
     jurisdiction of that Secretary; and
       (B) the Secretary of Defense to accept applications for 
     assignment or appointment to each such position from any 
     other qualified person.
       (3) The recommendations developed under paragraph (1) shall 
     also include recommendations with respect to--
       (A) the qualifications for regional directors;
       (B) the period of assignment of a commissioned officer as a 
     regional director;
       (C) procedures for ensuring that fair consideration is 
     given to each nominee and each applicant; and
       (D) such other requirements as considered appropriate by 
     the Secretary.
       (b) Report.--Not later than March 1, 2005, the Secretary of 
     Defense shall submit to the Committees on Armed Services of 
     the Senate and House of Representatives a report containing 
     the recommendations developed by the Secretary under 
     subsection (a).

     Subtitle D--Medical Readiness Tracking and Health Surveillance

     SEC. 731. MEDICAL READINESS PLAN AND JOINT MEDICAL READINESS 
                   OVERSIGHT COMMITTEE.

       (a) Requirement for Plan.--The Secretary of Defense shall 
     develop a comprehensive plan to improve medical readiness, 
     and Department of Defense tracking of the health status, of 
     members of the Armed Forces throughout their service in the 
     Armed Forces, and to strengthen medical readiness and 
     tracking before, during, and after deployment of members of 
     the Armed Forces overseas. The matters covered by the 
     comprehensive plan shall include all elements that are 
     described in this title and the amendments made by this title 
     and shall comply with requirements in law.
       (b) Joint Medical Readiness Oversight Committee.--
       (1) Establishment.--The Secretary of Defense shall 
     establish a Joint Medical Readiness Oversight Committee.
       (2) Composition.--The members of the Committee are as 
     follows:
       (A) The Under Secretary of Defense for Personnel and 
     Readiness, who shall chair the Committee.
       (B) The Vice Chief of Staff of the Army, the Vice Chief of 
     Naval Operations, the Vice Chief of Staff of the Air Force, 
     and the Assistant Commandant of the Marine Corp.
       (C) The Assistant Secretary of Defense for Health Affairs.
       (D) The Assistant Secretary of Defense for Reserve Affairs.
       (E) The Surgeon General of each of the Army, the Navy, and 
     the Air Force.
       (F) The Assistant Secretary of the Army for Manpower and 
     Reserve Affairs.
       (G) The Assistant Secretary of the Navy for Manpower and 
     Reserve Affairs.
       (H) The Assistant Secretary of the Air Force for Manpower, 
     Reserve Affairs, Installations, and Environment.
       (I) The Chief of the National Guard Bureau.
       (J) The Chief of Army Reserve.
       (K) The Chief of Naval Reserve.
       (L) The Chief of Air Force Reserve.
       (M) The Commander, Marine Corps Reserve.
       (N) The Director of the Defense Manpower Data Center.
       (O) A representative of the Department of Veterans Affairs 
     designated by the Secretary of Veterans Affairs.
       (3) Duties.--The duties of the Committee are as follows:
       (A) To advise the Secretary of Defense on the medical 
     readiness and health status of the members of the active and 
     reserve components of the Armed Forces.
       (B) To advise the Secretary of Defense on the compliance of 
     the Armed Forces with the medical readiness tracking and 
     health surveillance policies of the Department of Defense.
       (C) To oversee the development and implementation of the 
     comprehensive plan required by subsection (a) and the actions 
     required by this title and the amendments made by this title, 
     including with respect to matters relating to--
       (i) the health status of the members of the reserve 
     components of the Armed Forces;
       (ii) accountability for medical readiness;
       (iii) medical tracking and health surveillance;
       (iv) declassification of information on environmental 
     hazards;
       (v) postdeployment health care for members of the Armed 
     Forces; and
       (vi) compliance with Department of Defense and other 
     applicable policies on blood serum repositories.
       (D) To ensure unity and integration of efforts across 
     functional and organizational lines within the Department of 
     Defense with regard to medical readiness tracking and health 
     surveillance of members of the Armed Forces.
       (E) To establish and monitor compliance with the medical 
     readiness standards that are applicable to members and those 
     that are applicable to units.
       (F) To improve continuity of care in coordination with the 
     Secretary of Veterans Affairs, for members of the Armed 
     Forces separating from active service with service-connected 
     medical conditions.
       (4) First meeting.--The first meeting of the Committee 
     shall be held not later than 120 days after the date of the 
     enactment of this Act.
       (c) Annual Report.--
       (1) In general.--In addition to the duties described in 
     subsection (b)(3), the Committee shall prepare and submit to 
     the Secretary of Defense and to the Committees on Armed 
     Services of the Senate and the House of Representatives, not 
     later than February 1 of each year, a report on--
       (A) the health status and medical readiness of the members 
     of the Armed Forces, including the members of reserve 
     components, based on the comprehensive plan required under 
     subsection (a) and the actions required by this title and the 
     amendments made by this title; and
       (B) compliance with Department of Defense policies on 
     medical readiness tracking and health surveillance.
       (2) Opportunity for comment.--Each year, before the 
     Committee submits to Congress the report required under 
     paragraph (1), the Secretary of Defense shall provide an 
     opportunity for representatives of veterans and military 
     health advocacy organizations, and others the Secretary of 
     Defense considers appropriate, to comment on the report. The 
     report submitted to Congress shall include a summary of the 
     comments received and the Secretary's response to them.

     SEC. 732. MEDICAL READINESS OF RESERVES.

       (a) Comptroller General Study of Health of Reserves Ordered 
     to Active Duty for

[[Page H9240]]

     Operations Enduring Freedom and Iraqi Freedom.--
       (1) Requirement for study.--The Comptroller General shall 
     carry out a study of the health of the members of the reserve 
     components of the Armed Forces who have been called or 
     ordered to active duty for a period of more than 30 days in 
     support of Operation Enduring Freedom and Operation Iraqi 
     Freedom. The Comptroller General shall commence the study not 
     later than 180 days after the date of the enactment of this 
     Act.
       (2) Purposes.--The purposes of the study under this 
     subsection are as follows:
       (A) To review the health status and medical fitness of the 
     activated Reserves when they were called or ordered to active 
     duty.
       (B) To review the effects, if any, on logistics planning 
     and the deployment schedules for the operations referred to 
     in paragraph (1) that resulted from deficiencies in the 
     health or medical fitness of activated Reserves.
       (C) To review compliance of military personnel with 
     Department of Defense policies on medical and physical 
     fitness examinations and assessments that are applicable to 
     the reserve components of the Armed Forces.
       (3) Report.--The Comptroller General shall, not later than 
     one year after the date of the enactment of this Act, submit 
     a report on the results of the study under this subsection to 
     the Committees on Armed Services of the Senate and the House 
     of Representatives. The report shall include the following 
     matters:
       (A) With respect to the matters reviewed under subparagraph 
     (A) of paragraph (2)--
       (i) the percentage of activated Reserves who were 
     determined to be medically unfit for deployment, together 
     with an analysis of the reasons why the member was unfit, 
     including medical illnesses or conditions most commonly found 
     among the activated Reserves that were grounds for 
     determinations of medical unfitness for deployment; and
       (ii) the percentage of the activated Reserves who, before 
     being deployed, needed medical care for health conditions 
     identified when called or ordered to active duty, together 
     with an analysis of the types of care that were provided for 
     such conditions and the reasons why such care was necessary.
       (B) With respect to the matters reviewed under subparagraph 
     (B) of paragraph (2)--
       (i) the delays and other disruptions in deployment 
     schedules that resulted from deficiencies in the health 
     status or medical fitness of activated Reserves; and
       (ii) an analysis of the extent to which it was necessary to 
     merge units or otherwise alter the composition of units, and 
     the extent to which it was necessary to merge or otherwise 
     alter objectives, in order to compensate for limitations on 
     the deployability of activated Reserves resulting from 
     deficiencies in the health status or medical fitness of 
     activated Reserves.
       (C) With respect to the matters reviewed under subparagraph 
     (C) of paragraph (2), an assessment of the extent of the 
     compliance of reserve component personnel with Department of 
     Defense policies on routine medical and physical fitness 
     examinations that are applicable to the reserve components of 
     the Armed Forces.
       (D) An analysis of the extent to which the medical care, if 
     any, provided to activated Reserves in each theater of 
     operations referred to in paragraph (1) related to 
     preexisting conditions that were not adequately addressed 
     before the deployment of such personnel to the theater.
       (4) Definitions.--In this subsection:
       (A) The term ``activated Reserves'' means the members of 
     the Armed Forces referred to in paragraph (1).
       (B) The term ``active duty for a period of more than 30 
     days'' has the meaning given such term in section 101(d) of 
     title 10, United States Code.
       (C) The term ``health condition'' includes a mental health 
     condition and a dental condition.
       (D) The term ``reserve components of the Armed Forces'' 
     means the reserve components listed in section 10101 of title 
     10, United States Code.
       (b) Accountability for Medical Readiness of Individuals and 
     Units of the Reserve Components.--
       (1) Policy.--The Secretary of Defense shall take measures, 
     in addition to those required by section 1074f of title 10, 
     United States Code, to ensure that individual members and 
     commanders of reserve component units fulfill their 
     responsibilities and meet the requirements for medical and 
     dental readiness of members of the units. Such measures may 
     include--
       (A) requiring more frequent health assessments of members 
     than is required by section 1074f(b) of title 10, United 
     States Code, with an objective of having every member of the 
     Selected Reserve receive a health assessment as specified in 
     section 1074f of such title not less frequently than once 
     every two years; and
       (B) providing additional support and information to 
     commanders to assist them in improving the health status of 
     members of their units.
       (2) Review and followup care.--The measures under this 
     subsection shall provide for review of the health assessments 
     under paragraph (1) by a medical professional and for any 
     followup care and treatment that is otherwise authorized for 
     medical or dental readiness.
       (3) Modification of predeployment health assessment 
     survey.--In carrying out paragraph (1), the Secretary shall--
       (A) to the extent practicable, modify the predeployment 
     health assessment survey to bring such survey into conformity 
     with the detailed postdeployment health assessment survey in 
     use as of October 1, 2004; and
       (B) ensure the use of the predeployment health assessment 
     survey, as so modified, for predeployment health assessments 
     after that date.
       (c) Uniform Policy on Deferral of Medical Treatment Pending 
     Deployment to Theaters of Operations.--
       (1) Requirement for policy.--The Secretary of Defense shall 
     prescribe, for uniform applicability throughout the Armed 
     Forces, a policy on deferral of medical treatment of members 
     pending deployment.
       (2) Content.--The policy prescribed under paragraph (1) may 
     specify the following matters:
       (A) The circumstances under which treatment for medical 
     conditions may be deferred to be provided within a theater of 
     operations in order to prevent delay or other disruption of a 
     deployment to that theater.
       (B) The circumstances under which medical conditions are to 
     be treated before deployment to that theater.

     SEC. 733. BASELINE HEALTH DATA COLLECTION PROGRAM.

       (a) Requirement for Program.--
       (1) In general.--Chapter 55 of title 10, United States 
     Code, is amended by inserting after section 1092 the 
     following new section:

     ``Sec. 1092a. Persons entering the armed forces: baseline 
       health data

       ``(a) Program Required.--The Secretary of Defense shall 
     carry out a program--
       ``(1) to collect baseline health data from each person 
     entering the armed forces, at the time of entry into the 
     armed forces; and
       ``(2) to provide for computerized compilation and 
     maintenance of the baseline health data.
       ``(b) Purposes.--The program under this section shall be 
     designed to achieve the following purposes:
       ``(1) To facilitate understanding of how subsequent 
     exposures related to service in the armed forces affect 
     health.
       ``(2) To facilitate development of early intervention and 
     prevention programs to protect health and readiness.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1092 the following new item:

``1092a. Persons entering the armed forces: baseline health data.''.

       (3) Time for implementation.--The Secretary of Defense 
     shall implement the program required under section 1092a of 
     title 10, United States Code (as added by paragraph (1)), not 
     later than two years after the date of the enactment of this 
     Act.
       (b) Interim Standards for Blood Sampling.--
       (1) Time requirements.--Subject to paragraph (2), the 
     Secretary of Defense shall require that--
       (A) the blood samples necessary for the predeployment 
     medical examination of a member of the Armed Forces required 
     under section 1074f(b) of title 10, United States Code, be 
     drawn not earlier than 120 days before the date of the 
     deployment; and
       (B) the blood samples necessary for the postdeployment 
     medical examination of a member of the Armed Forces required 
     under such section 1074f(b) of such title be drawn not later 
     than 30 days after the date on which the deployment ends.
       (2) Contingent applicability.--The standards under 
     paragraph (1) shall apply unless the Joint Medical Readiness 
     Oversight Committee established by section 1301 recommends, 
     and the Secretary approves, different standards for blood 
     sampling.

     SEC. 734. MEDICAL CARE AND TRACKING AND HEALTH SURVEILLANCE 
                   IN THE THEATER OF OPERATIONS.

       (a) Recordkeeping Policy.--The Secretary of Defense shall 
     prescribe a policy that requires the records of all medical 
     care provided to a member of the Armed Forces in a theater of 
     operations to be maintained as part of a complete health 
     record for the member.
       (b) In-Theater Medical Tracking and Health Surveillance.--
       (1) Requirement for evaluation.--The Secretary of Defense 
     shall evaluate the system for the medical tracking and health 
     surveillance of members of the Armed Forces in theaters of 
     operations and take such actions as may be necessary to 
     improve the medical tracking and health surveillance.
       (2) Report.--Not later than one year after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     a report on the actions taken under paragraph (1) to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives. The report shall include the following 
     matters:
       (A) An analysis of the strengths and weaknesses of the 
     medical tracking system administered under section 1074f of 
     title 10, United States Code.
       (B) An analysis of the efficacy of health surveillance 
     systems as a means of detecting--
       (i) any health problems (including mental health 
     conditions) of members of the Armed Forces contemporaneous 
     with the performance of the assessment under the system; and
       (ii) exposures of the assessed members to environmental 
     hazards that potentially lead to future health problems.
       (C) An analysis of the strengths and weaknesses of such 
     medical tracking and surveillance systems as a means for 
     supporting future research on health issues.
       (D) Recommended changes to such medical tracking and health 
     surveillance systems.
       (E) A summary of scientific literature on blood sampling 
     procedures used for detecting and identifying exposures to 
     environmental hazards.
       (F) An assessment of whether there is a need for changes to 
     regulations and standards for drawing blood samples for 
     effective tracking and health surveillance of the medical 
     conditions of personnel before deployment, upon the end of a 
     deployment, and for a followup period of appropriate length.
       (c) Plan To Obtain Health Care Records From Allies.--The 
     Secretary of Defense shall

[[Page H9241]]

     develop a plan for obtaining all records of medical treatment 
     provided to members of the Armed Forces by allies of the 
     United States in Operation Enduring Freedom and Operation 
     Iraqi Freedom. The plan shall specify the actions that are to 
     be taken to obtain all such records.
       (d) Policy on In-Theater Personnel Locator Data.--Not later 
     than one year after the date of the enactment of this Act, 
     the Secretary of Defense shall prescribe a Department of 
     Defense policy on the collection and dissemination of in-
     theater individual personnel location data.

     SEC. 735. DECLASSIFICATION OF INFORMATION ON EXPOSURES TO 
                   ENVIRONMENTAL HAZARDS.

       (a) Requirement for Review.--The Secretary of Defense shall 
     review and, as determined appropriate, revise the 
     classification policies of the Department of Defense with a 
     view to facilitating the declassification of data that is 
     potentially useful for the monitoring and assessment of the 
     health of members of the Armed Forces who have been exposed 
     to environmental hazards during deployments overseas, 
     including the following data:
       (1) In-theater injury rates.
       (2) Data derived from environmental surveillance.
       (3) Health tracking and surveillance data.
       (b) Consultation With Commanders of Theater Combatant 
     Commands.--The Secretary shall, to the extent that the 
     Secretary considers appropriate, consult with the senior 
     commanders of the in-theater forces of the combatant commands 
     in carrying out the review and revising policies under 
     subsection (a).

     SEC. 736. REPORT ON TRAINING ON ENVIRONMENTAL HAZARDS.

       (a) Requirement for Report on Training of Field Medical 
     Personnel.--Not later than one year after the date of the 
     enactment of this Act, the Secretary of Defense shall submit 
     to the Committees on Armed Services of the Senate and the 
     House of Representatives a report on the training on 
     environmental hazards that is provided by the Armed Forces to 
     medical personnel of the Armed Forces who are deployable to 
     the field in direct support of combat personnel.
       (b) Content.--The report under subsection (a) shall include 
     the following:
       (1) An assessment of the adequacy of the training 
     regarding--
       (A) the identification of common environmental hazards and 
     exposures to such hazards; and
       (B) the prevention and treatment of adverse health effects 
     of such exposures.
       (2) A discussion of the actions taken and to be taken to 
     improve such training.

     SEC. 737. UNIFORM POLICY FOR MEETING MOBILIZATION-RELATED 
                   MEDICAL CARE NEEDS AT MILITARY INSTALLATIONS.

       (a) Health Care at Mobilization Installations.--The 
     Secretary of Defense shall take such steps as necessary, 
     including through the uniform policy established under 
     subsection (c), to ensure that anticipated health care needs 
     of members of the Armed Forces at mobilization installations 
     can be met at those installations. Such steps may, within 
     authority otherwise available to the Secretary, include the 
     following with respect to any such installation:
       (1) Arrangements for health care to be provided by the 
     Secretary of Veterans Affairs .
       (2) Procurement of services from local health care 
     providers.
       (3) Temporary employment of health care personnel to 
     provide services at such installation.
       (b) Mobilization Installations.--For purposes of this 
     section, the term ``mobilization installation'' means a 
     military installation at which members of the Armed Forces, 
     in connection with a contingency operation or during a 
     national emergency--
       (1) are mobilized;
       (2) are deployed; or
       (3) are redeployed from a deployment location.
       (c) Requirement for Regulations.--
       (1) Policy on implementation.--The Secretary of Defense 
     shall by regulation establish a policy for the implementation 
     of subsection (a) throughout the Department of Defense.
       (2) Identification and analysis of needs.--As part of the 
     policy prescribed under paragraph (1), the Secretary shall 
     require the Secretary of each military department, with 
     respect to each mobilization installation under the 
     jurisdiction of that Secretary, to identify and analyze the 
     anticipated health care needs at that installation with 
     respect to members of the Armed Forces who may be expected to 
     mobilize or deploy or redeploy at that installation as 
     described in subsection (b)(1). Such identification and 
     analysis shall be carried out so as to be completed before 
     the arrival of such members at the installation.
       (3) Response to needs.--The policy established by the 
     Secretary of Defense under paragraph (1) shall require that, 
     based on the results of the identification and analysis under 
     paragraph (2), the Secretary of the military department 
     concerned shall determine how to expeditiously and 
     effectively respond to those anticipated health care needs 
     that cannot be met within the resources otherwise available 
     at that installation, in accordance with subsection (a).
       (4) Implementation of authority.--In implementing the 
     policy established under paragraph (1) at any installation, 
     the Secretary of the military department concerned shall 
     ensure that the commander of the installation, and the 
     officers and other personnel superior to that commander in 
     that commander's chain of command, have appropriate authority 
     and responsibility for such implementation.
       (d) Policy.--The Secretary of Defense shall ensure--
       (1) that the policy prescribed under subsection (c) is 
     carried out with respect to any mobilization installation 
     with the involvement of all agencies of the Department of 
     Defense that have responsibility for management of the 
     installation and all organizations of the Department that 
     have command authority over any activity at the installation; 
     and
       (2) that such policy is implemented on a uniform basis 
     throughout the Department of Defense.

     SEC. 738. FULL IMPLEMENTATION OF MEDICAL READINESS TRACKING 
                   AND HEALTH SURVEILLANCE PROGRAM AND FORCE 
                   HEALTH PROTECTION AND READINESS PROGRAM.

       (a) Implementation at All Levels.--The Secretary of 
     Defense, in conjunction with the Secretaries of the military 
     departments, shall take such actions as are necessary to 
     ensure that the Army, Navy, Air Force, and Marine Corps fully 
     implement at all levels--
       (1) the Medical Readiness Tracking and Health Surveillance 
     Program under this title and the amendments made by this 
     title; and
       (2) the Force Health Protection and Readiness Program of 
     the Department of Defense (relating to the prevention of 
     injury and illness and the reduction of disease and noncombat 
     injury threats).
       (b) Action Official.--The Secretary of Defense may act 
     through the Under Secretary of Defense for Personnel and 
     Readiness in carrying out subsection (a).

     SEC. 739. REPORTS AND INTERNET ACCESSIBILITY RELATING TO 
                   HEALTH MATTERS.

       (a) Annual Reports.--
       (1) Requirement for reports.--Chapter 55 of title 10, 
     United States Code, is amended by inserting after section 
     1073a the following new section:

     ``Sec. 1073b. Recurring reports

       ``(a) Annual Report on Health Protection Quality.--(1) The 
     Secretary of Defense shall submit to the Committees on Armed 
     Services of the Senate and the House of Representatives each 
     year a report on the Force Health Protection Quality 
     Assurance Program of the Department of Defense. The report 
     shall cover the calendar year preceding the year in which the 
     report is submitted and include the following matters:
       ``(A) The results of an audit conducted during the calendar 
     year covered by the report of the extent to which the blood 
     samples required to be obtained as described in section 
     733(b) of the Ronald W. Reagan National Defense Authorization 
     Act for Fiscal Year 2005 from members of the armed forces 
     before and after a deployment are stored in the blood serum 
     repository of the Department of Defense.
       ``(B) The results of an audit conducted during the calendar 
     year covered by the report of the extent to which the records 
     of the health assessments required under section 1074f of 
     this title for members of the armed forces before and after a 
     deployment are being maintained in the electronic database of 
     the Defense Medical Surveillance System.
       ``(C) An analysis of the actions taken by Department of 
     Defense personnel to respond to health concerns expressed by 
     members of the armed forces upon return from a deployment.
       ``(D) An analysis of the actions taken by Department of 
     Defense personnel to evaluate or treat members of the armed 
     forces who are confirmed to have been exposed to occupational 
     or environmental hazards deleterious to their health during a 
     deployment.
       ``(2) The Secretary of Defense shall act through the 
     Assistant Secretary of Defense for Health Affairs in carrying 
     out this subsection.
       ``(b) Annual Report on Recording of Health Assessment Data 
     in Military Health Records.--The Secretary of Defense shall 
     issue each year a report on the compliance by the military 
     departments with applicable law and policies on the recording 
     of health assessment data in military health records, 
     including compliance with section 1074f(c) of this title. The 
     report shall cover the calendar year preceding the year in 
     which the report is submitted and include a discussion of the 
     extent to which immunization status and predeployment and 
     postdeployment health care data are being recorded in such 
     records.''.
       (2) Clerical amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1073a the following new item:

``1073b. Recurring reports.''.

       (3) Initial reports.--The first reports under section 1073b 
     of title 10, United States Code (as added by paragraph (1)), 
     shall be completed not later than 180 days after the date of 
     the enactment of this Act.
       (b) Internet Accessibility of Health Assessment Information 
     for Members of the Armed Forces.--Not later than one year 
     after the date of the enactment of this Act, the Chief 
     Information Officer of each military department shall ensure 
     that the online portal website of that military department 
     includes the following information relating to health 
     assessments:
       (1) Information on the policies of the Department of 
     Defense and the military department concerned regarding 
     predeployment and postdeployment health assessments, 
     including policies on the following matters:
       (A) Health surveys.
       (B) Physical examinations.
       (C) Collection of blood samples and other tissue samples.
       (2) Procedural information on compliance with such 
     policies, including the following information:
       (A) Information for determining whether a member is in 
     compliance.
       (B) Information on how to comply.
       (3) Health assessment surveys that are either--
       (A) web-based; or
       (B) accessible (with instructions) in     printer-ready 
     form by download.

[[Page H9242]]

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

             Subtitle A--Acquisition Policy and Management

Sec. 801. Software-related program costs under major defense 
              acquisition programs.
Sec. 802. Internal controls for Department of Defense procurements 
              through GSA Client Support Centers. 
Sec. 803. Defense commercial communications satellite services 
              procurement process.
Sec. 804. Contractor performance of acquisition functions closely 
              associated with inherently governmental functions.
Sec. 805. Sustainment plans for existing systems while replacement 
              systems are under development. 
Sec. 806. Applicability of competition exceptions to eligibility of 
              National Guard for financial assistance for performance 
              of additional duties.
Sec. 807. Inflation adjustment of acquisition-related dollar 
              thresholds. 

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

Sec. 811. Rapid acquisition authority to respond to combat emergencies.
Sec. 812. Defense acquisition workforce improvements.
Sec. 813. Period for multiyear task and delivery order contracts.
Sec. 814. Funding for contract ceilings for certain multiyear 
              procurement contracts. 
Sec. 815. Increased threshold for senior procurement executive approval 
              of use of procedures other than competitive procedures.
Sec. 816. Increased threshold for applicability of requirement for 
              defense contractors to provide information on 
              subcontracting authority of contractor personnel to 
              cooperative agreement holders.
Sec. 817. Extension of authority for use of simplified acquisition 
              procedures. 
Sec. 818. Submission of cost or pricing data on noncommercial 
              modifications of commercial items.
Sec. 819. Delegations of authority to make determinations relating to 
              payment of defense contractors for business restructuring 
              costs.
Sec. 820. Availability of Federal supply schedule supplies and services 
              to United Service Organizations, Incorporated.
Sec. 821. Addition of landscaping and pest control services to list of 
              designated industry groups participating in the Small 
              Business Competitiveness Demonstration Program. 
Sec. 822. Increased thresholds under special emergency procurement 
              authority.

      Subtitle C--United States Defense Industrial Base Provisions

Sec. 831. Defense trade reciprocity.
Sec. 832. Assessment and report on the acquisition of polyacrylonitrile 
              (PAN) carbon fiber from foreign sources.

        Subtitle D--Extensions of Temporary Program Authorities

Sec. 841. Extension of mentor-protege program. 
Sec. 842. Amendment to mentor-protege program.
Sec. 843. Extension of test program for negotiation of comprehensive 
              small business subcontracting plans.
Sec. 844. Extension of pilot program on sales of manufactured articles 
              and services of certain Army industrial facilities.

                 Subtitle E--Other Acquisition Matters

Sec. 851. Review and demonstration project relating to contractor 
              employees.
Sec. 852. Inapplicability of certain fiscal laws to settlements under 
              special temporary contract closeout authority.
Sec. 853. Contracting with employers of persons with disabilities.
Sec. 854. Defense procurements made through contracts of other 
              agencies.
Sec. 855. Requirements relating to source selection for integrated 
              support of aerial refueling aircraft fleet for the Air 
              Force.

             Subtitle A--Acquisition Policy and Management

     SEC. 801. SOFTWARE-RELATED PROGRAM COSTS UNDER MAJOR DEFENSE 
                   ACQUISITION PROGRAMS.

       (a) Content of Quarterly Unit Cost Report.--Subsection (b) 
     of section 2433 of title 10, United States Code, is amended 
     by adding at the end the following new paragraph:
       ``(5) Any significant changes in the total program cost for 
     development and procurement of the software component of the 
     program, schedule milestones for the software component of 
     the program, or expected performance for the software 
     component of the program that are known, expected, or 
     anticipated by the program manager.''.
       (b) Content of Selected Acquisition Report.--(1) Subsection 
     (g)(1) of such section is amended by adding at the end the 
     following new subparagraph:
       ``(Q) In any case in which one or more problems with the 
     software component of the program significantly contributed 
     to the increase in program unit costs, the action taken and 
     proposed to be taken to solve such problems.''.
       (2) Section 2432(e) of title 10, United States Code, is 
     amended--
       (A) by redesignating paragraphs (7), (8), and (9) as 
     paragraphs (8), (9), and (10), respectively; and
       (B) by inserting after paragraph (6) the following new 
     paragraph (7):
       ``(7) The reasons for any significant changes (from the 
     previous Selected Acquisition Report) in the total program 
     cost for development and procurement of the software 
     component of the program, schedule milestones for the 
     software component of the program, or expected performance 
     for the software component of the program that are known, 
     expected, or anticipated by the program manager.''.
       (c) Effective Date.--The amendments made by this section 
     shall take effect on the date occurring 60 days after the 
     date of the enactment of this Act, and shall apply with 
     respect to reports due to be submitted to Congress on or 
     after such date.

     SEC. 802. INTERNAL CONTROLS FOR DEPARTMENT OF DEFENSE 
                   PROCUREMENTS THROUGH GSA CLIENT SUPPORT 
                   CENTERS.

       (a) Initial Inspector General Review and Determination.--
     (1) Not later than March 15, 2005, the Inspector General of 
     the Department of Defense and the Inspector General of the 
     General Services Administration shall jointly--
       (A) review--
       (i) the policies, procedures, and internal controls of each 
     GSA Client Support Center; and
       (ii) the administration of those policies, procedures, and 
     internal controls; and
       (B) for each such Center, determine in writing whether--
       (i) the Center is compliant with defense procurement 
     requirements;
       (ii) the Center is not compliant with defense procurement 
     requirements, but the Center made significant progress during 
     2004 toward becoming compliant with defense procurement 
     requirements; or
       (iii) neither of the conclusions stated in clauses (i) and 
     (ii) is correct.
       (2) If the Inspectors General determine under paragraph (1) 
     that the conclusion stated in clause (ii) or (iii) of 
     subparagraph (B) of such paragraph is correct in the case of 
     a GSA Client Support Center, those Inspectors General shall, 
     not later than March 15, 2006, jointly--
       (A) conduct a second review regarding that GSA Client 
     Support Center as described in paragraph (1)(A); and
       (B) determine in writing whether that GSA Client Support 
     Center is or is not compliant with defense procurement 
     requirements.
       (b) Compliance With Defense Procurement Requirements.--For 
     the purposes of this section, a GSA Client Support Center is 
     compliant with defense procurement requirements if the GSA 
     Client Support Center's policies, procedures, and internal 
     controls, and the manner in which they are administered, are 
     adequate to ensure compliance of that Center with the 
     requirements of laws and regulations that apply to 
     procurements of property and services made directly by the 
     Department of Defense.
       (c) Limitations on Procurements Through GSA Client Support 
     Centers.--(1) After March 15, 2005, and before March 16, 
     2006, no official of the Department of Defense may, except as 
     provided in subsection (d) or (e), order, purchase, or 
     otherwise procure property or services in an amount in excess 
     of $100,000 through any GSA Client Support Center for which a 
     determination described in paragraph (1)(B)(iii) of 
     subsection (a) has been made under that subsection.
       (2) After March 15, 2006, no official of the Department of 
     Defense may, except as provided in subsection (d) or (e), 
     order, purchase, or otherwise procure property or services in 
     an amount in excess of $100,000 through any GSA Client 
     Support Center that has not been determined under this 
     section as being compliant with defense procurement 
     requirements.
       (d) Exception From Applicability of Limitations.--(1) No 
     limitation applies under subsection (c) with respect to the 
     procurement of property and services from a particular GSA 
     Client Support Center during any period that there is in 
     effect a determination of the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics, made in writing, that 
     it is necessary in the interest of the Department of Defense 
     to continue to procure property and services through that GSA 
     Client Support Center.
       (2) A written determination with respect to a GSA Client 
     Support Center under paragraph (1) is in effect for the 
     period, not in excess of one year, that the Under Secretary 
     of Defense for Acquisition, Technology, and Logistics shall 
     specify in the written determination. The Under Secretary may 
     extend from time to time, for up to one year at a time, the 
     period for which the written determination remains in effect.
       (e) Termination of Applicability of Limitations.--
     Subsection (c) shall cease to apply to a GSA Client Support 
     Center on the date on which the Inspector General of the 
     Department of Defense and the Inspector General of the 
     General Services Administration jointly determine that such 
     Center is compliant with defense procurement requirements and 
     notify the Secretary of Defense of that determination.
       (f) GSA Client Support Center Defined.--In this section, 
     the term ``GSA Client Support Center'' means a Client Support 
     Center of the Federal Technology Service of the General 
     Services Administration.

     SEC. 803. DEFENSE COMMERCIAL COMMUNICATIONS SATELLITE 
                   SERVICES PROCUREMENT PROCESS.

       (a) Requirement for Determination.--The Secretary of 
     Defense shall review all potential mechanisms for procuring 
     commercial communications satellite services and provide 
     guidance to the Director of the Defense Information Systems 
     Agency and the Secretaries of the military departments on how 
     such procurements should be conducted. The alternative 
     procurement

[[Page H9243]]

     mechanisms reviewed by the Secretary of Defense shall, at a 
     minimum, include the following:
       (1) Procurement under indefinite delivery, indefinite 
     quantity contracts of other departments and agencies of the 
     Federal Government, including the Federal Technology Service 
     of the General Services Administration.
       (2) Procurement directly from commercial sources that are 
     qualified as described in subsection (b), using full and open 
     competition (as defined in section 4(6) of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 403(6))).
       (3) Procurement by any other means that has been used by 
     the Director of the Defense Information Systems Agency or the 
     Secretary of a military department to enter into a contract 
     for the procurement of commercial communications satellite 
     services that is in force on the date of the enactment of 
     this Act, including through commercial communications 
     satellite service integrators and resellers.
       (4) Procurement under the method used as of the date of the 
     enactment of this Act, modified with streamlined processes to 
     ensure increased efficiency and cost effectiveness.
       (b) Qualified Sources.--A source of commercial 
     communications satellite services referred to in paragraph 
     (2) of subsection (a) is a qualified source if the source is 
     incorporated under the laws of a State of the United States 
     and is either--
       (1) a source of commercial communications satellite 
     services under a Federal Technology Service contract for the 
     procurement of commercial communications satellite services 
     described in paragraph (1) of such subsection that is in 
     force on the date of the enactment of this Act; or
       (2) a source of commercial communications satellite 
     services that meets qualification requirements (as defined in 
     section 2319 of title 10, United States Code, and established 
     in accordance with that section) to enter into a Federal 
     Technology Service contract for the procurement of commercial 
     communications satellite services.
       (c) Report.--Not later than April 30, 2005, the Secretary 
     of Defense shall submit to Congress a report setting forth 
     the conclusions resulting from the Secretary's review under 
     subsection (a). The report shall include--
       (1) the guidance provided under such subsection; and
       (2) a discussion of the rationale for that guidance and how 
     the guidance will address each recommendation made in the 
     December 2003 report of the General Accounting Office titled 
     ``Satellite Communications: Strategic Approach Needed for 
     DOD's Procurement of Commercial Satellite BandWidth'' (GAO-
     04-206).
       (d) Effective Date.--(1) The Secretary may not enter into a 
     contract for commercial communications satellite services 
     (using any mechanism reviewed under subsection (a) or 
     otherwise) until the expiration of 30 days after the date on 
     which the report described in subsection (c) has been 
     received by Congress, unless the Secretary determines that 
     such a contract is required to meet urgent national security 
     requirements.
       (2) Notwithstanding paragraph (1), the Secretary may issue 
     a task order or delivery order under a contract for 
     commercial communications satellite services that was awarded 
     before the date of the enactment of this Act.

     SEC. 804. CONTRACTOR PERFORMANCE OF ACQUISITION FUNCTIONS 
                   CLOSELY ASSOCIATED WITH INHERENTLY GOVERNMENTAL 
                   FUNCTIONS.

       (a) Limitation.--(1) Chapter 141 of title 10, United States 
     Code, is amended by inserting after section 2382 the 
     following new section:

     ``Sec. 2383. Contractor performance of acquisition functions 
       closely associated with inherently governmental functions

       ``(a) Limitation.--The head of an agency may enter into a 
     contract for the performance of acquisition functions closely 
     associated with inherently governmental functions only if the 
     contracting officer for the contract ensures that--
       ``(1) appropriate military or civilian personnel of the 
     Department of Defense cannot reasonably be made available to 
     perform the functions;
       ``(2) appropriate military or civilian personnel of the 
     Department of Defense are--
       ``(A) to supervise contractor performance of the contract; 
     and
       ``(B) to perform all inherently governmental functions 
     associated with the functions to be performed under the 
     contract; and
       ``(3) the agency addresses any potential organizational 
     conflict of interest of the contractor in the performance of 
     the functions under the contract, consistent with subpart 9.5 
     of part 9 of the Federal Acquisition Regulation and the best 
     interests of the Department of Defense.
       ``(b) Definitions.--In this section:
       ``(1) The term `head of an agency' has the meaning given 
     such term in section 2302(1) of this title, except that such 
     term does not include the Secretary of Homeland Security or 
     the Administrator of the National Oceanic and Atmospheric 
     Administration.
       ``(2) The term `inherently governmental functions' has the 
     meaning given such term in subpart 7.5 of part 7 of the 
     Federal Acquisition Regulation.
       ``(3) The term `functions closely associated with 
     inherently governmental functions' means the functions 
     described in section 7.503(d) of the Federal Acquisition 
     Regulation.
       ``(4) The term `organizational conflict of interest' has 
     the meaning given such term in subpart 9.5 of part 9 of the 
     Federal Acquisition Regulation.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2382 the following new item:

``2383. Contractor performance of acquisition functions closely 
              associated with inherently governmental functions.''.

       (b) Effective Date.--Section 2383 of title 10, United 
     States Code (as added by subsection (a)), shall apply to 
     contracts entered into on or after the date of the enactment 
     of this Act.

     SEC. 805. SUSTAINMENT PLANS FOR EXISTING SYSTEMS WHILE 
                   REPLACEMENT SYSTEMS ARE UNDER DEVELOPMENT.

       (a) Existing Systems to Be Maintained While Replacement 
     Systems are Under Development.--(1) Chapter 144 of title 10, 
     United States Code, is amended by inserting after section 
     2436 the following new section:

     ``Sec. 2437. Development of major defense acquisition 
       programs: sustainment of system to be replaced

       ``(a) Requirement for Sustaining Existing Forces.--(1) The 
     Secretary of Defense shall require that, whenever a new major 
     defense acquisition program begins development, the defense 
     acquisition authority responsible for that program shall 
     develop a plan (to be known as a `sustainment plan') for the 
     existing system that the system under development is intended 
     to replace. Any such sustainment plan shall provide for an 
     appropriate level of budgeting for sustaining the existing 
     system until the replacement system to be developed under the 
     major defense acquisition program is fielded and assumes the 
     majority of responsibility for the mission of the existing 
     system. This section does not apply to a major defense 
     acquisition that reaches initial operational capability 
     before October 1, 2008.
       ``(2) In this section, the term `defense acquisition 
     authority' means the Secretary of a military department or 
     the commander of the United States Special Operations 
     Command.
       ``(b) Sustainment Plan.--The Secretary of Defense shall 
     require that each sustainment plan under this section 
     include, at a minimum, the following:
       ``(1) The milestone schedule for the development of the 
     major defense acquisition program, including the scheduled 
     dates for low-rate initial production, initial operational 
     capability, full-rate production, and full operational 
     capability and the date as of when the replacement system is 
     scheduled to assume the majority of responsibility for the 
     mission of the existing system.
       ``(2) An analysis of the existing system to assess the 
     following:
       ``(A) Anticipated funding levels necessary to--
       ``(i) ensure acceptable reliability and availability rates 
     for the existing system; and
       ``(ii) maintain mission capability of the existing system 
     against the relevant threats.
       ``(B) The extent to which it is necessary and appropriate 
     to--
       ``(i) transfer mature technologies from the new system or 
     other systems to enhance the mission capability of the 
     existing system against relevant threats; and
       ``(ii) provide interoperability with the new system during 
     the period from initial fielding until the new system assumes 
     the majority of responsibility for the mission of the 
     existing system.
       ``(c) Exceptions.--Subsection (a) shall not apply to a 
     major defense acquisition program if the Secretary of Defense 
     determines that--
       ``(1) the existing system is no longer relevant to the 
     mission;
       ``(2) the mission has been eliminated;
       ``(3) the mission has been consolidated with another 
     mission in such a manner that another existing system can 
     adequately meet the mission requirements; or
       ``(4) the duration of time until the new system assumes the 
     majority of responsibility for the existing system's mission 
     is sufficiently short so that mission availability, 
     capability, interoperability, and force protection 
     requirements are maintained.
       ``(d) Waiver.--The Secretary of Defense may waive the 
     applicability of subsection (a) to a major defense 
     acquisition program if the Secretary determines that, but for 
     such a waiver, the Department would be unable to meet 
     national security objectives. Whenever the Secretary makes 
     such a determination and authorizes such a waiver, the 
     Secretary shall submit notice of such waiver and of the 
     Secretary's determination and the reasons therefor in writing 
     to the congressional defense committees.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2436 the following new item:

``2437. Development of major defense acquisition programs: sustainment 
              of system to be replaced.''.

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

     SEC. 806. APPLICABILITY OF COMPETITION EXCEPTIONS TO 
                   ELIGIBILITY OF NATIONAL GUARD FOR FINANCIAL 
                   ASSISTANCE FOR PERFORMANCE OF ADDITIONAL 
                   DUTIES.

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

     SEC. 807. INFLATION ADJUSTMENT OF ACQUISITION-RELATED DOLLAR 
                   THRESHOLDS.

       (a) Inflation Adjustment Authority.--(1) The Office of 
     Federal Procurement Policy Act

[[Page H9244]]

     (41 U.S.C. 403 et seq.) is amended by inserting after section 
     35 the following new section:

     ``SEC. 35A. INFLATION ADJUSTMENT OF ACQUISITION-RELATED 
                   DOLLAR THRESHOLDS.

       ``(a) Requirement for Periodic Adjustment.--(1) On October 
     1 of each year that is evenly divisible by five, the Federal 
     Acquisition Regulatory Council shall adjust each acquisition-
     related dollar threshold provided by law, as described in 
     subsection (c), to the baseline constant dollar value of that 
     threshold.
       ``(2) For the purposes of paragraph (1), the baseline 
     constant dollar value--
       ``(A) for a dollar threshold in effect on October 1, 2000, 
     that was first specified in a law that took effect on or 
     before such date shall be the October 1, 2000, constant 
     dollar value of that dollar threshold; and
       ``(B) for a dollar threshold specified in a law that takes 
     effect after October 1, 2000, shall be the constant dollar 
     value of that threshold as of the effective date of that 
     dollar threshold pursuant to such law.
       ``(b) Adjustments Effective Upon Publication.--The Federal 
     Acquisition Regulatory Council shall publish a notice of the 
     adjusted dollar thresholds under this section in the Federal 
     Register. The adjusted dollar thresholds shall take effect on 
     the date of publication.
       ``(c) Acquisition-Related Dollar Thresholds.--Except as 
     provided in subsection (d), the requirement for adjustment 
     under subsection (a) applies to a dollar threshold that is 
     specified in law as a factor in defining the scope of the 
     applicability of a policy, procedure, requirement, or 
     restriction provided in that law to the procurement of 
     property or services by an executive agency, as determined by 
     the Federal Acquisition Regulatory Council.
       ``(d) Excluded Thresholds.--Subsection (a) does not apply 
     to--
       ``(1) dollar thresholds in sections 3141 through 3144, 
     3146, and 3147 of title 40, United States Code;
       ``(2) dollar thresholds in the Service Contract Act of 1965 
     (41 U.S.C. 351, et seq.); or
       ``(3) dollar thresholds established by the United States 
     Trade Representative pursuant to title III of the Trade 
     Agreements Act of 1979 (19 U.S.C. 2511 et seq.).
       ``(e) Calculation of Adjustments.--An adjustment under this 
     section shall--
       ``(1) be calculated on the basis of changes in the Consumer 
     Price Index for all-urban consumers published monthly by the 
     Department of Labor; and
       ``(2) be rounded--
       ``(A) in the case of a dollar threshold that (as in effect 
     on the day before the adjustment) is less than $10,000, to 
     the nearest $500;
       ``(B) in the case of a dollar threshold that (as in effect 
     on the day before the adjustment) is not less than $10,000, 
     but is less than $100,000, to the nearest $5,000;
       ``(C) in the case of a dollar threshold that (as in effect 
     on the day before the adjustment) is not less than $100,000, 
     but is less than $1,000,000, to the nearest $50,000; and
       ``(D) in the case of a dollar threshold that (as in effect 
     on the day before the adjustment) is $1,000,000 or more, to 
     the nearest $500,000.
       ``(f) Petition for Inclusion of Omitted Threshold.--(1) If 
     a dollar threshold adjustable under this section is not 
     included in a notice of adjustment published under subsection 
     (b), any person may request adjustment of that dollar 
     threshold by submitting a petition for adjustment to the 
     Administrator for Federal Procurement Policy.
       ``(2) Upon receipt of a petition for adjustment of a dollar 
     threshold under paragraph (1), the Administrator shall--
       ``(A) determine, in writing, whether that dollar threshold 
     is required to be adjusted under this section; and
       ``(B) if so, shall publish in the Federal Register a 
     revised notice of the adjusted dollar thresholds under this 
     section that includes the adjustment of the dollar threshold 
     covered by the petition.
       ``(3) The adjustment of a dollar threshold pursuant to a 
     petition under this subsection shall take effect on the date 
     of the publication of the revised notice adding the 
     adjustment of that dollar threshold under paragraph 
     (2)(B).''.
       (2) The table of contents in section 1(b) of such Act is 
     amended by inserting after the item relating to section 35 
     the following new item:

``Sec. 35A. Inflation adjustment of acquisition-related dollar 
              thresholds.''.

       (b) Definition of Federal Acquisition Regulatory Council.--
     Section 4 of such Act is amended by adding at the end the 
     following new paragraph:
       ``(17) The term `Federal Acquisition Regulatory Council' 
     means the Federal Acquisition Regulatory Council established 
     under section 25.''.
       (c) Relationship to Other Inflation Adjustment 
     Authorities.--(1) Section 35A of the Office of Federal 
     Procurement Policy Act, as added by subsection (a), 
     supersedes the applicability of any other provision of law 
     that provides for the adjustment of a dollar threshold that 
     is adjustable under such section.
       (2) After the date of the enactment of this Act, a dollar 
     threshold adjustable under section 35A of the Office of 
     Federal Procurement Policy Act, as added by subsection (a), 
     shall be adjusted only as provided under that section.

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

     SEC. 811. RAPID ACQUISITION AUTHORITY TO RESPOND TO COMBAT 
                   EMERGENCIES.

       Section 806 of the Bob Stump National Defense Authorization 
     Act for Fiscal Year 2003 (10 U.S.C. 2302 note) is amended--
       (1) by redesignating subsections (c) and (d) as subsections 
     (e) and (f), respectively; and
       (2) by inserting after subsection (b) the following new 
     subsections (c) and (d):
       ``(c) Response to Combat Emergencies.--(1) In the case of 
     any equipment that, as determined in writing by the Secretary 
     of Defense without delegation, is urgently needed to 
     eliminate a combat capability deficiency that has resulted in 
     combat fatalities, the Secretary shall use the procedures 
     developed under this section in order to accomplish the rapid 
     acquisition and deployment of the needed equipment.
       ``(2)(A) Whenever the Secretary makes a determination under 
     paragraph (1) that certain equipment is urgently needed to 
     eliminate a combat capability deficiency that has resulted in 
     combat fatalities, the Secretary shall designate a senior 
     official of the Department of Defense to ensure that the 
     needed equipment is acquired and deployed as quickly as 
     possible, with a goal of awarding a contract for the 
     acquisition of the equipment within 15 days.
       ``(B) Upon designation of a senior official under 
     subparagraph (A), the Secretary shall authorize that official 
     to waive any provision of law, policy, directive, or 
     regulation described in subsection (d) that such official 
     determines in writing would unnecessarily impede the rapid 
     acquisition and deployment of the needed equipment. In a case 
     in which the needed equipment cannot be acquired without an 
     extensive delay, the senior official shall require that an 
     interim solution be implemented and deployed using the 
     procedures developed under this section to minimize the 
     combat capability deficiency and combat fatalities.
       ``(3) The authority of this section may not be used to 
     acquire equipment in an amount aggregating more than 
     $100,000,000 during any fiscal year. For acquisitions of 
     equipment under this section during the fiscal year in which 
     the Secretary makes the determination described in paragraph 
     (1) with respect to such equipment, the Secretary may use any 
     funds available to the Department of Defense for that fiscal 
     year.
       ``(4) The Secretary of Defense shall notify the 
     congressional defense committees within 15 days after each 
     determination made under paragraph (1). Each such notice 
     shall identify--
       ``(A) the equipment to be acquired;
       ``(B) the amount anticipated to be expended for the 
     acquisition; and
       ``(C) the source of funds for the acquisition.
       ``(5) Any acquisition initiated under this subsection shall 
     transition to the normal acquisition system not later than 
     two years after the date on which the Secretary makes the 
     determination described in paragraph (1) with respect to that 
     equipment.
       ``(d) Waiver of Certain Statues and Regulations.--(1) Upon 
     a determination described in subsection (c)(1), the senior 
     official designated in accordance with subsection (c)(2) with 
     respect to that designation is authorized to waive any 
     provision of law, policy, directive or regulation 
     addressing--
       ``(A) the establishment of the requirement for the 
     equipment;
       ``(B) the research, development, test, and evaluation of 
     the equipment; or
       ``(C) the solicitation and selection of sources, and the 
     award of the contract, for procurement of the equipment.
       ``(2) Nothing in this subsection authorizes the waiver of--
       ``(A) the requirements of this section or the regulations 
     implementing this section; or
       ``(B) any provision of law imposing civil or criminal 
     penalties.''.

     SEC. 812. DEFENSE ACQUISITION WORKFORCE IMPROVEMENTS.

       (a) Selection Criteria for Acquisition Corps and for 
     Critical Acquisition Positions.--(1) Section 1732(b) of title 
     10, United States Code, is amended by striking paragraph (1) 
     and redesignating paragraphs (2), (3), and (4) as paragraphs 
     (1), (2), and (3), respectively.
       (2) Section 1733(b)(1) of title 10, United States Code, is 
     amended in subparagraph (A) by striking ``in a position 
     within grade GS-14 or above of the General Schedule,'' and 
     inserting ``in a senior position in the National Security 
     Personnel System, as determined in accordance with guidelines 
     prescribed by the Secretary,''.
       (b) Scholarship Program Requirements.--Section 1742 of such 
     title is amended--
       (1) by inserting ``(a) Programs.--'' at the beginning of 
     the text; and
       (2) by adding at the end the following new subsection:
       ``(b) Scholarship Program Requirements.--Each recipient of 
     a scholarship under a program conducted under subsection 
     (a)(3) shall be required to sign a written agreement that 
     sets forth the terms and conditions of the scholarship. The 
     agreement shall be in a form prescribed by the Secretary and 
     shall include terms and conditions, including terms and 
     conditions addressing reimbursement in the event that a 
     recipient fails to fulfill the requirements of the agreement, 
     that are comparable to those set forth as a condition for 
     providing advanced education assistance under section 2005. 
     The obligation to reimburse the United States under an 
     agreement under this subsection is, for all purposes, a debt 
     owing the United States.''.
       (c) Authority to Establish Minimum Requirements.--(1) 
     Section 1764(b) of such title is amended--
       (A) by redesignating paragraph (5) as paragraph (6); and
       (B) by inserting after paragraph (4) the following new 
     paragraph (5):
       ``(5) Deputy program manager.''.
       (2) Paragraph (1) of such section is amended by striking 
     ``in paragraph (5)'' and inserting ``in paragraph (6)''.

     SEC. 813. PERIOD FOR MULTIYEAR TASK AND DELIVERY ORDER 
                   CONTRACTS.

       (a) Revised Maximum Period.--Section 2304a(f) of title 10, 
     United States Code, is amended by striking ``a total period 
     of not more

[[Page H9245]]

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

     SEC. 814. FUNDING FOR CONTRACT CEILINGS FOR CERTAIN MULTIYEAR 
                   PROCUREMENT CONTRACTS.

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

     SEC. 815. INCREASED THRESHOLD FOR SENIOR PROCUREMENT 
                   EXECUTIVE APPROVAL OF USE OF PROCEDURES OTHER 
                   THAN COMPETITIVE PROCEDURES.

       Section 2304(f)(1)(B) of title 10, United States Code, is 
     amended by striking ``$50,000,000'' both places it appears 
     and inserting ``$75,000,000''.

     SEC. 816. INCREASED THRESHOLD FOR APPLICABILITY OF 
                   REQUIREMENT FOR DEFENSE CONTRACTORS TO PROVIDE 
                   INFORMATION ON SUBCONTRACTING AUTHORITY OF 
                   CONTRACTOR PERSONNEL TO COOPERATIVE AGREEMENT 
                   HOLDERS.

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

     SEC. 817. EXTENSION OF AUTHORITY FOR USE OF SIMPLIFIED 
                   ACQUISITION PROCEDURES.

       Section 4202(e) of the Clinger-Cohen Act (division D of 
     Public Law 104-106; 110 Stat. 652; 10 U.S.C. 2304 note) is 
     amended by striking ``January 1, 2006'' and inserting 
     ``January 1, 2008''.

     SEC. 818. SUBMISSION OF COST OR PRICING DATA ON NONCOMMERCIAL 
                   MODIFICATIONS OF COMMERCIAL ITEMS.

       (a) Inapplicability of Commercial Items Exception to 
     Noncommercial Modifications of Commercial Items.--Subsection 
     (b) of section 2306a of title 10, United States Code, is 
     amended by adding at the end the following new paragraph:
       ``(3) Noncommercial modifications of commercial items.--(A) 
     The exception in paragraph (1)(B) does not apply to cost or 
     pricing data on noncommercial modifications of a commercial 
     item that are expected to cost, in the aggregate, more than 
     $500,000 or 5 percent of the total price of the contract, 
     whichever is greater.
       ``(B) In this paragraph, the term `noncommercial 
     modification', with respect to a commercial item, means a 
     modification of such item that is not a modification 
     described in section 4(12)(C)(i) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 403(12)(C)(i)).
       ``(C) Nothing in subparagraph (A) shall be construed--
       ``(i) to limit the applicability of the exception in 
     subparagraph (A) or (C) of paragraph (1) to cost or pricing 
     data on a noncommercial modification of a commercial item; or
       ``(ii) to require the submission of cost or pricing data on 
     any aspect of an acquisition of a commercial item other than 
     the cost and pricing of noncommercial modifications of such 
     item.''.
       (b) Effective Date and Applicability.--Paragraph (3) of 
     section 2306a of title 10, United States Code (as added by 
     subsection (a)), shall take effect on June 1, 2005, and shall 
     apply with respect to offers submitted, and to modifications 
     of contracts or subcontracts made, on or after that date.

     SEC. 819. DELEGATIONS OF AUTHORITY TO MAKE DETERMINATIONS 
                   RELATING TO PAYMENT OF DEFENSE CONTRACTORS FOR 
                   BUSINESS RESTRUCTURING COSTS.

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

     SEC. 820. AVAILABILITY OF FEDERAL SUPPLY SCHEDULE SUPPLIES 
                   AND SERVICES TO UNITED SERVICE ORGANIZATIONS, 
                   INCORPORATED.

       Section 220107 of title 36, United States Code, is amended 
     by inserting after ``Department of Defense'' the following: 
     ``, including access to General Services Administration 
     supplies and services through the Federal Supply Schedule of 
     the General Services Administration,''.

     SEC. 821. ADDITION OF LANDSCAPING AND PEST CONTROL SERVICES 
                   TO LIST OF DESIGNATED INDUSTRY GROUPS 
                   PARTICIPATING IN THE SMALL BUSINESS 
                   COMPETITIVENESS DEMONSTRATION PROGRAM.

       (a) In General.--Subsection (a) of section 717 of the Small 
     Business Competitiveness Demonstration Program Act of 1988 
     (15 U.S.C. 644 note) is amended--
       (1) in paragraph (3), by striking ``and'' at the end;
       (2) in paragraph (4), by striking the period at the end and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(5) landscaping and pest control services.''.
       (b) Landscaping and Pest Control Services.--Section 717 of 
     the Small Business Competitiveness Demonstration Program Act 
     of 1988 (15 U.S.C. 644 note) is amended--
       (1) by redesignating subsection (e) as subsection (f), and
       (2) by inserting after subsection (d) the following new 
     subsection:
       ``(e) Landscaping and Pest Control Services.--Landscaping 
     and pest control services shall include contract awards 
     assigned to North American Industrial Classification Code 
     561710 (relating to exterminating and pest control services) 
     or 561730 (relating to landscaping services).''.

     SEC. 822. INCREASED THRESHOLDS UNDER SPECIAL EMERGENCY 
                   PROCUREMENT AUTHORITY.

       Section 32A(b) of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 428a(b)) is amended--
       (1) by striking paragraph (1) and inserting the following:
       ``(1) the amount specified in subsections (c), (d), and (f) 
     of section 32 shall be deemed to be--
       ``(A) $15,000 in the case of any contract to be awarded and 
     performed, or purchase to be made, inside the United States; 
     and
       ``(B) $25,000 in the case of any contract to be awarded and 
     performed, or purchase to be made, outside the United States; 
     and''; and
       (2) in paragraph (2)(B), by striking ``$500,000'' and 
     inserting ``$1,000,000''.

      Subtitle C--United States Defense Industrial Base Provisions

     SEC. 831. DEFENSE TRADE RECIPROCITY.

       (a) Policy.--It is the policy of Congress that procurement 
     regulations used in the conduct of trade in defense articles 
     and defense services should be based on the principle of fair 
     trade and reciprocity consistent with United States national 
     security, including the need to ensure comprehensive 
     manufacturing capability in the United States defense 
     industrial base.
       (b) Requirement.--The Secretary of Defense shall make every 
     effort to ensure that the policies and practices of the 
     Department of Defense reflect the goal of establishing an 
     equitable trading relationship between the United States and 
     its foreign defense trade partners, including ensuring that 
     United States firms and United States employment in the 
     defense sector are not disadvantaged by unilateral 
     procurement practices by foreign governments, such as the 
     imposition of offset agreements in a manner that undermines 
     the United States defense industrial base. In pursuing this 
     goal, the Secretary shall--
       (1) develop a comprehensive defense acquisition trade 
     policy that provides the necessary guidance and incentives 
     for the elimination of any adverse effects of offset 
     agreements in defense trade; and
       (2) review and make necessary modifications to existing 
     acquisition policies and strategies,

[[Page H9246]]

     and review and seek to make necessary modifications to 
     existing memoranda of understanding, cooperative project 
     agreements, or related agreements with foreign defense trade 
     partners, to reflect this goal.
       (c) Regulations.--The Secretary shall prescribe regulations 
     to implement this section in the Department of Defense 
     supplement to the Federal Acquisition Regulation.
       (d) Definitions.--In this section:
       (1) The term ``foreign defense trade partner'' means a 
     foreign country with respect to which there is--
       (A) a memorandum of understanding or related agreement 
     described in section 2531(a) of title 10, United States Code; 
     or
       (B) a cooperative project agreement described in section 27 
     of the Arms Export Control Act (22 U.S.C. 2767).
       (2) The term ``offset agreement'' has the meaning provided 
     that term by section 36(e) of the Arms Export Control Act (22 
     U.S.C. 2776(e)).
       (3) The terms ``defense article'' and ``defense service'' 
     have the meanings provided those terms by section 47(7) of 
     the Arms Export Control Act (22 U.S.C. 2794(7)).

     SEC. 832. ASSESSMENT AND REPORT ON THE ACQUISITION OF 
                   POLYACRYLONITRILE (PAN) CARBON FIBER FROM 
                   FOREIGN SOURCES.

       (a) Requirement.--The Secretary of Defense shall delay the 
     phase-out of the restriction on acquisition of 
     polyacrylonitrile (PAN) carbon fiber from foreign sources 
     (described in subpart 225.7103 of the Department of Defense 
     supplement to the Federal Acquisition Regulation) until an 
     assessment of PAN carbon fiber industry is completed and 30 
     days have passed after submission of the report required 
     under subsection (c).
       (b) Assessment.--The Secretary of Defense shall perform a 
     assessment of the domestic and international industrial 
     structure that produces PAN carbon fibers, current and 
     anticipated market trends for the product, and how the trends 
     compare to the assessment as reported by the Secretary of 
     Defense in January 2001.
       (c) Report required.--Not later than one year after the 
     date of the enactment of this Act, the Secretary of Defense 
     shall submit to the Committees on Armed Services of the 
     Senate and the House of Representatives a report on the 
     assessment performed under subsection (b) and on any decision 
     made to maintain or discontinue the phase-out of procurement 
     restrictions on foreign acquisition of PAN carbon fibers in 
     the Department of Defense supplement to the Federal 
     Acquisition Regulation.

        Subtitle D--Extensions of Temporary Program Authorities

     SEC. 841. EXTENSION OF MENTOR-PROTEGE PROGRAM.

       (a) Extension of Program.--Subsection (j) of section 831 of 
     the National Defense Authorization Act for Fiscal Year 1991 
     (Public Law 101-510; 10 U.S.C. 2302 note) is amended--
       (1) in paragraph (1), by striking ``September 30, 2005'' 
     and inserting ``September 30, 2010''; and
       (2) in paragraph (2), by striking ``September 30, 2008'' 
     and inserting ``September 30, 2013''.
       (b) Extension of Requirement for Annual Report.--Subsection 
     (l)(3) of such section is amended by striking ``2007'' and 
     inserting ``2010''.
       (c) Additional Feasibility Review of Transition to Other 
     Financing Methods.--(1) The Secretary of Defense shall 
     conduct an additional review of the Mentor-Protege Program 
     under section 811(d)(2) of the National Defense Authorization 
     Act for Fiscal Year 2000 (Public Law 106-65; 113 Stat. 708).
       (2) Not later than September 30, 2005, the Secretary shall 
     submit to the Committees on Armed Services of the Senate and 
     the House of Representatives--
       (A) a report on the results of the review conducted under 
     paragraph (1); and
       (B) any recommendations of the Secretary for legislative 
     action.
       (d) Additional Study of Program Implementation.--(1) The 
     Comptroller General shall conduct an additional study of the 
     Mentor-Protege Program under section 811(d)(3) of the 
     National Defense Authorization Act for Fiscal Year 2000 
     (Public Law 106-65; 113 Stat. 709).
       (2) Not later than September 30, 2006, the Comptroller 
     General shall submit a report on the results of the study 
     conducted under paragraph (1) to the Committees on Armed 
     Services of the Senate and the House of Representatives.

     SEC. 842. AMENDMENT TO MENTOR-PROTEGE PROGRAM.

       Section 831(m)(2) of the National Defense Authorization Act 
     for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2302 
     note) is amended--
       (1) in subparagraph (D), by striking ``or'' at the end;
       (2) in subparagraph (E), by striking the period at the end 
     and inserting a semicolon; and
       (3) by adding at the end the following:
       ``(F) a small business concern owned and controlled by 
     service-disabled veterans (as defined in section 8(d)(3) of 
     the Small Business Act); and
       ``(G) a qualified HUBZone small business concern (as 
     defined in section 3(p) of the Small Business Act).''.

     SEC. 843. EXTENSION OF TEST PROGRAM FOR NEGOTIATION OF 
                   COMPREHENSIVE SMALL BUSINESS SUBCONTRACTING 
                   PLANS.

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

     SEC. 844. EXTENSION OF PILOT PROGRAM ON SALES OF MANUFACTURED 
                   ARTICLES AND SERVICES OF CERTAIN ARMY 
                   INDUSTRIAL FACILITIES.

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

                 Subtitle E--Other Acquisition Matters

     SEC. 851. REVIEW AND DEMONSTRATION PROJECT RELATING TO 
                   CONTRACTOR EMPLOYEES.

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

     SEC. 852. INAPPLICABILITY OF CERTAIN FISCAL LAWS TO 
                   SETTLEMENTS UNDER SPECIAL TEMPORARY CONTRACT 
                   CLOSEOUT AUTHORITY.

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

[[Page H9247]]

     SEC. 853. CONTRACTING WITH EMPLOYERS OF PERSONS WITH 
                   DISABILITIES.

       (a) Inapplicability of Randolph-Sheppard Act to Mess Hall 
     Services Under Existing Javits-Wagner-O'Day Act Contracts.--
     (1) The Randolph-Sheppard Act (20 U.S.C. 107 et seq.) does 
     not apply to any contract described in paragraph (2) for so 
     long as the contract is in effect, including for any period 
     for which the contract is extended pursuant to an option 
     provided in the contract.
       (2) Paragraph (1) applies to any contract for the operation 
     of all or any part of a military mess hall, military troop 
     dining facility, or any similar dining facility operated for 
     the purpose of providing meals to members of the Armed Forces 
     that--
       (A) was entered into before September 30, 2005, with a 
     qualified nonprofit agency for the blind or a qualified 
     nonprofit agency for other severely handicapped in compliance 
     with section 3 of the Javits-Wagner-O'Day Act (41 U.S.C. 48); 
     and
       (B) either--
       (i) is in effect on such date; or
       (ii) was in effect on November 24, 2003.
       (b) Inapplicability of Javits-Wagner-O'Day Act to Mess Hall 
     Services Under Existing Randolph-Sheppard Act Contracts.--(1) 
     The Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.) does not 
     apply to any contract described in paragraph (2) for so long 
     as the contract is in effect, including for any period for 
     which the contract is extended pursuant to an option provided 
     in the contract.
       (2) Paragraph (1) applies to any contract for the operation 
     of all or any part of a military mess hall, military troop 
     dining facility, or any similar dining facility operated for 
     the purpose of providing meals to members of the Armed Forces 
     that--
       (A) was entered into before September 30, 2005, with a 
     State licensing agency under the Randolph-Sheppard Act (20 
     U.S.C. 107 et seq.); and
       (B) either--
       (i) is in effect on such date; or
       (ii) was in effect on November 24, 2003.
       (3) In this subsection, the term ``State licensing agency'' 
     means an agency designated under section 2(a)(5) of the 
     Randolph-Sheppard Act (20 U.S.C. 107a(a)(5)).
       (c) Repeal of Superseded Law.--Subsections (a) and (b) of 
     section 852 of the National Defense Authorization Act for 
     Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1556) are 
     repealed.

     SEC. 854. DEFENSE PROCUREMENTS MADE THROUGH CONTRACTS OF 
                   OTHER AGENCIES.

       (a) Limitation.--The head of an agency may not procure 
     goods or services (under section 1535 of title 31, United 
     States Code, pursuant to a designation under section 11302(e) 
     of title 40, United States Code, or otherwise) through a 
     contract entered into by an agency outside the Department of 
     Defense for an amount greater than the simplified acquisition 
     threshold referred to in section 2304(g) of title 10, United 
     States Code, unless the procurement is done in accordance 
     with procedures prescribed by that head of an agency for 
     reviewing and approving the use of such contracts.
       (b) Effective Date.--The limitation in subsection (a) shall 
     apply only with respect to orders for goods or services that 
     are issued by the head of an agency to an agency outside the 
     Department of Defense on or after the date that is 180 days 
     after the date of the enactment of this Act.
       (c) Inapplicability to Contracts for Certain Services.--
     This section does not apply to procurements of the following 
     services:
       (1) Printing, binding, or blank-book work to which section 
     502 of title 44, United States Code, applies.
       (2) Services available under programs pursuant to section 
     103 of the Library of Congress Fiscal Operations Improvement 
     Act of 2000 (Public Law 106-481; 114 Stat. 2187; 2 U.S.C. 
     182c).
       (d) Annual Report.--(1) For each of fiscal years 2005 and 
     2006, each head of an agency shall submit to the Secretary of 
     Defense a report on the service charges imposed on purchases 
     made for an amount greater than the simplified acquisition 
     threshold during such fiscal year through a contract entered 
     into by an agency outside the Department of Defense.
       (2) In the case of procurements made on orders issued by 
     the head of a Defense Agency, Department of Defense Field 
     Activity, or any other organization within the Department of 
     Defense (other than a military department) under the 
     authority of the Secretary of Defense as the head of an 
     agency, the report under paragraph (1) shall be submitted by 
     the head of that Defense Agency, Department of Defense Field 
     Activity, or other organization, respectively.
       (3) The report for a fiscal year under this subsection 
     shall be submitted not later than December 31 of the calendar 
     year in which such fiscal year ends.
       (e) Definitions.--In this section:
       (1) The term ``head of an agency'' means the Secretary of 
     Defense, the Secretary of the Army, the Secretary of the 
     Navy, the Secretary of the Air Force.
       (2) The term ``Defense Agency'' has the meaning given such 
     term in section 101(a)(11) of title 10, United States Code.
       (3) The term ``Department of Defense Field Activity'' has 
     the meaning given such term in section 101(a)(12) of such 
     title.

     SEC. 855. REQUIREMENTS RELATING TO SOURCE SELECTION FOR 
                   INTEGRATED SUPPORT OF AERIAL REFUELING AIRCRAFT 
                   FLEET FOR THE AIR FORCE.

       For the selection of a provider of integrated support for 
     the aerial refueling aircraft fleet in any acquisition of 
     aerial refueling aircraft for the Air Force, the Secretary of 
     the Air Force shall--
       (1) before selecting the provider, perform all analyses 
     required by law of--
       (A) the costs and benefits of--
       (i) the alternative of using Federal Government personnel 
     to provide such support; and
       (ii) the alternative of using contractor personnel to 
     provide such support;
       (B) the core logistics requirements;
       (C) use of performance-based logistics; and
       (D) the length of contract period; and
       (2) select the provider in accordance with the procedures 
     under the provisions of law referred to as the Competition in 
     Contracting Act.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

       Subtitle A--Duties and Functions of Department of Defense

Sec. 901. Study of roles and authorities of the Director of Defense 
              Research and Engineering.
Sec. 902. Change of membership of specified council.

                      Subtitle B--Space Activities

Sec. 911. Space posture review.
Sec. 912. Panel on the future of national security space launch.
Sec. 913. Operationally responsive national security satellites.
Sec. 914. Nondisclosure of certain products of commercial satellite 
              operations.

                Subtitle C--Intelligence-Related Matters

Sec. 921. Two-year extension of authority of the Secretary of Defense 
              to engage in commercial activities as security for 
              intelligence collection activities abroad.
Sec. 922. Pilot program on cryptologic service training.

                       Subtitle D--Other Matters

Sec. 931. Strategic plan for destruction of lethal chemical agents and 
              munitions stockpile.
Sec. 932. Secretary of Defense criteria for and guidance on 
              identification and internal transmission of critical 
              information.

       Subtitle A--Duties and Functions of Department of Defense

     SEC. 901. STUDY OF ROLES AND AUTHORITIES OF THE DIRECTOR OF 
                   DEFENSE RESEARCH AND ENGINEERING.

       (a) Study Required.--The Secretary of Defense shall carry 
     out a study of the roles and authorities of the Director of 
     Defense Research and Engineering.
       (b) Content of Study.--The study under subsection (a) shall 
     include the following:
       (1) An examination of the past and current roles and 
     authorities of the Director of Defense Research and 
     Engineering.
       (2) An analysis to determine appropriate future roles and 
     authorities for the Director, including an analysis of the 
     following matters:
       (A) The relationship of the Director to other senior 
     science and technology and acquisition officials of the 
     military departments and the Defense Agencies
       (B) The relationship of the Director to the performance of 
     the following functions:
       (i) The planning, programming, and budgeting of the science 
     and technology programs of the Department of Defense, 
     including those of the military departments and the Defense 
     Agencies.
       (ii) The management of Department of Defense laboratories 
     and technical centers, including the management of the 
     Federal Government scientific and technical workforce for 
     such laboratories and centers.
       (iii) The promotion of the rapid transition of technologies 
     to acquisition programs within the Department of Defense.
       (iv) The promotion of the transfer of technologies into and 
     from the commercial sector.
       (v) The coordination of Department of Defense science and 
     technology activities with organizations outside the 
     Department of Defense, including other Federal Government 
     agencies, international research organizations, industry, and 
     academia.
       (vi) The technical review of Department of Defense 
     acquisition programs and policies.
       (vii) The training and educational activities for the 
     national scientific and technical workforce.
       (viii) The development of science and technology policies 
     and programs relating to the maintenance of the national 
     technology and industrial base.
       (ix) The development of new technologies in support of the 
     transformation of the Armed Forces.
       (3) An examination of the duties of the Director as the 
     Chief Technology Officer of the Department of Defense as 
     prescribed by Department of Defense Directive 5134.3, dated 
     November 3, 2003, especially in comparison to the duties of 
     similar positions in the Federal Government and industry.
       (4) An examination of any other matter that the Secretary 
     considers appropriate for the study.
       (c) Report.--(1) Not later than February 1, 2006, the 
     Secretary shall submit to the Committee on Armed Services of 
     the Senate and the Committee on Armed Services of the House 
     of Representatives a report on the results of the study under 
     this section.
       (2) The report shall include recommendations regarding the 
     appropriate roles and authorities that should be assigned and 
     resources that should be provided to the Director of Defense 
     Research and Engineering.
       (d) Role of Defense Science Board in Study and Report.--The 
     Secretary shall act through the Defense Science Board in 
     carrying out the study under subsection (a) and in preparing 
     the report under subsection (c).

[[Page H9248]]

     SEC. 902. CHANGE OF MEMBERSHIP OF SPECIFIED COUNCIL.

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

                      Subtitle B--Space Activities

     SEC. 911. SPACE POSTURE REVIEW.

       (a) Requirement for Comprehensive Review.--In order to 
     clarify the national security space policy and strategy of 
     the United States for the near term, the Secretary of Defense 
     shall conduct a comprehensive review of the space posture of 
     the United States over the posture review period.
       (b) Elements of Review.--The review conducted under 
     subsection (a) shall include, for the posture review period, 
     the following:
       (1) The definition, policy, requirements, and objectives 
     for each of the following:
       (A) Space situational awareness.
       (B) Space control.
       (C) Space superiority, including defensive and offensive 
     counterspace.
       (D) Force enhancement and force application.
       (E) Space-based intelligence, surveillance, and 
     reconnaissance from space.
       (F) Any other matter the Secretary considers relevant to 
     understanding the United States space posture.
       (2) Current and planned space acquisition programs that are 
     in acquisition categories 1 and 2, including how each such 
     program will address the policy, requirements, and objectives 
     described under each of subparagraphs (A) through (F) of 
     paragraph (1).
       (3) Future space systems and technology development (other 
     than those in development as of the date of the enactment of 
     this Act) necessary to address the policy, requirements, and 
     objectives described under each of subparagraphs (A) through 
     (F) of paragraph (1).
       (4) The relationship among--
       (A) United States military space policy;
       (B) national security space policy;
       (C) national security space objectives; and
       (D) arms control policy.
       (5) Effect of United States military and national security 
     space policy on the proliferation of weapons capable of 
     targeting objects in space or objects on Earth from space.
       (c) Reports.--(1) Not later than March 15, 2005, the 
     Secretary of Defense shall submit to the congressional 
     committees specified in paragraph (4) an interim report on 
     the review conducted under subsection (a).
       (2) Not later than December 31, 2005, the Secretary shall 
     submit to those committees a final report on that review.
       (3) Each report under this subsection shall be submitted in 
     unclassified form, but may include a classified annex.
       (4) The reports under this subsection shall be submitted to 
     the Committee on Armed Services and the Select Committee on 
     Intelligence of the Senate and the Committee on Armed 
     Services and the Permanent Select Committee on Intelligence 
     of the House of Representatives.
       (d) Joint Undertaking With the Director of Central 
     Intelligence (or Successor).--The Secretary of Defense shall 
     conduct the review under this section, and shall submit the 
     reports under subsection (c), jointly with the Director of 
     Central Intelligence (or any successor official who has 
     responsibility for management of the intelligence community).
       (e) Posture Review Period.--In this section, the term 
     ``posture review period'' means the 10-year period beginning 
     on the first day of the first month beginning more than one 
     year after the date of the enactment of this Act.

     SEC. 912. PANEL ON THE FUTURE OF NATIONAL SECURITY SPACE 
                   LAUNCH.

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

     SEC. 913. OPERATIONALLY RESPONSIVE NATIONAL SECURITY 
                   SATELLITES.

       (a) Planning, Programming, and Management.--(1) Chapter 135 
     of title 10, United States Code, is amended by inserting 
     after section 2273 the following new section:

     ``Sec. 2273a. Operationally responsive national security 
       payloads and buses: separate program element required

       ``(a) Requirement for Program Element.--The Secretary of 
     Defense shall ensure that, within budget program elements for 
     space programs of the Department of Defense, there is a 
     separate, dedicated program element for operationally 
     responsive national security payloads and buses of the 
     Department of Defense for space satellites and that programs 
     and activities for such payloads and buses are planned, 
     programmed, and budgeted for through that program element.
       ``(b) Management Authority.--The Secretary of Defense shall 
     assign management authority for the program element required 
     under subsection (a) to the Director of the Office of Force 
     Transformation of the Department of Defense.
       ``(c) Definition of Operationally Responsive.--In this 
     section, the term `operationally responsive', with respect to 
     a national security payload and bus for a space satellite, 
     means an experimental or operational payload and bus with a 
     weight not in excess of 5,000 pounds that--

[[Page H9249]]

       ``(1) can be developed and acquired within 18 months after 
     authority to proceed with development is granted; and
       ``(2) is responsive to requirements for capabilities at the 
     operational and tactical levels of warfare.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2273 the following new item:

``2273a. Operationally responsive national security payloads and buses: 
              separate program element required.''.
       (b) Time for Implementation.--Subsection (a) of section 
     2273a of title 10, United States Code, as added by subsection 
     (a), shall apply with respect to fiscal years after fiscal 
     year 2005.

     SEC. 914. NONDISCLOSURE OF CERTAIN PRODUCTS OF COMMERCIAL 
                   SATELLITE OPERATIONS.

       (a) Mandatory Disclosure Requirements Inapplicable.--The 
     requirements to make information available under section 552 
     of title 5, United States Code, shall not apply to land 
     remote sensing information.
       (b) Land Remote Sensing Information Defined.--In this 
     section, the term ``land remote sensing information''--
       (1) means any data that--
       (A) are collected by land remote sensing; and
       (B) are prohibited from sale to customers other than the 
     United States Government and United States Government-
     approved customers for reasons of national security pursuant 
     to the terms of an operating license issued pursuant to the 
     Land Remote Sensing Policy Act of 1992 (15 U.S.C. 5601 et 
     seq.); and
       (2) includes any imagery and other product that is derived 
     from such data and which is prohibited from sale to customers 
     other than the United States Government and United States 
     Government-approved customers for reasons of national 
     security pursuant to the terms of an operating license 
     described in paragraph (1)(B).
       (c) State or Local Government Disclosures.--Land remote 
     sensing information provided by the head of a department or 
     agency of the United States to a State, local, or tribal 
     government may not be made available to the general public 
     under any State, local, or tribal law relating to the 
     disclosure of information or records.
       (d) Safeguarding Information.--The head of each department 
     or agency of the United States having land remote sensing 
     information within that department or agency or providing 
     such information to a State, local, or tribal government 
     shall take such actions, commensurate with the sensitivity of 
     that information, as are necessary to protect that 
     information from disclosure other than in accordance with 
     this section and other applicable law.
       (e) Additional Definition.--In this section, the term 
     ``land remote sensing'' has the meaning given such term in 
     section 3 of the Land Remote Sensing Policy Act of 1992 (15 
     U.S.C. 5602).
       (f) Disclosure to Congress.--Nothing in this section shall 
     be construed to authorize the withholding of information from 
     the appropriate committees of Congress.

                Subtitle C--Intelligence-Related Matters

     SEC. 921. TWO-YEAR EXTENSION OF AUTHORITY OF THE SECRETARY OF 
                   DEFENSE TO ENGAGE IN COMMERCIAL ACTIVITIES AS 
                   SECURITY FOR INTELLIGENCE COLLECTION ACTIVITIES 
                   ABROAD.

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

     SEC. 922. PILOT PROGRAM ON CRYPTOLOGIC SERVICE TRAINING.

       (a) Program Authorized.--The Director of the National 
     Security Agency may carry out a pilot program on cryptologic 
     service training for the intelligence community.
       (b) Objective of Program.--The objective of the pilot 
     program is to increase the number of qualified entry-level 
     language analysts and intelligence analysts available to the 
     National Security Agency and the other elements of the 
     intelligence community through the directed preparation and 
     recruitment of qualified entry-level language analysts and 
     intelligence analysts who commit to a period of service or a 
     career in the intelligence community.
       (c) Program Scope.--The pilot program shall be national in 
     scope.
       (d) Program Participants.--(1) Subject to the provisions of 
     this subsection, the Director shall select the participants 
     in the pilot program from among individuals qualified to 
     participate in the pilot program utilizing such procedures as 
     the Director considers appropriate for purposes of the pilot 
     program.
       (2) Each individual who receives financial assistance under 
     the pilot program shall perform one year of obligated service 
     with the National Security Agency, or another element of the 
     intelligence community approved by the Director, for each 
     academic year for which such individual receives such 
     financial assistance upon such individual's completion of 
     post-secondary education.
       (3) Each individual selected to participate in the pilot 
     program shall be qualified for a security clearance 
     appropriate for the individual under the pilot program.
       (4) The total number of participants in the pilot program 
     at any one time may not exceed 400 individuals.
       (e) Program Management.--In carrying out the pilot program, 
     the Director shall--
       (1) identify individuals interested in working in the 
     intelligence community, and committed to taking college-level 
     courses that will better prepare them for a career in the 
     intelligence community as a language analyst or intelligence 
     analyst;
       (2) provide each individual selected for participation in 
     the pilot program--
       (A) financial assistance for the pursuit of courses at 
     institutions of higher education selected by the Director in 
     fields of study that will qualify such individual for 
     employment by an element of the intelligence community as a 
     language analyst or intelligence analyst; and
       (B) educational counseling on the selection of courses to 
     be so pursued; and
       (3) provide each individual so selected information on the 
     opportunities available for employment in the intelligence 
     community.
       (f) Duration of Program.--(1) The Director shall terminate 
     the pilot program not later than six years after the date of 
     the enactment of this Act.
       (2) The termination of the pilot program under paragraph 
     (1) shall not prevent the Director from continuing to provide 
     assistance, counseling, and information under subsection (e) 
     to individuals who are participating in the pilot program on 
     the date of termination of the pilot program throughout the 
     academic year in progress as of that date.

                       Subtitle D--Other Matters

     SEC. 931. STRATEGIC PLAN FOR DESTRUCTION OF LETHAL CHEMICAL 
                   AGENTS AND MUNITIONS STOCKPILE.

       Subsection (d) of section 1412 of the Department of Defense 
     Authorization Act, 1986 (50 U.S.C. 1521), is amended to read 
     as follows:
       ``(d) Requirement for Strategic Plan.--(1) The Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics and the Secretary of the Army shall jointly 
     prepare, and from time to time shall update as appropriate, a 
     strategic plan for future activities for destruction of the 
     United States' stockpile of lethal chemical agents and 
     munitions.
       ``(2) The plan shall include, at a minimum, the following 
     considerations:
       ``(A) Realistic budgeting for stockpile destruction and 
     related support programs.
       ``(B) Contingency planning for foreseeable or anticipated 
     problems.
       ``(C) A management approach and associated actions that 
     address compliance with the obligations of the United States 
     under the Chemical Weapons Convention treaty and that take 
     full advantage of opportunities to accelerate destruction of 
     the stockpile.
       ``(3) The Secretary of Defense shall each year submit to 
     the Committee on the Armed Services of the Senate and the 
     Committee on Armed Services of the House of Representatives 
     the strategic plan as most recently prepared and updated 
     under paragraph (1). Such submission shall be made each year 
     at the time of the submission to the Congress that year of 
     the President's budget for the next fiscal year.''.

     SEC. 932. SECRETARY OF DEFENSE CRITERIA FOR AND GUIDANCE ON 
                   IDENTIFICATION AND INTERNAL TRANSMISSION OF 
                   CRITICAL INFORMATION.

       (a) Criteria for Critical Information.--(1) The Secretary 
     of Defense shall establish criteria for determining 
     categories of critical information that should be made known 
     expeditiously to senior civilian and military officials in 
     the Department of Defense. Those categories should be limited 
     to matters of extraordinary significance and strategic impact 
     to which rapid access by those officials is essential to the 
     successful accomplishment of the national security strategy 
     or a major military mission. The Secretary may from time to 
     time modify the list to suit the current strategic situation.
       (2) The Secretary shall provide the criteria established 
     under paragraph (1) to the Chairman of the Joint Chiefs of 
     Staff, the Secretaries of the military departments, the 
     commanders of the unified and specified commands, the 
     commanders of deployed forces, and such other elements of the 
     Department of Defense as the Secretary considers necessary.
       (b) Matters To Be Included.--The criteria established under 
     subsection (a) shall include, at a minimum, requirement for 
     identification of the following:
       (1) Any incident that may result in a contingency 
     operation, based on the incident's nature, gravity, or 
     potential for significant adverse consequences to United 
     States citizens, military personnel, interests, or assets, 
     including an incident that could result in significant 
     adverse publicity having a major strategic impact.
       (2) Any event, development, or situation that could be 
     reasonably assumed to escalate into an incident described in 
     paragraph (1).
       (3) Any deficiency or error in policy, standards, or 
     training that could be reasonably assumed to have the effects 
     described in paragraph (1).
       (c) Requirements for Transmission of Critical 
     Information.--The criteria under subsection (a) shall include 
     such requirements for transmission of such critical 
     information to such senior civilian and military officials of 
     the Department of Defense as the Secretary of Defense 
     considers appropriate.
       (d) Time for Issuance of Criteria.--The Secretary of 
     Defense shall establish the criteria required by subsection 
     (a) not later than 120 days after the date of the enactment 
     of this Act.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. United States contribution to NATO common-funded budgets in 
              fiscal year 2005.
Sec. 1003. Budget justification documents for operation and 
              maintenance.
Sec. 1004. Licensing of intellectual property.
Sec. 1005. Repeal of funding restrictions concerning development of 
              medical countermeasures against biological warfare 
              threats.
Sec. 1006. Report on budgeting for exchange rates for foreign currency 
              fluctuations.
Sec. 1007. Fiscal year 2004 transfer authority.

[[Page H9250]]

Sec. 1008. Clarification of fiscal year 2004 funding level for a 
              National Institute of Standards and Technology account.
Sec. 1009. Notification of fund transfers from working-capital funds.
Sec. 1010. Charges for Defense Logistics Information Services 
              materials.

                Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Authority for award of contracts for ship dismantling on 
              net-cost basis.
Sec. 1012. Use of proceeds from exchange and sale of obsolete navy 
              service craft and boats.
Sec. 1013. Transfer of naval vessels to certain foreign recipients.
Sec. 1014. Independent study to assess cost effectiveness of the Navy 
              ship construction program.
Sec. 1015. Limitation on disposal of obsolete naval vessel.

                    Subtitle C--Counterdrug Matters

Sec. 1021. Use of funds for unified counterdrug and counterterrorism 
              campaign in Colombia.
Sec. 1022. Sense of Congress and report regarding counter-drug efforts 
              in Afghanistan.

       Subtitle D--Matters Relating to Museums and Commemorations

Sec. 1031. Recognition of the Liberty Memorial Museum, Kansas City, 
              Missouri, as America's National World War I Museum.
Sec. 1032. Program to commemorate 60th anniversary of World War II.
Sec. 1033. Annual report on Department of Defense operation and 
              financial support for military museums.

                          Subtitle E--Reports

Sec. 1041. Quarterly detailed accounting for operations conducted as 
              part of the Global War on Terrorism.
Sec. 1042. Report on post-major combat operations phase of Operation 
              Iraqi Freedom.
Sec. 1043. Report on training provided to members of the Armed Forces 
              to prepare for post-conflict operations.
Sec. 1044. Report on establishing National Centers of Excellence for 
              unmanned aerial and ground vehicles.
Sec. 1045. Study of continued requirement for two-crew manning for 
              ballistic missile submarines.
Sec. 1046. Report on Department of Defense programs for prepositioning 
              of materiel and equipment.
Sec. 1047. Report on al Quaeda and associated groups in Latin America 
              and the Caribbean.

   Subtitle F--Defense Against Terrorism and Other Domestic Security 
                                Matters

Sec. 1051. Acceptance of communications equipment provided by local 
              public safety agencies.
Sec. 1052. Determination and report on full-time airlift support for 
              homeland defense operations.
Sec. 1053. Survivability of critical systems exposed to chemical or 
              biological contamination.

                 Subtitle G--Personnel Security Matters

Sec. 1061. Use of National Driver Register for personnel security 
              investigations and determinations.
Sec. 1062. Standards for disqualification from eligibility for 
              Department of Defense security clearance.

               Subtitle H--Transportation-Related Matters

Sec. 1071. Use of military aircraft to transport mail to and from 
              overseas locations.
Sec. 1072. Reorganization and clarification of certain provisions 
              relating to control and supervision of transportation 
              within the Department of Defense.
Sec. 1073. Evaluation of procurement practices relating to 
              transportation of security-sensitive cargo.

                       Subtitle I--Other Matters

Sec. 1081. Liability protection for Department of Defense volunteers 
              working in maritime environment.
Sec. 1082. Sense of Congress concerning media coverage of the return to 
              the United States of the remains of deceased members of 
              the Armed Forces from overseas.
Sec. 1083. Transfer of historic F3A-1 Brewster Corsair aircraft.
Sec. 1084. Technical and clerical amendments.
Sec. 1085. Preservation of search and rescue capabilities of the 
              Federal Government.
Sec. 1086. Acquisition of aerial firefighting equipment for National 
              Interagency Fire Center.
Sec. 1087. Revision to requirements for recognition of institutions of 
              higher education as Hispanic-serving institutions for 
              purposes of certain grants and contracts.
Sec. 1088. Military extraterritorial jurisdiction over contractors 
              supporting defense missions overseas.
Sec. 1089. Definition of United States for purposes of Federal crime of 
              torture.
Sec. 1090. Energy savings performance contracts.
Sec. 1091. Sense of Congress and policy concerning persons detained by 
              the United States.
Sec. 1092. Actions to prevent the abuse of detainees.
Sec. 1093. Reporting requirements.
Sec. 1094. Findings and sense of Congress concerning Army Specialist 
              Joseph Darby.

                     Subtitle A--Financial Matters

     SEC. 1001. TRANSFER AUTHORITY.

       (a) Authority To Transfer Authorizations.--(1) Upon 
     determination by the Secretary of Defense that such action is 
     necessary in the national interest, the Secretary may 
     transfer amounts of authorizations made available to the 
     Department of Defense in this division for fiscal year 2005 
     between any such authorizations for that fiscal year (or any 
     subdivisions thereof). Amounts of authorizations so 
     transferred shall be merged with and be available for the 
     same purposes as the authorization to which transferred.
       (2) The total amount of authorizations that the Secretary 
     may transfer under the authority of this section may not 
     exceed $3,500,000,000.
       (b) Limitations.--The authority provided by this section to 
     transfer authorizations--
       (1) may only be used to provide authority for items that 
     have a higher priority than the items from which authority is 
     transferred; and
       (2) may not be used to provide authority for an item that 
     has been denied authorization by Congress.
       (c) Effect on Authorization Amounts.--A transfer made from 
     one account to another under the authority of this section 
     shall be deemed to increase the amount authorized for the 
     account to which the amount is transferred by an amount equal 
     to the amount transferred.
       (d) Notice to Congress.--The Secretary shall promptly 
     notify Congress of each transfer made under subsection (a).

     SEC. 1002. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED 
                   BUDGETS IN FISCAL YEAR 2005.

       (a) Fiscal Year 2005 Limitation.--The total amount 
     contributed by the Secretary of Defense in fiscal year 2005 
     for the common-funded budgets of NATO may be any amount up 
     to, but not in excess of, the amount specified in subsection 
     (b) (rather than the maximum amount that would otherwise be 
     applicable to those contributions under the fiscal year 1998 
     baseline limitation).
       (b) Total Amount.--The amount of the limitation applicable 
     under subsection (a) is the sum of the following:
       (1) The amounts of unexpended balances, as of the end of 
     fiscal year 2004, of funds appropriated for fiscal years 
     before fiscal year 2005 for payments for those budgets.
       (2) The amount specified in subsection (c)(1).
       (3) The amount specified in subsection (c)(2).
       (4) The total amount of the contributions authorized to be 
     made under section 2501.
       (c) Authorized Amounts.--Amounts authorized to be 
     appropriated by titles II and III of this Act are available 
     for contributions for the common-funded budgets of NATO as 
     follows:
       (1) Of the amount provided in section 201(1), $756,000 for 
     the Civil Budget.
       (2) Of the amount provided in section 301(1), $222,492,000 
     for the Military Budget.
       (d) Definitions.--For purposes of this section:
       (1) Common-funded budgets of nato.--The term ``common-
     funded budgets of NATO'' means the Military Budget, the 
     Security Investment Program, and the Civil Budget of the 
     North Atlantic Treaty Organization (and any successor or 
     additional account or program of NATO).
       (2) Fiscal year 1998 baseline limitation.--The term 
     ``fiscal year 1998 baseline limitation'' means the maximum 
     annual amount of Department of Defense contributions for 
     common-funded budgets of NATO that is set forth as the annual 
     limitation in section 3(2)(C)(ii) of the resolution of the 
     Senate giving the advice and consent of the Senate to the 
     ratification of the Protocols to the North Atlantic Treaty of 
     1949 on the Accession of Poland, Hungary, and the Czech 
     Republic (as defined in section 4(7) of that resolution), 
     approved by the Senate on April 30, 1998.

     SEC. 1003. BUDGET JUSTIFICATION DOCUMENTS FOR OPERATION AND 
                   MAINTENANCE.

       (a) In General.--(1) Chapter 9 of title 10, United States 
     Code, is amended by adding after section 232, as added by 
     section 214(a), the following new section:

     ``Sec. 233. Operation and maintenance budget presentation

       ``(a) Identification of Baseline Amounts in O&M 
     Justification Documents.--In any case in which the amount 
     requested in the President's budget for a fiscal year for a 
     Department of Defense operation and maintenance program, 
     project, or activity is different from the amount 
     appropriated for that program, project, or activity for the 
     current year, the O&M justification documents supporting that 
     budget shall identify that appropriated amount and the 
     difference between that amount and the amount requested in 
     the budget, stated as an amount and as a percentage.
       ``(b) Navy for Ship Depot Maintenance and for Intermediate 
     Ship Maintenance.--In the O&M justification documents for the 
     Navy for any fiscal year, amounts requested for ship depot 
     maintenance and amounts requested for intermediate ship 
     maintenance shall be identified and distinguished.
       ``(c) Definitions.--In this section:
       ``(1) The term `O&M justification documents' means 
     Department of Defense budget justification documents with 
     respect to accounts for operation and maintenance submitted 
     to the congressional defense committees in support of the 
     Department of Defense component of the President's budget for 
     any fiscal year.
       ``(2) The term `President's budget' means the budget of the 
     President submitted to Congress under section 1105 of title 
     31 for any fiscal year.
       ``(3) The term `current year' means the fiscal year during 
     which the President's budget is submitted in any year.''.

[[Page H9251]]

       (2) The table of sections at the beginning of such chapter 
     is amended by adding after the item relating to section 232, 
     as added by section 214(b), the following new item:

``233. Operation and maintenance budget presentation.''.

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

     SEC. 1004. LICENSING OF INTELLECTUAL PROPERTY.

       (a) Authority.--Subchapter II of chapter 134 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

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

       ``(a) Authority.--Under regulations prescribed by the 
     Secretary of Defense, the Secretary concerned may license 
     trademarks, service marks, certification marks, and 
     collective marks owned or controlled by the Secretary 
     concerned and may retain and expend fees received from such 
     licensing in accordance with this section.
       ``(b) Designated Marks.--The Secretary concerned shall 
     designate the trademarks, service marks, certification marks, 
     and collective marks regarding which the Secretary will 
     exercise the authority to retain licensing fees under this 
     section.
       ``(c) Use of Fees.--The Secretary concerned shall use fees 
     retained under this section for the following purposes:
       ``(1) For payment of the following costs incurred by the 
     Secretary:
       ``(A) Costs of securing trademark registrations.
       ``(B) Costs of operating the licensing program under this 
     section.
       ``(2) For morale, welfare, and recreation activities under 
     the jurisdiction of the Secretary, to the extent (if any) 
     that the total amount of the licensing fees available under 
     this section for a fiscal year exceed the total amount needed 
     for such fiscal year under paragraph (1).
       ``(d) Availability.--Fees received in a fiscal year and 
     retained under this section shall be available for obligation 
     in such fiscal year and the following two fiscal years.
       ``(e) Definitions.--In this section, the terms `trademark', 
     `service mark', `certification mark', and `collective mark' 
     have the meanings given such terms in section 45 of the Act 
     of July 5, 1946 (commonly referred to as the Trademark Act of 
     1946; 15 U.S.C. 1127).''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such subchapter is amended by adding at the end 
     the following new item:

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

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

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

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

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

     SEC. 1007. FISCAL YEAR 2004 TRANSFER AUTHORITY.

       Section 1001(a)(2) of the National Defense Authorization 
     Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1582) 
     is amended by striking ``$2,500,000,000'' and inserting 
     ``$2,800,000,000''.

     SEC. 1008. CLARIFICATION OF FISCAL YEAR 2004 FUNDING LEVEL 
                   FOR A NATIONAL INSTITUTE OF STANDARDS AND 
                   TECHNOLOGY ACCOUNT.

       For the purposes of applying sections 204 and 605 of the 
     Departments of Commerce, Justice, and State, the Judiciary, 
     and Related Agencies Appropriations Act, 2004 (division B of 
     Public Law 108-199) to matters in title II of such Act under 
     the heading ``National Institute of Standards and 
     Technology'' (118 Stat. 69), in the account under the heading 
     ``industrial technology services'', the Secretary of Commerce 
     shall make all determinations based on the Industrial 
     Technology Services funding level of $218,782,000 for 
     reprogramming and transferring of funds for the Manufacturing 
     Extension Partnership program and may submit such a 
     reprogramming or transfer, as the case may be, to the 
     appropriate committees within 30 days after the date of the 
     enactment of this Act.

     SEC. 1009. NOTIFICATION OF FUND TRANSFERS FROM WORKING-
                   CAPITAL FUNDS.

       Section 2208 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(r) Notification of Transfers.--(1) Notwithstanding any 
     authority provided in this section to transfer funds, the 
     transfer of funds from a working-capital fund, including a 
     transfer to another working-capital fund, shall not be made 
     under such authority unless the Secretary of Defense submits, 
     in advance, a notification of the proposed transfer to the 
     congressional defense committees in accordance with customary 
     procedures.
       ``(2) The amount of a transfer covered by a notification 
     under paragraph (1) that is made in a fiscal year does not 
     count toward any limitation on the total amount of transfers 
     that may be made for that fiscal year under authority 
     provided to the Secretary of Defense in a law authorizing 
     appropriations for a fiscal year for military activities of 
     the Department of Defense or a law making appropriations for 
     the Department of Defense.''.

     SEC. 1010. CHARGES FOR DEFENSE LOGISTICS INFORMATION SERVICES 
                   MATERIALS.

       (a) Authority.--Subchapter I of chapter 8 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

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

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

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

                Subtitle B--Naval Vessels and Shipyards

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

       (a) In General.--Chapter 633 of title 10, United States 
     Code, is amended by inserting after section 7305 the 
     following new section:

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

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


[[Page H9252]]


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

     SEC. 1012. USE OF PROCEEDS FROM EXCHANGE AND SALE OF OBSOLETE 
                   NAVY SERVICE CRAFT AND BOATS.

       (a) Costs of Preparation for Disposal.--(1) Chapter 633 of 
     title 10, United States Code, is amended by inserting after 
     section 7311 the following new section:

     ``Sec. 7312. Service craft stricken from Naval Vessel 
       Register; obsolete boats: use of proceeds from exchange or 
       sale

       ``(a) Exchange or Sale of Similar Items.--When the 
     Secretary of the Navy sells an obsolete service craft or an 
     obsolete boat, or exchanges such a craft or boat in a 
     transaction for which a similar craft or boat is acquired, 
     the Secretary may retain the proceeds of the sale or the 
     exchange allowance from the exchange, as the case may be, and 
     apply the proceeds of sale or the exchange allowance for any 
     of the following purposes:
       ``(1) For payment, in whole or in part, for a similar 
     service craft or boat acquired as a replacement, as 
     authorized by section 503 of title 40.
       ``(2) For reimbursement, to the extent practicable, of the 
     appropriate accounts of the Navy for the full costs of 
     preparation of such obsolete craft or boat for such sale or 
     exchange.
       ``(3) For deposit to the special account established under 
     subsection (b), to be available in accordance with that 
     subsection.
       ``(b) Special Account.--Amounts retained under subsection 
     (a) that are not applied as provided in paragraph (1) or (2) 
     of that subsection shall be deposited into a special account. 
     Amounts in the account shall be available under subsection 
     (c) without regard to fiscal year limitation. Amounts in the 
     account that the Secretary of the Navy determines are not 
     needed for the purpose stated in subsection (c) shall be 
     transferred at least annually to the General Fund of the 
     Treasury.
       ``(c) Costs of Preparation of Obsolete Service Craft and 
     Boats for Future Sale or Exchange.--The Secretary may use 
     amounts in the account under subsection (b) for payment, in 
     whole or in part, for the full costs of preparation of 
     obsolete service craft and obsolete boats for future sale or 
     exchange.
       ``(d) Costs of Preparation for Sale or Exchange.--In this 
     section, the term `full costs of preparation' means the full 
     costs (direct and indirect) incurred by the Navy in preparing 
     an obsolete service craft or an obsolete boat for exchange or 
     sale, including the cost of the following:
       ``(1) Towing.
       ``(2) Storage.
       ``(3) Defueling.
       ``(4) Removal and disposal of hazardous wastes.
       ``(5) Environmental surveys to determine the presence of 
     regulated materials containing polychlorinated biphenyl (PCB) 
     and, if such materials are found, the removal and disposal of 
     such materials.
       ``(6) Other costs related to such preparation.
       ``(e) Obsolete Service Craft.--For purposes of this 
     section, an obsolete service craft is a service craft that 
     has been stricken from the Naval Vessel Register.
       ``(f) Inapplicability of Advertising Requirement.--Section 
     3709 of the Revised Statutes (41 U.S.C. 5) does not apply to 
     sales of service craft and boats described in subsection (a).
       ``(g) Regulations.--The Secretary of the Navy shall 
     prescribe regulations for the purposes of this section.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     7311 the following new item:

``7312. Service craft stricken from Naval Vessel Register; obsolete 
              boats: use of proceeds from exchange or sale.''.

       (b) Applicability.--Section 7312 of title 10, United States 
     Code, as added by subsection (a), shall apply with respect to 
     amounts received on or after the date of the enactment of 
     this Act and to amounts received before the date of the 
     enactment of this Act and not obligated as of that date.

     SEC. 1013. TRANSFER OF NAVAL VESSELS TO CERTAIN FOREIGN 
                   RECIPIENTS.

       (a) Transfers by Grant.--The President is authorized to 
     transfer vessels to foreign recipients on a grant basis under 
     section 516 of the Foreign Assistance Act of 1961 (22 U.S.C. 
     2321j), as follows:
       (1) Chile.--To the Government of Chile, the SPRUANCE class 
     destroyer USS O'BANNON (DD-987).
       (2) Portugal.--To the Government of Portugal, the OLIVER 
     HAZARD PERRY class guided missile frigates GEORGE PHILIP 
     (FFG-12) and SIDES (FFG-14).
       (b) Transfers by Sale.--The President is authorized to 
     transfer vessels to foreign recipients on a sale basis under 
     section 21 of the Arms Export Control Act (22 U.S.C. 2761), 
     as follows:
       (1) Chile.--To the Government of Chile, the SPRUANCE class 
     destroyer FLETCHER (DD-992).
       (2) Taiwan.--To the Taipei Economic and Cultural 
     Representative Office of the United States (which is the 
     Taiwan instrumentality designated pursuant to section 10(a) 
     of the Taiwan Relations Act (22 U.S.C. 3309(a))), the 
     ANCHORAGE class dock landing ship ANCHORAGE (LSD-36).
       (c) Grants Not Counted in Annual Total of Transferred 
     Excess Defense Articles.--The value of a vessel transferred 
     to another country on a grant basis pursuant to authority 
     provided by subsection (a) shall not be counted against the 
     aggregate value of excess defense articles transferred to 
     countries in any fiscal year under section 516(g) of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2321j(g)).
       (d) Costs of Transfers.--Any expense incurred by the United 
     States in connection with a transfer authorized under 
     subsection (a) or (b) shall be charged to the recipient.
       (e) Repair and Refurbishment in United States Shipyards.--
     To the maximum extent practicable, the President shall 
     require, as a condition of the transfer of a vessel under 
     this section, that the country to which the vessel is 
     transferred have such repair or refurbishment of the vessel 
     as is needed, before the vessel joins the naval forces of 
     that country, performed at a shipyard located in the United 
     States, including a United States Navy shipyard.
       (f) Expiration of Authority.--The authority to transfer a 
     vessel under this section shall expire at the end of the two-
     year period beginning on the date of the enactment of this 
     Act.

     SEC. 1014. INDEPENDENT STUDY TO ASSESS COST EFFECTIVENESS OF 
                   THE NAVY SHIP CONSTRUCTION PROGRAM.

       (a) Study.--The Secretary of Defense shall provide for a 
     study of the cost effectiveness of the ship construction 
     program of the Navy. The study shall be conducted by a group 
     of industrial experts independent of the Department of 
     Defense. The study shall examine both--
       (1) a variety of approaches by which the Navy ship 
     construction program could be made more efficient in the near 
     term; and
       (2) a variety of approaches by which, with a nationally 
     integrated effort over the next decade, the United States 
     shipbuilding industry might enhance its health and viability.
       (b) Near-Term Improvements in Efficiency.--With respect to 
     the examination under subsection (a)(1) of approaches by 
     which the Navy ship construction program could be made more 
     efficient in the near term, the Secretary shall provide for 
     the persons conducting the study to--
       (1) determine the potential cost savings on an annual 
     basis, with an estimate of return on investment, from 
     implementation of each approach examined; and
       (2) establish priorities for potential implementation of 
     the approaches examined.
       (c) United States Shipbuilding Infrastructure Modernization 
     Plan.--With respect to the examination under subsection 
     (a)(2) of approaches by which the United States shipbuilding 
     industry might enhance its health and viability through a 
     nationally integrated effort over the next decade, the 
     Secretary shall provide for the persons conducting the study 
     to--
       (1) propose a plan incorporating a variety of approaches 
     that would modernize the United States shipbuilding 
     infrastructure within the next decade, resulting in a 
     healthier and more viable shipbuilding industrial base;
       (2) establish priorities for potential implementation of 
     the approaches examined; and
       (3) estimate the resources required to implement each of 
     the approaches examined.
       (d) Report.--Not later than October 1, 2005, the Secretary 
     of Defense shall submit a report to the congressional defense 
     committees providing the results of the study under 
     subsection (a). The report shall include the matters 
     specified in subsections (b) and (c).

     SEC. 1015. LIMITATION ON DISPOSAL OF OBSOLETE NAVAL VESSEL.

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

                    Subtitle C--Counterdrug Matters

     SEC. 1021. USE OF FUNDS FOR UNIFIED COUNTERDRUG AND 
                   COUNTERTERRORISM CAMPAIGN IN COLOMBIA.

       (a) Authority.--(1) In fiscal years 2005 and 2006, funds 
     available to the Department of Defense to provide assistance 
     to the Government of Colombia may be used by the Secretary of 
     Defense to support a unified campaign by the Government of 
     Colombia against narcotics trafficking and against activities 
     by organizations designated as terrorist organizations, such 
     as the Revolutionary Armed Forces of Colombia (FARC), the 
     National Liberation Army (ELN), and the United Self-Defense 
     Forces of Colombia (AUC).
       (2) The authority to provide assistance for a campaign 
     under this subsection includes authority to take actions to 
     protect human health and welfare in emergency circumstances, 
     including the undertaking of rescue operations.
       (b) Applicability of Certain Laws and Limitations.--The use 
     of funds pursuant to the authority in subsection (a) shall be 
     subject to the following:
       (1) Sections 556, 567, and 568 of the Foreign Operations, 
     Export Financing, and Related Programs Appropriations Act, 
     2002 (Public Law 107-115; 115 Stat. 2160, 2165, and 2166).
       (2) Section 8076 of the Department of Defense 
     Appropriations Act, 2005 (Public Law 108-287; 118 Stat. 988).
       (c) Numerical Limitation on Assignment of United States 
     Personnel.--Notwithstanding section 3204(b) of the Emergency 
     Supplemental Act, 2000 (Division B of Public Law 106-246; 114 
     Stat. 575), as amended by the Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 2002 
     (Public Law 107-115; 115 Stat. 2131), the number of United 
     States personnel assigned to conduct activities in Colombia 
     in connection with support of Plan Colombia under subsection 
     (a) in fiscal years 2005 and 2006 shall be subject to the 
     following limitations:
       (1) The number of United States military personnel assigned 
     for temporary or permanent duty in Colombia in connection 
     with support of Plan Colombia may not exceed 800.
       (2) The number of United States individual citizens 
     retained as contractors in Colombia in connection with 
     support of Plan Colombia who

[[Page H9253]]

     are funded by Federal funds may not exceed 600.
       (d) Limitation on Participation of United States 
     Personnel.--No United States Armed Forces personnel, United 
     States civilian employees, or United States civilian 
     contractor personnel employed by the United States may 
     participate in any combat operation in connection with 
     assistance using funds pursuant to the authority in 
     subsection (a), except for the purpose of acting in self 
     defense or of rescuing any United States citizen, including 
     any United States Armed Forces personnel, United States 
     civilian employee, or civilian contractor employed by the 
     United States.
       (e) Relation to Other Authority.--The authority provided by 
     subsection (a) is in addition to any other authority in law 
     to provide assistance to the Government of Colombia.
       (f) Report on Relationships Between Terrorist Organizations 
     in Colombia and Foreign Governments and Organizations.--(1) 
     Not later than 60 days after the date of the enactment of 
     this Act, the Secretary of State, in consultation with the 
     Secretary of Defense and the Director of Central 
     Intelligence, shall submit to the congressional defense 
     committees and the Committee on Foreign Relations of the 
     Senate and the Committee on International Relations of the 
     House of Representatives a report that describes--
       (A) any relationships between foreign governments or 
     organizations and organizations based in Colombia that have 
     been designated as foreign terrorist organizations under 
     United States law, including the provision of any direct or 
     indirect assistance to such organizations; and
       (B) United States policies that are designed to address 
     such relationships.
       (2) The report under paragraph (1) shall be submitted in 
     unclassified form, but may include a classified annex.

     SEC. 1022. SENSE OF CONGRESS AND REPORT REGARDING COUNTER-
                   DRUG EFFORTS IN AFGHANISTAN.

       (a) Sense of Congress.--It is the sense of Congress that--
       (1) the President should make the substantial reduction of 
     illegal drug trafficking in Afghanistan a priority in the 
     Global War on Terrorism;
       (2) the Secretary of Defense, in coordination with the 
     Secretary of State and the heads of other appropriate Federal 
     agencies, should expand cooperation with the Government of 
     Afghanistan and international organizations involved in 
     counter-drug activities to assist in providing a secure 
     environment for counter-drug personnel in Afghanistan; and
       (3) the United States, in conjunction with the Government 
     of Afghanistan and coalition partners, should undertake 
     additional efforts to reduce illegal drug trafficking and 
     related activities that provide financial support for 
     terrorist organizations in Afghanistan and neighboring 
     countries.
       (b) Report Required.--(1) The Secretary of Defense and the 
     Secretary of State shall jointly prepare a report that 
     describes--
       (A) the progress made towards substantially reducing poppy 
     cultivation and heroin production capabilities in 
     Afghanistan; and
       (B) the extent to which profits from illegal drug activity 
     in Afghanistan are used to financially support terrorist 
     organizations and groups seeking to undermine the Government 
     of Afghanistan.
       (2) The report required by this subsection shall be 
     submitted to Congress not later than 120 days after the date 
     of the enactment of this Act.

       Subtitle D--Matters Relating to Museums and Commemorations

     SEC. 1031. RECOGNITION OF THE LIBERTY MEMORIAL MUSEUM, KANSAS 
                   CITY, MISSOURI, AS AMERICA'S NATIONAL WORLD WAR 
                   I MUSEUM.

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

     SEC. 1032. PROGRAM TO COMMEMORATE 60TH ANNIVERSARY OF WORLD 
                   WAR II.

       (a) In General.--For fiscal year 2005, the Secretary of 
     Defense may conduct a program--
       (1) to commemorate the 60th anniversary of World War II; 
     and
       (2) to coordinate, support, and facilitate other such 
     commemoration programs and activities of the Federal 
     Government, State and local governments, and other persons.
       (b) Program Activities.--The program referred to in 
     subsection (a) may include activities and ceremonies--
       (1) to provide the people of the United States with a clear 
     understanding and appreciation of the lessons and history of 
     World War II;
       (2) to thank and honor veterans of World War II and their 
     families;
       (3) to pay tribute to the sacrifices and contributions made 
     on the home front by the people of the United States;
       (4) to foster an awareness in the people of the United 
     States that World War II was the central event of the 20th 
     century that defined the postwar world;
       (5) to highlight advances in technology, science, and 
     medicine related to military research conducted during World 
     War II;
       (6) to inform wartime and postwar generations of the 
     contributions of the Armed Forces of the United States to the 
     United States;
       (7) to recognize the contributions and sacrifices made by 
     World War II allies of the United States; and
       (8) to highlight the role of the Armed Forces of the United 
     States, then and now, in maintaining world peace through 
     strength.
       (c) Establishment of Account.--(1) There is established in 
     the Treasury of the United States an account to be known as 
     the ``Department of Defense 60th Anniversary of World War II 
     Commemoration Account'' which shall be administered by the 
     Secretary as a single account.
       (2) There shall be deposited in the account, from amounts 
     appropriated to the Department of Defense for operation and 
     maintenance of Defense Agencies, such amounts as the 
     Secretary considers appropriate to conduct the program 
     referred to in subsection (a).
       (3) The Secretary may use the funds in the account 
     established in paragraph (1) only for the

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     purpose of conducting the program referred to in subsection 
     (a).
       (4) Not later than 60 days after the termination of the 
     authority of the Secretary to conduct the program referred to 
     in subsection (a), the Secretary shall transmit to the 
     Committee on Armed Services of the Senate and the Committee 
     on Armed Services of the House of Representatives a report 
     containing an accounting of all the funds deposited into and 
     expended from the account or otherwise expended under this 
     section, and of any amount remaining in the account. 
     Unobligated funds which remain in the account after 
     termination of the authority of the Secretary under this 
     section shall be held in the account until transferred by law 
     after the Committees receive the report.
       (d) Acceptance of Voluntary Services.--(1) Notwithstanding 
     section 1342 of title 31, United States Code, the Secretary 
     may accept from any person voluntary services to be provided 
     in furtherance of the program referred to in subsection (a).
       (2) A person providing voluntary services under this 
     subsection shall be considered to be an employee for the 
     purposes of chapter 81 of title 5, United States Code, 
     relating to compensation for work-related injuries. Such a 
     person who is not otherwise employed by the Federal 
     Government shall not be considered to be a Federal employee 
     for any other purposes by reason of the provision of such 
     service.
       (3) The Secretary may reimburse a person providing 
     voluntary services under this subsection for incidental 
     expenses incurred by such person in providing such services. 
     The Secretary shall determine which expenses are eligible for 
     reimbursement under this paragraph.

     SEC. 1033. ANNUAL REPORT ON DEPARTMENT OF DEFENSE OPERATION 
                   AND FINANCIAL SUPPORT FOR MILITARY MUSEUMS.

       (a) Report Required.--Chapter 23 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

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

       ``(a) Report Required.--As part of the budget materials 
     submitted to Congress in connection with the submission of 
     the budget for a fiscal year pursuant to section 1105 of 
     title 31, but in no case later than March 15 of each year, 
     the Secretary of Defense shall submit a report identifying 
     all military museums that, during the most recently completed 
     fiscal year--
       ``(1) were operated by the Secretary of Defense or the 
     Secretary of a military department;
       ``(2) were otherwise supported using funds appropriated to 
     the Department of Defense; or
       ``(3) were located on property under the jurisdiction of 
     the Department of Defense, although neither operated by the 
     Department of Defense nor supported using funds appropriated 
     to the Department of Defense.
       ``(b) Information on Individual Museums.--For each museum 
     identified in a report under this section, the Secretary of 
     Defense shall include in the report the following:
       ``(1) The purpose and functions of the museum and the 
     justification for the museum.
       ``(2) A description of the facilities dedicated to the 
     museum, including the location, size, and type of facilities 
     and whether the facilities are included or eligible for 
     inclusion on the National Register of Historic Places.
       ``(3) An itemized listing of the funds appropriated to the 
     Department of Defense that were obligated to support the 
     museum during the fiscal year covered by the report and a 
     description of the process used to determine the annual 
     allocation of Department of Defense funds for the museum.
       ``(4) An itemized listing of any other Federal funds, funds 
     from a nonappropriated fund instrumentality account of the 
     Department of Defense, and non-Federal funds obligated to 
     support the museum.
       ``(5) The management structure of the museum, including 
     identification of the persons responsible for preparing the 
     budget for the museum and for making acquisition and 
     management decisions for the museum.
       ``(6) The number of civilian employees of the Department of 
     Defense and members of the armed forces who served full-time 
     or part-time at the museum and their role in the management 
     structure of the museum.
       ``(c) Information on Support Priorities.--Each report under 
     this section shall also include a separate description of the 
     procedures used by the Secretary of Defense, in the case of 
     museums identified in the report that are operated or 
     supported by the Secretary of Defense, and the Secretary of a 
     military department, in the case of museums identified in the 
     report that are operated or supported by that Secretary, to 
     prioritize funding and personnel support to the museums. The 
     Secretary of Defense shall include a description of any such 
     procedures applicable to the entire Department of Defense.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

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

                          Subtitle E--Reports

     SEC. 1041. QUARTERLY DETAILED ACCOUNTING FOR OPERATIONS 
                   CONDUCTED AS PART OF THE GLOBAL WAR ON 
                   TERRORISM.

       (a) Quarterly Accounting.--Not later than 45 days after the 
     end of each quarter of a year, the Secretary of Defense shall 
     submit to the congressional defense committees, for each 
     operation specified in subsection (b)--
       (1) a full accounting of all costs incurred for such 
     operation during such quarter and all amounts expended during 
     such quarter for such operation; and
       (2) a description of the purposes for which those costs 
     were incurred and those amounts were expended.
       (b) Operations Covered.--The operations referred to in 
     subsection (a) are the following:
       (1) Operation Iraqi Freedom.
       (2) Operation Enduring Freedom.
       (3) Operation Noble Eagle.
       (4) Any other operation that the President designates as 
     being an operation of the Global War on Terrorism.
       (c) Requirement for Comprehensiveness.--For the purpose of 
     providing a full and complete accounting of the costs and 
     expenditures under subsection (a) for an operation specified 
     in subsection (b), the Secretary shall account in the 
     quarterly submission under subsection (a) for all costs and 
     expenditures that are reasonably attributable to that 
     operation, including personnel costs.

     SEC. 1042. REPORT ON POST-MAJOR COMBAT OPERATIONS PHASE OF 
                   OPERATION IRAQI FREEDOM.

       (a) Report Required.--(1) Not later than June 1, 2005, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report on the conduct of military 
     operations during the post-major combat operations phase of 
     Operation Iraqi Freedom.
       (2) The report shall be prepared in consultation with the 
     Chairman of the Joint Chiefs of Staff, the commander of the 
     United States Central Command, and such other officials as 
     the Secretary considers appropriate.
       (b) Content.--(1) The report shall include a discussion of 
     the matters described in paragraph (2), with a particular 
     emphasis on accomplishments and shortcomings and on near-term 
     and long-term corrective actions to address such 
     shortcomings.
       (2) The matters to be discussed in the report are as 
     follows:
       (A) The military and political objectives of the 
     international coalition conducting the post-major combat 
     operations phase of Operation Iraqi Freedom, and the military 
     strategy selected to achieve such objectives, together with 
     an assessment of the execution of the military strategy.
       (B) The mobilization process for the reserve components of 
     the Armed Forces, including the timeliness of notification, 
     training and certification, and subsequent demobilization.
       (C) The use and performance of major items of United States 
     military equipment, weapon systems, and munitions (including 
     non-lethal weapons and munitions, items classified under 
     special access procedures, and items drawn from prepositioned 
     stocks) and any expected effects of the experience with the 
     use and performance of such items on the doctrinal and 
     tactical employment of such items and on plans for continuing 
     the acquisition of such items.
       (D) Any additional requirements for military equipment, 
     weapon systems, munitions, force structure, or other 
     capability identified during the post-major combat operations 
     phase of Operation Iraqi Freedom, including changes in type 
     or quantity for future operations.
       (E) The effectiveness of joint air operations, together 
     with an assessment of the effectiveness of--
       (i) the employment of close air support; and
       (ii) attack helicopter operations.
       (F) The use of special operations forces, including 
     operational and intelligence uses.
       (G) The scope of logistics support, including support to 
     and from other nations and from international organizations 
     and organizations and individuals from the private sector in 
     Iraq.
       (H) The incidents of accidental fratricide, including a 
     discussion of the effectiveness of the tracking of friendly 
     forces and the use of the combat identification systems in 
     mitigating friendly fire incidents.
       (I) The adequacy of spectrum and bandwidth to transmit 
     information to operational forces and assets, including 
     unmanned aerial vehicles, ground vehicles, and individual 
     soldiers.
       (J) The effectiveness of strategic, operational, and 
     tactical information operations, including psychological 
     operations and assets, organization, and doctrine related to 
     civil affairs, in achieving established objectives, together 
     with a description of technological and other restrictions on 
     the use of information operations capabilities.
       (K) The readiness of the reserve component forces used in 
     the post-major combat operations phase of Operation Iraqi 
     Freedom, including an assessment of the success of the 
     reserve component forces in accomplishing their missions.
       (L) The adequacy of intelligence support during the post-
     major combat operations phase of Operation Iraqi Freedom, 
     including the adequacy of such support in searches for 
     weapons of mass destruction.
       (M) The rapid insertion and integration, if any, of 
     developmental but mission-essential equipment, organizations, 
     or procedures during the post-major combat operations phase 
     of Operation Iraqi Freedom.
       (N) A description of the coordination, communication, and 
     unity of effort between the Armed Forces, the Coalition 
     Provisional Authority, other United States government 
     agencies and organizations, nongovernmental organizations, 
     and political, security, and nongovernmental organizations of 
     Iraq, including an assessment of the effectiveness of such 
     efforts.
       (O) The adequacy of training for military units once 
     deployed to the area of operations of the United States 
     Central Command, including training for changes in unit 
     mission and continuation training for high-intensity conflict 
     missions.
       (P) An estimate of the funding required to return or 
     replace equipment used through the period covered by the 
     report in Operation Iraqi Freedom, including equipment in 
     prepositioned stocks, to mission-ready condition.
       (Q) A description of military civil affairs and 
     reconstruction efforts, including efforts through

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     the Commanders Emergency Response Program, and an assessment 
     of the effectiveness of such efforts and programs.
       (R) The adequacy of the requirements determination and 
     acquisition processes, acquisition, and distribution of force 
     protection equipment, including personal gear, vehicles, 
     helicopters, and defense devices.
       (S) The most critical lessons learned that could lead to 
     long-term doctrinal, organizational, and technological 
     changes, and the probable effects that an implementation of 
     those changes would have on current visions, goals, and plans 
     for transformation of the Armed Forces or the Department of 
     Defense.
       (T) The planning for and implementation of morale, welfare, 
     and recreation programs for deployed forces and support to 
     dependents, including rest and recuperation programs and 
     personal communication benefits such as telephone, mail, and 
     email services, including an assessment of the effectiveness 
     of such programs.
       (U) An analysis of force rotation plans, including 
     individual personnel and unit rotations, differing deployment 
     lengths, and in-theater equipment repair and leave behinds.
       (V) The organization of United States Central Command to 
     conduct post-conflict operations and lessons for other 
     combatant commands to conduct other such operations in the 
     future.
       (c) Form of Report.--The report shall be submitted in 
     unclassified form, but may include a classified annex.
       (d) Post-Major Combat Operations Phase of Operation Iraqi 
     Freedom Defined.--In this section, the term ``post-major 
     combat operations phase of Operation Iraqi Freedom'' means 
     the period of Operation Iraqi Freedom beginning on May 2, 
     2003, and ending on December 31, 2004.

     SEC. 1043. REPORT ON TRAINING PROVIDED TO MEMBERS OF THE 
                   ARMED FORCES TO PREPARE FOR POST-CONFLICT 
                   OPERATIONS.

       (a) Study on Training.--The Secretary of Defense shall 
     conduct a study to determine the extent to which members of 
     the Armed Forces assigned to duty in support of contingency 
     operations receive training in preparation for post-conflict 
     operations and to evaluate the quality of such training.
       (b) Matters To Be Included in Study.--As part of the study 
     under subsection (a), the Secretary shall specifically 
     evaluate the following:
       (1) The doctrine, training, and leader-development system 
     necessary to enable members of the Armed Forces to 
     successfully operate in post-conflict operations.
       (2) The adequacy of the curricula at military educational 
     facilities to ensure that the Armed Forces has a cadre of 
     members skilled in post-conflict duties, including a 
     familiarity with applicable foreign languages and foreign 
     cultures.
       (3) The training time and resources available to members 
     and units of the Armed Forces to develop awareness about 
     ethnic backgrounds, religious beliefs, and political 
     structures of the people living in areas in which the Armed 
     Forces operate and areas in which post-conflict operations 
     are likely to occur.
       (4) The adequacy of training transformation to emphasize 
     post-conflict operations, including interagency coordination 
     in support of commanders of combatant commands.
       (c) Report on Study.--Not later than May 1, 2005, the 
     Secretary shall submit to the Committee on Armed Services of 
     the Senate and the Committee on Armed Services of the House 
     of Representatives a report on the result of the study 
     conducted under this section.

     SEC. 1044. REPORT ON ESTABLISHING NATIONAL CENTERS OF 
                   EXCELLENCE FOR UNMANNED AERIAL AND GROUND 
                   VEHICLES.

       (a) Report Required.--Not later than 120 days after the 
     date of the enactment of this Act, the Secretary of Defense 
     shall submit to the congressional defense committees a report 
     on the need for one or more national centers of excellence 
     for unmanned aerial and ground vehicles.
       (b) Goal of Centers.--The goal of the centers covered by 
     the report is to promote interservice cooperation and 
     coordination in the following areas:
       (1) Development of joint doctrine for the organization, 
     training, and use of unmanned aerial and ground vehicles.
       (2) Joint research, development, test, and evaluation, and 
     joint procurement of unmanned aerial and ground vehicles.
       (3) Identification and coordination, in conjunction with 
     the private sector and academia, of the future development of 
     unmanned aerial and ground vehicles.
       (4) Monitoring of the development and utilization of 
     unmanned aerial and ground vehicles in other nations for both 
     military and non-military purposes.
       (5) The providing of joint training and professional 
     development opportunities in the use and operation of 
     unmanned aerial and ground vehicles to military personnel of 
     all ranks and levels of responsibility.
       (c) Report Requirements.--The report shall include, at a 
     minimum, the following:
       (1) A list of facilities at which the Department of Defense 
     currently conducts or plans to conduct research, development, 
     and testing activities on unmanned aerial and ground 
     vehicles.
       (2) A list of facilities at which the Department of Defense 
     currently deploys or has committed to deploying unmanned 
     aerial or ground vehicles.
       (3) The extent to which existing facilities described in 
     paragraphs (1) and (2) have sufficient unused capacity and 
     expertise to research, develop, test, and deploy the current 
     and next generations of unmanned aerial and ground vehicles 
     and to provide for the development of doctrine on the use and 
     training of operators of such vehicles.
       (4) The extent to which efficiencies with respect to 
     research, development, testing, and deployment of existing or 
     future unmanned aerial and ground vehicles can be achieved 
     through consolidation at one or more national centers of 
     excellence for unmanned aerial and ground vehicles.
       (5) A list of potential locations for the national centers 
     of excellence under this section.
       (d) Considerations.--In determining the potential locations 
     for the national centers of excellence under this section, 
     the Secretary of Defense shall take into consideration 
     existing military facilities that have--
       (1) a workforce of skilled personnel;
       (2) existing capacity of runways and other facilities to 
     accommodate the research, development, testing, and 
     deployment of current and future unmanned aerial vehicles; 
     and
       (3) minimal restrictions on the research, development, 
     testing, and deployment of unmanned aerial vehicles resulting 
     from proximity to large population centers or airspace 
     heavily utilized by commercial flights.

     SEC. 1045. STUDY OF CONTINUED REQUIREMENT FOR TWO-CREW 
                   MANNING FOR BALLISTIC MISSILE SUBMARINES.

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

     SEC. 1046. REPORT ON DEPARTMENT OF DEFENSE PROGRAMS FOR 
                   PREPOSITIONING OF MATERIEL AND EQUIPMENT.

       (a) Secretary of Defense Assessment and Report.--(1) The 
     Secretary of Defense shall conduct an assessment of the 
     programs of the Armed Forces for the prepositioning of 
     materiel and equipment. Such assessment shall focus on how 
     those programs will support the goal of the Secretary to have 
     the capability, from the onset of a contingency situation, 
     to--
       (A) deploy forces to a distant theater within 10 days;
       (B) defeat an enemy within 30 days; and
       (C) be ready for an additional conflict within another 30 
     days.
       (2) The Secretary shall submit to Congress a report on such 
     assessment not later than October 1, 2005.
       (b) Matters to Be Included.--The assessment under 
     subsection (a) shall include the following:
       (1) A review of the prepositioning of materiel and 
     equipment used in Operation Iraqi Freedom and Operation 
     Enduring Freedom, including identification of challenges and 
     potential solutions.
       (2) A description of changes to doctrine, strategy, and 
     transportation plans that could be necessary to support the 
     goal of the Secretary described in subsection (a).
       (3) A description of modifications to prepositioning 
     programs that could be required in order to incorporate 
     modularity concepts, future force structure changes, and sea-
     basing concepts.
       (4) A discussion of joint operations and training that 
     support force projection requirements, including--
       (A) theater opening requirements at potential aerial and 
     sea ports of debarkation;
       (B) joint force reception capabilities;
       (C) joint theater distribution operations; and
       (D) use of joint prepositioned stocks, materiel, and 
     systems.

     SEC. 1047 REPORT ON AL QAEDA AND ASSOCIATED GROUPS IN LATIN 
                   AMERICA AND THE CARIBBEAN.

       (a) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary of Defense shall, in 
     consultation with the Secretary of State, submit to the 
     Committees on Armed Services of the Senate and House of 
     Representatives a report on the activities of al Qaeda and 
     associated groups in Latin America and the Caribbean, 
     including--
       (1) an assessment of the extent to which such groups have 
     established a presence in the area;
       (2) a description of the activities of such groups in the 
     area, including fundraising, money laundering, 
     narcotrafficking, and associations with criminal groups;
       (3) an assessment of the threat posed by such groups to the 
     peace and stability of the nations in the area and to United 
     States interests; and
       (4) a description of United States policies intended to 
     deal with such a threat.
       (b) Form of Report.--The report shall be submitted in 
     unclassified form, but may include a classified annex.

   Subtitle F--Defense Against Terrorism and Other Domestic Security 
                                Matters

     SEC. 1051. ACCEPTANCE OF COMMUNICATIONS EQUIPMENT PROVIDED BY 
                   LOCAL PUBLIC SAFETY AGENCIES.

       (a) Authority.--Chapter 155 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2613. Emergency communications equipment: acceptance 
       from local public safety agencies for temporary use related 
       to disasters

       ``(a) Authority to Accept Equipment.--(1) Subject to 
     subsection (c), the Secretary concerned--
       ``(1) may accept communications equipment for use in 
     coordinating joint response and recovery operations with 
     public safety agencies in the event of a disaster; and

[[Page H9256]]

       ``(2) may accept services related to the operation and 
     maintenance of such equipment.
       ``(b) Regulations.--The authority under subsection (a) 
     shall be exercised under regulations prescribed by the 
     Secretary of Defense.
       ``(c) Limitations.--(1) Equipment may be accepted under 
     subsection (a)(1) only to the extent that communications 
     equipment under the control of the Secretary concerned at the 
     potential disaster response site is inadequate to meet 
     military requirements for communicating with public safety 
     agencies during the period of response to the disaster.
       ``(2) Services may be accepted under subsection (a)(2) 
     related to the operation and maintenance of communications 
     equipment only to the extent that the necessary capabilities 
     are not available to the military commander having custody of 
     the equipment.
       ``(c) Liability.--A person providing services accepted 
     under this section may not be considered, by reason of the 
     provision of such services, to be an officer, employee, or 
     agent of the United States for any purpose.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``2613. Emergency communications equipment: acceptance from local 
              public safety agencies for temporary use related to 
              disasters.''.

     SEC. 1052. DETERMINATION AND REPORT ON FULL-TIME AIRLIFT 
                   SUPPORT FOR HOMELAND DEFENSE OPERATIONS.

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

     SEC. 1053. SURVIVABILITY OF CRITICAL SYSTEMS EXPOSED TO 
                   CHEMICAL OR BIOLOGICAL CONTAMINATION.

       (a) Requirement for Implementation Plan.--Not later than 
     120 days after the date of the enactment of this Act, the 
     Secretary of Defense shall submit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives a plan, for implementation by 
     the Department of Defense, that sets forth a systematic 
     approach for ensuring the survivability of defense critical 
     systems upon contamination of any such system by chemical or 
     biological agents.
       (b) Content.--At a minimum, the plan under subsection (a) 
     shall include the following:
       (1) Policies for ensuring that the survivability of defense 
     critical systems in the event of contamination by chemical or 
     biological agents is adequately addressed throughout the 
     Department of Defense.
       (2) A systematic process for identifying those systems 
     which are defense critical systems.
       (3) Specific testing procedures to be used during the 
     design and development of new defense critical systems.
       (4) A centralized database that--
       (A) contains comprehensive information on the effects of 
     chemical and biological agents and decontaminants on 
     materials used in defense critical systems; and
       (B) is easily accessible to personnel who have duties to 
     ensure the survivability of defense critical systems upon 
     contamination of such systems by chemical and biological 
     agents.
       (c) Defense Critical System Defined.--In this section, the 
     term ``defense critical system'' means a Department of 
     Defense system that, as determined by the Secretary of 
     Defense, is vital to an essential defense mission.

                 Subtitle G--Personnel Security Matters

     SEC. 1061. USE OF NATIONAL DRIVER REGISTER FOR PERSONNEL 
                   SECURITY INVESTIGATIONS AND DETERMINATIONS.

       Section 30305(b) of title 49, United States Code, is 
     amended--
       (1) by redesignating paragraphs (9) through (11) as 
     paragraphs (10) through (12), respectively; and
       (2) by inserting after paragraph (8) the following new 
     paragraph:
       ``(9) An individual who has or is seeking access to 
     national security information for purposes of Executive Order 
     No. 12968, or any successor Executive order, or an individual 
     who is being investigated for Federal employment under 
     authority of Executive Order No. 10450, or any successor 
     Executive order, may request the chief driver licensing 
     official of a State to provide information about the 
     individual pursuant to subsection (a) of this section to a 
     Federal department or agency that is authorized to 
     investigate the individual for the purpose of assisting in 
     the determination of the eligibility of the individual for 
     access to national security information or for Federal 
     employment in a position requiring access to national 
     security information. A Federal department or agency that 
     receives information about an individual under the preceding 
     sentence may use such information only for purposes of the 
     authorized investigation and only in accordance with 
     applicable law.''.

     SEC. 1062. STANDARDS FOR DISQUALIFICATION FROM ELIGIBILITY 
                   FOR DEPARTMENT OF DEFENSE SECURITY CLEARANCE.

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

               Subtitle H--Transportation-Related Matters

     SEC. 1071. USE OF MILITARY AIRCRAFT TO TRANSPORT MAIL TO AND 
                   FROM OVERSEAS LOCATIONS.

       (a) Authority for Use of Military Aircraft.--Section 3401 
     of title 39, United States Code, is amended--
       (1) in subsection (b)--
       (A) in the matter preceding paragraph (1)(A), by striking 
     ``title 49,'' and inserting ``title 49, or on military 
     aircraft at rates not to exceed those so fixed and determined 
     for scheduled United States air carriers,''; and
       (B) in the sentence following paragraph (3), by striking 
     ``carriers'' each place it appears and inserting ``carriers 
     and military aircraft''; and
       (2) in subsection (c)--
       (A) in the first sentence, by striking ``title 49,'' and 
     inserting ``title 49, or on military aircraft at rates not to 
     exceed those so fixed and determined for scheduled United 
     States air carriers,''; and
       (B) in the second sentence--
       (i) by inserting ``and military aircraft'' after 
     ``carriers'' the first place it appears; and
       (ii) by striking ``by air carriers other than scheduled 
     United States air carriers'' and inserting ``by other than 
     scheduled United States air carriers and military aircraft''.
       (b) Definition.--Such section is further amended by adding 
     at the end the following new subsection:
       ``(g) In this section:
       ``(1) The term `military aircraft' means an aircraft owned, 
     operated, or chartered by the Department of Defense.
       ``(2) The term `United States air carrier' has the meaning 
     given the term `air carrier' in section 40102 of title 49.''.

     SEC. 1072. REORGANIZATION AND CLARIFICATION OF CERTAIN 
                   PROVISIONS RELATING TO CONTROL AND SUPERVISION 
                   OF TRANSPORTATION WITHIN THE DEPARTMENT OF 
                   DEFENSE.

       (a) Transfer of Certain Transportation Authorities.--
     Sections 4744, 4745, 4746, and 4747 of title 10, United 
     States Code, are transferred to chapter 157 of such title, 
     inserted (in that order) at the end of such chapter, and 
     redesignated as sections 2648, 2649, 2650, and 2651, 
     respectively.
       (b) Clarification of Applicability of Transferred 
     Authorities Throughout the Department of Defense.--(1) 
     Section 2648 of such title, as transferred and redesignated 
     by subsection (a), is amended--
       (A) by striking ``Secretary of the Army'' in the matter 
     preceding paragraph (1) and inserting ``Secretary of 
     Defense'';
       (B) by striking ``Army transport agencies'' in the matter 
     preceding paragraph (1) and all that follows through 
     ``military transport agency of'';
       (C) by striking paragraphs (1), (2), and (3);
       (D) by redesignating paragraph (4), (5), (6), and (7) as 
     paragraphs (1), (2), (3), and (4), respectively;
       (E) by redesignating paragraph (8) as paragraph (5) and in 
     that paragraph striking ``persons described in clauses (1), 
     (2), (4), (5), and (7)'' and inserting ``members of the armed 
     forces, officers and employees of the Department of Defense 
     or the Coast Guard, and persons described in paragraphs (1), 
     (2), and (4)''; and
       (F) by striking ``clause (7) or (8)'' in the last sentence 
     and inserting ``paragraph (4) or (5)''.
       (2) Section 2649 of such title, as transferred and 
     redesignated by subsection (a), is amended--

[[Page H9257]]

       (A) by striking the section heading and inserting the 
     following:

     ``Sec. 2649. Civilian passengers and commercial cargoes: 
       transportation on Department of Defense vessels'';

       (B) by striking ``(1) on vessels'' and all that follows 
     through ``Department of the Army'';
       (C) by striking ``any transport agency of''; and
       (D) by striking ``Secretary of the Army'' and all that 
     follows through ``be transported'' and inserting ``Secretary 
     of Defense, be transported''.
       (3) Section 2650 of such title, as transferred and 
     redesignated by subsection (a), is amended--
       (A) in the matter preceding paragraph (1), by striking 
     ``Army transport agencies'' and all that follows through 
     ``military transport agency of'';
       (B) in paragraph (1), by striking ``Secretary of the Army'' 
     and inserting ``Secretary of Defense''; and
       (C) in paragraph (4), by striking ``by air--'' and all that 
     follows through ``the transportation cannot'' and inserting 
     ``by air, the transportation cannot''.
       (4) Section 2651 of such title, as transferred and 
     redesignated by subsection (a), is amended by striking ``Army 
     transport agencies'' and all that follows and inserting ``the 
     Department of Defense, under regulations and at rates to be 
     prescribed by the Secretary of Defense.''.
       (c) Repeal of Superseded and Obsolete Provisions.--The 
     following sections of such title are repealed: sections 4741, 
     4743, 9741, 9743, and 9746.
       (d) Clerical Amendments.--
       (1) The table of sections at the beginning of chapter 157 
     of such title is amended by adding at the end the following 
     new items:

``2648. Persons and supplies: sea transportation.
``2649. Civilian passengers and commercial cargoes: transportation on 
              Department of Defense vessels.
``2650. Civilian personnel in Alaska.
``2651. Passengers and merchandise to Guam: sea transport.''.

       (2) The table of sections at the beginning of chapter 447 
     of such title is amended by striking the items relating to 
     sections 4741, 4743, 4744, 4745, 4746, and 4747.
       (3) The table of sections at the beginning of chapter 947 
     of such title is amended by striking the items relating to 
     sections 9741, 9743, and 9746.

     SEC. 1073. EVALUATION OF PROCUREMENT PRACTICES RELATING TO 
                   TRANSPORTATION OF SECURITY-SENSITIVE CARGO.

       (a) Evaluation Requirement.--The Secretary of Defense shall 
     evaluate the procurement practices of the Department of 
     Defense in the award of service contracts for domestic 
     freight transportation for security-sensitive cargo (such as 
     arms, ammunitions, explosives, and classified material) to 
     determine whether such practices are in the best interests of 
     the Department of Defense.
       (b) Report.--Not later than January 1, 2005, the Secretary 
     of Defense shall submit to the Committees on Armed Services 
     of the House of Representatives and the Senate a report on 
     the results of the evaluation conducted under subsection (a).

                       Subtitle I--Other Matters

     SEC. 1081. LIABILITY PROTECTION FOR DEPARTMENT OF DEFENSE 
                   VOLUNTEERS WORKING IN MARITIME ENVIRONMENT.

       Section 1588(d)(1)(B) of title 10, United States Code, is 
     amended by inserting before the period at the end the 
     following: ``and the Act of March 9, 1920, commonly known as 
     the `Suits in Admiralty Act' (41 Stat. 525; 46 U.S.C. App. 
     741 et seq.) and the Act of March 3, 1925, commonly known as 
     the `Public Vessels Act' (43 Stat. 1112; 46 U.S.C. App. 781 
     et seq.) (relating to claims for damages or loss on navigable 
     waters)''.

     SEC. 1082. SENSE OF CONGRESS CONCERNING MEDIA COVERAGE OF THE 
                   RETURN TO THE UNITED STATES OF THE REMAINS OF 
                   DECEASED MEMBERS OF THE ARMED FORCES FROM 
                   OVERSEAS.

       (a) Findings.--Congress makes the following findings:
       (1) The Department of Defense, since 1991, has relied on a 
     policy of no media coverage of the transfers of the remains 
     of deceased members of the Armed Forces--
       (A) at Ramstein Air Force Base, Germany;
       (B) at Dover Air Force Base, Delaware, and the Port 
     Mortuary Facility at Dover Air Force Base; and
       (C) at interim stops en route to the point of final 
     destination in the transfer of the remains.
       (2) The principal focus and purpose of the policy is to 
     protect the wishes and the privacy of families of deceased 
     members of the Armed Forces during their time of great loss 
     and grief and to give families and friends of the dead the 
     privilege to decide whether to allow media coverage at the 
     member's duty or home station, at the interment site, or at 
     or in connection with funeral and memorial services.
       (3) In a 1991 legal challenge to the Department of Defense 
     policy, as applied during Operation Desert Storm, the policy 
     was upheld by the United States District Court for the 
     District of Columbia, and on appeal, by the United States 
     Court of Appeals for the District of Columbia in the case of 
     JB Pictures, Inc. v. Department of Defense and Donald B. 
     Rice, Secretary of the Air Force on the basis that denying 
     the media the right to view the return of remains at Dover 
     Air Force Base does not violate the first amendment 
     guarantees of freedom of speech and of the press.
       (4) The United States Court of Appeals for the District of 
     Columbia in that case cited the following two key Government 
     interests that are served by the Department of Defense 
     policy:
       (A) Reducing the hardship on the families and friends of 
     the war dead, who may feel obligated to travel great 
     distances to attend arrival ceremonies at Dover Air Force 
     Base if such ceremonies were held.
       (B) Protecting the privacy of families and friends of the 
     dead, who may not want media coverage of the unloading of 
     caskets at Dover Air Force Base.
       (5) The Court also noted, in that case, that the bereaved 
     may be upset at the public display of the caskets of their 
     loved ones and that the policy gives the family the right to 
     grant or deny access to the media at memorial or funeral 
     services at the home base and that the policy is consistent 
     in its concern for families.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Department of Defense policy regarding no media coverage 
     of the transfer of the remains of deceased members of the 
     Armed Forces--
       (1) appropriately protects the privacy of the families and 
     friends of the deceased; and
       (2) is consistent with United States constitutional 
     guarantees of freedom of speech and freedom of the press.

     SEC. 1083. TRANSFER OF HISTORIC F3A-1 BREWSTER CORSAIR 
                   AIRCRAFT.

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

     SEC.1084. TECHNICAL AND CLERICAL AMENDMENTS.

       (a) Clarification of Definition of ``Operational Range''.--
     Section 101(e)(3) of title 10, United States Code, is amended 
     by striking ``Secretary of Defense'' and inserting 
     ``Secretary of a military department''.
       (b) Amendments Relating to Definition of Congressional 
     Defense Committees.--Title 10, United States Code, is amended 
     as follows:
       (1) Section 2215 is amended--
       (A) by striking ``(a) Certification Required.--'';
       (B) by striking ``congressional committees specified in 
     subsection (b)'' and inserting ``congressional defense 
     committees''; and
       (C) by striking subsection (b).
       (2) Section 2306b(g) is amended by striking ``Committee 
     on'' the first place it appears and all that follows through 
     ``House of Representatives'' and inserting ``congressional 
     defense committees''.
       (3) Section 2515(d) is amended--
       (A) by striking ``(1)'' before ``The Secretary'';
       (B) by striking ``congressional committees specified in 
     paragraph (2)'' and inserting ``congressional defense 
     committees''; and
       (C) by striking paragraph (2).
       (4) Section 2676(d) is amended by striking ``appropriate 
     committees of Congress'' at the end of the first sentence and 
     inserting ``congressional defense committees''.
       (c) Amendments Relating to Change of Name of GAO.--Title 
     10, United States Code, is amended as follows:
       (1) Section 1084 is amended by striking ``General 
     Accounting Office'' and inserting ``Comptroller General''.
       (2) Section 1102(d)(2) is amended by striking ``General 
     Accounting Office'' and inserting ``Comptroller General''.
       (3) Section 2014(g) is amended by striking ``General 
     Accounting Office'' and inserting ``Government Accountability 
     Office''.
       (d) Miscellaneous Amendments to Title 10, United States 
     Code.--Title 10, United States Code, is amended as follows:
       (1) The tables of chapters at the beginning of subtitle A, 
     and at the beginning of part I of subtitle A, are amended by 
     striking ``481'' in the item relating to chapter 23 and 
     inserting ``480''.
       (2) Section 130a is amended--
       (A) by striking ``Effective October 1, 2002, the'' in 
     subsection (a) and inserting ``The'';
       (B) by striking ``baseline number'' in subsection (a) and 
     all that follows through ``means the'' in subsection (c);
       (C) by transferring subsection (e) so as to appear before 
     subsection (d) and redesignating that subsection as 
     subsection (b);
       (D) by redesignating subsections (d) and (f) as subsection 
     (c) and (d), respectively; and
       (E) by striking subsection (g).
       (3) Section 437(c) is amended by inserting ``(50 U.S.C. 
     415b)'' after ``National Security Act of 1947''.
       (4) Section 487(d) is amended by striking ``Other 
     Definitions'' and inserting ``Inapplicability to Coast 
     Guard''.
       (5) Section 503(c)(1)(B) is amended by striking 
     ``education'' in the second sentence and inserting 
     ``educational''.
       (6) Section 632(c)(1) is amended--
       (A) by striking ``paragraph (2)'' and inserting ``paragraph 
     (3)''; and
       (B) by striking ``under that paragraph'' and inserting 
     ``under that subsection''.

[[Page H9258]]

       (7) The item relating to section 1076b in the table of 
     sections at the beginning of chapter 55 is amended to read as 
     follows:

``1076b. TRICARE program: coverage for members of the Ready Reserve.''.

       (8) Section 1108(e) is amended by striking ``heath'' and 
     inserting ``health''.
       (9) Section 1406(g) is amended--
       (A) by striking ``section 305'' and inserting ``section 
     245''; and
       (B) by striking ``Officers Act of 2002'' and inserting 
     ``Officer Corps Act of 2002 (33 U.S.C. 3045)''.
       (10) Sections 1448(b)(1)(F), 1448(d)(2)(B), 1448(d)(6)(A), 
     and 1458(j) are amended by striking ``on or after the date of 
     the enactment of the National Defense Authorization Act for 
     Fiscal Year 2004'' and inserting ``after November 23, 
     2003,''.
       (11) Sections 1463(a)(1), 1465(c)(1)(A), 1465(c)(1)(B), 
     1465(c)(4)(A), 1465(c)(4)(B), and 1466(b)(2)(D) are amended 
     by striking ``1413, 1413a,'' and inserting ``1413a''.
       (12) Section 1557(b) is amended by striking ``Effective 
     October 1, 2002, final'' and inserting ``Final''.
       (13) Section 1566 is amended--
       (A) in subsection (g)(2), by striking ``the date that is 6 
     months after the date of the enactment of the Help America 
     Vote Act of 2002'' in the last sentence and inserting ``April 
     29, 2003''; and
       (B) in subsections (h), (i)(1), and (i)(3), by striking 
     ``Armed Forces'' and inserting ``armed forces''.
       (14) Sections 1724(d) and 1732(d)(1) are amended by 
     striking ``its decision'' in the second sentence and 
     inserting ``the decision of the Secretary''.
       (15) Section 1761(b) is amended--
       (A) in the matter preceding paragraph (1), by striking 
     ``provide for--'' and inserting ``provide for the 
     following:'';
       (B) in paragraphs (1), (2), and (3), by capitalizing the 
     first letter of the first word;
       (C) at the end of paragraphs (1) and (2), by striking the 
     semicolon and inserting a period;
       (D) at the end of paragraph (3), by striking ``; and'' and 
     inserting a period; and
       (E) by striking paragraph (4).
       (16) Section 2193b(c)(2) is amended by striking ``the date 
     of the enactment of this section'' and inserting ``October 5, 
     1999''.
       (17) Section 2224(c) is amended in the matter preceding 
     paragraph (1) by striking ``subtitle II of chapter 35'' and 
     inserting ``subchapter II of chapter 35''.
       (18) Section 2349(d) is amended by striking ``section 
     2350a(i)(3)'' and inserting ``section 2350a(i)(2)''.
       (19) Section 2350b(g) is amended--
       (A) in the matter preceding paragraph (1), by inserting 
     ``the Secretary of Defense'' after ``authorizing''; and
       (B) in paragraph (1), by striking ``the Secretary of 
     Defense''.
       (20) Section 2474(f)(2) is amended by striking ``section 
     2466(e)'' and inserting ``section 2466(d)''.
       (21) Section 2540(b)(2) is amended by inserting ``, as in 
     effect on that date'' before the period at the end.
       (22) Section 2662(a)(2) is amended--
       (A) in the first sentence, by striking ``must include a 
     summarization'' and inserting ``shall include a summary''; 
     and
       (B) in the second sentence, by inserting ``of paragraph 
     (1)'' after ``in subparagraph (E)''.
       (23) Section 2672a(a) is amended--
       (A) in the matter preceding paragraph (1), by inserting 
     ``in any case in which the Secretary determines'' after ``in 
     land'';
       (B) in paragraph (1), by striking ``the Secretary 
     determines'' and inserting ``the acquisition''; and
       (C) in paragraph (2), by inserting ``the acquisition'' 
     after ``(2)''.
       (24) Section 2701 is amended--
       (A) in subsection (a)(2), by inserting ``(42 U.S.C. 9620)'' 
     before the period at the end;
       (B) in subsection (c)(2), by striking ``of CERCLA (relating 
     to settlements)'' and inserting ``(relating to settlements) 
     of CERCLA (42 U.S.C. 9622)'';
       (C) in subsection (e), by inserting ``(42 U.S.C. 9619)'' 
     after ``CERCLA''; and
       (D) in subsection (j)(2), by striking ``the Comprehensive'' 
     and all the follows through ``of 1980'' and inserting 
     ``CERCLA''.
       (25) Section 2702 is amended by inserting ``(42 U.S.C. 
     9660(a)(5))'' in the second sentence of subsection (a) before 
     the period at the end.
       (26) Section 2703(b) is amended by striking ``The terms'' 
     at the beginning of the second sentence and inserting ``For 
     purposes of the preceding sentence, the terms''.
       (27) Section 2704 is amended by inserting ``(42 U.S.C. 
     9604(i))'' in subsections (c), (e), and (f) after ``CERCLA''.
       (28) The second section 3755, added by section 543(b)(1) of 
     the Bob Stump National Defense Authorization Act for Fiscal 
     Year 2003 (Public Law 107-314; 116 Stat. 2549), is 
     redesignated as section 3756, and the item relating to that 
     section in the table of sections at the beginning of chapter 
     357 is revised to reflect such redesignation.
       (29) Section 4689 is amended by striking ``Building'' after 
     ``Capitol''.
       (30) The second section 6257, added by section 543(c)(1) of 
     the Bob Stump National Defense Authorization Act for Fiscal 
     Year 2003 (Public Law 107-314; 116 Stat. 2549), is 
     redesignated as section 6258, and the item relating to that 
     section in the table of sections at the beginning of chapter 
     567 is revised to reflect such redesignation.
       (31) Section 7102 is amended--
       (A) by striking ``Authority'' at the beginning of 
     subsection (a) and inserting ``Master of Military Studies'';
       (B) by striking ``Marine Corps War College'' at the 
     beginning of subsection (b) and inserting ``Master of 
     Strategic Studies'';
       (C) by striking ``Command and Staff College of the Marine 
     Corps University'' at the beginning of subsection (c) and 
     inserting ``Master of Operational Studies''; and
       (D) by striking ``subsections (a) and (b)'' in subsection 
     (d) and inserting ``subsections (a), (b), and (c)''.
       (32) Section 8084 is amended by striking ``capabilty'' and 
     inserting ``capability''.
       (33) The second section 8755, added by section 543(d)(1) of 
     the Bob Stump National Defense Authorization Act for Fiscal 
     Year 2003 (Public Law 107-314; 116 Stat. 2550), is 
     redesignated as section 8756, and the item relating to that 
     section in the table of sections at the beginning of chapter 
     857 is revised to reflect such redesignation.
       (34) The table in section 12012(a) is amended by inserting 
     a colon after ``Air National Guard''.
       (e) Title 37, United States Code.--Title 37, United States 
     Code, is amended as follows:
       (1) Section 301a(b)(4) is amended by striking ``section 
     301(a)(11)'' and inserting ``section 301(a)(13)''.
       (2) Section 323(h) is amended by striking ``Secretary of 
     Transportation'' and inserting ``Secretary of Homeland 
     Security''.
       (f) Public Law 108-136.--Effective as of November 24, 2003, 
     and as if included therein as enacted, the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136) 
     is amended as follows:
       (1) Sections 832(a) and 834(a) (117 Stat. 1550) are each 
     amended by striking ``such title'' and inserting ``title 10, 
     United States Code,''.
       (2) Section 931(a)(1) (117 Stat. 1580) is amended by 
     striking ``and donations'' in the first quoted matter and 
     inserting ``or donations''.
       (3) Section 2204(b) (117 Stat. 1706) is amended by striking 
     ``section 2101(a)'' each place it appears and inserting 
     ``section 2201(a)''.
       (g) Public Law 107-314.--Effective as of December 2, 2002, 
     and as if included therein as enacted, section 1064(a)(2) of 
     the Bob Stump National Defense Authorization Act for Fiscal 
     Year 2003 (Public Law 107-314; 116 Stat. 2654) is amended by 
     inserting ``the item relating to'' after ``is amended by 
     inserting after''.
       (h) Public Law 107-107.--Effective as of December 28, 2001, 
     and as if included therein as enacted, the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107) 
     is amended as follows:
       (1) Section 824(a)(1)(C) (115 Stat. 1183) is amended by 
     striking ``(3)(A)'' and inserting ``(3)(B)''.
       (2) Section 1048(e)(4) (115 Stat. 1227) is amended by 
     striking ``Subsection'' and inserting ``Section''.
       (3) Section 1111(c) (115 Stat. 1238) is amended by striking 
     ``This provision'' and inserting ``Section 5949 of title 5, 
     United States Code, as added by subsection (a),''.
       (i) Public Law 101-510.--Section 2902(e)(2)(B) of the 
     Defense Base Closure and Realignment Act of 1990 (part A of 
     title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) is 
     amended--
       (1) in clause (i), by striking ``Subcommittee on Readiness, 
     Sustainability, and Support'' and inserting ``Subcommittee on 
     Readiness and Management Support''; and
       (2) in clause (ii), by striking ``Subcommittee on Military 
     Installations and Facilities'' and inserting ``Subcommittee 
     on Readiness''.
       (j) National Security Act of 1947.--Sections 
     702(a)(6)(B)(iv)(I), 703(a)(6)(B)(iv)(I), and 704(f)(2)(D)(i) 
     of the National Security Act of 1947 are amended by striking 
     ``responsible records'' and inserting ``responsive records''.
       (k) Codification Relating to Leave for Attendance at 
     Certain Hearings.--Subsection (b) of section 363 of the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996 (10 U.S.C. 704 note) is--
       (1) transferred to section 704 of title 10, United States 
     Code;
       (2) inserted at the end of that section;
       (3) redesignated as subsection (c); and
       (4) amended--
       (A) by striking ``Armed Forces'' each place it appears and 
     inserting ``armed forces'';
       (B) in paragraph (1)--
       (i) by striking ``Secretary of each'' and all that follows 
     through ``in the Navy,'' and inserting ``Secretary 
     concerned''; and
       (ii) by striking ``(as defined in section 101 of title 10, 
     United States Code)''; and
       (C) in paragraph (3)--
       (i) by striking ``For purposes of this subsection--'' and 
     inserting ``In this subsection:'';
       (ii) in subparagraph (A), by striking ``title 10, United 
     States Code'' and inserting ``this title''; and
       (iii) in subparagraph (B), by striking ``such term'' and 
     inserting ``that term''.

     SEC. 1085. PRESERVATION OF SEARCH AND RESCUE CAPABILITIES OF 
                   THE FEDERAL GOVERNMENT.

       The Secretary of Defense may not reduce or eliminate search 
     and rescue capabilities at any military installation in the 
     United States unless the Secretary first certifies to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives that equivalent search and rescue 
     capabilities will be provided, without interruption and 
     consistent with the policies and objectives set forth in the 
     United States National Search and Rescue Plan entered into 
     force on January 1, 1999, by--
       (1) the Department of Interior, the Department of Commerce, 
     the Department of Homeland Security, the Department of 
     Transportation, the Federal Communications Commission, or the 
     National Aeronautics and Space Administration; or
       (2) the Department of Defense, either directly or through a 
     Department of Defense contract with an emergency medical 
     service provider or other private entity to provide such 
     capabilities.

[[Page H9259]]

     SEC. 1086. ACQUISITION OF AERIAL FIREFIGHTING EQUIPMENT FOR 
                   NATIONAL INTERAGENCY FIRE CENTER.

       (a) Findings.--Congress makes the following findings:
       (1) The National Interagency Fire Center does not possess 
     an adequate number of aircraft for use in aerial 
     firefighting, and personnel at the Center rely on military 
     aircraft to provide such firefighting services.
       (2) It is in the national security interest of the United 
     States for the National Interagency Fire Center to acquire 
     aircraft for use in aerial firefighting so that the military 
     aircraft made available for aerial firefighting will instead 
     be available for use by the Armed Forces.
       (b) Authority To Purchase Aerial Firefighting Equipment.--
     (1) The Secretary of Agriculture is authorized to purchase 10 
     aircraft, as described in paragraph (2), for the National 
     Interagency Fire Center for use in aerial firefighting.
       (2) The aircraft referred to in paragraph (1) shall be 
     aircraft that are--
       (A) specifically designed and built for aerial 
     firefighting;
       (B) certified by the Chief of the Forest Service as suited 
     for conditions commonly experienced in aerial firefighting 
     operations carried out in the United States, including 
     Alaska; and
       (C) manufactured in a manner that is consistent with the 
     recommendations for aircraft used in aerial firefighting 
     contained in--
       (i) the Blue Ribbon Panel Report to the Chief of the Forest 
     Service and the Director of the Bureau of Land Management 
     dated December 2002; and
       (ii) the Safety Recommendation of the Chairman of the 
     National Transportation Safety Board related to aircraft used 
     in aerial firefighting dated April 23, 2004.
       (c) Authorization of Appropriations.--There is authorized 
     to be appropriated to the Secretary of Agriculture for fiscal 
     year 2005 such funds as may be necessary to purchase the 10 
     aircraft described in subsection (b).

     SEC. 1087. REVISION TO REQUIREMENTS FOR RECOGNITION OF 
                   INSTITUTIONS OF HIGHER EDUCATION AS HISPANIC-
                   SERVING INSTITUTIONS FOR PURPOSES OF CERTAIN 
                   GRANTS AND CONTRACTS.

       Section 502(a)(5)(C) of the Higher Education Act of 1965 
     (20 U.S.C. 1101a(a)(5)(C)) is amended by inserting before the 
     period the following: ``, which assurances--
       ``(i) may employ statistical extrapolation using 
     appropriate data from the Bureau of the Census or other 
     appropriate Federal or State sources; and
       ``(ii) the Secretary shall consider as meeting the 
     requirements of this subparagraph, unless the Secretary 
     determines, based on a preponderance of the evidence, that 
     the assurances do not meet the requirements''.

     SEC. 1088. MILITARY EXTRATERRITORIAL JURISDICTION OVER 
                   CONTRACTORS SUPPORTING DEFENSE MISSIONS 
                   OVERSEAS.

       Section 3267(1)(A) of title 18, United States Code, is 
     amended to read as follows:
       ``(A) employed as--
       ``(i) a civilian employee of--

       ``(I) the Department of Defense (including a 
     nonappropriated fund instrumentality of the Department); or
       ``(II) any other Federal agency, or any provisional 
     authority, to the extent such employment relates to 
     supporting the mission of the Department of Defense overseas;

       ``(ii) a contractor (including a subcontractor at any tier) 
     of--

       ``(I) the Department of Defense (including a 
     nonappropriated fund instrumentality of the Department); or
       ``(II) any other Federal agency, or any provisional 
     authority, to the extent such employment relates to 
     supporting the mission of the Department of Defense overseas; 
     or

       ``(iii) an employee of a contractor (or subcontractor at 
     any tier) of--

       ``(I) the Department of Defense (including a 
     nonappropriated fund instrumentality of the Department); or
       ``(II) any other Federal agency, or any provisional 
     authority, to the extent such employment relates to 
     supporting the mission of the Department of Defense 
     overseas;''.

     SEC. 1089. DEFINITION OF UNITED STATES FOR PURPOSES OF 
                   FEDERAL CRIME OF TORTURE.

       Section 2340(3) of title 18, United States Code, is amended 
     to read as follows:
       ``(3) `United States' means the several States of the 
     United States, the District of Columbia, and the 
     commonwealths, territories, and possessions of the United 
     States.''.

     SEC. 1090. ENERGY SAVINGS PERFORMANCE CONTRACTS.

       (a) In General.--Section 801(c) of the National Energy 
     Conservation Policy Act (42 U.S.C. 8287(c)) is amended by 
     striking ``2003'' and inserting ``2006''.
       (b) Payment of Costs.--Section 802 of the National Energy 
     Conservation Policy Act (42 U.S.C. 8287a) is amended by 
     inserting ``, water, or wastewater treatment'' after 
     ``payment of energy''.
       (c) Energy Savings.--Section 804(2) of the National Energy 
     Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to 
     read as follows:
       ``(2) The term `energy savings' means a reduction in the 
     cost of energy, water, or wastewater treatment, from a base 
     cost established through a methodology set forth in the 
     contract, used in an existing federally owned building or 
     buildings or other federally owned facilities as a result 
     of--
       ``(A) the lease or purchase of operating equipment, 
     improvements, altered operation and maintenance, or technical 
     services;
       ``(B) the increased efficient use of existing energy 
     sources by cogeneration or heat recovery, excluding any 
     cogeneration process for other than a federally owned 
     building or buildings or other federally owned facilities; or
       ``(C) the increased efficient use of existing water sources 
     in either interior or exterior applications.''.
       (d) Energy Savings Contract.--Section 804(3) of the 
     National Energy Conservation Policy Act (42 U.S.C. 8287c(3)) 
     is amended to read as follows:
       ``(3) The terms `energy savings contract' and `energy 
     savings performance contract' mean a contract that provides 
     for the performance of services for the design, acquisition, 
     installation, testing, and, where appropriate, operation, 
     maintenance, and repair, of an identified energy or water 
     conservation measure or series of measures at 1 or more 
     locations. Such contracts shall, with respect to an agency 
     facility that is a public building (as such term is defined 
     in section 3301 of title 40, United States Code), be in 
     compliance with the prospectus requirements and procedures of 
     section 3307 of title 40, United States Code.''.
       (e) Energy or Water Conservation Measure.--Section 804(4) 
     of the National Energy Conservation Policy Act (42 U.S.C. 
     8287c(4)) is amended to read as follows:
       ``(4) The term `energy or water conservation measure' 
     means--
       ``(A) an energy conservation measure, as defined in section 
     551; or
       ``(B) a water conservation measure that improves the 
     efficiency of water use, is life-cycle cost-effective, and 
     involves water conservation, water recycling or reuse, more 
     efficient treatment of wastewater or stormwater, improvements 
     in operation or maintenance efficiencies, retrofit 
     activities, or other related activities, not at a Federal 
     hydroelectric facility.''.
       (f) Review.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary of Energy shall complete 
     a review of the Energy Savings Performance Contract program 
     to identify statutory, regulatory, and administrative 
     obstacles that prevent Federal agencies from fully utilizing 
     the program. In addition, this review shall identify all 
     areas for increasing program flexibility and effectiveness, 
     including audit and measurement verification requirements, 
     accounting for energy use in determining savings, contracting 
     requirements, including the identification of additional 
     qualified contractors, and energy efficiency services 
     covered. The Secretary shall report these findings to 
     Congress and shall implement identified administrative and 
     regulatory changes to increase program flexibility and 
     effectiveness to the extent that such changes are consistent 
     with statutory authority.
       (g) Extension of Authority.--Any energy savings performance 
     contract entered into under section 801 of the National 
     Energy Conservation Policy Act (42 U.S.C. 8287) after October 
     1, 2003, and before the date of enactment of this Act, shall 
     be deemed to have been entered into pursuant to such section 
     801 as amended by subsection (a) of this section.

     SEC. 1091. SENSE OF CONGRESS AND POLICY CONCERNING PERSONS 
                   DETAINED BY THE UNITED STATES.

       (a) Sense of Congress.--It is the sense of Congress that --
       (1) the abuses inflicted upon detainees at the Abu Ghraib 
     prison in Baghdad, Iraq, are inconsistent with the 
     professionalism, dedication, standards, and training required 
     of individuals who serve in the United States Armed Forces;
       (2) the vast majority of members of the Armed Forces have 
     upheld the highest possible standards of professionalism and 
     morality in the face of illegal tactics and terrorist attacks 
     and attempts on their lives;
       (3) the abuse of persons in United States custody in Iraq 
     is appropriately condemned and deplored by the American 
     people;
       (4) the Armed Forces are moving swiftly and decisively to 
     identify, try, and, if found guilty, punish persons who 
     perpetrated such abuse;
       (5) the Department of Defense and appropriate military 
     authorities must continue to undertake corrective action, as 
     appropriate, to address chain-of-command deficiencies and the 
     systemic deficiencies identified in the incidents in 
     question;
       (6) the Constitution, laws, and treaties of the United 
     States and the applicable guidance and regulations of the 
     United States Government prohibit the torture or cruel, 
     inhuman, or degrading treatment of foreign prisoners held in 
     custody by the United States;
       (7) the alleged crimes of a handful of individuals should 
     not detract from the commendable sacrifices of over 300,000 
     members of the Armed Forces who have served, or who are 
     serving, in Operation Iraqi Freedom; and
       (8) no detainee shall be subject to torture or cruel, 
     inhuman, or degrading treatment or punishment that is 
     prohibited by the Constitution, laws, or treaties of United 
     States.
       (b) Policy.--It is the policy of the United States to--
       (1) ensure that no detainee shall be subject to torture or 
     cruel, inhuman, or degrading treatment or punishment that is 
     prohibited by the Constitution, laws, or treaties of the 
     United States;
       (2) investigate and prosecute, as appropriate, all alleged 
     instances of unlawful treatment of detainees in a manner 
     consistent with the international obligations, laws, or 
     policies of the United States;
       (3) ensure that all personnel of the United States 
     Government understand their obligations in both wartime and 
     peacetime to comply with the legal prohibitions against 
     torture, cruel, inhuman, or degrading treatment of detainees 
     in the custody of the United States;
       (4) ensure that, in a case in which there is doubt as to 
     whether a detainee is entitled to prisoner of war status 
     under the Geneva Conventions, such detainee receives the 
     protections

[[Page H9260]]

     accorded to prisoners of war until the detainee's status is 
     determined by a competent tribunal; and
       (5) expeditiously process and, if appropriate, prosecute 
     detainees in the custody of the United States, including 
     those in the custody of the United States Armed Forces at 
     Guantanamo Bay, Cuba.
       (c) Detainees.--For purposes of this section, the term 
     ``detainee'' means a person in the custody or under the 
     physical control of the United States as a result of armed 
     conflict.

     SEC. 1092. ACTIONS TO PREVENT THE ABUSE OF DETAINEES.

       (a) Policies Required.--The Secretary of Defense shall 
     ensure that policies are prescribed not later than 150 days 
     after the date of the enactment of this Act regarding 
     procedures for Department of Defense personnel and contractor 
     personnel of the Department of Defense intended to ensure 
     that members of the Armed Forces, and all persons acting on 
     behalf of the Armed Forces or within facilities of the Armed 
     Forces, treat persons detained by the United States 
     Government in a humane manner consistent with the 
     international obligations and laws of the United States and 
     the policies set forth in section 1091(b).
       (b) Matters to Be Included.--In order to achieve the 
     objective stated in subsection (a), the policies under that 
     subsection shall specify, at a minimum, procedures for the 
     following:
       (1) Ensuring that each commander of a Department of Defense 
     detention facility or interrogation facility--
       (A) provides all assigned personnel with training, and 
     documented acknowledgment of receiving training, regarding 
     the law of war, including the Geneva Conventions; and
       (B) establishes standard operating procedures for the 
     treatment of detainees.
       (2) Ensuring that each Department of Defense contract in 
     which contract personnel in the course of their duties 
     interact with individuals detained by the Department of 
     Defense on behalf of the United States Government include a 
     requirement that such contract personnel have received 
     training, and documented acknowledgment of receiving 
     training, regarding the international obligations and laws of 
     the United States applicable to the detention of personnel.
       (3) Providing all detainees with information, in their own 
     language, of the applicable protections afforded under the 
     Geneva Conventions.
       (4) Conducting periodic unannounced and announced 
     inspections of detention facilities in order to provide 
     continued oversight of interrogation and detention 
     operations.
       (5) Ensuring that, to the maximum extent practicable, 
     detainees and detention facility personnel of a different 
     gender are not alone together.
       (c) Secretary of Defense Certification.--The Secretary of 
     Defense shall certify that all Federal employees and civilian 
     contractors engaged in the handling or interrogation of 
     individuals detained by the Department of Defense on behalf 
     of the United States Government have fulfilled an annual 
     training requirement on the law of war, the Geneva 
     Conventions, and the obligations of the United States under 
     international law.

     SEC. 1093. REPORTING REQUIREMENTS.

       (a) Transmission of Regulations, Etc.--Not later than 30 
     days after the date on which regulations, policies, and 
     orders are first prescribed under section 1092(a), the 
     Secretary of Defense shall transmit to the Committee on Armed 
     Services of the Senate and the Committee on Armed Services of 
     the House of Representatives copies of such regulations, 
     policies, or orders, together with a report on steps taken to 
     the date of the report to implement section 1092.
       (b) One-Year Implementation Report.--Not later than one 
     year after the date on which regulations, policies, and 
     orders are first prescribed under section 1092(a), the 
     Secretary shall submit to such committees a report on further 
     steps taken to implement section 1092 to the date of such 
     report.
       (c) Annual Report.--Nine months after the date of the 
     enactment of this Act and annually thereafter, the Secretary 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report for the preceding 12-months 
     containing the following:
       (1) Notice of any investigation into any violation of 
     international obligations or laws of the United States 
     regarding the treatment of individuals detained by the United 
     States Armed Forces or by a person providing services to the 
     Department of Defense on a contractual basis, if the notice 
     will not compromise any ongoing criminal or administrative 
     investigation or prosecution.
       (2) General information on the foreign national detainees 
     in the custody of the Department of Defense during the 12-
     month period covered by the report, including the following:
       (A) The best estimate of the Secretary of Defense of the 
     total number of detainees in the custody of the Department as 
     of the date of the report.
       (B) The best estimate of the Secretary of Defense of the 
     total number of detainees released from the custody of the 
     Department during the period covered by the report.
       (C) An aggregate summary of the number of persons detained 
     as enemy prisoners of war, civilian internees, and unlawful 
     combatants, including information regarding the average 
     length of detention for persons in each category.
       (D) An aggregate summary of the nationality of persons 
     detained.
       (E) Aggregate information as to the transfer of detainees 
     to the jurisdiction of other countries, and the countries to 
     which transferred.
       (d) Classification of Reports.--Reports submitted under 
     this section shall be submitted, to the extent practicable, 
     in unclassified form, but may include a classified annex as 
     necessary to protect the national security of the United 
     States.
       (e) Termination.--The requirements of this section shall 
     cease to be in effect on December 31, 2007.

     SEC. 1094. FINDINGS AND SENSE OF CONGRESS CONCERNING ARMY 
                   SPECIALIST JOSEPH DARBY.

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

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

Sec. 1101. Payment of Federal employee health benefit premiums for 
              mobilized Federal employees.
Sec. 1102. Foreign language proficiency pay.
Sec. 1103. Pay and performance appraisal parity for civilian 
              intelligence personnel.
Sec. 1104. Pay parity for senior executives in defense nonappropriated 
              fund instrumentalities.
Sec. 1105. Science, mathematics, and research for transformation 
              (SMART) defense scholarship pilot program.
Sec. 1106. Report on how to recruit and retain individuals with foreign 
              language skills.
Sec. 1107. Plan on implementation and utilization of flexible personnel 
              management authorities in Department of Defense 
              laboratories.

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

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

     SEC. 1102. FOREIGN LANGUAGE PROFICIENCY PAY.

       (a) Eligibility for Service Not Related to Contingency 
     Operations.--Section 1596a(a)(2) of title 10, United States 
     Code, is amended by striking ``during a contingency operation 
     supported by the armed forces''.
       (b) Effective Date.--The amendment by this section shall 
     take effect on the first day of the first month that begins 
     after the date of the enactment of this Act.

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

       (a) Pay Rates.--Section 1602 of title 10, United States 
     Code, is amended--
       (1) in subsection (a), by striking ``in relation to the 
     rates of pay provided in subpart D of part III of title 5 for 
     positions subject to that subpart which have corresponding 
     levels of duties and responsibilities'' and inserting ``in 
     relation to the rates of pay provided for comparable 
     positions in the Department of Defense and subject to the 
     same limitations on maximum rates of pay established for 
     employees of the Department of Defense by law or 
     regulation'';
       (2) by striking subsection (b); and

[[Page H9261]]

       (3) by redesignating subsection (c) as subsection (b).
       (b) Performance Appraisal System.--Section 1606 of such 
     title is amended by adding at the end the following new 
     subsection:
       ``(d) Performance Appraisals.--(1) The Defense Intelligence 
     Senior Executive Service shall be subject to a performance 
     appraisal system which, as designed and applied, is certified 
     by the Secretary of Defense under section 5307 of title 5 as 
     making meaningful distinctions based on relative performance.
       ``(2) The performance appraisal system applicable to the 
     Defense Intelligence Senior Executive Service under paragraph 
     (1) may be the same performance appraisal system that is 
     established and implemented within the Department of Defense 
     for members of the Senior Executive Service.''.

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

       (a) Authority.--Chapter 81 of title 10, United States Code, 
     is amended by inserting after section 1587 the following new 
     section:

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

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

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

     SEC. 1105. SCIENCE, MATHEMATICS, AND RESEARCH FOR 
                   TRANSFORMATION (SMART) DEFENSE SCHOLARSHIP 
                   PILOT PROGRAM.

       (a) Requirement for Program.--(1) The Secretary of Defense 
     shall carry out a pilot program to provide financial 
     assistance for education in science, mathematics, 
     engineering, and technology skills and disciplines that, as 
     determined by the Secretary, are critical to the national 
     security functions of the Department of Defense and are 
     needed in the Department of Defense workforce.
       (2) The pilot program under this section shall be carried 
     out for three years beginning on the date of the enactment of 
     this Act.
       (b) Scholarships.--(1) Under the pilot program, the 
     Secretary of Defense may award a scholarship in accordance 
     with this section to a person who--
       (A) is a citizen of the United States;
       (B) is pursuing an undergraduate or advanced degree in a 
     critical skill or discipline described in subsection (a) at 
     an institution of higher education; and
       (C) enters into a service agreement with the Secretary of 
     Defense as described in subsection (c).
       (2) The amount of the financial assistance provided under a 
     scholarship awarded to a person under this subsection shall 
     be the amount determined by the Secretary of Defense as being 
     necessary to pay all educational expenses incurred by that 
     person, including tuition, fees, cost of books, laboratory 
     expenses, and expenses of room and board. The expenses paid, 
     however, shall be limited to those educational expenses 
     normally incurred by students at the institution of higher 
     education involved.
       (c) Service Agreement for Recipients of Assistance.--(1) To 
     receive financial assistance under this section--
       (A) in the case of an employee of the Department of 
     Defense, the employee shall enter into a written agreement to 
     continue in the employment of the department for the period 
     of obligated service determined under paragraph (2); and
       (B) in the case of a person not an employee of the 
     Department of Defense, the person shall enter into a written 
     agreement to accept and continue employment in the Department 
     of Defense for the period of obligated service determined 
     under paragraph (2).
       (2) For the purposes of this subsection, the period of 
     obligated service for a recipient of a scholarship under this 
     section shall be the period determined by the Secretary of 
     Defense as being appropriate to obtain adequate service in 
     exchange for the financial assistance provided under the 
     scholarship. In no event may the period of service required 
     of a recipient be less than the total period of pursuit of a 
     degree that is covered by the scholarship. The period of 
     obligated service is in addition to any other period for 
     which the recipient is obligated to serve in the civil 
     service of the United States.
       (3) An agreement entered into under this subsection by a 
     person pursuing an academic degree shall include any terms 
     and conditions that the Secretary of Defense determines 
     necessary to protect the interests of the United States or 
     otherwise appropriate for carrying out this section.
       (d) Refund for Period of Unserved Obligated Service.--(1) A 
     person who voluntarily terminates service before the end of 
     the period of obligated service required under an agreement 
     entered into under subsection (c) shall refund to the United 
     States an amount determined by the Secretary of Defense as 
     being appropriate to obtain adequate service in exchange for 
     financial assistance.
       (2) An obligation to reimburse the United States imposed 
     under paragraph (1) is for all purposes a debt owed to the 
     United States.
       (3) The Secretary of Defense may waive, in whole or in 
     part, a refund required under paragraph (1) if the Secretary 
     determines that recovery would be against equity and good 
     conscience or would be contrary to the best interests of the 
     United States.
       (4) A discharge in bankruptcy under title 11, United States 
     Code, that is entered less than five years after the 
     termination of an agreement under this section does not 
     discharge the person signing such agreement from a debt 
     arising under such agreement or under this subsection.
       (e) Relationship to Other Programs.--The pilot program 
     under this section is in addition to the authorities provided 
     in chapter 111 of title 10, United States Code. The Secretary 
     of Defense shall coordinate the provision of financial 
     assistance under the authority of this section with the 
     provision of financial assistance under the authorities 
     provided in such chapter in order to maximize the benefits 
     derived by the Department of Defense from the exercise of all 
     such authorities.
       (f) Recommendation on Pilot Program.--Not later than 
     February 1, 2007, the Secretary of Defense shall submit to 
     the Committees on Armed Services of the Senate and the House 
     of Representatives, the Committee on Governmental Affairs of 
     the Senate, and the Committee on Government Reform of the 
     House of Representatives a plan for expanding and improving 
     the national defense science and engineering workforce 
     educational assistance pilot program carried out under this 
     section as appropriate to improve recruitment and retention 
     to meet the requirements of the Department of Defense for its 
     science and engineering workforce on a short-term basis and 
     on a long-term basis.
       (g) Critical Hiring Need.--Section 3304(a)(3) of title 5, 
     United States Code, is amended by striking subparagraph (B) 
     and inserting the following:
       ``(B)(i) the Office of Personnel Management has determined 
     that there exists a severe shortage of candidates or there is 
     a critical hiring need; or
       ``(ii) the candidate is a participant in the Science, 
     Mathematics, and Research for Transformation (SMART) Defense 
     Scholarship Pilot Program under section 1105 of the Ronald W. 
     Reagan National Defense Authorization Act for Fiscal Year 
     2005.''.
       (h) Institution of Higher Education Defined.--In this 
     section, the term ``institution of higher education'' has the 
     meaning given such term in section 101 of the Higher 
     Education Act of 1965 (21 U.S.C. 1001).

     SEC. 1106. REPORT ON HOW TO RECRUIT AND RETAIN INDIVIDUALS 
                   WITH FOREIGN LANGUAGE SKILLS.

       Not later than March 31, 2005, the Secretary of Defense 
     shall submit to the Committees on Armed Services of the 
     Senate and the House of Representatives and the Select 
     Committee on Intelligence of the Senate and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives, a plan for expanding and improving the 
     national security foreign language workforce of the 
     Department of Defense as appropriate to improve recruitment 
     and retention to meet the requirements of the Department for 
     its foreign language workforce on a short-term basis and on a 
     long-term basis.

     SEC. 1107. PLAN ON IMPLEMENTATION AND UTILIZATION OF FLEXIBLE 
                   PERSONNEL MANAGEMENT AUTHORITIES IN DEPARTMENT 
                   OF DEFENSE LABORATORIES.

       (a) Plan Required.--The Under Secretary of Defense for 
     Acquisition, Technology, and Logistics and the Under 
     Secretary of Defense for Personnel and Readiness shall 
     jointly develop a plan for the effective utilization of the 
     personnel management authorities referred to in subsection 
     (b) in order to increase the mission responsiveness, 
     efficiency, and effectiveness of Department of Defense 
     laboratories.
       (b) Covered Authorities.--The personnel management 
     authorities referred to in this subsection are the personnel 
     management authorities granted to the Secretary of Defense by 
     the provisions of law as follows:
       (1) Section 342(b) of the National Defense Authorization 
     Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
     2721), as amended by section 1114 of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted into law by Public Law 106-398 (114 Stat. 1654A-
     315)).
       (2) Section 1101 of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261; 5 
     U.S.C. 3104 note).
       (3) Section 9902(c) of title 5, United States Code.
       (4) Such other provisions of law as the Under Secretaries 
     jointly consider appropriate for purposes of this section.

[[Page H9262]]

       (c) Plan Elements.--The plan under subsection (a) shall--
       (1) include such elements as the Under Secretaries jointly 
     consider appropriate to provide for the effective utilization 
     of the personnel management authorities referred to in 
     subsection (b) as described in subsection (a), including the 
     recommendations of the Under Secretaries for such additional 
     authorities, including authorities for demonstration programs 
     or projects, as are necessary to achieve the effective 
     utilization of such personnel management authorities; and
       (2) include procedures, including a schedule for review and 
     decisions, on proposals to modify current demonstration 
     programs or projects, or to initiate new demonstration 
     programs or projects, on flexible personnel management at 
     Department laboratories
       (d) Submittal to Congress.--The Under Secretaries shall 
     jointly submit to the Committee on Armed Services of the 
     Senate and the Committee on Armed Services of the House of 
     Representatives the plan under subsection (a) not later than 
     December 1, 2005.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

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

Sec. 1201. Commanders' Emergency Response Program.
Sec. 1202. Assistance to Iraq and Afghanistan military and security 
              forces.
Sec. 1203. Redesignation and modification of authorities relating to 
              Inspector General of the Coalition Provisional Authority.
Sec. 1204. Presidential report on strategy for stabilization of Iraq.
Sec. 1205. Guidance on contractors supporting deployed forces in Iraq.
Sec. 1206. Report on contractors supporting deployed forces and 
              reconstruction efforts in Iraq.
Sec. 1207. United Nations Oil-for-Food Program.
Sec. 1208. Support of military operations to combat terrorism.

                Subtitle B--Counterproliferation Matters

Sec. 1211. Defense international counterproliferation programs.
Sec. 1212. Policy and sense of Congress on nonproliferation of 
              ballistic missiles.
Sec. 1213. Sense of Congress on the global partnership against the 
              spread of weapons of mass destruction.
Sec. 1214. Report on collaborative measures to reduce the risks of a 
              launch of Russian nuclear weapons.

                       Subtitle C--Other Matters

Sec. 1221. Authority for humanitarian assistance for the detection and 
              clearance of landmines extended to include other 
              explosive remnants of war.
Sec. 1222. Expansion of entities of the People's Republic of China 
              subject to certain presidential authorities when 
              operating in the United States.
Sec. 1223. Assignment of NATO naval personnel to submarine safety 
              programs.
Sec. 1224. Availability of Warsaw Initiative Funds for new NATO 
              members.
Sec. 1225. Bilateral exchanges and trade in defense articles and 
              defense services between the United States and the United 
              Kingdom and Australia.
Sec. 1226. Study on missile defense cooperation.

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

     SEC. 1201. COMMANDERS' EMERGENCY RESPONSE PROGRAM.

       (a) Fiscal Year 2005 Authority.--During fiscal year 2005, 
     from funds made available to the Department of Defense for 
     operation and maintenance pursuant to title XV, not to exceed 
     $300,000,000 may be used to provide funds--
       (1) for the Commanders' Emergency Response Program, 
     established by the Administrator of the Coalition Provisional 
     Authority for the purpose of enabling United States military 
     commanders in Iraq to respond to urgent humanitarian relief 
     and reconstruction requirements within their areas of 
     responsibility by carrying out programs that will immediately 
     assist the Iraqi people; and
       (2) for a similar program to assist the people of 
     Afghanistan.
       (b) Quarterly Reports.--Not later than 15 days after the 
     end of each fiscal-year quarter (beginning with the first 
     quarter of fiscal year 2005), the Secretary of Defense shall 
     submit to the congressional defense committees a report 
     regarding the source of funds and the allocation and use of 
     funds during that quarter that were made available pursuant 
     to the authority provided in this section or under any other 
     provision of law for the purposes stated in subsection (a).
       (c) Waiver Authority.--For purposes of the exercise of the 
     authority provided by this section or any other provision of 
     law making funding available for the Commanders' Emergency 
     Response Program referred to in subsection (a) (including a 
     program referred to in paragraph (2) of that subsection), the 
     Secretary may waive any provision of law not contained in 
     this section that would (but for the waiver) prohibit, 
     restrict, limit, or otherwise constrain the exercise of that 
     authority.
       (d) Review of Laws.--Not later than 120 days after the date 
     of the enactment of this Act, the Secretary shall submit to 
     the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of Representatives a 
     report identifying all provisions of law that (if not waived) 
     would prohibit, restrict, limit, or otherwise constrain the 
     exercise of the authority provided in this section or any 
     other provision of law using funds available for the purposes 
     stated in subsection (a).

     SEC. 1202. ASSISTANCE TO IRAQ AND AFGHANISTAN MILITARY AND 
                   SECURITY FORCES.

       (a) Authority.--The Secretary of Defense may provide 
     assistance under this section to Iraq and Afghanistan 
     military and security forces. Such assistance shall be 
     provided, subject to the provisions of this section, solely 
     to enhance the ability of such forces to combat terrorism and 
     support United States or coalition military operations in 
     Iraq and Afghanistan, respectively.
       (b) Type of Assistance.--Assistance provided under 
     subsection (a) may include equipment, supplies, services, and 
     training.
       (c) Limitations.--Assistance under this section or under 
     any other provision of law for the purpose described in 
     subsection (a) may be provided only from funds available to 
     the Department of Defense for fiscal year 2005 for operation 
     and maintenance under title XV. The total amount of such 
     assistance may not exceed $500,000,000.
       (d) Congressional Notification.--Before any provision of 
     assistance under this section or any other provision of law 
     for the purpose described in subsection (a), the Secretary of 
     Defense shall submit to the congressional defense committees 
     a notification of the assistance proposed to be provided. Any 
     such notification shall be submitted not less than 15 days 
     before the provision of such assistance.
       (e) Military and Security Forces Defined.--For purposes of 
     this section, the term ``military and security forces'' means 
     national armies, national guard forces, border security 
     forces, civil defense forces, infrastructure protection 
     forces, and police.

     SEC. 1203. REDESIGNATION AND MODIFICATION OF AUTHORITIES 
                   RELATING TO INSPECTOR GENERAL OF THE COALITION 
                   PROVISIONAL AUTHORITY.

       (a) Redesignation.--(1) Subsections (b) and (c)(1) of 
     section 3001 of the Emergency Supplemental Appropriations Act 
     for Defense and for the Reconstruction of Iraq and 
     Afghanistan, 2004 (Public Law 108-106; 117 Stat. 1234; 5 
     U.S.C. App. 3 section 8G note) are each amended by striking 
     ``Office of the Inspector General of the Coalition 
     Provisional Authority'' and inserting ``Office of the Special 
     Inspector General for Iraq Reconstruction''.
       (2) Subsection (c)(1) of such section is further amended by 
     striking ``Inspector General of the Coalition Provisional 
     Authority'' and inserting ``Special Inspector General for 
     Iraq Reconstruction (in this section referred to as the 
     `Inspector General')''.
       (3)(A) The heading of such section is amended to read as 
     follows:

     ``SEC. 3001. SPECIAL INSPECTOR GENERAL FOR IRAQ 
                   RECONSTRUCTION.''.

       (B) The heading of title III of such Act is amended to read 
     as follows:

   ``TITLE III--SPECIAL INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION''.

       (b) Continuation in Office.--The individual serving as the 
     Inspector General of the Coalition Provisional Authority as 
     of the date of the enactment of this Act may continue to 
     serve in that position after that date without reappointment 
     under paragraph (1) of section 3001(c) of the Emergency 
     Supplemental Appropriations Act for Defense and for the 
     Reconstruction of Iraq and Afghanistan, 2004, but remaining 
     subject to removal as specified in paragraph (4) of that 
     section.
       (c) Purposes.--Subsection (a) of such section is amended--
       (1) in paragraph (1), by striking ``of the Coalition 
     Provisional Authority (CPA)'' and inserting ``funded with 
     amounts appropriated or otherwise made available to the Iraq 
     Relief and Reconstruction Fund'';
       (2) in paragraph (2)(B), by striking ``fraud'' and 
     inserting ``waste, fraud,''; and
       (3) in paragraph (3), by striking ``the head of the 
     Coalition Provisional Authority'' and inserting ``the 
     Secretary of State and the Secretary of Defense''.
       (d) Responsibilities of Assistant Inspector General for 
     Auditing.--Subsection (d)(1) of such section is amended by 
     striking ``of the Coalition Provisional Authority'' and 
     inserting ``supported by the Iraq Relief and Reconstruction 
     Fund''.
       (e) Supervision.--Such section is further amended--
       (1) in subsection (e)--
       (A) in paragraph (1), by striking ``the head of the 
     Coalition Provisional Authority'' and inserting ``the 
     Secretary of State and the Secretary of Defense''; and
       (B) in paragraph (2)--
       (i) by striking ``Neither the head of the Coalition 
     Provisional Authority,'' and all that follows through ``nor 
     any other officer'' and inserting ``No officer''; and
       (ii) by striking ``investigation,'' and all that follows 
     through ``course of any'' and inserting ``investigation 
     related to the Iraq Relief and Reconstruction Fund or from 
     issuing any subpoena during the course of any such'';
       (2) in subsection (h)--
       (A) in paragraphs (4)(B) and (5), by striking ``head of the 
     Coalition Provisional Authority'' and inserting ``Secretary 
     of State or Secretary of Defense, as appropriate,''; and
       (B) in paragraph (5), by striking ``at the central and 
     field locations of the Coalition Provisional Authority'' and 
     inserting ``within the Department of Defense or at 
     appropriate locations of the Department of State in Iraq'';
       (3) in subsection (j)--
       (A) in paragraph (1), by striking ``the head of the 
     Coalition Provisional Authority'' and inserting ``the 
     Secretary of State and the Secretary of Defense''; and
       (B) in paragraph (2)--
       (i) in subparagraph (A)--

       (I) by striking ``the head of the Coalition Provisional 
     Authority'' the first place it appears

[[Page H9263]]

     and inserting ``the Secretary of State or the Secretary of 
     Defense''; and
       (II) by striking ``the head of the Coalition Provisional 
     Authority'' the second place it appears and inserting ``the 
     Secretary of State or the Secretary of Defense, as the case 
     may be,''; and

       (ii) in subparagraph (B), by striking ``the head of the 
     Coalition Provisional Authority'' and inserting ``the 
     Secretary of State or the Secretary of Defense, as the case 
     may be,''; and
       (4) in subsection (k), by striking ``the head of the 
     Coalition Provisional Authority shall'' both places it 
     appears and inserting ``the Secretary of State and the 
     Secretary of Defense shall jointly''.
       (f) Duties.--Subsection (f)(1) of such section is amended--
       (1) in the matter preceding subparagraph (A), by striking 
     ``appropriated funds by the Coalition Provisional Authority 
     in Iraq'' and inserting ``amounts appropriated or otherwise 
     made available to the Iraq Relief and Reconstruction Fund''; 
     and
       (2) in subparagraph (D), by striking ``the Coalition 
     Provisional Authority,'' and all that follows through 
     ``Government, and'' and inserting ``departments, agencies, 
     and entities of the United States and''.
       (g) Interagency Coordination.--Subsection (f) of such 
     section is further amended by striking paragraphs (4) and (5) 
     and inserting the following new paragraph (4):
       ``(4) In carrying out the duties, responsibilities, and 
     authorities of the Inspector General under this section, the 
     Inspector General shall coordinate with, and receive the 
     cooperation of, each of the following:
       ``(A) The Inspector General of the Department of State.
       ``(B) The Inspector General of the Department of Defense.
       ``(C) The Inspector General of the United States Agency for 
     International Development.''.
       (h) Powers and Authorities.--Subsection (g)(1) of such 
     section is amended by inserting before the period the 
     following: ``, including the authorities under subsection (e) 
     of such section''.
       (i) Reports.--Subsection (i) of such section is amended--
       (1) in paragraph (1)--
       (A) by striking the first sentence and inserting the 
     following: ``Not later than 30 days after the end of each 
     fiscal-year quarter, the Inspector General shall submit to 
     the appropriate committees of Congress a report summarizing, 
     for the period of that quarter and, to the extent possible, 
     the period from the end of such quarter to the time of the 
     submission of the report, the activities during such period 
     of the Inspector General and the activities under programs 
     and operations funded with amounts appropriated or otherwise 
     made available to the Iraq Relief and Reconstruction Fund.'';
       (B) in subparagraph (B), by striking ``the Coalition 
     Provisional Authority'' and inserting ``the Department of 
     Defense, the Department of State, and the United States 
     Agency for International Development, as applicable,'';
       (C) in subparagraph (E)--
       (i) by striking ``the Coalition Provisional Authority and 
     of any other'' ; and
       (ii) by striking ``appropriated funds'' and inserting 
     ``amounts appropriated or otherwise made available to the 
     Iraq Relief and Reconstruction Fund''; and
       (D) in subparagraph (F)(iii), by striking ``the Coalition 
     Provisional Authority'' and inserting ``the contracting 
     department or agency'';
       (2) in paragraph (2), by striking ``by the Coalition 
     Provisional Authority'' and inserting ``by any department or 
     agency of the United States Government that involves the use 
     of amounts appropriated or otherwise made available to the 
     Iraq Relief and Reconstruction Fund'';
       (3) in paragraph (3)--
       (A) by striking ``Not later than June 30, 2004, and 
     semiannually thereafter, the'' and inserting ``The'';
       (B) by striking ``a report'' and inserting ``semiannual 
     reports''; and
       (C) and by adding at the end the following new sentence: 
     ``The first such report for a year, covering the first six 
     months of the year, shall be submitted not later than July 31 
     of that year, and the second such report, covering the second 
     six months of the year, shall be submitted not later than 
     January 31 of the following year.''; and
       (4) in paragraph (4), by striking ``of the Coalition 
     Provisional Authority'' and inserting ``of the Department of 
     State and of the Department of Defense''.
       (j) Termination.--Subsection (o) of such section is amended 
     to read as follows:
       ``(o) Termination.--The Office of the Inspector General 
     shall terminate on the date that is 10 months after the date, 
     as determined by the Secretary of State and the Secretary of 
     Defense, on which 80 percent of the amounts appropriated or 
     otherwise made available to the Iraq Relief and 
     Reconstruction Fund by chapter 2 of title II of this Act have 
     been obligated.''.

     SEC. 1204. PRESIDENTIAL REPORT ON STRATEGY FOR STABILIZATION 
                   OF IRAQ.

       (a) Stabilization Strategy.--Not later than 120 days after 
     the date of the enactment of this Act, the President shall 
     submit to Congress an unclassified report (with classified 
     annex, if necessary) on the strategy of the United States and 
     coalition forces for stabilizing Iraq. The report shall 
     contain a detailed explanation of the strategy, together with 
     the following:
       (1) A description of the efforts of the President to work 
     with the United Nations to provide support for, and 
     assistance to, the transitional government in Iraq and, in 
     particular, the efforts of the President to negotiate and 
     secure adoption by the United Nations Security Council of 
     Resolution 1546.
       (2) A description of the efforts of the President to 
     continue to work with North Atlantic Treaty Organization 
     (NATO) member states and non-NATO member states to provide 
     support for and augment coalition forces, including--
       (A) the current military forces of coalition countries 
     deployed to Iraq;
       (B) the current police forces of coalition countries 
     deployed to Iraq;
       (C) the current financial resources of coalition countries 
     pledged and provided for the stabilization and reconstruction 
     of Iraq; and
       (D) a list of countries that have pledged to deploy 
     military or police forces, including the schedule and level 
     of such deployments.
       (3) The strategic plan referred to in subsection (b) 
     relating to Iraqi security forces.
       (4) A description of the efforts of the United States and 
     coalition forces to assist in the reconstruction of essential 
     infrastructure of Iraq, including the oil industry, 
     electricity generation, roads, schools, and hospitals.
       (5) A description of the efforts of the United States, 
     coalition partners, and relevant international agencies to 
     assist in the development of political institutions and 
     prepare for democratic elections in Iraq.
       (6) A description of the obstacles, including financial, 
     technical, logistic, personnel, political, and other 
     obstacles, faced by NATO in generating and deploying military 
     forces out of theater to locations such as Iraq.
       (b) Iraqi Security Forces.--The President shall include in 
     the report under subsection (a) a strategic plan setting 
     forth the manner in which the coaltion will achieve the goal 
     of establishing viable and professional Iraqi security forces 
     able to provide for the long-term security of the Iraqi 
     people. That strategic plan shall include at least the 
     following:
       (1) Recruiting and retention goals, shown for each service 
     of the Iraqi security forces.
       (2) Training plans for each service of the Iraqi security 
     forces.
       (3) A description of metrics by which progress toward the 
     goal of Iraqi provision for its own security can be measured.
       (4) A description of equipment needs, shown for each 
     service of the Iraqi security forces.
       (5) A resourcing plan for achieving the goals of the 
     strategic plan.
       (6) Personnel plans in terms of United States military and 
     contractor personnel to be used in training each such 
     service.
       (7) A description of challenges faced and opportunities 
     presented in particular regions of Iraq and a plan for 
     addressing those challenges.
       (8) A discussion of training and deployment successes and 
     failures to the date of the report and how lessons from those 
     successes and failures will be incorporated into the 
     strategic plan.
       (c) Quarterly Reports.--Not later than 30 days after the 
     end of each quarter of calendar year 2005, the Secretary of 
     Defense shall submit to the Congress a report on the actions 
     taken under the strategic plan set forth pursuant to 
     subsection (b) since the date of the enactment of this Act. 
     Each such report shall be prepared in conjunction with the 
     Secretary of State.

     SEC. 1205. GUIDANCE ON CONTRACTORS SUPPORTING DEPLOYED FORCES 
                   IN IRAQ.

       (a) Guidance.--Not later than 180 days after the date of 
     the enactment of this Act, the Secretary of Defense shall 
     issue guidance on how the Department of Defense shall manage 
     contractor personnel who support deployed forces and shall 
     direct the Secretaries of the military departments to develop 
     procedures to ensure implementation of that guidance. The 
     guidance shall--
       (1) establish policies for the use of contractors to 
     support deployed forces;
       (2) delineate the roles and responsibilities of commanders 
     regarding the management and oversight of contractor 
     personnel who support deployed forces; and
       (3) integrate into a single document other guidance and 
     doctrine that may affect Department of Defense 
     responsibilities to contractors in locations where members of 
     the Armed Forces are deployed.
       (b) Issues to be Addressed.--The guidance issued under 
     subsection (a) shall address at least the following matters:
       (1) Warning contractor security personnel of potentially 
     hazardous situations.
       (2) Coordinating the movement of contractor security 
     personnel, especially through areas of increased risk or 
     planned or ongoing military operations.
       (3) Rapidly identifying contractor security personnel by 
     members of the Armed Forces.
       (4) Sharing relevant threat information with contractor 
     security personnel and receiving information gathered by 
     contractor security personnel for use by United States and 
     coalition forces.
       (5) Providing appropriate assistance to contractor 
     personnel who become engaged in hostile situations.
       (6) Providing medical assistance for, and evacuation of, 
     contractor personnel who become casualties as a result of 
     enemy actions.
       (7) Investigating background and qualifications of 
     contractor security personnel and organizations.
       (8) Establishing rules of engagement for armed contractor 
     security personnel, and ensuring proper training and 
     compliance with the rules of engagement.
       (9) Establishing categories of security, intelligence, law 
     enforcement, and criminal justice functions that are--
       (A) inherently governmental functions under Subpart 7.5 of 
     the Federal Acquisition Regulation; or
       (B) although not inherently governmental functions, should 
     not ordinarily be performed by contractors in areas of 
     operations.
       (10) Establishing procedures for making and documenting 
     determinations about which security, intelligence, law 
     enforcement, and criminal justice functions will be performed 
     by military personnel and which will be performed by private 
     companies.

[[Page H9264]]

       (c) Report.--Not later than 30 days after issuing the 
     guidance required under subsection (a), the Secretary of 
     Defense shall submit to the Committees on Armed Services of 
     the Senate and House of Representatives a report on the 
     guidance issued under subsection (a).

     SEC. 1206. REPORT ON CONTRACTORS SUPPORTING DEPLOYED FORCES 
                   AND RECONSTRUCTION EFFORTS IN IRAQ.

       (a) Report Required.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of Defense 
     shall submit to the Committee on Armed Services of the Senate 
     and the Committee on Armed Services of the House of 
     Representatives a report on contractors supporting deployed 
     forces and reconstruction efforts in Iraq.
       (b) Matters To Be Included.--The report required by 
     subsection (a) shall include, at a minimum, the following 
     matters with respect to contractors, and employees of 
     contractors, described in subsection (a):
       (1) A description of the overall chain of command and 
     oversight mechanisms that are in place to ensure adequate 
     command and supervision of such contractor employees in 
     critical security roles.
       (2) A description of sanctions that are available to be 
     imposed on such a contractor employee who--
       (A) fails to comply with a requirement of law or regulation 
     that applies to such employee; or
       (B) engages in other misconduct.
       (3) A description of disciplinary and criminal actions 
     brought against contractor employees during the period 
     beginning on May 1, 2003, and ending on the date of the 
     enactment of this Act.
       (4) An explanation of the legal status of contractor 
     employees engaged in the performance of security functions in 
     Iraq after the transfer of sovereign power to Iraq on June 
     28, 2004.
       (5) A specification of casualty and fatality figures for 
     contractor employees supporting deployed forces and 
     reconstruction efforts in Iraq, shown, to the extent 
     practicable, in the following categories:
       (A) Total casualties and total fatalities.
       (B) Casualties and fatalities among--
       (i) nationals of the United States;
       (ii) nationals of Iraq; and
       (iii) nationals of states other than the United States and 
     Iraq.
       (6) A description, to the maximum extent practicable, of 
     incidents in which contractor employees supporting deployed 
     forces and reconstruction efforts in Iraq have been engaged 
     in hostile fire or other incidents of note during the period 
     beginning on May 1, 2003, and ending on the date of the 
     enactment of this Act.
       (c) Plans.--The Secretary shall include with the report 
     under subsection (a) the following plans:
       (1) A plan for establishing and implementing a process for 
     collecting data on individual contractors, the value of the 
     contracts, the number of casualties incurred, and the number 
     of personnel in Iraq performing the following services for 
     the Department of Defense and other Federal agencies:
       (A) Personal security details.
       (B) Nonmilitary site security.
       (C) Nonmilitary convoy security.
       (D) Interrogation services at interrogation centers 
     operated by the Department of Defense.
       (2) A plan for ensuring that military commanders in the 
     theater of operations have accurate information on the 
     number, types, and sources of weapons and other critical 
     equipment (such as body armor, armored vehicles, secure 
     communications and friend-foe identification) that contractor 
     personnel performing services specified in paragraph (1) are 
     authorized to possess.
       (d) Coordination.--In the preparation of the report under 
     this section (including the plans under subsection (c)), the 
     Secretary of Defense shall coordinate, as appropriate, with 
     the head of any Federal agency that is involved in the 
     procurement of services from contractors supporting deployed 
     forces and reconstruction efforts in Iraq. The head of any 
     such agency shall provide to the Secretary of Defense such 
     information as the Secretary may require about such 
     contractors to complete the report.

     SEC. 1207. UNITED NATIONS OIL-FOR-FOOD PROGRAM.

       (a) Access to Documents.--It is the sense of Congress that 
     the Secretary of State should seek to conclude a memorandum 
     of understanding with the Interim Government of Iraq to 
     ensure that the United States will have access to all 
     documents in the possession of that Government related to the 
     United Nations Oil-for-Food Program.
       (b) Information From the United Nations.--(1) The Secretary 
     of State shall use the voice and vote of the United States in 
     the United Nations to urge the Secretary General of the 
     United Nations to provide to the United States copies of all 
     audits and core documents related to the United Nations Oil-
     for-Food Program, including all audits, examinations, 
     studies, reviews, or similar documents prepared by the United 
     Nations Office of Internal Oversight Services and all 
     responses to such documents.
       (2) It is the sense of Congress that, pursuant to section 
     941(b)(6) of the United Nations Reform Act of 1999 (title IX 
     of division A of H.R. 3427 of the 106th Congress, as enacted 
     into law by section 1000(a)(7) of Public Law 106-113; 113 
     Stat. 1501A-483), the Comptroller General should have full 
     and complete access to financial information relating to the 
     United Nations, including information related to the 
     financial transactions, organization, and activities of the 
     United Nations Oil-for-Food Program.
       (3) The Secretary of State shall facilitate access by the 
     Comptroller General to the financial information described in 
     paragraph (2).
       (c) Cooperation in Investigations.--The head of any 
     Executive agency (including the Secretary of State, the 
     Secretary of Defense, the Secretary of the Treasury, and the 
     Director of the Central Intelligence Agency) shall, upon a 
     request in connection with an investigation of the United 
     Nations Oil-for-Food Program made by a committee of 
     jurisdiction of the Senate or House of Representatives, 
     promptly provide to the chairman of that committee--
       (1) access to any information or document described in 
     subsection (a) or (b) that is under the control of such 
     agency and responsive to the request; and
       (2) cooperation in gaining access to information and 
     documents described in subsections (a) and (b) that are not 
     under the control of such agency, as appropriate.
       (d) Review of Oil-for-Food Program by Comptroller 
     General.--(1) The Comptroller General shall conduct a review 
     of the United Nations Oil-for-Food Program, including the 
     role of the United States in that program. The review--
       (A) in accordance with generally accepted government 
     auditing standards, should not interfere with any ongoing 
     criminal investigation or inquiry related to that program; 
     and
       (B) may take into account the results of any investigation 
     or inquiry related to that program.
       (2) The head of each Executive agency shall fully cooperate 
     with the review of the Comptroller General under paragraph 
     (1).
       (e) Executive Agency Defined.--In this section, the term 
     ``Executive agency'' has the meaning given that term in 
     section 105 of title 5, United States Code.

     SEC. 1208 SUPPORT OF MILITARY OPERATIONS TO COMBAT TERRORISM.

       (a) Authority.--The Secretary of Defense may expend up to 
     $25,000,000 during any fiscal year during which this 
     subsection is in effect to provide support to foreign forces, 
     irregular forces, groups, or individuals engaged in 
     supporting or facilitating ongoing military operations by 
     United States special operations forces to combat terrorism.
       (b) Procedures.--The Secretary of Defense shall establish 
     procedures for the exercise of the authority under subsection 
     (a). The Secretary shall notify the congressional defense 
     committees of those procedures before any exercise of that 
     authority.
       (c) Notification.--Upon using the authority provided in 
     subsection (a) to make funds available for support of an 
     approved military operation, the Secretary of Defense shall 
     notify the congressional defense committees expeditiously, 
     and in any event in not less than 48 hours, of the use of 
     such authority with respect to that operation. Such a 
     notification need be provided only once with respect to any 
     such operation. Any such notification shall be in writing.
       (d) Limitation on Delegation.--The authority of the 
     Secretary of Defense to make funds available under subsection 
     (a) for support of a military operation may not be delegated.
       (e) Intelligence Activities.--This section does not 
     constitute authority to conduct a covert action, as such term 
     is defined in section 503(e) of the National Security Act of 
     1947 (50 U.S.C. 413b(e)).
       (f) Annual Report.--Not later than 30 days after the close 
     of each fiscal year during which subsection (a) is in effect, 
     the Secretary of Defense shall submit to the congressional 
     defense committees a report on support provided under that 
     subsection during that fiscal year. Each such report shall 
     describe the support provided, including a statement of the 
     recipient of the support and the amount obligated to provide 
     the support.
       (g) Fiscal Year 2005 Limitation.--Support may be provided 
     under subsection (a) during fiscal year 2005 only from funds 
     made available for operations and maintenance pursuant to 
     title XV of this Act.
       (h) Period of Authority.--The authority under subsection 
     (a) is in effect during each of fiscal years 2005 through 
     2007.

                Subtitle B--Counterproliferation Matters

     SEC. 1211. DEFENSE INTERNATIONAL COUNTERPROLIFERATION 
                   PROGRAMS.

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

     SEC. 1212. POLICY AND SENSE OF CONGRESS ON NONPROLIFERATION 
                   OF BALLISTIC MISSILES.

       (a) Findings.--Congress makes the following findings:
       (1) Certain countries are seeking to acquire ballistic 
     missiles and related technologies that could be used to 
     attack the United States or place at risk United States 
     interests, deployed

[[Page H9265]]

     members of the Armed Forces, and allies of the United States 
     and other friendly foreign countries.
       (2) Certain countries continue to actively transfer or sell 
     ballistic missile technologies in contravention of standards 
     of behavior established by the United States and allies of 
     the United States and other friendly foreign countries.
       (3) The spread of ballistic missiles and related 
     technologies worldwide has been slowed by a combination of 
     national and international export controls, forward-looking 
     diplomacy, and multilateral interdiction activities to 
     restrict the development and transfer of such missiles and 
     technologies.
       (b) Policy.--It is the policy of the United States to 
     develop, support, and strengthen international accords and 
     other cooperative efforts to curtail the proliferation of 
     ballistic missiles and related technologies which could 
     threaten the territory of the United States, allies of the 
     United States and other friendly foreign countries, and 
     deployed members of the Armed Forces of the United States 
     with weapons of mass destruction.
       (c) Sense of Congress.--It is the sense of Congress that--
       (1) the United States should vigorously pursue foreign 
     policy initiatives aimed at eliminating, reducing, or 
     retarding the proliferation of ballistic missiles and related 
     technologies; and
       (2) the United States and the international community 
     should continue to support and strengthen established 
     international accords and other cooperative efforts, 
     including United Nations Security Council Resolution 1540 
     (April 28, 2004) and the Missile Technology Control Regime, 
     that are designed to eliminate, reduce, or retard the 
     proliferation of ballistic missiles and related technologies.

     SEC. 1213. SENSE OF CONGRESS ON THE GLOBAL PARTNERSHIP 
                   AGAINST THE SPREAD OF WEAPONS OF MASS 
                   DESTRUCTION.

       (a) Commendation of President.--Congress commends the 
     President for the steps taken at the G-8 summit at Sea 
     Island, Georgia, on June 8-10, 2004--
       (1) to demonstrate continued support for the Global 
     Partnership against the Spread of Nuclear Weapons and 
     Materials of Mass Destruction; and
       (2) to expand the Partnership (A) by welcoming new members, 
     and (B) by using the Partnership to coordinate 
     nonproliferation projects in Libya, Iraq, and other 
     countries.
       (b) Future Actions.--It is the sense of Congress that the 
     President should seek to--
       (1) expand the membership of donor nations to the Global 
     Partnership against the Spread of Nuclear Weapons and 
     Materials of Mass Destruction;
       (2) ensure that the Russian Federation remains the primary 
     focus of the Partnership, but also seek to fund, through the 
     Partnership, efforts in other countries that need assistance 
     to secure or dismantle their own potentially vulnerable 
     weapons or materials;
       (3) develop for the Partnership clear program goals;
       (4) develop for the Partnership transparent project 
     prioritization and planning;
       (5) develop for the Partnership project implementation 
     milestones under periodic review;
       (6) develop under the Partnership agreements between 
     partners for project implementation; and
       (7) give high priority and senior-level attention to 
     resolving disagreements on site access and worker liability 
     under the Partnership.

     SEC. 1214. REPORT ON COLLABORATIVE MEASURES TO REDUCE THE 
                   RISKS OF A LAUNCH OF RUSSIAN NUCLEAR WEAPONS.

       Not later than November 1, 2005, the Secretary of Defense 
     shall submit to Congress a report on collaborative measures 
     between the United States and the Russian Federation to 
     reduce the risks of a launch of a nuclear-armed ballistic 
     missile as a result of accident, misinformation, 
     miscalculation, or unauthorized use. The report shall 
     provide--
       (1) a description and assessment of the collaborative 
     measures that are currently in effect;
       (2) a description and assessment of other collaborative 
     measures that could be pursued in the future;
       (3) an assessment of the potential contributions of such 
     collaborative measures to the national security of the United 
     States;
       (4) an assessment of the effect of such collaborative 
     measures on relations between the United States and the 
     Russian Federation;
       (5) a description of the obstacles and opportunities 
     associated with pursuing such collaborative measures; and
       (6) an assessment of the future of the Joint Data Exchange 
     Center.

                       Subtitle C--Other Matters

     SEC. 1221. AUTHORITY FOR HUMANITARIAN ASSISTANCE FOR THE 
                   DETECTION AND CLEARANCE OF LANDMINES EXTENDED 
                   TO INCLUDE OTHER EXPLOSIVE REMNANTS OF WAR.

       (a) Extension of Authority.--Subsection (e)(5) of section 
     401 of title 10, United States Code, is amended by inserting 
     ``and other explosive remnants of war'' after ``landmines'' 
     both places it appears.
       (b) Conforming Amendments.--Such section is further 
     amended--
       (1) in subsection (a)(4)(A), by inserting ``or other 
     explosive remnants of war'' after ``landmines''; and
       (2) in subsection (c)(2)(B), by striking ``landmine 
     clearing equipment or supplies'' and inserting ``equipment or 
     supplies for clearing landmines or other explosive remnants 
     of war''.

     SEC. 1222. EXPANSION OF ENTITIES OF THE PEOPLE'S REPUBLIC OF 
                   CHINA SUBJECT TO CERTAIN PRESIDENTIAL 
                   AUTHORITIES WHEN OPERATING IN THE UNITED 
                   STATES.

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

     SEC. 1223. ASSIGNMENT OF NATO NAVAL PERSONNEL TO SUBMARINE 
                   SAFETY PROGRAMS.

       (a) In General.--Chapter 631 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 7234. Submarine safety programs: participation of NATO 
       naval personnel

       ``(a) Acceptance of Assignment of Foreign Naval 
     Personnel.--In order to facilitate the development, 
     standardization, and interoperability of submarine vessel 
     safety and rescue systems and procedures, the Secretary of 
     the Navy may conduct a program under which members of the 
     naval service of any of the member nations of the North 
     Atlantic Treaty Organization may be assigned to United States 
     commands to work on such systems and procedures.
       ``(b) Reciprocity Not Required.--The authority under 
     subsection (a) is not an exchange program. Reciprocal 
     assignments of members of the Navy to the naval service of a 
     foreign country is not a condition for the exercise of such 
     authority.
       ``(c) Costs for Foreign Personnel.--(1) The United States 
     may not pay the following costs for a member of a foreign 
     naval service sent to the United States under the program 
     authorized by this section:
       ``(A) Salary.
       ``(B) Per diem.
       ``(C) Cost of living.
       ``(D) Travel costs.
       ``(E) Cost of language or other training.
       ``(F) Other costs.
       ``(2) Paragraph (1) does not apply to the following costs, 
     which may be paid by the United States:
       ``(A) The cost of temporary duty directed by the Secretary 
     of the Navy or an officer of the Navy authorized to do so.
       ``(B) The cost of training programs conducted to 
     familiarize, orient, or certify members of foreign naval 
     services regarding unique aspects of their assignments.
       ``(C) Costs incident to the use of the facilities of the 
     Navy in the performance of assigned duties.
       ``(d) Relationship to Other Authority.--The provisions of 
     this section shall apply in the exercise of any authority of 
     the Secretary of the Navy to enter into an agreement with the 
     government of a foreign country, subject to the concurrence 
     of the Secretary of State, to provide for the assignment of 
     members of the naval service of the foreign country to a Navy 
     submarine safety program. The Secretary of the Navy may 
     prescribe regulations for the application of this section in 
     the exercise of such authority.
       ``(e) Termination of Authority.--The Secretary of the Navy 
     may not accept the assignment of a member of the naval 
     service of a foreign country under this section after 
     September 30, 2008.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

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

     SEC. 1224. AVAILABILITY OF WARSAW INITIATIVE FUNDS FOR NEW 
                   NATO MEMBERS.

       (a) Availability of Funds.--Of the amount authorized to be 
     appropriated by section 301(5) for operation and maintenance, 
     defense-wide activities, and available for the Defense 
     Security Cooperation Agency for the Warsaw Initiative Funds 
     (WIF), $4,000,000 may be available only in fiscal year 2005 
     for the participation of the North Atlantic Treaty 
     Organization (NATO) members set forth in subsection (b) in 
     the exercises and programs of the Partnership for Peace 
     program of the North Atlantic Treaty Organization.
       (b) NATO Members.--The North Atlantic Treaty Organization 
     members set forth in this subsection are as follows:
       (1) Bulgaria.
       (2) Estonia.
       (3) Latvia.
       (4) Lithuania.
       (5) Romania.
       (6) Slovakia.
       (7) Slovenia.

     SEC. 1225. BILATERAL EXCHANGES AND TRADE IN DEFENSE ARTICLES 
                   AND DEFENSE SERVICES BETWEEN THE UNITED STATES 
                   AND THE UNITED KINGDOM AND AUSTRALIA.

       (a) Policy.--It is the policy of Congress that bilateral 
     exchanges and trade in defense articles and defense services 
     between the United States and the United Kingdom and 
     Australia are in the national security interest of the United 
     States and that such exchanges and trade should be subjected 
     to accelerated review and processing consistent with national 
     security and the requirements of the Arms Export Control Act 
     (22 U.S.C. 2751 et seq.).
       (b) Requirement.--The Secretary of State shall ensure that 
     any license application submitted for the export of defense 
     articles or defense services to Australia or the United 
     Kingdom is expeditiously processed by the Department of 
     State, in consultation with the Department of Defense, 
     without referral to any other Federal department or agency, 
     except where the item is classified or exceptional 
     circumstances apply.

[[Page H9266]]

       (c) Regulations.--The President shall ensure that 
     regulations are prescribed to implement this section.

     SEC. 1226. STUDY ON MISSILE DEFENSE COOPERATION.

       (a) Requirement for Study.--The Secretary of Defense, in 
     consultation with the Secretary of State, shall carry out a 
     study to determine the advisability of authorizing or 
     requiring--
       (1) the Secretary of State to establish procedures for 
     considering technical assistance agreements and related 
     amendments and munitions license applications for the export 
     of defense items related to missile defense not later than 30 
     days after receiving such agreements, amendments, and 
     munitions license applications, except in cases in which the 
     Secretary of State determines that additional time is 
     required to complete a review of a technical assistance 
     agreement or related amendment or a munitions license 
     application for foreign policy or national security reasons, 
     including concerns regarding the proliferation of ballistic 
     missile technology; and
       (2) the Secretary of Defense to establish procedures to 
     increase the efficiency and transparency of the practices 
     used by the Department of Defense to review technical 
     assistance agreements and related amendments and munitions 
     license applications related to international cooperation on 
     missile defense that are referred to the Department.
       (b) Feasibility of Requiring Comprehensive Authorizations 
     for Missile Defense.--In carrying out the study under 
     subsection (a), the Secretary of Defense, in consultation 
     with the Secretary of State, shall examine the feasibility of 
     providing major project authorizations for programs related 
     to missile defense similar to the comprehensive export 
     authorization specified in section 126.14 of the 
     International Traffic in Arms Regulations (section 126.14 of 
     title 22, Code of Federal Regulations).
       (c) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary of Defense shall, in 
     consultation with the Secretary of State, submit to the 
     Committee on Armed Services and the Committee on Foreign 
     Relations of the Senate and the Committee on Armed Services 
     and the Committee on International Relations of the House of 
     Representatives a report on the results of the study under 
     subsection (a). The report shall include--
       (1) the determinations resulting from the study, including 
     a determination on the feasibility of providing the major 
     project authorization for projects related to missile defense 
     described in subsection (b); and
       (2) a discussion of the justification for each such 
     determination.
       (d) Definition of Defense Items.--In this section, the term 
     ``defense items'' has the meaning given that term in section 
     38(j)(4)(A) of the Arms Export Control Act (22 U.S.C. 
     2778(j)(4)(A)).

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

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
              funds.
Sec. 1302. Funding allocations.
Sec. 1303. Temporary authority to waive limitation on funding for 
              chemical weapons destruction facility in Russia.
Sec. 1304. Inclusion of descriptive summaries in annual Cooperative 
              Threat Reduction reports and budget justification 
              materials.

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

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

     SEC. 1302. FUNDING ALLOCATIONS.

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

     SEC. 1303. TEMPORARY AUTHORITY TO WAIVE LIMITATION ON FUNDING 
                   FOR CHEMICAL WEAPONS DESTRUCTION FACILITY IN 
                   RUSSIA.

       (a) Temporary Authority.--Section 1305 of the National 
     Defense Authorization Act for Fiscal Year 2000 (Public Law 
     106-65; 22 U.S.C. 5952 note) shall not apply for a calendar 
     year for which the President submits to Congress a written 
     certification that includes--
       (1) a statement as to why a waiver of the conditions 
     described in such section 1305 is important to the national 
     security interests of the United States;
       (2) a full and complete justification for the waiver of the 
     conditions; and
       (3) a plan to promote a full and accurate disclosure by 
     Russia regarding the size, content, status, and location of 
     its chemical weapons stockpile.
       (b) Expiration.--The authority in subsection (a) shall 
     expire on December 31, 2006, and no waiver shall remain in 
     effect after that date.

     SEC. 1304. INCLUSION OF DESCRIPTIVE SUMMARIES IN ANNUAL 
                   COOPERATIVE THREAT REDUCTION REPORTS AND BUDGET 
                   JUSTIFICATION MATERIALS.

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

                    TITLE XIV--SUNKEN MILITARY CRAFT

Sec. 1401. Preservation of title to sunken military craft and 
              associated contents.
Sec. 1402. Prohibitions.
Sec. 1403. Permits.
Sec. 1404. Penalties.
Sec. 1405. Liability for damages.
Sec. 1406. Relationship to other laws.
Sec. 1407. Encouragement of agreements with foreign countries.
Sec. 1408. Definitions.

     SEC. 1401. PRESERVATION OF TITLE TO SUNKEN MILITARY CRAFT AND 
                   ASSOCIATED CONTENTS.

       Right, title, and interest of the United States in and to 
     any United States sunken military craft--
       (1) shall not be extinguished except by an express 
     divestiture of title by the United States; and
       (2) shall not be extinguished by the passage of time, 
     regardless of when the sunken military craft sank.

     SEC. 1402. PROHIBITIONS.

       (a) Unauthorized Activities Directed at Sunken Military 
     Craft.--No person shall engage in or attempt to engage in any 
     activity directed at a sunken military craft that disturbs, 
     removes, or injures any sunken military craft, except--
       (1) as authorized by a permit under this title;
       (2) as authorized by regulations issued under this title; 
     or
       (3) as otherwise authorized by law.

[[Page H9267]]

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

     SEC. 1403. PERMITS.

       (a) In General.--The Secretary concerned may issue a permit 
     authorizing a person to engage in an activity otherwise 
     prohibited by section 1402 with respect to a United States 
     sunken military craft, for archaeological, historical, or 
     educational purposes, in accordance with regulations issued 
     by such Secretary that implement this section.
       (b) Consistency With Other Laws.--The Secretary concerned 
     shall require that any activity carried out under a permit 
     issued by such Secretary under this section must be 
     consistent with all requirements and restrictions that apply 
     under any other provision of Federal law.
       (c) Consultation.--In carrying out this section (including 
     the issuance after the date of the enactment of this Act of 
     regulations implementing this section), the Secretary 
     concerned shall consult with the head of each Federal agency 
     having authority under Federal law with respect to activities 
     directed at sunken military craft or the locations of such 
     craft.
       (d) Application to Foreign Craft.--At the request of any 
     foreign State, the Secretary of the Navy, in consultation 
     with the Secretary of State, may carry out this section 
     (including regulations promulgated pursuant to this section) 
     with respect to any foreign sunken military craft of that 
     foreign State located in United States waters.

     SEC. 1404. PENALTIES.

       (a) In General.--Any person who violates this title, or any 
     regulation or permit issued under this title, shall be liable 
     to the United States for a civil penalty under this section.
       (b) Assessment and Amount.--The Secretary concerned may 
     assess a civil penalty under this section, after notice and 
     an opportunity for a hearing, of not more than $100,000 for 
     each violation.
       (c) Continuing Violations.--Each day of a continued 
     violation of this title or a regulation or permit issued 
     under this title shall constitute a separate violation for 
     purposes of this section.
       (d) In Rem Liability.--A vessel used to violate this title 
     shall be liable in rem for a penalty under this section for 
     such violation.
       (e) Other Relief.--If the Secretary concerned determines 
     that there is an imminent risk of disturbance of, removal of, 
     or injury to any sunken military craft, or that there has 
     been actual disturbance of, removal of, or injury to a sunken 
     military craft, the Attorney General, upon request of the 
     Secretary concerned, may seek such relief as may be necessary 
     to abate such risk or actual disturbance, removal, or injury 
     and to return or restore the sunken military craft. The 
     district courts of the United States shall have jurisdiction 
     in such a case to order such relief as the public interest 
     and the equities of the case may require.
       (f) Limitations.--An action to enforce a violation of 
     section 1402 or any regulation or permit issued under this 
     title may not be brought more than 8 years after the date on 
     which--
       (1) all facts material to the right of action are known or 
     should have been known by the Secretary concerned; and
       (2) the defendant is subject to the jurisdiction of the 
     appropriate district court of the United States or 
     administrative forum.

     SEC. 1405. LIABILITY FOR DAMAGES.

       (a) In General.--Any person who engages in an activity in 
     violation of section 1402 or any regulation or permit issued 
     under this title that disturbs, removes, or injures any 
     United States sunken military craft shall pay the United 
     States enforcement costs and damages resulting from such 
     disturbance, removal, or injury.
       (b) Included Damages.--Damages referred to in subsection 
     (a) may include--
       (1) the reasonable costs incurred in storage, restoration, 
     care, maintenance, conservation, and curation of any sunken 
     military craft that is disturbed, removed, or injured in 
     violation of section 1402 or any regulation or permit issued 
     under this title; and
       (2) the cost of retrieving, from the site where the sunken 
     military craft was disturbed, removed, or injured, any 
     information of an archaeological, historical, or cultural 
     nature.

     SEC. 1406. RELATIONSHIP TO OTHER LAWS.

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

     SEC. 1407. ENCOURAGEMENT OF AGREEMENTS WITH FOREIGN 
                   COUNTRIES.

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

     SEC. 1408. DEFINITIONS.

       In this title:
       (1) Associated contents.--The term ``associated contents'' 
     means--
       (A) the equipment, cargo, and contents of a sunken military 
     craft that are within its debris field; and
       (B) the remains and personal effects of the crew and 
     passengers of a sunken military craft that are within its 
     debris field.
       (2) Secretary concerned.--The term ``Secretary concerned'' 
     means--
       (A) subject to subparagraph (B), the Secretary of a 
     military department; and
       (B) in the case of a Coast Guard vessel, the Secretary of 
     the Department in which the Coast Guard is operating.
       (3) Sunken military craft.--The term ``sunken military 
     craft'' means all or any portion of--
       (A) any sunken warship, naval auxiliary, or other vessel 
     that was owned or operated by a government on military 
     noncommercial service when it sank;
       (B) any sunken military aircraft or military spacecraft 
     that was owned or operated by a government when it sank; and
       (C) the associated contents of a craft referred to in 
     subparagraph (A) or (B),
     if title thereto has not been abandoned or transferred by the 
     government concerned.
       (4) United states contiguous zone.--The term ``United 
     States contiguous zone'' means the contiguous zone of the 
     United States under Presidential Proclamation 7219, dated 
     September 2, 1999.
       (5) United states internal waters.--The term ``United 
     States internal waters'' means all waters of the United 
     States on the landward side of the baseline from which the 
     breadth of the United States territorial sea is measured.
       (6) United states territorial sea.--The term ``United 
     States territorial sea'' means the waters of the United 
     States territorial sea under Presidential Proclamation 5928, 
     dated December 27, 1988.
       (7) United states waters.--The term ``United States 
     waters'' means United States internal waters, the United 
     States territorial sea, and the United States contiguous 
     zone.

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

Sec. 1501. Purpose.
Sec. 1502. Army procurement.
Sec. 1503. Navy and Marine Corps procurement.
Sec. 1504. Defense-wide activities procurement.
Sec. 1505. Operation and maintenance.
Sec. 1506. Defense working capital funds.
Sec. 1507. Iraq Freedom Fund.
Sec. 1508. Defense health program.
Sec. 1509. Military personnel.
Sec. 1510. Treatment as additional authorizations.
Sec. 1511. Transfer authority.

     SEC. 1501. PURPOSE.

       The purpose of this title is to authorize emergency 
     appropriations for the Department of Defense for fiscal year 
     2005 to provide funds for additional costs due to Operation 
     Iraqi Freedom

[[Page H9268]]

     and Operation Enduring Freedom. Funds in this title are 
     available upon the enactment of this Act.

     SEC. 1502. ARMY PROCUREMENT.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for procurement accounts of the Army in amounts as 
     follows:
       (3) For weapons and tracked combat vehicles, $50,000,000.
       (4) For ammunition, $110,000,000.
       (5) For other procurement, $755,000,000.
       (6) For National Guard and Reserve equipment, $50,000,000.

     SEC. 1503. NAVY AND MARINE CORPS PROCUREMENT.

       (a) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 2005 for the procurement account 
     for the Marine Corps in the amount of $150,000,000.
       (b) Navy and Marine Corps Ammunition.--Funds are hereby 
     authorized to be appropriated for fiscal year 2005 for the 
     procurement account for ammunition for the Navy and the 
     Marine Corps in the amount of $30,000,000.

     SEC. 1504. DEFENSE-WIDE ACTIVITIES PROCUREMENT.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for the procurement account for Defense-wide 
     procurement in the amount of $50,000,000.

     SEC. 1505. OPERATION AND MAINTENANCE.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for the use of the Armed Forces for expenses, not 
     otherwise provided for, operation and maintenance, in amounts 
     as follows:
       (1) For the Army, $13,550,000,000.
       (2) For the Navy, $367,000,000.
       (3) For the Marine Corps, $1,665,000,000.
       (4) For the Air Force, $419,000,000.
       (5) For Defense-wide, $404,000,000.

     SEC. 1506. DEFENSE WORKING CAPITAL FUNDS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2005 for Defense Working Capital Program in the amount 
     of $1,478,000,000.

     SEC. 1507. IRAQ FREEDOM FUND.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal year 2005 for the account of the Iraq 
     Freedom Fund in amount of $3,892,000,000, to remain available 
     for transfer to other accounts in this title until September 
     30, 2006. Amounts of authorization so transferred shall be 
     merged with and be made available for the same purposes as 
     the authorization to which transferred. Of the amounts 
     provided in this section $1,800,000,000 shall only be used 
     for classified programs.
       (b) Notice to Congress.--A transfer may be made from the 
     Iraq Freedom Fund only after the Secretary of Defense 
     notifies the congressional defense committees with respect to 
     the proposed transfer in writing not less than five days 
     before the transfer is made.

     SEC. 1508. DEFENSE HEALTH PROGRAM.

       Funds are hereby authorized to be appropriated for the 
     Department of Defense for fiscal year 2005 for expenses, not 
     otherwise provided for, the Defense Health Program, in the 
     amount of $780,000,000, for Operation and Maintenance.

     SEC. 1509. MILITARY PERSONNEL.

       There is hereby authorized to be appropriated to the 
     Department of Defense for military personnel accounts for 
     fiscal year 2005 a total of $1,250,000,000.

     SEC. 1510. TREATMENT AS ADDITIONAL AUTHORIZATIONS.

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

     SEC. 1511. TRANSFER AUTHORITY.

       (a) Authority To Transfer Authorizations.--(1) Upon 
     determination by the Secretary of Defense that such action is 
     necessary in the national interest, the Secretary may 
     transfer amounts of authorizations made available to the 
     Department of Defense in this title for fiscal year 2005 
     between any such authorizations for that fiscal year (or any 
     subdivisions thereof). Amounts of authorizations so 
     transferred shall be merged with and be available for the 
     same purposes as the authorization to which transferred.
       (2) The total amount of authorizations that the Secretary 
     may transfer under the authority of this section may not 
     exceed $1,500,000,000. The transfer authority provided in 
     this section is in addition to any other transfer authority 
     available to the Secretary of Defense.
       (b) Limitations.--The authority provided by this section to 
     transfer authorizations--
       (1) may only be used to provide authority for items that 
     have a higher priority than the items from which authority is 
     transferred;
       (2) may not be used to provide authority for an item that 
     has been denied authorization by Congress; and
       (3) may not be combined with the authority under section 
     1001.
       (c) Effect on Authorization Amounts.--A transfer made from 
     one account to another under the authority of this section 
     shall be deemed to increase the amount authorized for the 
     account to which the amount is transferred by an amount equal 
     to the amount transferred.
       (d) Notice to Congress.--A transfer may be made under the 
     authority of this section only after the Secretary of 
     Defense--
       (1) consults with the chairmen and ranking members of the 
     congressional defense committees with respect to the proposed 
     transfer; and
       (2) after such consultation, notifies those committees in 
     writing of the proposed transfer not less than five days 
     before the transfer is made.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

     SEC. 2001. SHORT TITLE.

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

                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 
              2004 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
              2003 project.

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

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

                                         Army: Inside the United States
----------------------------------------------------------------------------------------------------------------
                      State                                 Installation or Location                 Amount
----------------------------------------------------------------------------------------------------------------
Alabama.........................................  Anniston Army Depot.........................       $23,690,000
                                                  Fort Rucker.................................       $16,000,000
Alaska..........................................  Fort Richardson.............................       $24,300,000
                                                  Fort Wainwright.............................       $92,459,000
Arizona.........................................  Fort Huachuca...............................       $18,000,000
California......................................  Fort Irwin..................................       $38,100,000
                                                  Sierra Army Depot...........................       $12,600,000
Colorado........................................  Fort Carson.................................       $59,508,000
Florida.........................................  Camp Rudder.................................        $1,850,000
Georgia.........................................  Fort Benning................................       $71,777,000
                                                  Fort Gillem.................................        $5,800,000
                                                  Fort McPherson..............................        $4,900,000
                                                  Fort Stewart/Hunter Army Air Field..........       $65,495,000
Hawaii..........................................  Helemano Military Reservation...............       $75,300,000
                                                  Hickam Air Force Base.......................       $11,200,000
                                                  Schofield Barracks..........................      $249,792,000
Kansas..........................................  Fort Riley..................................       $59,550,000
Kentucky........................................  Fort Campbell...............................       $89,600,000
                                                  Fort Knox...................................       $75,750,000
Louisiana.......................................  Fort Polk...................................       $70,953,000
Maryland........................................  Aberdeen Proving Ground.....................       $13,000,000
                                                  Fort Detrick................................        $4,000,000
Missouri........................................  Fort Leonard Wood...........................       $31,850,000
New Jersey......................................  Picatinny Arsenal...........................        $9,900,000
New Mexico......................................  White Sands Missile Range...................       $33,000,000
New York........................................  Fort Drum...................................       $13,650,000
                                                  Fort Hamilton...............................        $7,600,000
                                                  Hancock Field...............................        $6,000,000
                                                  Military Entrance Processing Station,               $6,200,000
                                                   Buffalo....................................
                                                  United States Military Academy, West Point..       $60,000,000
North Carolina..................................  Fort Bragg..................................      $111,687,000
Oklahoma........................................  Fort Sill...................................       $17,800,000
Pennsylvania....................................  Letterkenny Depot...........................        $5,400,000
Texas...........................................  Fort Bliss..................................       $19,400,000
                                                  Fort Hood...................................       $85,188,000
                                                  Fort Sam Houston............................       $11,400,000
Virginia........................................  Fort A.P. Hill..............................       $10,775,000
                                                  Fort Lee....................................        $4,250,000
                                                  Fort Myer...................................       $49,526,000
Washington......................................  Fort Lewis..................................       $56,200,000
                                                                                               -----------------

[[Page H9269]]

 
                                                    Total.....................................    $1,623,450,000
----------------------------------------------------------------------------------------------------------------

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

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

     SEC. 2102. FAMILY HOUSING.

       (a) Construction and Acquisition.--Using amounts 
     appropriated pursuant to the authorization of appropriations 
     in section 2104(a)(5)(A), the Secretary of the Army may 
     construct or acquire family housing units (including land 
     acquisition and supporting facilities) at the installations 
     or locations, for the purposes, and in the amounts set forth 
     in the following table:

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

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2104(a)(5)(A), the Secretary of the Army may carry out 
     architectural and engineering services and construction 
     design activities with respect to the construction or 
     improvement of family housing units in an amount not to 
     exceed $29,209,000.

     SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2104(a)(5)(A), the Secretary of 
     the Army may improve existing military family housing units 
     in an amount not to exceed $211,990,000.

     SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal years beginning 
     after September 30, 2004, for military construction, land 
     acquisition, and military family housing functions of the 
     Department of the Army in the total amount of $3,537,141,000, 
     as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2101(a), $1,453,950,000.
       (2) For military construction projects outside the United 
     States authorized by section 2101(b), $115,200,000.
       (3) For unspecified minor military construction projects 
     authorized by section 2805 of title 10, United States Code, 
     $20,000,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $151,335,000.
       (5) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $636,099,000.
       (B) For support of military family housing (including the 
     functions described in section 2833 of title 10, United 
     States Code), $926,507,000.
       (6) For the construction of phase 2 of a barracks complex, 
     5th & 16th Street, at Fort Stewart/Hunter Army Air Field, 
     Georgia, authorized by section 2101(a) of the Military 
     Construction Authorization Act for Fiscal Year 2004 (division 
     B of Public Law 108-136; 117 Stat. 1697), $32,950,000.
       (7) For the construction of phase 3 of a barracks complex 
     renewal, Capron Road, at Schofield Barracks, Hawaii, 
     authorized by section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 2002 (division B of Public 
     Law 107-107; 115 Stat. 1283), as amended by section 2105 of 
     the Military Construction Authorization Act for Fiscal Year 
     2004 (division B of Public Law 108-136; 117 Stat. 1697), 
     $48,000,000.
       (8) For the construction of phase 2 of the Lewis & Clark 
     instructional facility at Fort Leavenworth, Kansas, 
     authorized by section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 2003 (division B of Public 
     Law 107-314; 116 Stat. 2681), $44,000,000.
       (9) For the construction of phase 2 of a barracks complex 
     at Wheeler Sack Army Air Field at Fort Drum, New York, 
     authorized by section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 2004 (division B of Public 
     Law 108-136; 117 Stat. 1697), $48,000,000.
       (10) For the construction of phase 2 of a barracks complex, 
     Bastogne Drive, Fort Bragg, North Carolina, authorized by 
     section 2101(a) of the Military Construction Authorization 
     Act for Fiscal Year 2004 (division B of Public Law 108-136; 
     117 Stat. 1697), $48,000,000.
       (11) For the construction of phase 3 of a maintenance 
     complex at Fort Sill, Oklahoma, authorized by section 2101(a) 
     of the Military Construction Authorization Act for Fiscal 
     Year 2003 (division B of Public Law 107-314; 116 Stat. 2681), 
     $13,100,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2101 of this Act may not exceed the 
     sum of the following:
       (1) The total amount authorized to be appropriated under 
     paragraphs (1) and (2) of subsection (a).
       (2) $41,000,000 (the balance of the amount authorized under 
     section 2101(a) to upgrade Drum Road, Helemano Military 
     Reservation, Hawaii).
       (3) $25,000,000 (the balance of the amount authorized under 
     section 2101(a) for construction of a vehicle maintenance 
     facility, Schofield Barracks, Hawaii).
       (4) $25,000,000 (the balance of the amount authorized under 
     section 2101(a) for construction of a barracks complex, Fort 
     Campbell, Kentucky).
       (5) $22,000,000 (the balance of the amount authorized under 
     section 2101(a) for construction of trainee barracks, Basic 
     Training Complex 1, Fort Knox, Kentucky).
       (6) $25,500,000 (the balance of the amount authorized under 
     section 2101(a) for construction of a library and learning 
     facility, United States Military Academy, West Point, New 
     York).
       (7) $31,000,000 (the balance of the amount authorized under 
     section 2101(a) for a barracks complex renewal project, Fort 
     Bragg, North Carolina).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (11) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by $5,550,000, which 
     represents prior year savings.

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

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

[[Page H9270]]

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

       (a) Modification of Inside the United States Project.--The 
     table in section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 2003 (division B of Public 
     Law 107-314; 116 Stat. 2681), as amended by section 2105(a) 
     of the Military Construction Authorization Act for Fiscal 
     Year 2004 (division B of Public Law 108-136; 117 Stat. 1700), 
     is further amended--
       (1) in the item relating to Fort Sill, Oklahoma, by 
     striking ``$39,652,000'' in the amount column and inserting 
     ``$40,752,000''; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$1,157,267,000''.
       (b) Conforming Amendment.--Section 2104(b)(6) of the 
     Military Construction Authorization Act for Fiscal Year 2003 
     (division B of Public Law 107-314; 116 Stat. 2684) is amended 
     by striking ``$25,000,000'' and inserting ``$26,100,000''.
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
------------------------------------------------------------------------
            State               Installation or Location      Amount
------------------------------------------------------------------------
Arizona......................  Marine Corps Air Station,     $26,670,000
                                Yuma.
California...................  Marine Corps Air-Ground       $15,700,000
                                Task Force Training
                                Center, Twentynine Palms
                               Marine Corps Air Station,     $11,540,000
                                Camp Pendleton..........
                               Marine Corps Base, Camp       $26,915,000
                                Pendleton...............
                               Marine Corps Logistics         $4,930,000
                                Base, Barstow...........
                               Naval Air Facility, El        $54,331,000
                                Centro..................
                               Naval Air Station, North      $10,180,000
                                Island..................
                               Naval Surface Warfare          $9,850,000
                                Center, Division Corona.
                               Recruit Depot San Diego..      $8,110,000
Connecticut..................  Naval Submarine Base, New     $50,302,000
                                London..................
District of Columbia.........  Naval Observatory,             $3,239,000
                                Washington..............
Florida......................  Eglin Air Force Base.....      $2,060,000
                               Naval Station, Mayport...      $6,200,000
Georgia......................  Strategic Weapons             $16,000,000
                                Facility Atlantic, Kings
                                Bay.....................
Hawaii.......................  Naval Shipyard, Pearl          $5,100,000
                                Harbor..................
Illinois.....................  Naval Training Center,        $74,781,000
                                Great Lakes.............
Indiana......................  Naval Surface Warfare         $12,600,000
                                Center, Crane...........
Maine........................  Naval Air Station,             $6,220,000
                                Brunswick...............
Maryland.....................  Naval Surface Warfare         $23,000,000
                                Center, Indian Head.....
North Carolina...............  Marine Corps Air Station,     $35,140,000
                                New River...............
                               Marine Corps Base, Camp       $11,030,000
                                Lejeune.................
                               Navy Outlying Landing        $136,900,000
                                Field, Washington County
Nevada.......................  Naval Air Station, Fallon      $4,980,000
Rhode Island.................  Naval Air Station,             $5,490,000
                                Newport.................
South Carolina...............  Marine Corps Air Station,      $5,480,000
                                Beaufort................
                               Naval Weapons Station,        $12,209,000
                                Charleston..............
Virginia.....................  Camp Elmore Marine Corps      $13,500,000
                                Detachment..............
                               Marine Corps Air              $73,838,000
                                Facility, Quantico......
                               Marine Corps Combat           $25,090,000
                                Development Command,
                                Quantico................
                               Naval Air Station, Oceana      $2,770,000
                               Naval Amphibious Base,         $9,220,000
                                Little Creek............
                               Naval Station, Norfolk...      $4,330,000
                               Naval Weapons Station,         $9,870,000
                                Yorktown................
Washington...................  Naval Air Station,             $1,990,000
                                Whidbey Island..........
                               Naval Shipyard, Puget         $20,305,000
                                Sound...................
                               Naval Station, Bremerton.     $74,125,000
                               Strategic Weapons            $138,060,000
                                Facility Pacific, Bangor
                                                         ---------------
                                 Total..................    $952,055,000
------------------------------------------------------------------------

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

                     Navy: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Diego Garcia.................  Naval Support Facility,       $17,500,000
                                Diego Garcia............
Guam.........................  Naval Public Works            $20,700,000
                                Center, Guam............
                               Naval Station, Guam......     $12,500,000
Italy........................  Sigonella................     $22,550,000
Spain........................  Naval Station, Rota......     $32,700,000
                                                         ---------------
                                 Total..................    $105,950,000
------------------------------------------------------------------------

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

                       Navy: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
                               Unspecified Worldwide....    $105,982,000
                                                         ---------------
                                 Total..................    $105,982,000
------------------------------------------------------------------------

     SEC. 2202. FAMILY HOUSING.

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

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


[[Page H9271]]

     SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2204(a)(6)(A), the Secretary of 
     the Navy may improve existing military family housing units 
     in an amount not to exceed $112,105,000.

     SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal years beginning 
     after September 30, 2004, for military construction, land 
     acquisition, and military family housing functions of the 
     Department of the Navy in the total amount of $1,897,245,000, 
     as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2201(a), $712,927,000.
       (2) For military construction projects outside the United 
     States authorized by section 2201(b), $94,950,000.
       (3) For the military construction projects at unspecified 
     worldwide locations authorized by section 2201(c), 
     $40,000,000.
       (4) For unspecified minor military construction projects 
     authorized by section 2805 of title 10, United States Code, 
     $12,000,000.
       (5) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $87,067,000.
       (6) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $139,107,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $696,304,000.
       (7) For the construction of increment 2 of the tertiary 
     sewage treatment plant at Marine Corps Base, Camp Pendleton, 
     California, authorized by section 2201(a) of the Military 
     Construction Authorization Act for Fiscal Year 2004 (division 
     B of Public Law 108-136; 117 Stat. 1703), $25,690,000.
       (8) For the construction of increment 2 of the general 
     purpose berthing pier at Naval Weapons Station, Earle, New 
     Jersey, authorized by section 2201(a) of the Military 
     Construction Authorization Act for Fiscal Year 2004 (division 
     B of Public Law 108-136; 117 Stat. 1704), $49,200,000.
       (9) For the construction of increment 2 of pier 11 
     replacement at Naval Station, Norfolk, Virginia, authorized 
     by section 2201(a) of the Military Construction Authorization 
     Act for Fiscal Year 2004 (division B of Public Law 108-136; 
     117 Stat. 1704), $40,000,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2201 of this Act may not exceed the 
     sum of the following:
       (1) The total amount authorized to be appropriated under 
     paragraphs (1), (2), and (3) of subsection (a).
       (2) $21,000,000 (the balance of the amount authorized under 
     section 2201(a) for apron and hangar recapitalization, Naval 
     Air Facility, El Centro, California).
       (3) $116,750,000 (the balance of the amount authorized 
     under section 2201(a) for land acquisition for an outlying 
     landing field in Washington County, North Carolina).
       (4) $34,098,000 (the balance of the amount authorized under 
     section 2201(a) for construction of a White Side complex, 
     Marine Corps Air Facility, Quantico, Virginia).
       (5) $40,000,000 (the balance of the amount authorized under 
     section 2201(a) for construction of bachelor enlisted 
     quarters, Naval Station, Bremerton, Washington).
       (6) $95,320,000 (the balance of the amount authorized under 
     section 2201(a) for construction of a limited area processing 
     and storage complex, Strategic Weapons Facility Pacific, 
     Bangor, Washington).
       (7) $65,982,000 (the balance of the amount authorized under 
     section 2201(c) for construction of a presidential helicopter 
     programs support facility at an unspecified location).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (9) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by $5,549,000, which 
     represents prior year savings.
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
------------------------------------------------------------------------
            State               Installation or Location      Amount
------------------------------------------------------------------------
Alaska.......................  Elmendorf Air Force Base.     $52,057,000
Arizona......................  Davis-Monthan Air Force       $17,029,000
                                Base.
                               Luke Air Force Base......     $17,900,000
Arkansas.....................  Little Rock Air Force          $8,931,000
                                Base.
California...................  Beale Air Force Base.....     $10,186,000
                               Edwards Air Force Base...      $9,965,000
                               Travis Air Force Base....     $18,894,000
Colorado.....................  Buckley Air Force Base...     $12,247,000
Delaware.....................  Dover Air Force Base.....      $9,500,000
Florida......................  Tyndall Air Force Base...     $27,614,000
                               Patrick Air Force Base...      $8,800,000
Georgia......................  Moody Air Force Base.....      $9,600,000
                               Robins Air Force Base....     $21,900,000
Hawaii.......................  Hickam Air Force Base....     $30,900,000
                               Maui Site................      $7,500,000
Louisiana....................  Barksdale Air Force Base.     $13,800,000
Maryland.....................  Andrews Air Force Base...     $17,100,000
Mississippi..................  Columbus Air Force Base..      $7,700,000
Missouri.....................  Whiteman Air Force Base..      $7,600,000
Montana......................  Malmstrom Air Force Base.      $5,600,000
Nebraska.....................  Offutt Air Force Base....      $6,221,000
New Mexico...................  Cannon Air Force Base....      $9,500,000
                               Kirtland Air Force Base..      $9,200,000
North Carolina...............  Pope Air Force Base......     $15,150,000
North Dakota.................  Minot Air Force Base.....      $8,900,000
Ohio.........................  Wright-Patterson Air           $9,904,000
                                Force Base.
Oklahoma.....................  Altus Air Force Base.....      $7,000,000
                               Tinker Air Force Base....      $8,000,000
South Carolina...............  Shaw Air Force Base......      $7,000,000
South Dakota.................  Ellsworth Air Force Base.      $9,867,000
Tennessee....................  Arnold Air Force Base....     $24,500,000
Texas........................  Dyess Air Force Base.....     $14,300,000
                               Lackland Air Force Base..      $2,596,000
                               Laughlin Air Force Base..      $6,900,000
                               Sheppard Air Force Base..     $50,284,000
Utah.........................  Hill Air Force Base......     $25,713,000
Wyoming......................  F.E. Warren Air Force          $5,500,000
                                Base.
                                                         ---------------
                                 Total..................    $535,358,000
------------------------------------------------------------------------

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

                  Air Force: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Germany......................  Ramstein Air Base........     $25,404,000
Greenland....................  Thule Air Base...........     $19,800,000
Guam.........................  Andersen Air Force Base..     $19,593,000
Italy........................  Aviano Air Base..........      $6,760,000
Korea........................  Kunsan Air Base..........     $37,100,000
                               Osan Air Base............     $18,600,000

[[Page H9272]]

 
Portugal.....................  Lajes Field, Azores......      $5,689,000
Spain........................  Naval Station, Rota......     $14,153,000
United Kingdom...............  Royal Air Force                $5,500,000
                                Lakenheath.
                                                         ---------------
                                 Total..................    $152,599,000
------------------------------------------------------------------------

       (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 
     unspecified installations or locations, and in the amounts, 
     set forth in the following table:

                    Air Force: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
                               Classified Locations.....     $26,121,000
                               Unspecified Worldwide....     $28,090,000
                                                         ---------------
                                 Total..................     $54,211,000
------------------------------------------------------------------------

     SEC. 2302. FAMILY HOUSING.

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

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

       (b) Planning and Design.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2304(a)(6)(A), the Secretary of the Air Force may carry out 
     architectural and engineering services and construction 
     design activities with respect to the construction or 
     improvement of military family housing units in an amount not 
     to exceed $38,266,000.

     SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2304(a)(6)(A), the Secretary of 
     the Air Force may improve existing military family housing 
     units in an amount not to exceed $238,353,000.

     SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated for fiscal years beginning 
     after September 30, 2004, for military construction, land 
     acquisition, and military family housing functions of the 
     Department of the Air Force in the total amount of 
     $2,559,768,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2301(a), $525,358,000.
       (2) For military construction projects outside the United 
     States authorized by section 2301(b), $142,771,000.
       (3) For military construction projects at unspecified 
     worldwide locations authorized by section 2301(c), 
     $54,211,000.
       (4) For unspecified minor military construction projects 
     authorized by section 2805 of title 10, United States Code, 
     $13,000,000.
       (5) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $124,085,000.
       (6) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $846,959,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $853,384,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2301 of this Act may not exceed the 
     sum of the following:
       (1) The total amount authorized to be appropriated under 
     paragraphs (1), (2), and (3) of subsection (a).
       (2) $10,000,000 (the balance of the amount authorized under 
     section 2301(a) for construction of a hanger for an aircraft 
     maintenance unit, Tyndall Air Force Base, Florida).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (6) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by $5,550,000, which 
     represents prior year savings.
Sec. 2401. Authorized Defense Agencies construction and land 
              acquisition projects.
Sec. 2402. Improvements to military family housing units.
Sec. 2403. Energy conservation projects.
Sec. 2404. Authorization of appropriations, Defense Agencies.

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

       (a) Inside the United States.--Using amounts appropriated 
     pursuant to the authorization of appropriations in section 
     2404(a)(1), the Secretary of Defense may acquire real 
     property and carry out military construction projects for the 
     installations or locations inside the United States, and in 
     the amounts, set forth in the following table:

               Defense Agencies: Inside the United States
------------------------------------------------------------------------
            Agency              Installation or Location      Amount
------------------------------------------------------------------------
Defense Intelligence Agency..  Bolling Air Force Base,        $6,000,000
                                District of Columbia....
Defense Logistics Agency.....  Defense Distribution          $22,300,000
                                Depot, New Cumberland,
                                Pennsylvania............
                               Defense Distribution          $10,100,000
                                Depot, Richmond,
                                Virginia................
                               Defense Fuel Support           $3,589,000
                                Point, Naval Air
                                Station, Oceana,
                                Virginia................
                               Marina Corps Air Station,     $22,700,000
                                Cherry Point, North
                                Carolina................
                               Naval Air Station,             $3,900,000
                                Kingsville, Texas.......
                               Naval Station, Pearl           $3,500,000
                                Harbor, Hawaii..........
                               Tinker Air Force Base,         $5,400,000
                                Oklahoma................

[[Page H9273]]

 
                               Travis Air Force Base,        $15,100,000
                                California..............
Missile Defense Agency.......  Redstone Arsenal, Alabama     $19,560,000
National Security Agency.....  Fort Meade, Maryland.....     $15,007,000
Special Operations Command...  Corona, California.......     $13,600,000
                               Fleet Combat Training          $5,700,000
                                Center, Dam Neck,
                                Virginia................
                               Fort A.P. Hill, Virginia.      $1,500,000
                               Fort Bragg, North             $42,888,000
                                Carolina................
                               Fort Campbell, Kentucky..      $3,500,000
                               Fort Stewart/Hunter Army      $17,600,000
                                Air Field, Georgia......
                               Hurlburt Field, Florida..      $2,500,000
                               Naval Amphibious Base,        $33,200,000
                                Little Creek, Virginia..
                               Niland, California.......      $1,000,000
TRICARE Management Activity..  Buckley Air Force Base,        $2,100,000
                                Colorado................
                               Defense Language               $6,700,000
                                Institute, Presidio,
                                Monterey................
                               Fort Belvoir, Virginia...    $100,000,000
                               Fort Benning, Georgia....      $7,100,000
                               Langley Air Force Base,       $50,800,000
                                Virginia................
                               Marine Corps Recruit          $25,000,000
                                Depot, Parris Island,
                                South Carolina..........
                               Naval Air Station,            $28,438,000
                                Jacksonville, Florida...
                                                         ---------------
                                 Total..................    $468,782,000
------------------------------------------------------------------------

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

               Defense Agencies: Outside the United States
------------------------------------------------------------------------
            Agency              Installation or Location      Amount
------------------------------------------------------------------------
Defense Education Activity...  Grafenwoehr, Germany.....     $36,247,000
                               Naval Station, Guam......     $26,964,000
                               Vilseck, Germany.........      $9,011,000
Defense Logistics Agency.....  Defense Fuel Support          $19,113,000
                                Point, Lajes Field,
                                Portugal................
Special Operations Command...  Naval Station, Guam,           $2,200,000
                                Mariana Islands.........
TRICARE Management Activity..  Diego Garcia.............      $3,800,000
                               Grafenwoehr, Germany.....     $13,000,000
                                                         ---------------
                                 Total..................    $110,335,000
------------------------------------------------------------------------

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

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

     SEC. 2402. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

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

     SEC. 2403. ENERGY CONSERVATION PROJECTS.

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

     SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2004, for military construction, land acquisition, and 
     military family housing functions of the Department of 
     Defense (other than the military departments) in the total 
     amount of $1,055,663,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2401(a), $411,782,000.
       (2) For military construction projects outside the United 
     States authorized by section 2401(b), $110,335,000.
       (3) For the military construction projects at unspecified 
     worldwide locations authorized by section 2401(c), 
     $10,300,000.
       (4) For unspecified minor military construction projects 
     under section 2805 of title 10, United States Code, 
     $20,938,000.
       (5) For contingency construction projects of the Secretary 
     of Defense under section 2804 of title 10, United States 
     Code, $10,000,000.
       (6) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $62,182,000.
       (7) For energy conservation projects authorized by section 
     2403 of this Act, $50,000,000.
       (8) For base closure and realignment activities as 
     authorized by the Defense Base Closure and Realignment Act of 
     1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
     2687 note), $246,116,000.
       (9) For military family housing functions:
       (A) For improvement of military family housing and 
     facilities, $49,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $49,575,000.
       (C) For credit to the Department of Defense Family Housing 
     Improvement Fund established by section 2883(a)(1) of title 
     10, United States Code, $2,500,000.
       (10) For the construction of phase 6 of an ammunition 
     demilitarization facility at Pueblo Depot Activity, Colorado, 
     authorized by section 2401(a) of the Military Construction 
     Authorization Act for Fiscal Year 1997 (division B of Public 
     Law 104-201; 110 Stat. 2775), as amended by section 2406 of 
     the Military Construction Authorization Act for Fiscal Year 
     2000 (division B of Public Law 106-65; 113 Stat. 839) and 
     section 2407 of the Military Construction Authorization Act 
     for Fiscal Year 2003 (division B of Public Law 107-314; 116 
     Stat. 2698), $44,792,000.
       (11) For the construction of phase 5 of an ammunition 
     demilitarization facility at Blue Grass Army Depot, Kentucky, 
     authorized by section 2401(a) of the Military Construction 
     Authorization Act for Fiscal Year 2000 (division B of Public 
     Law 106-65; 113 Stat. 835), as amended by section 2405 of the 
     Military Construction Authorization Act of 2002 (division B 
     of Public Law 107-107; 115 Stat. 1298) and section 2405 of 
     the Military Construction Authorization Act for Fiscal Year 
     2003 (division B of Public Law 107-314; 116 Stat. 2698), 
     $37,094,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2401 of this Act may not exceed the 
     sum of the following:
       (1) The total amount authorized to be appropriated under 
     paragraphs (1), (2) and (3) of subsection (a).
       (2) $57,000,000 (the balance of the amount authorized under 
     section 2401(a) for hospital replacement, Fort Belvoir, 
     Virginia).

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

Sec. 2501. Authorized NATO construction and land acquisition projects.
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.

[[Page H9274]]

     SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

       Funds are hereby authorized to be appropriated for fiscal 
     years beginning after September 30, 2004, for contributions 
     by the Secretary of Defense under section 2806 of title 10, 
     United States Code, for the share of the United States of the 
     cost of projects for the North Atlantic Treaty Organization 
     Security Investment program authorized by section 2501, in 
     the amount of $160,800,000.

            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, 2004, for the costs of 
     acquisition, architectural and engineering services, and 
     construction of facilities for the Guard and Reserve Forces, 
     and for contributions therefor, under chapter 1803 of title 
     10, United States Code (including the cost of acquisition of 
     land for those facilities), the following amounts:
       (1) For the Department of the Army--
       (A) for the Army National Guard of the United States, 
     $434,363,000; and
       (B) for the Army Reserve, $90,310,000.
       (2) For the Department of the Navy, for the Naval and 
     Marine Corps Reserve, $48,185,000.
       (3) For the Department of the Air Force--
       (A) for the Air National Guard of the United States, 
     $233,518,000; and
       (B) for the Air Force Reserve, $122,756,000.

        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 2002 
              projects.
Sec. 2703. Extension and renewal of authorizations of certain fiscal 
              year 2001 projects.

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

       (a) Expiration of Authorizations After Three Years.--Except 
     as provided in subsection (b), all authorizations contained 
     in titles XXI through XXVI for military construction 
     projects, land acquisition, family housing projects and 
     facilities, and contributions to the North Atlantic Treaty 
     Organization Security Investment program (and authorizations 
     of appropriations therefor) shall expire on the later of--
       (1) October 1, 2007; or
       (2) the date of the enactment of an Act authorizing funds 
     for military construction for fiscal year 2008.
       (b) Exception.--Subsection (a) shall not apply to 
     authorizations for military construction projects, land 
     acquisition, family housing projects and facilities, and 
     contributions to the North Atlantic Treaty Organization 
     Security Investment program (and authorizations of 
     appropriations therefor), for which appropriated funds have 
     been obligated before the later of--
       (1) October 1, 2007; or
       (2) the date of the enactment of an Act authorizing funds 
     for fiscal year 2008 for military construction projects, land 
     acquisition, family housing projects and facilities, or 
     contributions to the North Atlantic Treaty Organization 
     Security Investment program.

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

       (a) Extension.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 2002 
     (division B of Public Law 107-107; 115 Stat. 1301), 
     authorizations set forth in the tables in subsection (b), as 
     provided in section 2101, 2302, or 2601 of that Act, shall 
     remain in effect until October 1, 2005, or the date of the 
     enactment of an Act authorizing funds for military 
     construction for fiscal year 2006, whichever is later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:

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


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


                          Army National Guard: Extension of 2002 Project Authorization
----------------------------------------------------------------------------------------------------------------
                  State                    Installation or Location             Project               Amount
----------------------------------------------------------------------------------------------------------------
California..............................  Lancaster.................  Readiness Center..........      $4,530,000
----------------------------------------------------------------------------------------------------------------

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

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

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


                             Defense Agencies: Renewal of 2001 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 Agency                    Installation or Location             Project               Amount
----------------------------------------------------------------------------------------------------------------
Defense Education Activity..............  Osan Air Base, Korea......  Osan Elementary School            $843,000
                                                                       addition.................
----------------------------------------------------------------------------------------------------------------

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

Sec. 2801. Modification of approval and notice requirements for 
              facility repair projects.
Sec. 2802. Reporting requirements regarding military family housing 
              requirements for general officers and flag officers.
Sec. 2803. Congressional notification of deviations from authorized 
              cost variations for military construction projects and 
              military family housing projects.
Sec. 2804. Assessment of vulnerability of military installations to 
              terrorist attack and annual report on military 
              construction requirements related to antiterrorism and 
              force protection.
Sec. 2805. Repeal of limitations on use of alternative authority for 
              acquisition and improvement of military housing.
Sec. 2806. Additional reporting requirements relating to alternative 
              authority for acquisition and improvement of military 
              housing.
Sec. 2807. Temporary authority to accelerate design efforts for 
              military construction projects carried out using design-
              build selection procedures.
Sec. 2808. Notification thresholds and requirements for expenditures or 
              contributions for acquisition of facilities for reserve 
              components.
Sec. 2809. Authority to exchange reserve component facilities to 
              acquire replacement facilities.

[[Page H9275]]

Sec. 2810. One-year extension of temporary, limited authority to use 
              operation and maintenance funds for construction projects 
              outside the United States.
Sec. 2811. Consideration of combination of military medical treatment 
              facilities and health care facilities of Department of 
              Veterans Affairs.

        Subtitle B--Real Property and Facilities Administration

Sec. 2821. Reorganization of existing administrative provisions 
              relating to real property transactions.
Sec. 2822. Development of Heritage Center for the National Museum of 
              the United States Army.
Sec. 2823. Elimination of reversionary interests clouding United States 
              title to property used as Navy homeports.

                Subtitle C--Base Closure and Realignment

Sec. 2831. Establishment of specific deadline for submission of 
              revisions to force-structure plan and infrastructure 
              inventory.
Sec. 2832. Specification of final selection criteria for 2005 base 
              closure round.
Sec. 2833. Repeal of authority of Secretary of Defense to recommend 
              that installations be placed in inactive status.
Sec. 2834. Voting requirements for Defense Base Closure and Realignment 
              Commission to add to or otherwise expand closure and 
              realignment recommendations made by Secretary of Defense.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2841. Land conveyance, Sunflower Army Ammunition Plant, Kansas.
Sec. 2842. Land exchange, Fort Campbell, Kentucky and Tennessee.
Sec. 2843. Land conveyance, Louisiana Army Ammunition Plant, Doyline, 
              Louisiana.
Sec. 2844. Land conveyance, Fort Leonard Wood, Missouri.
Sec. 2845. Transfer of administrative jurisdiction, Defense Supply 
              Center, Columbus, Ohio.
Sec. 2846. Jurisdiction and utilization of former public domain lands, 
              Umatilla Chemical Depot, Oregon.
Sec. 2847. Modification of authority for land conveyance, equipment and 
              storage yard, Charleston, South Carolina.
Sec. 2848. Land conveyance, Fort Hood, Texas.
Sec. 2849. Land conveyance, local training area for Browning Army 
              Reserve Center, Utah.
Sec. 2850. Land conveyance, Army Reserve Center, Hampton, Virginia.
Sec. 2851. Land conveyance, Army National Guard Facility, Seattle, 
              Washington.
Sec. 2852. Modification of land exchange and consolidation, Fort Lewis, 
              Washington.

                       Part II--Navy Conveyances

Sec. 2861. Land exchange, former Richmond Naval Air Station, Florida.
Sec. 2862. Land conveyance, Honolulu, Hawaii.
Sec. 2863. Land conveyance, Navy property, former Fort Sheridan, 
              Illinois.
Sec. 2864. Land exchange, Naval Air Station, Patuxent River, Maryland.
Sec. 2865. Modification of land acquisition authority, Perquimans 
              County, North Carolina.
Sec. 2866. Land conveyance, Naval Weapons Station, Charleston, South 
              Carolina.
Sec. 2867. Land conveyance, Navy YMCA building, Portsmouth, Virginia.

                    Part III--Air Force Conveyances

Sec. 2871. Land exchange, Maxwell Air Force Base, Alabama.
Sec. 2872. Land conveyance, March Air Force Base, California.
Sec. 2873. Land conveyance, former Griffiss Air Force Base, New York.

                       Part IV--Other Conveyances

Sec. 2881. Land exchange, Arlington County, Virginia.

                       Subtitle E--Other Matters

Sec. 2891. One-year resumption of Department of Defense Laboratory 
              Revitalization Demonstration Program.
Sec. 2892. Designation of Airmen Leadership School at Luke Air Force 
              Base, Arizona, in honor of John J. Rhodes, a former 
              minority leader of the House of Representatives.
Sec. 2893. Settlement of claim of Oakland Base Reuse Authority and 
              Redevelopment Agency.
Sec. 2894. Report on establishment of mobilization station at Camp 
              Ripley National Guard Training Center, Little Falls, 
              Minnesota.
Sec. 2895. Report on feasibility of establishment of veterans memorial 
              at Marine Corps Air Station, El Toro, California.
Sec. 2896. Sense of Congress regarding effect of military housing 
              policies and force structure and basing changes on local 
              educational agencies.
Sec. 2897. Sense of Congress and study regarding memorial honoring non-
              United States citizens killed in the line of duty while 
              serving in the United States Armed Forces.

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

     SEC. 2801. MODIFICATION OF APPROVAL AND NOTICE REQUIREMENTS 
                   FOR FACILITY REPAIR PROJECTS.

       (a) Increase in Threshold for Approval Requirement.--
     Subsection (b) of section 2811 of title 10, United States 
     Code, is amended by striking ``$5,000,000'' and inserting 
     ``$7,500,000''.
       (b) Decrease in Threshold for Congressional Notification.--
     Subsection (d) of such section is amended by striking 
     ``$10,000,000'' and inserting ``$7,500,000''.
       (c) Information Required in Cost Estimate for Multi-Year 
     Projects.--Subsection (d)(1) of such section is amended by 
     inserting before the semicolon the following: ``, including, 
     in the case of a multi-year repair project to a single 
     facility, the total cost of all phases of the project''.

     SEC. 2802. REPORTING REQUIREMENTS REGARDING MILITARY FAMILY 
                   HOUSING REQUIREMENTS FOR GENERAL OFFICERS AND 
                   FLAG OFFICERS.

       (a) Reports on Cost of General and Flag Officers 
     Quarters.--Section 2831 of title 10, United States Code, is 
     amended by adding at the end the following new subsection:
       ``(e) Reports on Cost of General Officers and Flag Officers 
     Quarters.--(1) As part of the budget materials submitted to 
     Congress in connection with the submission of the budget for 
     a fiscal year pursuant to section 1105 of title 31, the 
     Secretary of Defense shall submit a report--
       ``(A) identifying each family housing unit used, or 
     intended for use, as quarters for a general officer or flag 
     officer for which the total operation, maintenance, and 
     repair costs for the unit are anticipated to exceed $35,000 
     in the next fiscal year; and
       ``(B) for each family housing unit so identified, 
     specifying the total of such anticipated operation, 
     maintenance, and repair costs for the unit.
       ``(2) Not later than 120 days after the end of each fiscal 
     year, the Secretary of Defense shall submit to the 
     congressional defense committees a report specifying, for 
     each family housing unit used as quarters for a general 
     officer or flag officer at any time during that fiscal year, 
     the total expenditures for operation and maintenance, 
     utilities, lease, and repairs of the unit during that fiscal 
     year.''.
       (b) Notice and Wait Requirement.--Such section is further 
     amended by inserting after subsection (e), as added by 
     subsection (a), the following new subsection:
       ``(f) Notice and Wait Requirement.--(1) Except as provided 
     in paragraphs (2) and (3), the Secretary concerned may not 
     carry out a maintenance or repair project for a family 
     housing unit used, or intended for use, as quarters for a 
     general officer or flag officer if the project will or may 
     result in the total operation, maintenance, and repair costs 
     for the unit for the fiscal year to exceed $35,000, until--
       ``(A) the Secretary concerned submits to the congressional 
     defense committees, in writing, a justification of the need 
     for the maintenance or repair project and an estimate of the 
     cost of the project; and
       ``(B) a period of 21 days has expired following the date on 
     which the justification and estimate are received by the 
     committees or, if over sooner, a period of 14 days has 
     expired following the date on which a copy of the 
     justification and estimate are provided in an electronic 
     medium pursuant to section 480 of this title.
       ``(2) The project justification and cost estimate required 
     by paragraph (1)(A) may be submitted after the commencement 
     of a maintenance or repair project for a family housing unit 
     used, or intended for use, as quarters for a general officer 
     or flag officer if the project is a necessary enviromental 
     remediation project for the unit or is necessary for occupant 
     safety or security, and the need for the project arose after 
     the submission of the most recent report under subsection 
     (e).
       ``(3) Paragraph (1) shall not apply in the case of a family 
     housing unit used, or intended for use, as quarters for a 
     general officer or flag officer if the unit was identified in 
     the most recent report submitted under subsection (e) and the 
     cost of the maintenance or repair project was included in the 
     total of anticipated operation, maintenance, and repair costs 
     for the unit specified in the report.''.
       (c) Report on Need for General and Flag Officers Quarters 
     in National Capital Region.--Not later than March 30, 2005, 
     the Secretary of Defense shall submit to the congressional 
     defense committees a report containing an analysis of 
     anticipated needs in the National Capital Region for family 
     housing units for general officers and flag officers. In 
     conducting the analysis, the Secretary shall consider the 
     extent of available housing in the National Capital Region 
     and the necessity of providing housing for general officers 
     and flag officers in secure locations.
       (d) Report on Current World-Wide Inventory of General and 
     Flag Officers Quarters.--Not later than March 30, 2005, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a report--
       (1) containing a worldwide inventory of family housing 
     units used, or intended for use, for general officers and 
     flag officers; and
       (2) identifying annual expenditures for fiscal years 2002, 
     2003, and 2004 for operation and maintenance, utilities, 
     leases, and repairs of each unit.
       (e) Definitions.--In this section:
       (1) The terms ``general officer'' and ``flag officer'' have 
     the meanings given such terms in section 101(b) of title 10, 
     United States Code.
       (2) The term ``National Capital Region'' has the meaning 
     given such term in section 2674(f) of such title.

[[Page H9276]]

     SEC. 2803. CONGRESSIONAL NOTIFICATION OF DEVIATIONS FROM 
                   AUTHORIZED COST VARIATIONS FOR MILITARY 
                   CONSTRUCTION PROJECTS AND MILITARY FAMILY 
                   HOUSING PROJECTS.

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

     SEC. 2804. ASSESSMENT OF VULNERABILITY OF MILITARY 
                   INSTALLATIONS TO TERRORIST ATTACK AND ANNUAL 
                   REPORT ON MILITARY CONSTRUCTION REQUIREMENTS 
                   RELATED TO ANTITERRORISM AND FORCE PROTECTION.

       (a) Annual Assessment and Report.--(1) Chapter 169 of title 
     10, United States Code, is amended by inserting after section 
     2858 the following new section:

     ``Sec. 2859. Construction requirements related to 
       antiterrorism and force protection

       ``(a) Antiterrorism and Force Protection Guidance and 
     Criteria.--The Secretary of Defense shall develop common 
     guidance and criteria to be used by each Secretary 
     concerned--
       ``(1) to assess the vulnerability of military installations 
     located inside and outside of the United States to terrorist 
     attack;
       ``(2) to develop construction standards designed to reduce 
     the vulnerability of structures to terrorist attack and 
     improve the security of the occupants of such structures;
       ``(3) to prepare and carry out military construction 
     projects, such as gate and fenceline construction, to improve 
     the physical security of military installations; and
       ``(4) to assist in prioritizing such projects within the 
     military construction budget of each of the armed forces.
       ``(b) Vulnerability Assessments.--The Secretary of Defense 
     shall require vulnerability assessments of military 
     installations to be conducted, at regular intervals, using 
     the criteria developed under subsection (a).
       ``(c) Military Construction Requirements.--As part of the 
     budget materials submitted to Congress in connection with the 
     submission of the budget for a fiscal year pursuant to 
     section 1105 of title 31, but in no case later than March 15 
     of each year, the Secretary of Defense shall submit a report, 
     in both classified and unclassified form, describing--
       ``(1) the location and results of the vulnerability 
     assessments conducted under subsection (b) during the most 
     recently completed fiscal year;
       ``(2) the military construction requirements anticipated to 
     be necessary during the period covered by the then-current 
     future-years defense plan under section 221 of this title to 
     improve the physical security of military installations; and
       ``(3) the extent to which funds to meet those requirements 
     are not requested in the Department of Defense budget for the 
     fiscal year for which the budget is submitted.''.
       (2) The table of sections at the beginning of subchapter 
     III of chapter 169 of such title is amended by inserting 
     after the item relating to section 2858 the following new 
     item:

``2859. Construction requirements related to antiterrorism and force 
              protection.''.

       (b) Special Requirement for 2006 Report.--In the case of 
     the report required to be submitted in 2006 under section 
     2859(c) of title 10, United States Code, as added by 
     subsection (a), the Secretary of Defense shall include a 
     certification by the Secretary that since September 11, 2001, 
     assessments regarding the vulnerability of military 
     installations to terrorist attack have been undertaken for 
     all major military installations. The Secretary shall 
     indicate the basis by which the Secretary differentiated 
     between major and nonmajor military installations for 
     purposes of making the certification.

     SEC. 2805. REPEAL OF LIMITATIONS ON USE OF ALTERNATIVE 
                   AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF 
                   MILITARY HOUSING.

       (a) Repeal of Budget Authority Limitation on Use of 
     Authority.--Section 2883 of title 10, United States Code, is 
     amended by striking subsection (g).
       (b) Repeal of Termination Date on Use of Authority.--(1) 
     Section 2885 of such title is repealed.
       (2) The table of sections at the beginning of subchapter IV 
     of chapter 169 of such title is amended by striking the item 
     relating to section 2885.

     SEC. 2806. ADDITIONAL REPORTING REQUIREMENTS RELATING TO 
                   ALTERNATIVE AUTHORITY FOR ACQUISITION AND 
                   IMPROVEMENT OF MILITARY HOUSING.

       (a) Project Reports.--Paragraph (2) of subsection (a) of 
     section 2884 of title 10, United States Code, is amended to 
     read as follows:
       ``(2) For each proposed contract, conveyance, or lease 
     described in paragraph (1), the report required by such 
     paragraph shall include the following:
       ``(A) A description of the contract, conveyance, or lease, 
     including a summary of the terms of the contract, conveyance, 
     or lease.
       ``(B) A description of the authorities to be utilized in 
     entering into the contract, conveyance, or lease and the 
     intended method of participation of the United States in the 
     contract, conveyance, or lease, including a justification of 
     the intended method of participation.
       ``(C) A statement of the scored cost of the contract, 
     conveyance, or lease, as determined by the Office of 
     Management and Budget.
       ``(D) A statement of the United States funds required for 
     the contract, conveyance, or lease and a description of the 
     source of such funds.
       ``(E) An economic assessment of the life cycle costs of the 
     contract, conveyance, or lease, including an estimate of the 
     amount of United States funds that would be paid over the 
     life of the contract, conveyance, or lease from amounts 
     derived from payments of government allowances, including the 
     basic allowance for housing under section 403 of title 37, if 
     the housing affected by the project were fully occupied by 
     military personnel over the life of the contract, conveyance, 
     or lease.''.
       (b) Annual Reports.--Subsection (b) of such section is 
     amended--
       (1) by redesignating paragraph (5) as paragraph (6); and
       (2) by inserting after paragraph (4) the following new 
     paragraph (5):
       ``(5) A report setting forth, by armed force--
       ``(A) an estimate of the amounts of basic allowance for 
     housing under section 403 of title 37 that will be paid, 
     during the current fiscal year and the fiscal year for which 
     the budget is submitted, to members of the armed forces 
     living in housing provided under the authorities in this 
     subchapter; and
       ``(B) the number of units of military family housing and 
     military unaccompanied housing upon which the estimate under 
     subparagraph (A) for the current fiscal year and the next 
     fiscal year is based.''.

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

       Section 2305a of title 10, United States Code, is amended 
     by adding at the end the following new subsection:
       ``(f) Special Authority for Military Construction 
     Projects.--(1) The Secretary of a military department may use 
     funds available to the Secretary under section 2807(a) or 
     18233(e) of this title to accelerate the design effort in 
     connection with a military construction project for which the 
     two-phase selection procedures described in subsection (c) 
     are used to select the contractor for both the design and 
     construction portion of the project before the project is 
     specifically authorized by law and before funds are 
     appropriated for the construction portion of the project. 
     Notwithstanding the limitations contained in such sections, 
     use of such funds for the design portion of a military 
     construction project may continue despite the subsequent 
     authorization of the project. The advance notice requirement 
     of section 2807(b) of this title shall continue to apply 
     whenever the estimated cost of the design portion of the 
     project exceeds the amount specified in such section.
       ``(2) Any military construction contract that provides for 
     an accelerated design effort, as authorized by paragraph (1), 
     shall include as a condition of the contract that the 
     liability of the United States in a termination for 
     convenience may not exceed the actual costs incurred as of 
     the termination date.
       ``(3) For each fiscal year during which the authority 
     provided by this subsection is in effect, the Secretary of a 
     military department may select not more than two military 
     construction projects to include the accelerated design 
     effort authorized by paragraph (1) for each armed force under 
     the jurisdiction of the Secretary. To be eligible for 
     selection under this subsection, a request for the 
     authorization of the project, and for the authorization of 
     appropriations for the project, must have been included in 
     the annual budget of the President for a fiscal year 
     submitted to Congress under section 1105(a) of title 31.
       ``(4) Not later than March 1, 2007, the Secretary of 
     Defense shall submit to the congressional defense committees 
     a report evaluating the usefulness of the authority provided 
     by this subsection in expediting the design and construction 
     of military construction projects. The authority provided by 
     this subsection expires September 30, 2007, except that, if 
     the report required by this paragraph is not submitted by 
     March 1, 2007, the authority shall expire on that date.''.

     SEC. 2808. NOTIFICATION THRESHOLDS AND REQUIREMENTS FOR 
                   EXPENDITURES OR CONTRIBUTIONS FOR ACQUISITION 
                   OF FACILITIES FOR RESERVE COMPONENTS.

       (a) Authority To Carry Out Small Projects.--Section 18233a 
     of title 10, United States Code, is amended to read as 
     follows:

     ``Sec. 18233a. Notice and wait requirements for certain 
       projects

       ``(a) Congressional Notification.--Except as provided in 
     subsection (b), an expenditure or contribution in an amount 
     in excess of $750,000 may not be made under section 18233 of 
     this title for any facility until--
       ``(1) the Secretary of Defense has notified the 
     congressional defense committees of the location, nature, and 
     estimated cost of the facility; and
       ``(2) a period of 21 days has elapsed after the 
     notification has been received by those committees or, if 
     over sooner, a period of 14 days has elapsed after the date 
     on which a copy of the notification is provided in an 
     electronic medium pursuant to section 480 of this title.
       ``(b) Certain Expenditures or Contributions Exempted.--
     Subsection (a) does not apply to expenditures or 
     contributions for the following:
       ``(1) Facilities acquired by lease.
       ``(2) A project for a facility that has been authorized by 
     Congress, if the location and purpose of the facility are the 
     same as when authorized and if, based upon bids received--
       ``(A) the scope of work of the project, as approved by 
     Congress, is not proposed to be reduced by more than 25 
     percent; and
       ``(B) the current working estimate of the cost of the 
     project does not exceed the amount approved for the project 
     by more than the lesser of the following:

[[Page H9277]]

       ``(i) 25 percent.
       ``(ii) 200 percent of the amount specified by section 
     2805(a)(2) of this title as the maximum amount for a minor 
     military construction project.
       ``(3) A repair project (as that term is defined in section 
     2811(e) of this title) that costs less than $7,500,000.''.
       (b) Recodification of Limited Authority to Use Operation 
     and Maintenance Funds.--Chapter 1803 of such title is amended 
     by inserting after section 18233a the following new section:

     ``Sec. 18233b. Authority to carry out small projects with 
       operation and maintenance funds

       ``Under such regulations as the Secretary of Defense may 
     prescribe, the Secretary may expend, from appropriations 
     available for operation and maintenance, amounts necessary to 
     carry out any project authorized under section 18233(a) of 
     this title that costs not more than--
       ``(1) the amount specified in section 2805(c)(1)(A) of this 
     title, in the case of a project intended solely to correct a 
     deficiency that is life-threatening, health-threatening, or 
     safety-threatening; or
       ``(2) the amount specified in section 2805(c)(1)(B) of this 
     title, in the case of any other project.''.
       (c) Clerical Amendment.--The table of sections at the 
     beginning of chapter 1803 of such title is amended by 
     striking the item relating to section 18233a and inserting 
     the following new items:

``18233a. Notice and wait requirements for certain projects.
``18233b. Authority to carry out small projects with operation and 
              maintenance funds.''.

     SEC. 2809. AUTHORITY TO EXCHANGE RESERVE COMPONENT FACILITIES 
                   TO ACQUIRE REPLACEMENT FACILITIES.

       (a) Exchange Authority.--(1) Chapter 1803 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 18240. Acquisition of facilities by exchange

       ``(a) Exchange Authority.--In addition to the acquisition 
     authority provided by section 18233 of this title, the 
     Secretary of Defense may authorize the Secretary of a 
     military department to acquire a facility, or addition to an 
     existing facility, needed to satisfy military requirements 
     for a reserve component by carrying out an exchange of an 
     existing facility under the control of that Secretary through 
     an agreement with a State, local government, local authority, 
     or private entity.
       ``(b) Facilities Eligible for Exchange.--Only a facility of 
     a reserve component that is not excess property (as defined 
     in section 102(3) of title 40) may be exchanged using the 
     authority provided by this section.
       ``(c) Equal Value Exchange.--In any exchange carried out 
     using the authority provided by this section, the value of 
     the replacement facility, or addition to an existing 
     facility, acquired by the United States shall be at least 
     equal to the fair market value of the facility conveyed by 
     the United States under the agreement. If the values are 
     unequal, the values may not be equalized by any payment of 
     cash consideration by either party to the agreement.
       ``(d) Requirements for Replacement Facilities.--The 
     Secretary of a military department may not accept a 
     replacement facility, or addition to an existing facility, to 
     be acquired by the United States in an exchange carried out 
     using the authority provided by this section until that 
     Secretary determines that the facility or addition--
       ``(1) is complete and usable, fully functional, and ready 
     for occupancy;
       ``(2) satisfies all operational requirements; and
       ``(3) meets all applicable Federal, State, and local 
     requirements relating to health, safety, fire, and the 
     environment.
       ``(e) Consultation Requirements.--The Secretary of a 
     military department authorized to enter into an agreement 
     under subsection (a) to convey an existing facility under the 
     control of that Secretary by exchange shall consult with 
     representatives of other reserve components to evaluate--
       ``(1) the value of using the facility to meet the military 
     requirements of another reserve component, instead of 
     conveying the facility under this section; and
       ``(2) the feasibility of using the conveyance of the 
     facility to acquire a facility, or an addition to an existing 
     facility, that would be jointly used by more than one reserve 
     component or unit.
       ``(f) Advance Notice of Proposed Exchange.--(1) When a 
     decision is made to enter into an agreement under subsection 
     (a) to exchange a facility using the authority provided by 
     this section, the Secretary of the military department 
     authorized to enter into the agreement shall submit to the 
     congressional defense committees a report on the proposed 
     agreement. The report shall include the following:
       ``(A) A description of the agreement, including the terms 
     and conditions of the agreement, the parties to be involved 
     in the agreement, the origin of the proposal that lead to the 
     agreement, the intended use of the facility to be conveyed by 
     the United States under the agreement, and any costs to be 
     incurred by the United States to make the exchange under the 
     agreement.
       ``(B) A description of the facility to be conveyed by the 
     United States under the agreement, including the current 
     condition and fair market value of the facility, and a 
     description of the method by which the fair market value of 
     the facility was determined.
       ``(C) Information on the facility, or addition to an 
     existing facility, to be acquired by the United States under 
     the agreement and the intended use of the facility or 
     addition, which shall meet requirements for information 
     provided to Congress for military construction projects to 
     obtain a similar facility or addition to an existing 
     facility.
       ``(D) A certification that the Secretary complied with the 
     consultation requirements under subsection (e).
       ``(E) A certification that the conveyance of the facility 
     under the agreement is in the best interests of the United 
     States and that the Secretary used competitive procedures to 
     the maximum extent practicable to protect the interests of 
     the United States.
       ``(2) The agreement described in a report prepared under 
     paragraph (1) may be entered into, and the exchange covered 
     by the agreement made, only after the end of the 30-day 
     period beginning on the date the report is received by the 
     congressional defense committees or, if earlier, the end of 
     the 21-day period beginning on the date on which a copy of 
     the report is provided in an electronic medium pursuant to 
     section 480 of this title.
       ``(3) Section 2662 of this title shall not apply to an 
     exchange carried out using the authority provided by this 
     section.
       ``(g) Relation to Other Military Construction 
     Requirements.--The acquisition of a facility, or an addition 
     to an existing facility, using the authority provided by this 
     section shall not be treated as a military construction 
     project for which an authorization is required by section 
     2802 of this title.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``18240. Acquisition of facilities by exchange.''.
       (b) Conforming Amendment.--Section 18233(f)(2) of such 
     title is amended by striking ``gift, exchange of Government-
     owned land, or otherwise'' and inserting ``or gift''.
       (c) Temporary Authority to Include Cash Equalization 
     Payments in Exchange.--(1) Notwithstanding subsection (c) of 
     section 18240 of title 10, United States Code, as added by 
     subsection (a), the Secretary of Defense may authorize the 
     Secretary of a military department, as part of an exchange 
     agreement under such section, to make or accept a cash 
     equalization payment if the value of the facility, or 
     addition to an existing facility, to be acquired by the 
     United States under the agreement is not equal to the fair 
     market value of the facility to be conveyed by the United 
     States under the agreement. All other requirements of such 
     section shall continue to apply to the exchange.
       (2) Cash equalization payments received by the Secretary of 
     a military department under this subsection shall be 
     deposited in a separate account in the Treasury. Amounts in 
     the account shall be available to the Secretary of Defense, 
     without further appropriation and until expended, for 
     transfer to the Secretary of a military department--
       (A) to make any cash equalization payments required to be 
     made by the United States in connection with an exchange 
     agreement covered by this subsection, and the account shall 
     be the only source for such payments; and
       (B) to cover costs associated with the maintenance, 
     protection, alteration, repair, improvement, or restoration 
     (including environmental restoration) of facilities, and 
     additions to existing facilities, acquired using an exchange 
     agreement covered by this subsection.
       (3) Not more than 15 exchange agreements under section 
     18240 of title 10, United States Code, may include the 
     exception for cash equalization payments authorized by this 
     subsection. Of those 15 exchange agreements, not more than 
     eight may be for the same reserve component.
       (4) In this section, the term ``facility'' has the meaning 
     given that term in section 18232(2) of title 10, United 
     States Code.
       (5) No cash equalization payment may be made or accepted 
     under the authority of this subsection after September 30, 
     2007. Except as otherwise specifically authorized by law, the 
     authority provided by this subsection to make or accept cash 
     equalization payments in connection with the acquisition or 
     disposal of facilities of the reserve components is the sole 
     authority available in law to the Secretary of Defense or the 
     Secretary of a military department for that purpose.
       (6) Not later than March 1, 2008, the Secretary of Defense 
     shall submit to the congressional defense committees a report 
     on the exercise of the authority provided by this subsection. 
     The report shall include the following:
       (A) A description of the exchange agreements under section 
     18240 of title 10, United States Code, that included the 
     authority to make or accept cash equalization payments.
       (B) A description of the analysis and criteria used to 
     select such agreements for inclusion of the authority to make 
     or accept cash equalization payments.
       (C) An assessment of the utility to the Department of 
     Defense of the authority, including recommendations for 
     modifications of such authority in order to enhance the 
     utility of such authority for the Department.
       (D) An assessment of interest in the future use of the 
     authority, in the event the authority is extended.
       (E) An assessment of the advisability of making the 
     authority, including any modifications of the authority 
     recommended under subparagraph (C), permanent.

     SEC. 2810. ONE-YEAR EXTENSION OF TEMPORARY, LIMITED AUTHORITY 
                   TO USE OPERATION AND MAINTENANCE FUNDS FOR 
                   CONSTRUCTION PROJECTS OUTSIDE THE UNITED 
                   STATES.

       Section 2808 of the Military Construction Authorization Act 
     for Fiscal Year 2004 (division B of Public Law 108-136; 117 
     Stat. 1723) is amended--
       (1) in subsection (a), by inserting ``and, subject to 
     subsection (d)(2), fiscal year 2005'' after ``During fiscal 
     year 2004'';

[[Page H9278]]

       (2) in subsection (c)(1), by striking ``in fiscal year 
     2004'' and inserting ``in a fiscal year''; and
       (3) in subsection (d)--
       (A) by inserting ``(1)'' before ``Not later than'';
       (B) by striking ``fiscal year 2004,'' and inserting 
     ``fiscal years 2004 and 2005,''; and
       (C) by adding at the end the following new paragraph:
       ``(2) The ability to use this section as authority during 
     fiscal year 2005 to obligate appropriated funds available for 
     operation and maintenance to carry out construction projects 
     outside the United States shall commence only after the date 
     on which the Secretary of Defense submits to the 
     congressional committees specified in subsection (f) all of 
     the quarterly reports that were required under paragraph (1) 
     for fiscal year 2004.''.

     SEC. 2811. CONSIDERATION OF COMBINATION OF MILITARY MEDICAL 
                   TREATMENT FACILITIES AND HEALTH CARE FACILITIES 
                   OF DEPARTMENT OF VETERANS AFFAIRS.

       (a) Department of Defense Consideration of Joint 
     Construction.--When considering any military construction 
     project for the construction of a new military medical 
     treatment facility in the United States or a territory or 
     possession of the United States, the Secretary of Defense 
     shall consult with the Secretary of Veterans Affairs 
     regarding the feasibility of carrying out a joint project to 
     construct a medical facility that--
       (1) could serve as a facility for health-resources sharing 
     between the Department of Defense and the Department of 
     Veterans Affairs; and
       (2) would be no more costly to each Department to construct 
     and operate than separate facilities for each Department.
       (b) Department of Veterans Affairs Consideration of Joint 
     Construction.--When considering the construction of a new or 
     replacement medical facility for the Department of Veterans 
     Affairs, the Secretary of Veterans Affairs shall consult with 
     the Secretary of Defense regarding the feasibility of 
     carrying out a joint project to construct a medical facility 
     that--
       (1) could serve as a facility for health-resources sharing 
     between the Department of Veterans Affairs and the Department 
     of Defense; and
       (2) would be no more costly to each Department to construct 
     and operate than separate facilities for each Department.

        Subtitle B--Real Property and Facilities Administration

     SEC. 2821. REORGANIZATION OF EXISTING ADMINISTRATIVE 
                   PROVISIONS RELATING TO REAL PROPERTY 
                   TRANSACTIONS.

       (a) Limitation on Commissions.--(1) Section 2661 of title 
     10, United States Code, is amended by adding at the end the 
     following new subsection:
       ``(c) Commissions on Land Purchase Contracts.--The maximum 
     amount payable as a commission on a contract for the purchase 
     of land from funds appropriated for the Department of Defense 
     is two percent of the purchase price.''.
       (2) Section 2666 of such title is repealed.
       (b) Repeal of Obsolete Authority to Acquire Land for Timber 
     Production.--Section 2664 of such title is repealed.
       (c) Consolidation of Certain Provisions on Use of 
     Facilities.--(1) Section 2670 of such title is amended by 
     adding at the end the following new subsection:
       ``(c) Use of Space and Equipment by Veterans Service 
     Organizations.--(1) Upon certification to the Secretary 
     concerned by the Secretary of Veterans Affairs, the Secretary 
     concerned shall allow accredited, paid, full-time 
     representatives of the organizations named in section 5902 of 
     title 38, or of other organizations recognized by the 
     Secretary of Veterans Affairs, to function on military 
     installations under the jurisdiction of the Secretary 
     concerned that are on land and from which persons are 
     discharged or released from active duty.
       ``(2) The commanding officer of a military installation 
     allowing representatives to function on the installation 
     under paragraph (1) shall allow the representatives to use 
     available space and equipment at the installation.
       ``(3) This subsection does not authorize the violation of 
     measures of military security.''.
       (2) Section 2679 of such title is repealed.
       (3) The regulations prescribed to carry out section 2679 of 
     title 10, United States Code, as in effect on the day before 
     the date of the enactment of this Act, shall remain in effect 
     with regard to section 2670(c) of such title, as added by 
     paragraph (1), until changed by joint action of the Secretary 
     concerned (as defined in section 101(9) of such title) and 
     the Secretary of Veterans Affairs.
       (d) Availability of Funds for Acquisition of Certain 
     Interests in Real Property.--(1) Section 2672 of such title 
     is amended by adding at the end the following new subsection:
       ``(d) Availability of Funds.--Appropriations available to 
     the Department of Defense for operation and maintenance or 
     construction may be used for the acquisition of land or 
     interests in land under this section.''.
       (2) Section 2673 of such title is repealed.
       (3) Section 2675 of such title is amended--
       (A) by inserting ``(a) Lease Authority; Duration.--'' 
     before ``The Secretary''; and
       (B) by adding at the end the following new subsection:
       ``(b) Availability of Funds.--Appropriations available to 
     the Department of Defense for operation and maintenance or 
     construction may be used for the acquisition of interests in 
     land under this section.''.
       (e) Stylistic and Clerical Amendments.--(1) Section 2661 of 
     such title is further amended--
       (A) in subsection (a), by inserting ``Availability of 
     Operation and Maintenance Funds.--'' after ``(a)'' ; and
       (B) in subsection (b), by inserting ``Leasing and Road 
     Maintenance Authority.--'' after ``(b)''.
       (2) The heading of section 2670 of such title is amended to 
     read as follows:

     ``Sec. 2670. Use of facilities by private organizations; use 
       as polling places''.

       (3) The table of sections at the beginning of chapter 159 
     of such title is amended--
       (A) by striking the items relating to sections 2664, 2666, 
     2673, and 2679; and
       (B) by striking the item relating to section 2670 and 
     inserting the following new item:

``2670. Use of facilities by private organizations; use as polling 
              places.''.

     SEC. 2822. DEVELOPMENT OF HERITAGE CENTER FOR THE NATIONAL 
                   MUSEUM OF THE UNITED STATES ARMY.

       (a) Authority to Enter into Agreement for Development of 
     Center.--Chapter 449 of title 10, United States Code, is 
     amended by inserting after section 4771 the following new 
     section:

     ``Sec. 4772. Heritage Center for the National Museum of the 
       United States Army: development and operation

       ``(a) Agreement for Development of Center.--The Secretary 
     of the Army may enter into an agreement with the Army 
     Historical Foundation, a nonprofit organization, for the 
     design, construction, and operation of a facility or group of 
     facilities at Fort Belvoir, Virginia, for the National Museum 
     of the United States Army. The facility or group of 
     facilities constructed pursuant to the agreement shall be 
     known as the Heritage Center for the National Museum of the 
     United States Army (in this section referred to as the 
     `Center').
       ``(b) Purpose of Center.--The Center shall be used for the 
     identification, curation, storage, and public viewing of 
     artifacts and artwork of significance to the United States 
     Army, as agreed to by the Secretary of the Army. The Center 
     may also be used to support such education, training, 
     research, and associated purposes as the Secretary considers 
     appropriate.
       ``(c) Design and Construction.--(1) The design of the 
     Center shall be subject to the approval of the Secretary of 
     the Army.
       ``(2) For each phase of the development of the Center, the 
     Secretary may--
       ``(A) accept funds from the Army Historical Foundation for 
     the design and construction of such phase of the Center; or
       ``(B) permit the Army Historical Foundation to contract for 
     the design and construction of such phase of the Center.
       ``(d) Acceptance by Secretary.--Upon the satisfactory 
     completion, as determined by the Secretary of the Army, of 
     any phase of the Center, and upon the satisfaction of any 
     financial obligations incident to such phase of the Center by 
     the Army Historical Foundation, the Secretary shall accept 
     such phase of the Center from the Army Historical Foundation, 
     and all right, title, and interest in and to such phase of 
     the Center shall vest in the United States. Upon becoming the 
     property of the United States, the Secretary shall assume 
     administrative jurisdiction over the Center.
       ``(e) Use of Certain Gifts.--(1) Under regulations 
     prescribed by the Secretary of the Army, the Commander of the 
     United States Army Center of Military History may, without 
     regard to section 2601 of this title, accept, hold, 
     administer, invest, and spend any gift, devise, or bequest of 
     personal property of a value of $250,000 or less made to the 
     United States if such gift, devise, or bequest is for the 
     benefit of the National Museum of the United States Army or 
     the Center.
       ``(2) The Secretary may pay or authorize the payment of any 
     reasonable and necessary expense in connection with the 
     conveyance or transfer of a gift, devise, or bequest under 
     this subsection.
       ``(f) Lease of Facility.--(1) Under such terms and 
     conditions as the Secretary of the Army considers 
     appropriate, the Secretary may lease portions of the Center 
     to the Army Historical Foundation to be used by the 
     Foundation, consistent with the purpose of the Center, for--
       ``(A) generating revenue for activities of the Center 
     through rental use by the public, commercial and nonprofit 
     entities, State and local governments, and other Federal 
     agencies; and
       ``(B) such administrative purposes as may be necessary for 
     the support of the Center.
       ``(2) The annual amount of consideration paid to the 
     Secretary by the Army Historical Foundation for a lease under 
     paragraph (1) may not exceed an amount equal to the actual 
     cost, as determined by the Secretary, of the annual 
     operations and maintenance of the Center.
       ``(3) Notwithstanding any other provision of law, the 
     Secretary shall use amounts paid under paragraph (2) to cover 
     the costs of operation of the Center.
       ``(g) Additional Terms and Conditions.--The Secretary of 
     the Army may require such additional terms and conditions in 
     connection with the agreement authorized by subsection (a) as 
     the Secretary considers appropriate to protect the interests 
     of the United States.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 4771 the following new item:

``4772. Heritage Center for the National Museum of the United States 
              Army: development and operation.''.

     SEC. 2823. ELIMINATION OF REVERSIONARY INTERESTS CLOUDING 
                   UNITED STATES TITLE TO PROPERTY USED AS NAVY 
                   HOMEPORTS.

       (a) Authority to Acquire Complete Title.--If real property 
     owned by the United States and used as a Navy homeport is 
     subject

[[Page H9279]]

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

                Subtitle C--Base Closure and Realignment

     SEC. 2831. ESTABLISHMENT OF SPECIFIC DEADLINE FOR SUBMISSION 
                   OF REVISIONS TO FORCE-STRUCTURE PLAN AND 
                   INFRASTRUCTURE INVENTORY.

       Section 2912(a)(4) of the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2687 note) is amended by striking ``as 
     part of the budget justification documents submitted to 
     Congress for fiscal year 2006.'' and inserting the following: 
     ``not later than March 15, 2005. For purposes of selecting 
     military installations for closure or realignment under this 
     part in 2005, no revision of the force-structure plan or 
     infrastructure inventory is authorized after that date.''.

     SEC. 2832. SPECIFICATION OF FINAL SELECTION CRITERIA FOR 2005 
                   BASE CLOSURE ROUND.

       Section 2913 of the Defense Base Closure and Realignment 
     Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
     U.S.C. 2687 note) is amended to read as follows:

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

       ``(a) Final Selection Criteria.--The final criteria to be 
     used by the Secretary in making recommendations for the 
     closure or realignment of military installations inside the 
     United States under this part in 2005 shall be the military 
     value and other criteria specified in subsections (b) and 
     (c).
       ``(b) Military Value Criteria.--The military value criteria 
     are as follows:
       ``(1) The current and future mission capabilities and the 
     impact on operational readiness of the total force of the 
     Department of Defense, including the impact on joint 
     warfighting, training, and readiness.
       ``(2) The availability and condition of land, facilities, 
     and associated airspace (including training areas suitable 
     for maneuver by ground, naval, or air forces throughout a 
     diversity of climate and terrain areas and staging areas for 
     the use of the Armed Forces in homeland defense missions) at 
     both existing and potential receiving locations.
       ``(3) The ability to accommodate contingency, mobilization, 
     surge, and future total force requirements at both existing 
     and potential receiving locations to support operations and 
     training.
       ``(4) The cost of operations and the manpower implications.
       ``(c) Other Criteria.--The other criteria that the 
     Secretary shall use in making recommendations for the closure 
     or realignment of military installations inside the United 
     States under this part in 2005 are as follows:
       ``(1) The extent and timing of potential costs and savings, 
     including the number of years, beginning with the date of 
     completion of the closure or realignment, for the savings to 
     exceed the costs.
       ``(2) The economic impact on existing communities in the 
     vicinity of military installations.
       ``(3) The ability of the infrastructure of both the 
     existing and potential receiving communities to support 
     forces, missions, and personnel.
       ``(4) The environmental impact, including the impact of 
     costs related to potential environmental restoration, waste 
     management, and environmental compliance activities.
       ``(d) Priority Given to Military Value.--The Secretary 
     shall give priority consideration to the military value 
     criteria specified in subsection (b) in the making of 
     recommendations for the closure or realignment of military 
     installations.
       ``(e) Effect on Department and Other Agency Costs.--The 
     selection criteria relating to the cost savings or return on 
     investment from the proposed closure or realignment of 
     military installations shall take into account the effect of 
     the proposed closure or realignment on the costs of any other 
     activity of the Department of Defense or any other Federal 
     agency that may be required to assume responsibility for 
     activities at the military installations.
       ``(f) Relation to Other Materials.--The final selection 
     criteria specified in this section shall be the only criteria 
     to be used, along with the force-structure plan and 
     infrastructure inventory referred to in section 2912, in 
     making recommendations for the closure or realignment of 
     military installations inside the United States under this 
     part in 2005.
       ``(g) Relation to Criteria for Earlier Rounds.--Section 
     2903(b), and the selection criteria prepared under such 
     section, shall not apply with respect to the process of 
     making recommendations for the closure or realignment of 
     military installations in 2005.''.
       (c) Conforming Amendments.--The Defense Base Closure and 
     Realignment Act of 1990 is amended--
       (1) in section 2912(c)(1)(A), by striking ``criteria 
     prepared under section 2913'' and inserting ``criteria 
     specified in section 2913''; and
       (2) in section 2914(a), by striking ``criteria prepared by 
     the Secretary under section 2913'' and inserting ``criteria 
     specified in section 2913''.

     SEC. 2833. REPEAL OF AUTHORITY OF SECRETARY OF DEFENSE TO 
                   RECOMMEND THAT INSTALLATIONS BE PLACED IN 
                   INACTIVE STATUS.

       Section 2914 of the Defense Base Closure and Realignment 
     Act of 1990 (part A of title XXIX of Public Law 101-510; 10 
     U.S.C. 2687 note) is amended by striking subsection (c).

     SEC. 2834. VOTING REQUIREMENTS FOR DEFENSE BASE CLOSURE AND 
                   REALIGNMENT COMMISSION TO ADD TO OR OTHERWISE 
                   EXPAND CLOSURE AND REALIGNMENT RECOMMENDATIONS 
                   MADE BY SECRETARY OF DEFENSE.

       Subsection (d) of section 2914 of the Defense Base Closure 
     and Realignment Act of 1990 (part A of title XXIX of Public 
     Law 101-510; 10 U.S.C. 2687 note), as added by section 3003 
     of the Military Construction Authorization Act for Fiscal 
     Year 2002 (division B of Public Law 107-107; 115 Stat, 1346) 
     and amended by section 2854 of the Military Construction 
     Authorization Act for Fiscal Year 2003 (division B of Public 
     Law 107-314; 116 Stat. 2728), is amended--
       (1) in paragraph (3), by striking ``to add'' and inserting 
     ``to consider additions''; and
       (2) by striking paragraph (5) and inserting the following 
     new paragraph:
       ``(5) Requirements to expand closure or realignment 
     recommendations.--In the report required under section 
     2903(d)(2)(A) that is to be transmitted under paragraph (1), 
     the Commission may not make a change in the recommendations 
     of the Secretary that would close a military installation not 
     recommended for closure by the Secretary, would realign a 
     military installation not recommended for closure or 
     realignment by the Secretary, or would expand the extent of 
     the realignment of a military installation recommended for 
     realignment by the Secretary unless--
       ``(A) at least two members of the Commission visit the 
     military installation before the date of the transmittal of 
     the report; and
       ``(B) the decision of the Commission to make the change to 
     recommend the closure of the military installation, the 
     realignment of the installation, or the expanded realignment 
     of the installation is supported by at least seven members of 
     the Commission.''.

                      Subtitle D--Land Conveyances

                        PART I--ARMY CONVEYANCES

     SEC. 2841. LAND CONVEYANCE, SUNFLOWER ARMY AMMUNITION PLANT, 
                   KANSAS.

       (a) Conveyance Authorized.--The Secretary of the Army, in 
     consultation with the Administrator of General Services, may 
     convey to an entity selected by the Board of Commissioners of 
     Johnson County, Kansas (in this section referred to as the 
     ``entity'' and the ``Board'', respectively), all right, 
     title, and interest of the United States in and to a parcel 
     of real property, including any improvements thereon, 
     consisting of approximately 9,065 acres and containing the 
     Sunflower Army Ammunition Plant. The purpose of the 
     conveyance is to facilitate the re-use of the property for 
     economic development and revitalization.
       (b) Consideration.--(1) As consideration for the conveyance 
     under subsection (a), the entity shall provide the United 
     States, whether by cash payment, in-kind consideration, or a 
     combination thereof, an amount that is not less than the fair 
     market value of the conveyed property, as determined by an 
     appraisal of the property acceptable to the Administrator and 
     the Secretary. As a form of in-kind consideration for the 
     conveyance of the property, the Secretary may authorize the 
     entity to carry out environmental remediation activities for 
     the conveyed property.
       (2) Cash consideration received under paragraph (1) shall 
     be deposited in the special account in the Treasury 
     established under subsection (b) of section 572 of title 40, 
     United States Code, and shall be available in accordance with 
     paragraph (5)(B)(i) of such subsection.
       (c) Construction With Previous Land Conveyance Authority.--
     The conveyance authority provided by subsection (a) is in 
     addition to the conveyance authority provided by section 2823 
     of the Military Construction Authorization Act for Fiscal 
     Year 2003 (division B of Public Law 107-314; 116 Stat. 2712) 
     to convey a portion of the Sunflower Army Ammunition Plant to 
     the Johnson County Park and Recreation District.
       (d) Agreements Concerning Environmental Remediation and 
     Explosives Cleanup.--(1) The Secretary, in consultation with 
     the Administrator, may enter into a multi-year cooperative 
     agreement or contract with the entity for the environmental 
     remediation and explosives cleanup of the conveyed property, 
     and may utilize amounts authorized to be appropriated to the 
     Secretary for purposes of environmental remediation and 
     explosives cleanup under the agreement or contract.
       (2) The cooperative agreement or contract may provide for 
     advance payments on an annual basis or for payments on a 
     performance basis. Payments may be made over a period of time 
     agreed to by the Secretary and the entity or for such time as 
     may be necessary to perform the environmental remediation and 
     explosives cleanup of the property, including any long-term 
     operation and maintenance requirements.
       (e) Payment of Costs of Conveyance.--(1) The Secretary may 
     require the entity to cover costs to be incurred by the 
     Secretary, or to reimburse the Secretary for costs incurred 
     by the

[[Page H9280]]

     Secretary, to carry out the conveyance under subsection (a), 
     including survey costs, costs related to environmental 
     documentation, and other administrative costs related to the 
     conveyance. If amounts are collected from the entity in 
     advance of the Secretary incurring the actual costs, and the 
     amount collected exceeds the costs actually incurred by the 
     Secretary to carry out the conveyance, the Secretary shall 
     refund the excess amount to the entity.
       (2) Amounts received as reimbursement under paragraph (1) 
     shall be credited to the fund or account that was used to 
     cover the costs incurred by the Secretary in carrying out the 
     conveyance. Amounts so credited shall be merged with amounts 
     in such fund or account, and shall be available for the same 
     purposes, and subject to the same conditions and limitations, 
     as amounts in such fund or account.
       (f) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary and the Administrator.
       (g) Additional Terms and Conditions.--The Secretary and the 
     Administrator may require such additional terms and 
     conditions in connection with the conveyance of real property 
     under subsection (a), and the environmental remediation and 
     explosives cleanup under subsection (d), as the Secretary and 
     the Administrator jointly consider appropriate to protect the 
     interests of the United States.

     SEC. 2842. LAND EXCHANGE, FORT CAMPBELL, KENTUCKY AND 
                   TENNESSEE.

       (a) Land Exchange Authorized.--In exchange for the real 
     property described in subsection (b), the Secretary of the 
     Army may convey to Bi-County Solid Waste Management System, a 
     local government agency (in this section referred to as ``Bi-
     County''), all right, title, and interest of the United 
     States in and to a parcel of real property, including any 
     improvements thereon, consisting of approximately 358 acres 
     located at Fort Campbell in Montgomery County, Tennessee, for 
     the purpose of permitting Bi-County to expand a landfill 
     facility.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), Bi-County shall convey to the United 
     States all right, title, and interest of Bi-County in and to 
     a parcel of real property consisting of approximately 670 
     acres located adjacent to Fort Campbell in Trigg County, 
     Kentucky, and Stewart County, Tennessee. The Secretary shall 
     have jurisdiction over the real property received under this 
     subsection.
       (c) Condition of Conveyance.--The conveyance under 
     subsection (a) shall be subject to the condition that Bi-
     County construct a fence, acceptable to the Secretary, 
     consisting of at least six-foot high, nine-gauge chain-link 
     and three-strand barbed wire along the boundary between Fort 
     Campbell and the real property conveyed under subsection (a).
       (d) Payment of Costs of Conveyance.--(1) The Secretary may 
     require Bi-County to cover costs to be incurred by the 
     Secretary, or to reimburse the Secretary for costs incurred 
     by the Secretary, to carry out the conveyances under this 
     section, including survey costs, costs related to 
     environmental documentation, and other administrative costs 
     related to the conveyances. If amounts are collected from Bi-
     County in advance of the Secretary incurring the actual 
     costs, and the amount collected exceeds the costs actually 
     incurred by the Secretary to carry out the conveyance, the 
     Secretary shall refund the excess amount to Bi-County.
       (2) Amounts received as reimbursement under paragraph (1) 
     shall be credited to the fund or account that was used to 
     cover the costs incurred by the Secretary in carrying out the 
     conveyances. Amounts so credited shall be merged with amounts 
     in such fund or account, and shall be available for the same 
     purposes, and subject to the same conditions and limitations, 
     as amounts in such fund or account.
       (e) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under this section 
     shall be determined by surveys satisfactory to the Secretary 
     and Bi-County.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2843. LAND CONVEYANCE, LOUISIANA ARMY AMMUNITION PLANT, 
                   DOYLINE, LOUISIANA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the State of Louisiana (in 
     this section referred to as the ``State'') all right, title, 
     and interest of the United States in and to a parcel of real 
     property, including any improvements thereon, consisting of 
     approximately 14,949 acres located at the Louisiana Army 
     Ammunition Plant, Doyline, Louisiana.
       (b) Conditions of Conveyance.--The conveyance under 
     subsection (a) shall be subject to the following conditions:
       (1) That at least 13,500 acres of the real property 
     conveyed under such subsection is maintained by the State for 
     the purpose of military training, unless the Secretary 
     determines that fewer acres are required for such purpose.
       (2) That the State ensure that any other uses made of the 
     conveyed property do not adversely impact such military 
     training.
       (3) That the State accommodate the use of the conveyed 
     property, at no cost or fee, for meeting the present and 
     future training needs of units of the Armed Forces, including 
     units of the Louisiana National Guard and the other active 
     and reserve components of the Armed Forces.
       (4) That the State assume the rights and responsibilities 
     of the Department of the Army under the armaments retooling 
     manufacturing support agreement between the Department of the 
     Army and the facility use contractor with respect to the 
     Louisiana Army Ammunition Plant, in accordance with the terms 
     of such agreement in effect at the time of the conveyance.
       (c) Payment of Costs of Conveyance.--(1) The Secretary may 
     require the State to cover costs to be incurred by the 
     Secretary, or to reimburse the Secretary for costs incurred 
     by the Secretary, to carry out the conveyance under 
     subsection (a), including survey costs, costs related to 
     environmental documentation, and other administrative costs 
     related to the conveyance. If amounts are collected from the 
     State in advance of the Secretary incurring the actual costs, 
     and the amount collected exceeds the costs actually incurred 
     by the Secretary to carry out the conveyance, the Secretary 
     shall refund the excess amount to the State.
       (2) Amounts received as reimbursement under paragraph (1) 
     shall be credited to the fund or account that was used to 
     cover the costs incurred by the Secretary in carrying out the 
     conveyance. Amounts so credited shall be merged with amounts 
     in such fund or account, and shall be available for the same 
     purposes, and subject to the same conditions and limitations, 
     as amounts in such fund or account.
       (d) Description of Property.--The exact acreage and legal 
     description of the 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 State.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2844. LAND CONVEYANCE, FORT LEONARD WOOD, MISSOURI.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the State of Missouri (in 
     this section referred to as the ``State'') all right, title, 
     and interest of the United States in and to a parcel of real 
     property, including improvements thereon, consisting of 
     approximately 227.7 acres at Fort Leonard Wood, Missouri, for 
     the purpose of permitting the State to establish on the 
     property a State-operated cemetery for veterans of the Armed 
     Forces.
       (b) Reversionary Interest.--If the Secretary determines at 
     any time that the real property conveyed under subsection (a) 
     is not being used in accordance with the purpose of the 
     conveyance specified in such subsection, all right, title, 
     and interest in and to the property shall revert, at the 
     option of the Secretary, to the United States, and the United 
     States shall have the right of immediate entry onto the 
     property. Any determination of the Secretary under this 
     subsection shall be made on the record after an opportunity 
     for a hearing.
       (c) Payment of Costs of Conveyance.--(1) The Secretary may 
     require the State to cover costs to be incurred by the 
     Secretary, or to reimburse the Secretary for costs incurred 
     by the Secretary, to carry out the conveyance under 
     subsection (a), including survey costs, costs related to 
     environmental documentation, and other administrative costs 
     related to the conveyance. If amounts are collected from the 
     State in advance of the Secretary incurring the actual costs, 
     and the amount collected exceeds the costs actually incurred 
     by the State to carry out the conveyance, the Secretary shall 
     refund the excess amount to the State. The authority of the 
     Secretary to require the State to cover administrative costs 
     related to the conveyance does not include costs related to 
     any environmental remediation required for the property.
       (2) Amounts received as reimbursement under paragraph (1) 
     shall be credited to the fund or account that was used to 
     cover the costs incurred by the Secretary in carrying out the 
     conveyance. Amounts so credited shall be merged with amounts 
     in such fund or account, and shall be available for the same 
     purposes, and subject to the same conditions and limitations, 
     as amounts in such fund or account.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2845. TRANSFER OF ADMINISTRATIVE JURISDICTION, DEFENSE 
                   SUPPLY CENTER, COLUMBUS, OHIO.

       (a) Transfer Authorized.--The Secretary of the Army may 
     transfer, without reimbursement, to the administrative 
     jurisdiction of the Secretary of Veterans Affairs a parcel of 
     real property consisting of approximately 20 acres and 
     comprising a portion of the Defense Supply Center in 
     Columbus, Ohio.
       (b) Use of Property.--The Secretary of Veterans Affairs may 
     only use the property transferred under subsection (a) as the 
     site for the construction of a new outpatient clinic for the 
     provision of medical services to veterans.
       (c) Costs.--Any administrative costs in connection with the 
     transfer of property under subsection (a), including the 
     costs of the survey required by subsection (e), shall be 
     borne by the Secretary of Veterans Affairs.
       (d) Return of Jurisdiction to Army.--If construction of the 
     outpatient clinic described in subsection (b) has not 
     commenced on the property transferred under subsection (a) by 
     the end of the three-year period beginning on the date on 
     which the property is transferred, the Secretary of Veterans 
     Affairs shall return, at the request of the Secretary of the 
     Army, administrative jurisdiction over the property to the 
     Secretary of the Army.

[[Page H9281]]

       (e) Description of Property.--The exact acreage and legal 
     description of the real property to be transferred under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary of the Army.

     SEC. 2846. JURISDICTION AND UTILIZATION OF FORMER PUBLIC 
                   DOMAIN LANDS, UMATILLA CHEMICAL DEPOT, OREGON.

       (a) Retention of Jurisdiction.--The various parcels of real 
     property consisting of approximately 8,300 acres within the 
     boundaries of Umatilla Chemical Depot, Oregon, that were 
     previously withdrawn from the public domain are no longer 
     suitable for return to the public domain and shall remain 
     under the administrative jurisdiction of the Secretary of the 
     Army.
       (b) Utilization.--The Secretary shall combine the real 
     property described in subsection (a) with other real property 
     comprising the Umatilla Chemical Depot for purposes of their 
     management and disposal pursuant to 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) and other 
     applicable law.

     SEC. 2847. MODIFICATION OF AUTHORITY FOR LAND CONVEYANCE, 
                   EQUIPMENT AND STORAGE YARD, CHARLESTON, SOUTH 
                   CAROLINA.

       Subsection (h) of section 563 of the Water Resources 
     Development Act of 1999 (Public Law 106-53; 113 Stat. 360) is 
     amended to read as follows:
       ``(h) Charleston, South Carolina.--
       ``(1) Conveyance authorized.--The Secretary may convey to 
     the City of Charleston, South Carolina (in this subsection 
     referred to as the `City'), all right, title, and interest of 
     the United States in and to a parcel of real property of the 
     Corps of Engineers, including any improvements thereon, that 
     is known as the Equipment and Storage Yard and consists of 
     approximately 1.06 acres located on Meeting Street in 
     Charleston, South Carolina. The property shall be conveyed in 
     as-is condition.
       ``(2) Consideration.--As consideration for the conveyance 
     under this subsection, the City shall provide the United 
     States, whether by cash payment, in-kind consideration, or a 
     combination thereof, an amount that is not less than the fair 
     market value of the property conveyed, as determined by the 
     Secretary.
       ``(3) Use of proceeds.--(A) Notwithstanding any 
     requirements associated with the Plant Replacement and 
     Improvement Program, amounts received as consideration under 
     paragraph (2) may be used by the Corps of Engineers, 
     Charleston District--
       ``(i) to lease, purchase, or construct an office facility 
     within the boundaries of Charleston, Berkeley, or Dorchester 
     County, South Carolina;
       ``(ii) to cover costs associated with the design and 
     furnishing of such facility; and
       ``(iii) to satisfy any Plant Replacement and Improvement 
     Program balances.
       ``(B) Any amounts received as consideration under paragraph 
     (2) that are in excess of the fair market value of the real 
     property conveyed under this subsection may be used for any 
     authorized activities of the Corps of Engineers, Charleston 
     District.
       ``(4) Description of property.--The exact acreage and legal 
     description of the real property to be conveyed under this 
     subsection and any property transferred to the United States 
     as consideration under paragraph (2) shall be determined by 
     surveys satisfactory to the Secretary.
       ``(5) Additional terms and conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under this subsection as the Secretary 
     considers appropriate to protect the interests of the United 
     States.''.

     SEC. 2848. LAND CONVEYANCE, FORT HOOD, TEXAS.

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

     SEC. 2849. LAND CONVEYANCE, LOCAL TRAINING AREA FOR BROWNING 
                   ARMY RESERVE CENTER, UTAH.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the State of Utah (in this 
     section referred to as the ``State'') all right, title, and 
     interest of the United States in and to a parcel of 
     unimproved real property consisting of approximately 10 acres 
     of the Local Training Area for the Browning Army Reserve 
     Center, Utah, for the purpose of facilitating the 
     construction and operation of a nursing-care facility for 
     veterans. The parcel to be conveyed under this subsection 
     shall be selected by the Secretary in consultation with the 
     State.
       (b) Reversionary Interest.--If the Secretary determines at 
     any time that the real property conveyed under subsection (a) 
     is not being used in accordance with the purpose of the 
     conveyance specified in such subsection, all right, title, 
     and interest in and to the property shall revert, at the 
     option of the Secretary, to the United States, and the United 
     States shall have the right of immediate entry onto the 
     property. Any determination of the Secretary under this 
     subsection shall be made on the record after an opportunity 
     for a hearing.
       (c) Payment of Costs of Conveyance.--(1) The Secretary may 
     require the State to cover costs to be incurred by the 
     Secretary, or to reimburse the Secretary for costs incurred 
     by the Secretary, to carry out the conveyance under 
     subsection (a), including survey costs, costs related to 
     environmental documentation, and other administrative costs 
     related to the conveyance. If amounts paid to the Secretary 
     in advance exceed the costs actually incurred by the 
     Secretary to carry out the conveyance, the Secretary shall 
     refund the excess amount to the State.
       (2) Amounts received as reimbursement under paragraph (1) 
     shall be credited to the fund or account that was used to 
     cover the costs incurred by the Secretary. Amounts so 
     credited shall be merged with amounts in such fund or 
     account, and shall be available for the same purposes, and 
     subject to the same conditions and limitations, as amounts in 
     such fund or account.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2850. LAND CONVEYANCE, ARMY RESERVE CENTER, HAMPTON, 
                   VIRGINIA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the Hampton City School 
     Board of Hampton, Virginia (in this section referred to as 
     the ``Board''), all right, title, and interest of the United 
     States in and to a parcel of real property, including any 
     improvements thereon, that consists of approximately 13.42 
     acres, is located on Downey Farm Road in Hampton, Virginia, 
     and is known as the Butler Farm United States Army Reserve 
     Center for the purpose of permitting the Board to use the 
     property for public education purposes.
       (b) Condition of Conveyance.--The conveyance under 
     subsection (a) shall be subject to the condition that the 
     Board accept the real property described in subsection (a) in 
     its condition at the time of the conveyance, commonly known 
     as conveyance ``as is''.
       (c) Payment of Costs of Conveyance.--(1) The Secretary may 
     require the Board to cover costs to be incurred by the 
     Secretary, or to reimburse the Secretary for costs incurred 
     by the Secretary, to carry out the conveyance under 
     subsection (a), including survey costs, costs related to 
     environmental documentation, and other administrative costs 
     related to the conveyance. If amounts are collected from the 
     Board in advance of the Secretary incurring the actual costs, 
     and the amount collected exceeds the costs actually incurred 
     by the Secretary to carry out the conveyance, the Secretary 
     shall refund the excess amount to the Board.
       (2) Amounts received as reimbursement under paragraph (1) 
     shall be credited to the fund or account that was used to 
     cover the costs incurred by the Secretary in carrying out the 
     conveyance. Amounts so credited shall be merged with amounts 
     in such fund or account, and shall be available for the same 
     purposes, and subject to the same conditions and limitations, 
     as amounts in such fund or account.
       (d) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2851. LAND CONVEYANCE, ARMY NATIONAL GUARD FACILITY, 
                   SEATTLE, WASHINGTON.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the State of Washington (in 
     this section referred to as the ``State'') all right, title, 
     and interest of the United States in and to a parcel of real 
     property, including any improvements thereon, consisting of 
     approximately 9.747 acres in Seattle, Washington, and 
     comprising a portion of the National Guard Facility, Pier 91, 
     for the purpose of permitting the State to convey the 
     facility unencumbered for economic development purposes.

[[Page H9282]]

       (b) Condition of Conveyance.--The conveyance under 
     subsection (a) shall be subject to the condition that the 
     State accept the real property in its condition at the time 
     of the conveyance, commonly known as conveyance ``as is''.
       (c) Administrative Expenses.--(1) The State shall reimburse 
     the Secretary for the administrative expenses incurred by the 
     Secretary in carrying out the conveyance under subsection 
     (a), including expenses related to surveys and legal 
     descriptions, boundary monumentation, environmental surveys, 
     necessary documentation, travel, and deed preparation.
       (2) Section 2695(c) of title 10, United States Code, shall 
     apply to any amounts received by the Secretary as 
     reimbursement under this subsection.
       (d) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Secretary. The cost of the survey shall be borne by the 
     United States, subject to the requirement for reimbursement 
     under subsection (c).
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2852. MODIFICATION OF LAND EXCHANGE AND CONSOLIDATION, 
                   FORT LEWIS, WASHINGTON.

       (a) Property to Be Transferred to Secretary of the Interior 
     in Trust.--Subsection (a)(1) of section 2837 of the Military 
     Construction Authorization Act for Fiscal Year 2002 (division 
     B of Public Law 107-107; 115 Stat. 1315) is amended--
       (1) by striking ``may convey to'' and inserting ``may 
     transfer to the Secretary of the Interior, in trust for''; 
     and
       (2) by striking ``Washington, in'' and all that follows 
     through the period and inserting ``Washington. The Secretary 
     of the Army may make the transfer under the preceding 
     sentence, and the Secretary of the Interior may accept the 
     property transferred in trust for the Nisqually Tribe under 
     the preceding sentence, only in conjunction with the 
     conveyance described in subsection (b)(2).''.
       (b) Increase in Acreage to Be Transferred.--Such subsection 
     is further amended by striking ``138 acres'' and inserting 
     ``168 acres''.
       (c) Qualification on Property to Be Transferred.--
     Subsection (a)(2) of such section is amended--
       (1) by striking ``conveyance'' and inserting ``transfer''; 
     and
       (2) by striking ``or the right of way described in 
     subsection (c)'' and inserting ``located on the real property 
     transferred under that paragraph''.
       (d) Consideration.--Subsection (b) of such section is 
     amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``conveyance'' and inserting ``transfer''; and
       (2) in paragraph (2), by striking ``fee title over the 
     acquired property to the Secretary'' and inserting ``to the 
     United States fee title to the property acquired under 
     paragraph (1), free from all liens, encumbrances or other 
     interests other than those, if any, acceptable to the 
     Secretary of the Army''.
       (e) Treatment of Existing Permit Rights; Grant of 
     Easement.--Such section is further amended--
       (1) by redesignating subsections (d) and (e) as subsections 
     (e) and (f), respectively; and
       (2) by inserting after subsection (c) the following new 
     subsection:
       ``(d) Treatment of Existing Permit Rights; Grant of 
     Easement.--(1) The transfer under subsection (a) recognizes 
     and preserves to the Bonneville Power Administration, in 
     perpetuity and without the right of revocation except as 
     provided in paragraph (2), rights in existence at the time of 
     the conveyance under the permit dated February 4, 1949, as 
     amended January 4, 1952, between the Department of the Army 
     and the Bonneville Power Administration with respect to any 
     portion of the property transferred under subsection (a) upon 
     which the Bonneville Power Administration retains 
     transmission facilities. The rights recognized and preserved 
     include the right to upgrade those transmission facilities.
       ``(2) The permit rights recognized and preserved under 
     paragraph (1) shall terminate only upon the Bonneville Power 
     Administration's relocation of the transmission facilities 
     referred to in paragraph (1), and then only with respect to 
     that portion of those transmission facilities that are 
     relocated.
       ``(3) The Secretary of the Interior, as trustee for the 
     Nisqually Tribe, shall grant to the Bonneville Power 
     Administration, without consideration and subject to the same 
     rights recognized and preserved in paragraph (1), such 
     additional easements across the property transferred under 
     subsection (a) as the Bonneville Power Administration 
     considers necessary to accommodate the relocation or 
     reconnection of Bonneville Power Administration transmission 
     facilities from property owned by the Tribe and held by the 
     Secretary of the Interior in trust for the Tribe.''.
       (f) Conforming Amendments.--(1) Subsection (c) of such 
     section is amended by inserting ``of the Army'' after 
     ``Secretary''.
       (2) Subsection (e) of such section (as redesignated by 
     subsection (e)(1)) is amended--
       (A) by striking ``conveyed'' and inserting ``transferred'';
       (B) by inserting ``of the Army'' after ``Secretary''; and
       (C) by striking ``the recipient of the property being 
     surveyed'' and inserting ``the Tribe, in the case of the 
     transfer under subsection (a), and the Secretary of the Army, 
     in the case of the acquisition under subsection (b)''.
       (3) Subsection (f) of such section (as redesignated by 
     subsection (e)(1)) is amended--
       (A) by inserting ``of the Army'' after ``Secretary'' both 
     place it appears; and
       (B) by striking ``conveyances under this section'' and 
     inserting ``transfer under subsection (a) and conveyances 
     under subsections (b)(2) and (c)''.

                       PART II--NAVY CONVEYANCES

     SEC. 2861. LAND EXCHANGE, FORMER RICHMOND NAVAL AIR STATION, 
                   FLORIDA.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey to the University of Miami, Miami, Florida (in this 
     section referred to as the ``University''), all right, title, 
     and interest of the United States in and to certain parcels 
     of real property, together with any improvements thereon, 
     consisting of approximately 14 acres and located in the 
     vicinity of the former Richmond Naval Air Station, Florida, 
     in order to facilitate force protection and security needs of 
     Department of Defense facilities located on the former 
     Richmond Naval Air Station.
       (b) Release of Easements.--As part of the conveyance of 
     property authorized by subsection (a), the Secretary may 
     also--
       (1) release and extinguish any interest of the United 
     States in a clearance easement on the western portion of the 
     property of the University; and
       (2) release and extinguish any interest of the United 
     States in a certain easement for ingress and egress extending 
     southwest and south from Southwest 127th Street along the 
     western property line of a certain portion of United States 
     property referred to as ``IE2'' in the Agreement in Principle 
     referred to in subsection (e)(2).
       (c) Consideration.--As consideration for the conveyance of 
     property authorized by subsection (a) and the release and 
     extinguishment of interests authorized by subsection (b), the 
     University shall--
       (1) convey to the United States all right, title, and 
     interest of the University in and to certain parcels of real 
     property, together with any improvements thereon, consisting 
     of approximately 12 acres;
       (2) grant to the United States such easement over a parcel 
     of real property located along the western boundary of the 
     property of the University as the Secretary considers 
     appropriate to permit the United States to exercise dominion 
     and control over the portion of the western boundary of the 
     property of the University that has been, or may be, 
     designated as Natural Forest Community habitat;
       (3) construct and install a berm and fence security system 
     along the entirety of the new property line between the 
     United States and the University;
       (4) relocate the existing security gate and guard building, 
     or establish a new security gate and guard building similar 
     in design and size to the existing security gate and guard 
     building, at a point where the property of the United States 
     and the University intersect on the existing ingress-egress 
     road; and
       (5) construct a new two-lane access road from Southwest 
     152nd Street at the western boundary of the property of the 
     University to a point that connects with the existing road on 
     the property of the United States (commonly referred to as 
     the ``FAA Road'').
       (d) Construction With Previous Conveyance.--Any 
     restrictions on the use as an animal research facility of a 
     certain parcel of real property, consisting of approximately 
     30 acres, conveyed by the Secretary of Health and Human 
     Services to the University pursuant to section 647 of the 
     Ominbus Consolidated Appropriations Act, 1997 (Public Law 
     104-208; 110 Stat. 3009-366) shall terminate upon the 
     execution of the agreement of exchange required by subsection 
     (e).
       (e) Terms of Exchange.--(1) The Secretary and the 
     University shall carry out the conveyances and releases of 
     interest authorized by this section pursuant to an agreement 
     of exchange (to be known as the ``Exchange Agreement'') 
     between the Secretary and the University.
       (2) The agreement of exchange shall conform to, and develop 
     with more particularity, the Agreement in Principle executed 
     by the United States and the University on July 13 through 
     15, 2004.
       (f) Payment of Costs.--(1) The Secretary may require the 
     University to cover costs to be incurred by the Secretary, or 
     to reimburse the Secretary for costs incurred by the 
     Secretary, to carry out the conveyances under this section 
     and the release and grants of interests under this section, 
     including survey costs, costs related to environmental 
     documentation, and other administrative costs related to such 
     activities. If amounts paid to the Secretary in advance 
     exceed the costs actually incurred by the Secretary to carry 
     out such activities, the Secretary shall refund the excess 
     amount to the University.
       (2) Amounts received as reimbursement under paragraph (1) 
     shall be credited to the fund or account that was used to 
     cover the costs incurred by the Secretary. Amounts so 
     credited shall be merged with amounts in such fund or 
     account, and shall be available for the same purposes, and 
     subject to the same conditions and limitations, as amounts in 
     such fund or account.
       (g) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under this 
     section, and of the interests to be released or granted under 
     this section, shall be determined by surveys satisfactory to 
     the Secretary.
       (h) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under this section, and the release and 
     grants of interests under this section, as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

[[Page H9283]]

     SEC. 2862. LAND CONVEYANCE, HONOLULU, HAWAII.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey, without consideration but subject to the conditions 
     specified in subsection (b), to the City and County of 
     Honolulu, Hawaii, all right, title, and interest of the 
     United States in and to a parcel of real property, including 
     improvements thereon, consisting of approximately 5.16 acres 
     located at 890 Valkenberg Avenue, Honolulu, Hawaii, and 
     currently used by the City and County of Honolulu as the site 
     of a fire station and firefighting training facility. The 
     purpose of the conveyance is to enhance the capability of the 
     City and County of Honolulu to provide fire protection and 
     firefighting services to the civilian and military properties 
     in the area and to provide a location for firefighting 
     training for civilian and military personnel.
       (b) Conditions of Conveyance.--The conveyance under 
     subsection (a) shall be subject to the following conditions:
       (1) That the City and County of Honolulu accept the real 
     property in its condition at the time of the conveyance, 
     commonly known as conveyance ``as is''.
       (2) That the City and County of Honolulu make the 
     firefighting training facility available to the fire 
     protection and firefighting units of the military departments 
     for training not less than two days per week on terms 
     satisfactory to the Secretary.
       (c) Payment of Costs of Conveyance.--(1) The Secretary 
     shall require the City and County of Honolulu to cover costs 
     to be incurred by the Secretary, or to reimburse the 
     Secretary for costs incurred by the Secretary, to carry out 
     the conveyance under subsection (a), including survey costs, 
     costs related to environmental documentation, and other 
     administrative costs related to the conveyance. If amounts 
     are collected from the City and County of Honolulu in advance 
     of the Secretary incurring the actual costs, and the amount 
     collected exceeds the costs actually incurred by the 
     Secretary to carry out the conveyance, the Secretary shall 
     refund the excess amount, without interest, to the City and 
     County of Honolulu.
       (2) Amounts received as reimbursement under paragraph (1) 
     shall be credited to the fund or account that was used to 
     cover the costs incurred by the Secretary in carrying out the 
     conveyance. Amounts so credited shall be merged with amounts 
     in such fund or account, and shall be available for the same 
     purposes, and subject to the same conditions and limitations, 
     as amounts in such fund or account.
       (d) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2863. LAND CONVEYANCE, NAVY PROPERTY, FORMER FORT 
                   SHERIDAN, ILLINOIS.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey, without consideration, to the State of Illinois, a 
     political subdivision of the State, or a nonprofit land 
     conservation organization (in this section referred to as the 
     ``grantee'') all right, title, and interest of the United 
     States in and to certain parcels of real property consisting 
     of a total of approximately 25 acres of environmentally 
     sensitive land at the former Fort Sheridan, Illinois, for the 
     purpose of ensuring the permanent protection of the land.
       (b) Reversionary Interest.--If the Secretary determines at 
     any time that the real property conveyed under subsection (a) 
     is not being used or maintained in accordance with the 
     purpose of the conveyance specified in such subsection, all 
     right, title, and interest in and to the property shall 
     revert, at the option of the Secretary, to the United States, 
     and the United States shall have the right of immediate entry 
     onto the property. Any determination of the Secretary under 
     this subsection shall be made on the record after an 
     opportunity for a hearing.
       (c) Reconveyance Authorized.--The Secretary may permit the 
     grantee to convey the real property conveyed under subsection 
     (a) to another eligible entity described in such subsection, 
     subject to the same covenants and terms and conditions as 
     provided in the deed from the United States.
       (d) Payment of Costs of Conveyance.--(1) The Secretary 
     shall require the grantee to cover costs to be incurred by 
     the Secretary, or to reimburse the Secretary for costs 
     incurred by the Secretary, to carry out the conveyance under 
     subsection (a), including survey costs, costs related to 
     environmental documentation, and other administrative costs 
     related to the conveyance. If amounts are collected from the 
     grantee in advance of the Secretary incurring the actual 
     costs, and the amount collected exceeds the costs actually 
     incurred by the Secretary to carry out the conveyance, the 
     Secretary shall refund the excess amount to the grantee.
       (2) Amounts received as reimbursement under paragraph (1) 
     shall be credited to the fund or account that was used to 
     cover the costs incurred by the Secretary in carrying out the 
     conveyance. Amounts so credited shall be merged with amounts 
     in such fund or account, and shall be available for the same 
     purposes, and subject to the same conditions and limitations, 
     as amounts in such fund or account.
       (e) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (f) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.
       (g) Use of Alternate Conveyance Authority.--In lieu of 
     using the authority provided by this section to convey the 
     real property described in subsection (a), the Secretary may 
     elect to include the property in a conveyance authorized by 
     section 2878 of title 10, United States Code, subject to such 
     terms, reservations, restrictions, and conditions as may be 
     necessary to ensure the permanent protection of the property, 
     if the Secretary determines that a conveyance under such 
     section is advantageous to the interests of the United 
     States.

     SEC. 2864. LAND EXCHANGE, NAVAL AIR STATION, PATUXENT RIVER, 
                   MARYLAND.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey to the State of Maryland (in this section referred to 
     as ``State'') all right, title, and interest of the United 
     States in and to a parcel of real property, including 
     improvements thereon, consisting of approximately five acres 
     at Naval Air Station, Patuxent River, Maryland, and 
     containing the Point Lookout Lighthouse, other structures 
     related to the lighthouse, and an archaeological site 
     pertaining to the military hospital that was located on the 
     property during the Civil War. The conveyance shall include 
     artifacts pertaining to the military hospital recovered by 
     the Navy and held at the installation.
       (b) Property Received in Exchange.--As consideration for 
     the conveyance of the real property under subsection (a), the 
     State shall convey to the United States a parcel of real 
     property at Point Lookout State Park, Maryland, consisting of 
     approximately five acres, or a smaller parcel that the 
     Secretary considers sufficient and such related property 
     interests as the Secretary and the State may agree to.
       (c) Payment of Costs of Conveyance.--(1) The Secretary may 
     require the State to cover costs to be incurred by the 
     Secretary, or to reimburse the Secretary for costs incurred 
     by the Secretary, to carry out the conveyance under 
     subsection (a), including survey costs, costs related to 
     environmental documentation, relocation expenses incurred in 
     connection with the acquisition of real property under 
     subsection (b), and other administrative costs related to the 
     conveyance. If amounts are collected from the State in 
     advance of the Secretary incurring the actual costs, and the 
     amount collected exceeds the costs actually incurred by the 
     Secretary to carry out the conveyance, the Secretary shall 
     refund the excess amount to State.
       (2) Amounts received as reimbursement under paragraph (1) 
     shall be credited to the fund or account that was used to 
     cover the costs incurred by the Secretary in carrying out the 
     conveyance. Amounts so credited shall be merged with amounts 
     in such fund or account, and shall be available for the same 
     purposes, and subject to the same conditions and limitations, 
     as amounts in such fund or account.
       (d) Description of Property.--The exact acreage and legal 
     description of the properties to be conveyed under this 
     section shall be determined by surveys satisfactory to the 
     Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2865. MODIFICATION OF LAND ACQUISITION AUTHORITY, 
                   PERQUIMANS COUNTY, NORTH CAROLINA.

       Section 2846 of the Military Construction Authorization Act 
     for Fiscal Year 2002 (division B of Public Law 107-107; 115 
     Stat. 1320) is amended by striking ``240 acres'' and insert 
     ``840 acres''.

     SEC. 2866. LAND CONVEYANCE, NAVAL WEAPONS STATION, 
                   CHARLESTON, SOUTH CAROLINA.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey to the Berkeley County Sanitation Authority, South 
     Carolina (in this section referred to as the ``Authority''), 
     all right, title, and interest of the United States in and to 
     a parcel of real property, including any improvements 
     thereon, consisting of not more than 38 acres and comprising 
     a portion of the Naval Weapons Station, Charleston, South 
     Carolina, for the purpose of allowing the Authority to expand 
     an existing sewage treatment plant.
       (b) Consideration.--(1) As consideration for the conveyance 
     of the real property under subsection (a), the Authority 
     shall provide the United States, whether by cash payment, in-
     kind services, or a combination thereof, an amount that is 
     not less than the fair market value of the conveyed property.
       (2) The fair market value of the real property conveyed 
     under subsection (a) shall be determined by an appraisal 
     acceptable to the Secretary.
       (c) Payment of Costs of Conveyance.--(1) The Secretary may 
     require the Authority to cover costs incurred by the 
     Secretary, or to reimburse the Secretary for costs incurred 
     by the Secretary, to carry out the conveyance under 
     subsection (a), including survey costs, costs related to 
     environmental documentation, and other administrative costs 
     related to the conveyance. If amounts are collected from the 
     Authority in advance of the Secretary incurring the actual 
     costs, and the amount collected exceeds the costs actually 
     incurred by the Secretary to carry out the conveyance, the 
     Secretary shall refund the excess amount to the Authority.
       (2) Amounts received as reimbursement under paragraph (1) 
     shall be credited to the fund or account that was used to 
     cover the costs incurred by the Secretary in carrying out the 
     conveyance. Amounts so credited shall be merged with amounts 
     in such fund or account, and shall be made available for the 
     same purposes, and subject to the same conditions and 
     limitations, as amounts in such fund or account.

[[Page H9284]]

       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2867. LAND CONVEYANCE, NAVY YMCA BUILDING, PORTSMOUTH, 
                   VIRGINIA.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey to the City of Portsmouth, Virginia (in this section 
     referred to as the ``City''), all right, title, and interest 
     of the United States in and to a parcel of real property, 
     including any improvements thereon, consisting of 
     approximately 0.49 acres located at 517 King Street in 
     Portsmouth, Virginia, and known as the ``Navy YMCA 
     Building'', for the purpose of permitting the City to use the 
     property for economic revitalization purposes.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), the City shall provide the United 
     States, whether by cash payment, in-kind consideration, or a 
     combination thereof, an amount equal to the costs related to 
     the environmental remediation of the real property to be 
     conveyed.
       (c) Payment of Other Costs of Conveyance.--(1) The 
     Secretary may require the City to cover costs to be incurred 
     by the Secretary, or to reimburse the Secretary for costs 
     incurred by the Secretary, to carry out the conveyance under 
     subsection (a), including survey costs, costs related to 
     environmental documentation, and other administrative costs 
     related to the conveyance. If amounts paid to the Secretary 
     in advance exceed the costs actually incurred by the 
     Secretary to carry out the conveyance, the Secretary shall 
     refund the excess amount to the City.
       (2) Amounts received as reimbursement under paragraph (1) 
     shall be credited to the fund or account that was used to 
     cover the costs incurred by the Secretary. Amounts so 
     credited shall be merged with amounts in such fund or 
     account, and shall be available for the same purposes, and 
     subject to the same conditions and limitations, as amounts in 
     such fund or account.
       (d) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

                    PART III--AIR FORCE CONVEYANCES

     SEC. 2871. LAND EXCHANGE, MAXWELL AIR FORCE BASE, ALABAMA.

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey to the City of Montgomery, Alabama (in this 
     section referred to as the ``City''), all right, title, and 
     interest of the United States in and to a parcel of real 
     property, including improvements thereon, consisting of 
     approximately 28 acres and containing the Maxwell Heights 
     Housing site at Maxwell Air Force Base, Alabama.
       (b) Consideration.--(1) As consideration for the conveyance 
     of the real property under subsection (a), the City shall 
     convey to the United States a parcel of real property, 
     including any improvements thereon, located contiguous to 
     Maxwell Air Force Base, consisting of approximately 35 acres, 
     and designated as project AL 6-4, for the purpose of allowing 
     the Secretary to incorporate the parcel into a project for 
     the acquisition or improvement of military housing. The 
     military housing project may consist of or include a project 
     conducted under the authority of subchapter IV of chapter 169 
     of title 10, United States Code. The Secretary shall have 
     jurisdiction over the real property received under this 
     paragraph.
       (2) If the fair market value of the real property received 
     under paragraph (1) is less than the fair market value of the 
     real property conveyed under subsection (a), the Secretary 
     may require the City to make up the difference through the 
     payment of cash, the provision of in-kind consideration, or a 
     combination thereof, to be determined pursuant to 
     negotiations between the Secretary and the City.
       (3) The fair market values of the real property to be 
     exchanged under this section shall be determined by 
     appraisals acceptable to the Secretary and the City.
       (c) Payment of Costs of Conveyance.--(1) The Secretary may 
     require the City to cover costs to be incurred by the 
     Secretary, or to reimburse the Secretary for costs incurred 
     by the Secretary, to carry out the conveyances under 
     subsections (a) and (b), including survey costs, costs 
     related to environmental documentation, and other 
     administrative costs related to the conveyances. If amounts 
     are collected from the City in advance of the Secretary 
     incurring the actual costs, and the amount collected exceeds 
     the costs actually incurred by the Secretary to carry out the 
     conveyances, the Secretary shall refund the excess amount to 
     the City.
       (2) Amounts received as reimbursement under paragraph (1) 
     shall be credited to the fund or account that was used to 
     cover the costs incurred by the Secretary in carrying out the 
     conveyances. Amounts so credited shall be merged with amounts 
     in such fund or account, and shall be available for the same 
     purposes, and subject to the same conditions and limitations, 
     as amounts in such fund or account.
       (d) Description of Property.--The exact acreage and legal 
     description of the properties to be conveyed under this 
     section shall be determined by surveys satisfactory to the 
     Secretary.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2872. LAND CONVEYANCE, MARCH AIR FORCE BASE, CALIFORNIA.

       (a) Conveyance Authorized.--The Secretary of the Air Force 
     may convey to the March Joint Powers Authority (in this 
     section referred to as the ``Authority'') all right, title, 
     and interest of the United States in and to a parcel of real 
     property, including any improvements thereon, consisting of 
     approximately 15 acres located in Riverside County, 
     California, and containing the former Defense Reutilization 
     and Marketing Office facility for March Air Force Base, which 
     is also known as Parcel A-6, for the purpose of permitting 
     the Authority to use the property for economic development 
     and revitalization.
       (b) Consideration.--As consideration for the conveyance of 
     the real property under subsection (a), the Authority shall 
     pay the United States an amount equal to the fair market 
     value of the conveyed property, as determined by the 
     Secretary. The payment shall be deposited in the special 
     account in the Treasury referred to in paragraph (5) of 
     section 572(b) of title 40, United States Code, and shall be 
     available as provided in subparagraph (B)(ii) of such 
     paragraph.
       (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 Authority.
       (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. 2873. LAND CONVEYANCE, FORMER GRIFFISS AIR FORCE BASE, 
                   NEW YORK.

       (a) Conveyance Authorized.--(1) The Secretary of the Air 
     Force may convey to the Oneida County Industrial Development 
     Agency, New York, the local reuse authority for the former 
     Griffiss Air Force Base (in this section referred to as the 
     ``Authority''), all right, title and interest of the United 
     States in and to two parcels of real property consisting of 
     7.897 acres and 1.742 acres and containing the four buildings 
     specified in paragraph (2), which were vacated by the Air 
     Force in conjunction with its relocation to the Consolidated 
     Intelligence and Reconnaissance Laboratory at Air Force 
     Research Laboratory--Rome Research Site, Rome, New York.
       (2) The buildings referred to in paragraph (1) are the 
     following:
       (A) Building 240 (117,323 square feet).
       (B) Building 247 (13,199 square feet).
       (C) Building 248 (4,000 square feet).
       (D) Building 302 (20,577 square feet).
       (3) The purpose of the conveyance under this subsection is 
     to permit the Authority to develop the parcels and buildings 
     for economic purposes in a manner consistent with section 
     2905 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).
       (b) Condition of Conveyance.--The conveyance under 
     subsection (a) shall be subject to the condition that the 
     Authority accept the real property in its condition at the 
     time of the conveyance, commonly known as conveyance ``as 
     is''.
       (c) Consideration.--As consideration for the conveyance 
     under subsection (a), the Authority shall provide the United 
     States, whether by cash payment, in-kind contribution, or a 
     combination thereof, an amount equal to the fair market of 
     value of the conveyed real property, as determined by the 
     Secretary.
       (d) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary. The cost of the survey shall be borne by 
     the Authority.
       (e) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

                       PART IV--OTHER CONVEYANCES

     SEC. 2881. LAND EXCHANGE, ARLINGTON COUNTY, VIRGINIA.

       (a) Exchange Authorized.--The Secretary of Defense may 
     convey to Arlington County, Virginia (in this section 
     referred to as the ``County''), all right, title, and 
     interest of the United States in and to a parcel of real 
     property, together with any improvements thereon, that 
     consists of not more than 4.5 acres and is located north of 
     Columbia Pike on the Navy Annex property in Arlington County, 
     Virginia, for the purpose of the construction of a freedmen 
     heritage museum and an Arlington history museum.
       (b) Consideration.--As consideration for the conveyance of 
     the real property under subsection (a), the County shall 
     convey to the United States all right, title, and interest of 
     the County in and to a parcel of real property, together with 
     any improvements thereon, that is of a size equivalent to the 
     total acreage of the real property conveyed by the Secretary 
     under subsection (a) and is located in the area known as the 
     Southgate Road right-of-way between Arlington National 
     Cemetery, Virginia, and the Navy Annex property.
       (c) Selection of Property for Conveyance.--The Secretary, 
     in consultation with the County, shall determine the acreage 
     of the parcels of real property to be exchanged under this 
     section, and such determination shall be final. In selecting 
     the real property for conveyance to

[[Page H9285]]

     the County under subsection (a), the Secretary shall seek--
       (1) to provide the County with sufficient property for 
     museum construction that is compatible with, and honors, the 
     history of the freedmen's village that was located in the 
     area and the heritage of the County;
       (2) to preserve the appropriate traditions of Arlington 
     National Cemetery; and
       (3) to maintain the amount of acreage currently available 
     for potential grave sites at Arlington National Cemetery.
       (d) Payment of Costs of Conveyances.--(1) The Secretary may 
     require the County to cover costs to be incurred by the 
     Secretary, or to reimburse the Secretary for costs incurred 
     by the Secretary, to carry out the conveyances under 
     subsections (a) and (b), including survey costs, costs 
     related to environmental documentation, and other 
     administrative costs related to the conveyances. If amounts 
     are collected from the County in advance of the Secretary 
     incurring the actual costs, and the amount collected exceeds 
     the costs actually incurred by the Secretary to carry out the 
     conveyance, the Secretary shall refund the excess amount to 
     the County.
       (2) Amounts received as reimbursement under paragraph (1) 
     shall be credited to the fund or account that was used to 
     cover the costs incurred by the Secretary in carrying out the 
     conveyances. Amounts so credited shall be merged with amounts 
     in such fund or account, and shall be available for the same 
     purposes, and subject to the same conditions and limitations, 
     as amounts in such fund or account.
       (e) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under this 
     section shall be determined by surveys satisfactory to the 
     Secretary.
       (f) Reversionary Interest.--(1) If at any time the 
     Secretary determines that the property conveyed to the County 
     under subsection (a) is not being used for the purposes 
     stated in that subsection, then, at the option of the 
     Secretary, all right, title, and interest in and to the 
     property, including any improvements thereon, shall revert to 
     the United States, and the United States shall have the right 
     of immediate entry onto the property.
       (2) If the Secretary exercises the reversionary interest 
     provided for in paragraph (1), the Secretary shall pay the 
     County, from amounts available to the Secretary for military 
     construction for the Defense Agencies, an amount equal to the 
     fair market value of the property that reverts to the United 
     States, as determined by the Secretary.
       (g) Inclusion of Southgate Road Right-of-Way Property in 
     Transfer of Navy Annex Property for Arlington National 
     Cemetery.--Subsection (a) of section 2881 of the Military 
     Construction Authorization Act for Fiscal Year 2000 (division 
     B of Public Law 106-65; 113 Stat. 879) is amended by striking 
     ``three parcels of real property consisting of approximately 
     36 acres'' and inserting ``four parcels of real property 
     consisting of approximately 40 acres''.
       (h) Termination of Reservation of Certain Navy Annex 
     Property for Memorials or Museums.--(1) Subsection (b) of 
     such section, as amended by section 2863(f) of the Military 
     Construction Authorization Act for Fiscal Year 2002 (division 
     B of Public Law 107-107; 115 Stat. 1332) and section 
     2851(a)(1) of the Military Construction Authorization Act for 
     Fiscal Year 2003 (division B of Public Law 107-314; 116 Stat. 
     2726), is further amended--
       (A) by striking ``(1) Subject to paragraph (2), the 
     Secretary'' and inserting ``The Secretary''; and
       (B) by striking paragraph (2).
       (2) Subsection (d)(2) of such section, as amended by 
     section 2851(a)(2) of the Military Construction Authorization 
     Act for Fiscal Year 2003 (division B of Public Law 107-314; 
     116 Stat. 2726), is further amended--
       (A) by striking ``(A)''; and
       (B) by striking ``, and (B)'' and all that follows through 
     ``Museum.'' and inserting a period.
       (2) Subsection (f) of such section is amended by striking 
     ``reserved under subsection (b)(2) and of the portion''.
       (i) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyances under this section as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

                       Subtitle E--Other Matters

     SEC. 2891. ONE-YEAR RESUMPTION OF DEPARTMENT OF DEFENSE 
                   LABORATORY REVITALIZATION DEMONSTRATION 
                   PROGRAM.

       Section 2892(g) of the National Defense Authorization Act 
     for Fiscal Year 1996 (Public Law 104-106; 10 U.S.C. 2805 
     note) is amended by striking ``September 30, 2003'' and 
     inserting ``September 30, 2005''.

     SEC. 2892. DESIGNATION OF AIRMEN LEADERSHIP SCHOOL AT LUKE 
                   AIR FORCE BASE, ARIZONA, IN HONOR OF JOHN J. 
                   RHODES, A FORMER MINORITY LEADER OF THE HOUSE 
                   OF REPRESENTATIVES.

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

     SEC. 2893. SETTLEMENT OF CLAIM OF OAKLAND BASE REUSE 
                   AUTHORITY AND REDEVELOPMENT AGENCY.

       (a) Authority to Settle Claim.--The Secretary of the Navy 
     may make a payment in the amount of $2,100,000 to the Oakland 
     Base Reuse Authority and Redevelopment Agency of the City of 
     Oakland, California, in settlement of Oakland Base Reuse 
     Authority and Redevelopment Agency of the City of Oakland v. 
     the United States, Case No. C02-4652 MHP, United States 
     District Court, Northern District of California, including 
     any appeal.
       (b) Release of Claim.--The payment made under subsection 
     (a) shall be in full satisfaction of all claims of the 
     Oakland Base Reuse Authority and Redevelopment Agency against 
     the United States related to the case referred to in 
     subsection (a), and the Oakland Base Reuse Authority and 
     Redevelopment Agency shall give to the Secretary a release of 
     all claims to 18 officer housing units and related real 
     property located at the former Naval Medical Center Oakland, 
     California. The release shall be in a form that is 
     satisfactory to the Secretary.
       (c) Source of Funds for Settlement.--To make the payment 
     authorized by subsection (a), the Secretary may use--
       (1) funds in the Department of Defense Base Closure Account 
     1990; or
       (2) the proceeds from the sale of the housing units and 
     property described in subsection (b).

     SEC. 2894. REPORT ON ESTABLISHMENT OF MOBILIZATION STATION AT 
                   CAMP RIPLEY NATIONAL GUARD TRAINING CENTER, 
                   LITTLE FALLS, MINNESOTA.

       Not later than 120 days after the date of the enactment of 
     this Act, the Secretary of Defense shall submit to Congress a 
     report regarding the feasibility of using Camp Ripley 
     National Guard Training Center in Little Falls, Minnesota, as 
     a mobilization station for members of a reserve component 
     ordered to active duty under any provision of law specified 
     in section 101(a)(13)(B) of title 10, United States Code. The 
     report shall include a discussion of the actions necessary to 
     establish the center as a mobilization station.

     SEC. 2895. REPORT ON FEASIBILITY OF ESTABLISHMENT OF VETERANS 
                   MEMORIAL AT MARINE CORPS AIR STATION, EL TORO, 
                   CALIFORNIA.

       Not later than 30 days after the date of the enactment of 
     this Act, the Secretary of the Navy shall submit to Congress 
     a report on whether the anticipated future uses of the former 
     Marine Corps Air Station, El Toro, California, by the City of 
     Irvine, California, would permit the establishment and 
     maintenance, at no cost to the United States, of a veterans 
     memorial at the former installation.

     SEC. 2896. SENSE OF CONGRESS REGARDING EFFECT OF MILITARY 
                   HOUSING POLICIES AND FORCE STRUCTURE AND BASING 
                   CHANGES ON LOCAL EDUCATIONAL AGENCIES.

       (a) Findings.--Congress finds the following:
       (1) There are approximately 750,000 school-aged children of 
     members of the active duty Armed Forces in the United States.
       (2) Approximately 650,000 of those students are currently 
     attending public elementary or secondary schools in the 
     United States.
       (3) Changes to the military family housing policies of the 
     military departments affect both military housing 
     requirements and the number of dependent children living on 
     military installations in the United States.
       (4) Proposed restationing of units of the Armed Forces 
     worldwide, including the return of a significant number of 
     members of the Armed Forces stationed overseas to the United 
     States and the Army proposal to modify its force structure to 
     establish so-called units of action, will increase military 
     housing requirements at military installations in the United 
     States and may result in the need for additional educational 
     facilities at such installations and in the adjacent 
     communities.
       (5) To help provide sufficient housing for members of the 
     Armed Forces and their families, the Secretaries of the 
     military departments intend to continue to use the 
     authorities provided in subchapter IV of chapter 169 of title 
     10, United States Code, to carry out privatization 
     initiatives that will improve or replace an additional 
     120,000 military family housing units in the United States.
       (6) The Secretaries of the military departments may include 
     the construction of school facilities as one of the ancillary 
     supporting facilities authorized as part of a privatization 
     initiative carried out under such subchapter.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Department of Defense should--
       (1) consider the effects that changes in force structure 
     and overseas stationing arrangements will have on--
       (A) military housing requirements at specific military 
     installations in the United States;
       (B) the number of school-aged military dependents at those 
     installations; and
       (C) the need for additional educational facilities to serve 
     such dependents; and
       (2) consult with local communities and local educational 
     agencies about the best ways to address such changing housing 
     requirements and satisfy the need for additional educational 
     facilities, including using the authority of subchapter IV of 
     chapter 169 of title 10, United States Code, to include the 
     construction of educational facilities as one of the 
     ancillary supporting facilities authorized as part of 
     military privatization housing initiatives.

     SEC. 2897. SENSE OF CONGRESS AND STUDY REGARDING MEMORIAL 
                   HONORING NON-UNITED STATES CITIZENS KILLED IN 
                   THE LINE OF DUTY WHILE SERVING IN THE UNITED 
                   STATES ARMED FORCES.

       (a) Sense of Congress.--It is the sense of Congress that a 
     memorial marker or monument should be designed and placed in 
     an appropriate location to honor the service and sacrifice of 
     individuals who, although not United States citizens, served 
     in the United States Armed Forces and were killed in the line 
     of duty.

[[Page H9286]]

       (b) Study.--The Secretary of the Army, in consultation with 
     the Secretary of Veterans Affairs and the American Battle 
     Monuments Commission, shall conduct a study examining the 
     feasibility of placing in Arlington National Cemetery, or 
     some other appropriate location, a memorial marker honoring 
     the service and sacrifice of non-United States citizens 
     killed in the line of duty while serving in the Armed Forces.
       (c) Content of Study.--The study required by subsection (b) 
     shall include the following:
       (1) A discussion of the historical development of Arlington 
     National Cemetery.
       (2) Comprehensive information on the memorial markers 
     presently located in Arlington National Cemetery.
       (3) A description of any limitations affecting the ability 
     to establish new monuments, markers, tributes, or plaques in 
     Arlington National Cemetery.
       (4) A discussion of alternative locations outside of 
     Arlington National Cemetery that have been used for 
     comparable memorial markers.
       (5) Recommendations for appropriate locations for a 
     memorial marker that may be considered.
       (d) Report and Recommendations.--Not later than April 1, 
     2005, the Secretary of the Army shall submit to the Committee 
     on Armed Services and the Committee on Veterans' Affairs of 
     the House of Representatives and the Committee on Armed 
     Services and the Committee on Veterans' Affairs of the Senate 
     a report containing the results of the study required by 
     subsection (b), together with any recommendations for an 
     appropriate plan to honor the service of non-United States 
     citizens killed in the line of duty while serving in the 
     Armed Forces.

 DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND 
                          OTHER AUTHORIZATIONS

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

Sec. 3101. National Nuclear Security Administration.
Sec. 3102. Defense environmental management.
Sec. 3103. Other defense activities.
Sec. 3104. Defense nuclear waste disposal.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Report on requirements for Modern Pit Facility.
Sec. 3112. Two-year extension of authority for appointment of certain 
              scientific, engineering, and technical personnel.
Sec. 3113. Limited authority to carry out new projects under Facilities 
              and Infrastructure Recapitalization Program after project 
              selection deadline.
Sec. 3114. Modification of milestone and report requirements for 
              National Ignition Facility.
Sec. 3115. Modification of submittal date of annual plan for 
              stewardship, management, and certification of warheads in 
              the nuclear weapons stockpile.
Sec. 3116. Defense site acceleration completion.
Sec. 3117. Treatment of waste material.
Sec. 3118. Local stakeholder organizations for 2006 closure sites.
Sec. 3119. Report to Congress on Advanced Nuclear Weapons Concepts 
              Initiative.

                   Subtitle C--Proliferation Matters

Sec. 3131. Modification of authority to use International Nuclear 
              Materials Protection and Cooperation Program funds 
              outside the former Soviet Union.
Sec. 3132. Acceleration of removal or security of fissile materials, 
              radiological materials, and related equipment at 
              vulnerable sites worldwide.
Sec. 3133. Silk Road Initiative.
Sec. 3134. Nuclear nonproliferation fellowships for scientists employed 
              by United States and Russian Federation.
Sec. 3135. Utilization of international contributions to the 
              elimination of weapons grade plutonium production 
              program.

                       Subtitle D--Other Matters

Sec. 3141. Indemnification of Department of Energy contractors.
Sec. 3142. Report on maintenance of retirement benefits for certain 
              workers at 2006 closure sites after closure of sites.
Sec. 3143. Report on efforts of National Nuclear Security 
              Administration to understand plutonium aging.
Sec. 3144. Support for public education in the vicinity of Los Alamos 
              National Laboratory, New Mexico.
Sec. 3145. Review of Waste Isolation Pilot Plant, New Mexico, pursuant 
              to competitive contract.
Sec. 3146. National Academy of Sciences study on management by 
              Department of Energy of certain radioactive waste 
              streams.
Sec. 3147. Compensation of Pajarito Plateau, New Mexico, homesteaders 
              for acquisition of lands for Manhattan Project in World 
              War II.
Sec. 3148. Modification of requirements relating to conveyances and 
              transfer of certain land at Los Alamos National 
              Laboratory, New Mexico.

 Subtitle E--Energy Employees Occupational Illness Compensation Program

Sec. 3161. Contractor employee compensation.
Sec. 3162. Conforming amendments.
Sec. 3163. Technical amendments.
Sec. 3164. Transfer of funds for fiscal year 2005.
Sec. 3165. Use of Energy Employees Occupational Illness Compensation 
              Fund for certain payments to covered uranium employees.
Sec. 3166. Improvements to Subtitle B of Energy Employees Occupational 
              Illness Compensation Program Act of 2000.
Sec. 3167. Emergency Special Exposure Cohort meeting and report.
Sec. 3168. Coverage of individuals employed at atomic weapons employer 
              facilities during periods of residual contamination.
Sec. 3169. Update of report on residual contamination of facilities.
Sec. 3170. Sense of Congress on resource center for energy employees 
              under Energy Employee Occupational Illness Compensation 
              Program in western New York and western Pennsylvania 
              region.

         Subtitle A--National Security Programs Authorizations

     SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated to the Department of Energy for 
     fiscal year 2005 for the activities of the National Nuclear 
     Security Administration in carrying out programs necessary 
     for national security in the amount of $9,082,300,000, to be 
     allocated as follows:
       (1) For weapons activities, $6,592,053,000.
       (2) For defense nuclear nonproliferation activities, 
     $1,348,647,000.
       (3) For naval reactors, $797,900,000.
       (4) For the Office of the Administrator for Nuclear 
     Security, $343,700,000.
       (b) Authorization of New Plant Projects.--From funds 
     referred to in subsection (a) that are available for carrying 
     out plant projects, the Secretary of Energy may carry out, 
     for weapons activities, the following new plant projects:
       Project 05-D-140, project engineering and design, various 
     locations, $11,600,000.
       Project 05-D-160, facilities and infrastructure 
     recapitalization program, project engineering and design, 
     various locations, $8,700,000.
       Project 05-D-170, project engineering and design, 
     safeguards and security, various locations, $17,000,000.
       Project 05-D-401, production bays upgrade, Pantex Plant, 
     Amarillo, Texas, $25,100,000.
       Project 05-D-402, beryllium capability project, Y-12 
     national security complex, Oak Ridge, Tennessee, $3,627,000.
       Project 05-D-601, compressed air upgrades project, Y-12 
     national security complex, Oak Ridge, Tennessee, $4,400,000.
       Project 05-D-602, power grid infrastructure upgrade, Los 
     Alamos National Laboratory, Los Alamos, New Mexico, 
     $10,000,000.
       Project 05-D-603, new master substation, Sandia National 
     Laboratories, Albuquerque, New Mexico, $600,000.
       Project 05-D-701, security perimeter, Los Alamos National 
     Laboratory, Los Alamos, New Mexico, $20,000,000.

     SEC. 3102. DEFENSE ENVIRONMENTAL MANAGEMENT.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2005 for defense 
     environmental management activities in carrying out programs 
     necessary for national security in the amount of 
     $6,957,307,000, to be allocated as follows:
       (1) For defense site acceleration completion, 
     $5,970,837,000.
       (2) For defense environmental services, $986,470,000.

     SEC. 3103. OTHER DEFENSE ACTIVITIES.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2005 for other defense 
     activities in carrying out programs necessary for national 
     security in the amount of $636,036,000.

     SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2005 for defense nuclear 
     waste disposal for payment to the Nuclear Waste Fund 
     established in section 302(c) of the Nuclear Waste Policy Act 
     of 1982 (42 U.S.C. 10222(c)) in the amount of $120,000,000.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

     SEC. 3111. REPORT ON REQUIREMENTS FOR MODERN PIT FACILITY.

       (a) Report.--Not later than January 31, 2005, the 
     Administrator for Nuclear Security shall submit to the 
     congressional defense committees a report setting forth the 
     validated pit production requirements for the Modern Pit 
     Facility.
       (b) Validated Pit Production Requirements.--(1) The 
     validated pit production requirements in the report under 
     subsection (a) shall be established by the Administrator in 
     conjunction with the Chairman of the Nuclear Weapons Council.
       (2) The validated pit production requirements shall--
       (A) include specifications regarding the total number of 
     pits per year, and the number of pits to be produced per year 
     for each weapon type, that will be required to be produced in 
     order to support the weapons that will be retained in the 
     nuclear weapons stockpile pursuant to the revised nuclear 
     weapons stockpile plan submitted to the congressional defense 
     committees as specified in the joint explanatory statement to 
     accompany the report of the Committee on Conference on the 
     bill H.R. 2754 of the 108th Congress;
       (B) identify any surge capacity that may be included in the 
     annual pit production requirements; and
       (C) assume that the lifetime of any particular pit type is 
     each of 40 years, 50 years, 60 years, and 70 years.
       (c) Form of Report.--The report under subsection (a) shall 
     be submitted in unclassified form and shall include a 
     classified annex.

[[Page H9287]]

     SEC. 3112. TWO-YEAR EXTENSION OF AUTHORITY FOR APPOINTMENT OF 
                   CERTAIN SCIENTIFIC, ENGINEERING, AND TECHNICAL 
                   PERSONNEL.

       Section 4601(c)(1) of the Atomic Energy Defense Act (50 
     U.S.C. 2701(c)(1)) is amended by striking ``September 30, 
     2004'' and inserting ``September 30, 2006''.

     SEC. 3113. LIMITED AUTHORITY TO CARRY OUT NEW PROJECTS UNDER 
                   FACILITIES AND INFRASTRUCTURE RECAPITALIZATION 
                   PROGRAM AFTER PROJECT SELECTION DEADLINE.

       (a) Limited Authority To Carry Out New Projects.--Section 
     3114(a) of the National Defense Authorization Act for Fiscal 
     Year 2004 (Public Law 108-136; 117 Stat. 1744; 50 U.S.C. 2453 
     note) is amended--
       (1) in the subsection caption, by striking ``Deadline 
     for'';
       (2) in paragraph (2), by striking ``No project'' and 
     inserting ``Except as provided in paragraph (3), no 
     project''; and
       (3) by adding at the end the following new paragraph:
       ``(3)(A) Subject to the provisions of this paragraph, a 
     project described in subparagraph (B) may be carried out 
     under the Facilities and Infrastructure Recapitalization 
     Program after December 31, 2004, if the Administrator 
     approves the project. The Administrator may not delegate the 
     authority to approve projects under the preceding sentence.
       ``(B) A project described in this subparagraph is a project 
     that consists of a specific building, facility, or other 
     improvement (including fences, roads, or similar 
     improvements).
       ``(C) Funds may not be obligated or expended for a project 
     under this paragraph until 60 days after the date on which 
     the Administrator submits to the congressional defense 
     committees a notice on the project, including a description 
     of the project and the nature of the project, a statement 
     explaining why the project was not included in the Facilities 
     and Infrastructure Recapitalization Program under paragraph 
     (1), and a statement explaining why the project was not 
     included in any other program under the jurisdiction of the 
     Administrator.
       ``(D) The total number of projects that may be carried out 
     under this paragraph in any fiscal year may not exceed five 
     projects.
       ``(E) The Administrator may not utilize the authority in 
     this paragraph until 60 days after the later of--
       ``(i) the date of the submittal to the congressional 
     defense committees of a list of the projects selected for 
     inclusion in the Facilities and Infrastructure 
     Recapitalization Program under paragraph (1); or
       ``(ii) the date of the submittal to the congressional 
     defense committees of the report required by subsection (c).
       ``(F) A project may not be carried out under this paragraph 
     unless the project will be completed by September 30, 
     2011.''.
       (b) Construction of Authority.--The amendments made by 
     subsection (a) may not be construed to authorize any delay in 
     either of the following:
       (1) The selection of projects for inclusion in the 
     Facilities and Infrastructure Recapitalization Program under 
     subsection (a) of section 3114 of the National Defense 
     Authorization Act for Fiscal Year 2004.
       (2) The submittal of the report required by subsection (c) 
     of such section.

     SEC. 3114. MODIFICATION OF MILESTONE AND REPORT REQUIREMENTS 
                   FOR NATIONAL IGNITION FACILITY.

       (a) Notification on Milestones To Achieve Ignition.--
     Subsection (a) of section 3137 of the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107; 
     115 Stat. 1369) is amended by striking ``each Level I 
     milestone and Level II milestone for the National Ignition 
     Facility.'' and inserting the following: ``each milestone for 
     the National Ignition Facility as follows:
       ``(1) Each Level I milestone.
       ``(2) Each Level II milestone.
       ``(3) Each milestone to achieve ignition.''.
       (b) Report on Failure of Timely Achievement of 
     Milestones.--Subsection (b) of such section is amended by 
     striking ``a Level I milestone or Level II milestone for the 
     National Ignition Facility'' and inserting ``a milestone for 
     the National Ignition Facility referred to in subsection 
     (a)''.
       (c) Milestones To Achieve Ignition.--Subsection (c) of such 
     section is amended to read as follows:
       ``(c) Milestones.--For purposes of this section:
       ``(1) The Level I milestones and Level II milestones for 
     the National Ignition Facility are as established in the 
     August 2000 revised National Ignition Facility baseline 
     document.
       ``(2) The milestones for the National Ignition Facility to 
     achieve ignition are such milestones (other than the 
     milestones referred to in paragraph (1)) as the Administrator 
     shall establish on any activities at the National Ignition 
     Facility that are required to enable the National Ignition 
     Facility to achieve ignition and be a fully functioning user 
     facility by December 31, 2011.''.
       (d) Submittal to Congress of Milestones To Achieve 
     Ignition.--Not later than January 31, 2005, the Administrator 
     for Nuclear Security shall submit to the congressional 
     defense committees a report setting forth the milestones of 
     the National Ignition Facility to achieve ignition as 
     established by the Administration under subsection (c)(2) of 
     section 3137 of the National Defense Authorization Act for 
     Fiscal Year 2002, as amended by subsection (c) of this 
     section. The report shall include--
       (1) a description of each milestone established; and
       (2) a proposal for the funding to be required to meet each 
     such milestone.
       (e) Extension of Sunset.--Subsection (d) of section 3137 of 
     such Act is amended by striking ``September 30, 2004'' and 
     inserting ``December 31, 2011''.

     SEC. 3115. MODIFICATION OF SUBMITTAL DATE OF ANNUAL PLAN FOR 
                   STEWARDSHIP, MANAGEMENT, AND CERTIFICATION OF 
                   WARHEADS IN THE NUCLEAR WEAPONS STOCKPILE.

       Section 4203(c) of the Atomic Energy Defense Act (50 U.S.C. 
     2523(c)) is amended by striking ``March 15 of each year 
     thereafter'' and inserting ``May 1 of each year thereafter''.

     SEC. 3116. DEFENSE SITE ACCELERATION COMPLETION.

       (a) In General.--Notwithstanding the provisions of the 
     Nuclear Waste Policy Act of 1982, the requirements of section 
     202 of the Energy Reorganization Act of 1974, and other laws 
     that define classes of radioactive waste, with respect to 
     material stored at a Department of Energy site at which 
     activities are regulated by a covered State pursuant to 
     approved closure plans or permits issued by the State, the 
     term ``high-level radioactive waste'' does not include 
     radioactive waste resulting from the reprocessing of spent 
     nuclear fuel that the Secretary of Energy (in this section 
     referred to as the ``Secretary''), in consultation with the 
     Nuclear Regulatory Commission (in this section referred to as 
     the ``Commission''), determines--
       (1) does not require permanent isolation in a deep geologic 
     repository for spent fuel or high-level radioactive waste;
       (2) has had highly radioactive radionuclides removed to the 
     maximum extent practical; and
       (3)(A) does not exceed concentration limits for Class C 
     low-level waste as set out in section 61.55 of title 10, Code 
     of Federal Regulations, and will be disposed of--
       (i) in compliance with the performance objectives set out 
     in subpart C of part 61 of title 10, Code of Federal 
     Regulations; and
       (ii) pursuant to a State-approved closure plan or State-
     issued permit, authority for the approval or issuance of 
     which is conferred on the State outside of this section; or
       (B) exceeds concentration limits for Class C low-level 
     waste as set out in section 61.55 of title 10, Code of 
     Federal Regulations, but will be disposed of--
       (i) in compliance with the performance objectives set out 
     in subpart C of part 61 of title 10, Code of Federal 
     Regulations;
       (ii) pursuant to a State-approved closure plan or State-
     issued permit, authority for the approval or issuance of 
     which is conferred on the State outside of this section; and
       (iii) pursuant to plans developed by the Secretary in 
     consultation with the Commission.
       (b) Monitoring by Nuclear Regulatory Commission.--(1) The 
     Commission shall, in coordination with the covered State, 
     monitor disposal actions taken by the Department of Energy 
     pursuant to subparagraphs (A) and (B) of subsection (a)(3) 
     for the purpose of assessing compliance with the performance 
     objectives set out in subpart C of part 61 of title 10, Code 
     of Federal Regulations.
       (2) If the Commission considers any disposal actions taken 
     by the Department of Energy pursuant to those subparagraphs 
     to be not in compliance with those performance objectives, 
     the Commission shall, as soon as practicable after discovery 
     of the noncompliant conditions, inform the Department of 
     Energy, the covered State, and the following congressional 
     committees:
       (A) The Committee on Armed Services, the Committee on 
     Energy and Commerce, and the Committee on Appropriations of 
     the House of Representatives.
       (B) The Committee on Armed Services, the Committee on 
     Energy and Natural Resources, the Committee on Environment 
     and Public Works, and the Committee on Appropriations of the 
     Senate.
       (3) For fiscal year 2005, the Secretary shall, from amounts 
     available for defense site acceleration completion, reimburse 
     the Commission for all expenses, including salaries, that the 
     Commission incurs as a result of performance under subsection 
     (a) and this subsection for fiscal year 2005. The Department 
     of Energy and the Commission may enter into an interagency 
     agreement that specifies the method of reimbursement. Amounts 
     received by the Commission for performance under subsection 
     (a) and this subsection may be retained and used for salaries 
     and expenses associated with those activities, 
     notwithstanding section 3302 of title 31, United States Code, 
     and shall remain available until expended.
       (4) For fiscal years after 2005, the Commission shall 
     include in the budget justification materials submitted to 
     Congress in support of the Commission budget for that fiscal 
     year (as submitted with the budget of the President under 
     section 1105(a) of title 31, United States Code) the amounts 
     required, not offset by revenues, for performance under 
     subsection (a) and this subsection.
       (c) Inapplicability to Certain Materials.--Subsection (a) 
     shall not apply to any material otherwise covered by that 
     subsection that is transported from the covered State.
       (d) Covered States.--For purposes of this section, the 
     following States are covered States:
       (1) The State of South Carolina.
       (2) The State of Idaho.
       (e) Construction.--(1) Nothing in this section shall 
     impair, alter, or modify the full implementation of any 
     Federal Facility Agreement and Consent Order or other 
     applicable consent decree for a Department of Energy site.
       (2) Nothing in this section establishes any precedent or is 
     binding on the State of Washington, the State of Oregon, or 
     any other State not covered by subsection (d) for the 
     management, storage, treatment, and disposition of 
     radioactive and hazardous materials.
       (3) Nothing in this section amends the definition of 
     ``transuranic waste'' or regulations for repository disposal 
     of transuranic waste pursuant to the Waste Isolation Pilot 
     Plant Land

[[Page H9288]]

     Withdrawal Act or part 191 of title 40, Code of Federal 
     Regulations.
       (4) Nothing in this section shall be construed to affect in 
     any way the obligations of the Department of Energy to comply 
     with section 4306A of the Atomic Energy Defense Act (50 
     U.S.C. 2567).
       (5) Nothing in this section amends the West Valley 
     Demonstration Act (42 U.S.C. 2121a note).
       (f) Judicial Review.--Judicial review shall be available in 
     accordance with chapter 7 of title 5, United States Code, for 
     the following:
       (1) Any determination made by the Secretary or any other 
     agency action taken by the Secretary pursuant to this 
     section.
       (2) Any failure of the Commission to carry out its 
     responsibilities under subsection (b).

     SEC. 3117. TREATMENT OF WASTE MATERIAL.

       Of the amounts made available pursuant to the authorization 
     of appropriations in section 3102(1) for environmental 
     management for defense site acceleration completion for the 
     High-Level Waste Proposal, $350,000,000 shall be available at 
     specified sites for any defense site acceleration completion 
     activities at those sites, as follows:
       (1) The Idaho National Engineering and Environmental 
     Laboratory, Idaho, $97,300,000.
       (2) The Savannah River Site, Aiken, South Carolina, 
     $188,600,000.
       (3) The Hanford Site, Richland, Washington, $64,100,000.

     SEC. 3118. LOCAL STAKEHOLDER ORGANIZATIONS FOR 2006 CLOSURE 
                   SITES.

       (a) Establishment.--(1) The Secretary of Energy shall 
     establish for each Department of Energy 2006 closure site a 
     local stakeholder organization having the responsibilities 
     set forth in subsection (c).
       (2) The local stakeholder organization shall be established 
     in consultation with interested elected officials of local 
     governments in the vicinity of the closure site concerned.
       (b) Composition.--A local stakeholder organization for a 
     Department of Energy 2006 closure site under subsection (a) 
     shall be composed of such elected officials of local 
     governments in the vicinity of the closure site concerned as 
     the Secretary considers appropriate to carry out the 
     responsibilities set forth in subsection (c) who agree to 
     serve on the organization, or the designees of such 
     officials.
       (c) Responsibilities.--A local stakeholder organization for 
     a Department of Energy 2006 closure site under subsection (a) 
     shall--
       (1) solicit and encourage public participation in 
     appropriate activities relating to the closure and post-
     closure operations of the site;
       (2) disseminate information on the closure and post-closure 
     operations of the site to the State government of the State 
     in which the site is located, local and tribal governments in 
     the vicinity of the site, and persons and entities having a 
     stake in the closure or post-closure operations of the site;
       (3) transmit to appropriate officers and employees of the 
     Department of Energy questions and concerns of governments, 
     persons, and entities referred to paragraph (2) on the 
     closure and post-closure operations of the site; and
       (4) perform such other duties as the Secretary and the 
     local stakeholder organization jointly determine appropriate 
     to assist the Secretary in meeting post-closure obligations 
     of the Department at the site.
       (d) Deadline for Establishment.--The local stakeholder 
     organization for a Department of Energy 2006 closure site 
     shall be established not later than six months before the 
     closure of the site.
       (e) Department of Energy  2006 Closure Site Defined.--In 
     this section, the term ``Department of Energy 2006 closure 
     site'' means the following:
       (1) The Rocky Flats Environmental Technology Site, 
     Colorado.
       (2) The Fernald Plant, Ohio.
       (3) The Mound Plant, Ohio.

     SEC. 3119. REPORT TO CONGRESS ON ADVANCED NUCLEAR WEAPONS 
                   CONCEPTS INITIATIVE.

       (a) Report Required.--Not later than March 1, 2005, the 
     Administrator for Nuclear Security shall submit to the 
     congressional defense committees a detailed report on the 
     planned activities for studies under the Advanced Nuclear 
     Weapons Concepts Initiative for fiscal year 2005.
       (b) Form of Report.--The report under subsection (a) shall 
     be submitted in unclassified form, but may include a 
     classified annex.

                   Subtitle C--Proliferation Matters

     SEC. 3131. MODIFICATION OF AUTHORITY TO USE INTERNATIONAL 
                   NUCLEAR MATERIALS PROTECTION AND COOPERATION 
                   PROGRAM FUNDS OUTSIDE THE FORMER SOVIET UNION.

       (a) Applicability of Authority Limited to Projects Not 
     Previously Authorized.--Subsection (a) of section 3124 of the 
     National Defense Authorization Act for Fiscal Year 2004 
     (Public Law 108-136; 117 Stat. 1747) is amended by inserting 
     ``that has not previously been authorized by Congress'' after 
     ``states of the former Soviet Union''.
       (b) Repeal of Limitation on Total Amount of Obligation.--
     Such section is further amended--
       (1) by striking subsection (c); and
       (2) by redesignating subsections (d), (e), and (f) as 
     subsections (c), (d), and (e), respectively.
       (c) Applicability Beyond Fiscal Year 2004.--Subsection (e) 
     of such section (as redesignated by subsection (b)) is 
     amended by striking ``the funds appropriated pursuant to the 
     authorization of appropriations in section 3101(a)(2) for 
     such program'' and inserting ``the funds appropriated 
     pursuant to an authorization of appropriations for the 
     International Nuclear Materials Protection and Cooperation 
     Program''.

     SEC. 3132. ACCELERATION OF REMOVAL OR SECURITY OF FISSILE 
                   MATERIALS, RADIOLOGICAL MATERIALS, AND RELATED 
                   EQUIPMENT AT VULNERABLE SITES WORLDWIDE.

       (a) Sense of Congress.--(1) It is the sense of Congress 
     that the security, including the rapid removal or secure 
     storage, of high-risk, proliferation-attractive fissile 
     materials, radiological materials, and related equipment at 
     vulnerable sites worldwide should be a top priority among the 
     activities to achieve the national security of the United 
     States.
       (2) It is the sense of Congress that the President may 
     establish in the Department of Energy a task force to be 
     known as the Task Force on Nuclear Materials to carry out the 
     program authorized by subsection (b).
       (b) Program Authorized.--The Secretary of Energy may carry 
     out a program to undertake an accelerated, comprehensive 
     worldwide effort to mitigate the threats posed by high-risk, 
     proliferation-attractive fissile materials, radiological 
     materials, and related equipment located at sites potentially 
     vulnerable to theft or diversion.
       (c) Program Elements.--(1) Activities under the program 
     under subsection (b) may include the following:
       (A) Accelerated efforts to secure, remove, or eliminate 
     proliferation-attractive fissile materials or radiological 
     materials in research reactors, other reactors, and other 
     facilities worldwide.
       (B) Arrangements for the secure shipment of proliferation-
     attractive fissile materials, radiological materials, and 
     related equipment to other countries willing to accept such 
     materials and equipment, or to the United States if such 
     countries cannot be identified, and the provision of secure 
     storage or disposition of such materials and equipment 
     following shipment.
       (C) The transportation of proliferation-attractive fissile 
     materials, radiological materials, and related equipment from 
     sites identified as proliferation risks to secure facilities 
     in other countries or in the United States.
       (D) The processing and packaging of proliferation-
     attractive fissile materials, radiological materials, and 
     related equipment in accordance with required standards for 
     transport, storage, and disposition.
       (E) The provision of interim security upgrades for 
     vulnerable, proliferation-attractive fissile materials, 
     radiological materials, and related equipment pending their 
     removal from their current sites.
       (F) The utilization of funds to upgrade security and 
     accounting at sites where proliferation-attractive fissile 
     materials or radiological materials will remain for an 
     extended period of time in order to ensure that such 
     materials are secure against plausible potential threats and 
     will remain so in the future.
       (G) The management of proliferation-attractive fissile 
     materials, radiological materials, and related equipment at 
     secure facilities.
       (H) Actions to ensure that security, including security 
     upgrades at sites and facilities for the storage or 
     disposition of proliferation-attractive fissile materials, 
     radiological materials, and related equipment, continues to 
     function as intended.
       (I) The provision of technical support to the International 
     Atomic Energy Agency (IAEA), other countries, and other 
     entities to facilitate removal of, and security upgrades to 
     facilities that contain, proliferation-attractive fissile 
     materials, radiological materials, and related equipment 
     worldwide.
       (J) The development of alternative fuels and irradiation 
     targets based on low-enriched uranium to convert research or 
     other reactors fueled by highly-enriched uranium to such 
     alternative fuels, as well as the conversion of reactors and 
     irradiation targets employing highly-enriched uranium to 
     employment of such alternative fuels and targets.
       (K) Accelerated actions for the blend down of highly-
     enriched uranium to low-enriched uranium.
       (L) The provision of assistance in the closure and 
     decommissioning of sites identified as presenting risks of 
     proliferation of proliferation-attractive fissile materials, 
     radiological materials, and related equipment.
       (M) Programs to--
       (i) assist in the placement of employees displaced as a 
     result of actions pursuant to the program in enterprises not 
     representing a proliferation threat; and
       (ii) convert sites identified as presenting risks of 
     proliferation regarding proliferation-attractive fissile 
     materials, radiological materials, and related equipment to 
     purposes not representing a proliferation threat to the 
     extent necessary to eliminate the proliferation threat.
       (2) The Secretary of Energy shall, in coordination with the 
     Secretary of State, carry out the program in consultation 
     with, and with the assistance of, appropriate departments, 
     agencies, and other entities of the United States Government.
       (3) The Secretary of Energy shall, with the concurrence of 
     the Secretary of State, carry out activities under the 
     program in collaboration with such foreign governments, non-
     governmental organizations, and other international entities 
     as the Secretary of Energy considers appropriate for the 
     program.
       (d) Reports.--(1) Not later than March 15, 2005, the 
     Secretary of Energy shall submit to Congress a classified 
     interim report on the program under subsection (b).
       (2) Not later than January 1, 2006, the Secretary shall 
     submit to Congress a classified final report on the program 
     under subsection (b) that includes the following:
       (A) A survey by the Secretary of the facilities and sites 
     worldwide that contain proliferation-attractive fissile 
     materials, radiological materials, or related equipment.

[[Page H9289]]

       (B) A list of sites determined by the Secretary to be of 
     the highest priority, taking into account risk of theft from 
     such sites, for removal or security of proliferation-
     attractive fissile materials, radiological materials, or 
     related equipment, organized by level of priority.
       (C) A plan, including activities under the program under 
     this section, for the removal, security, or both of 
     proliferation-attractive fissile materials, radiological 
     materials, or related equipment at vulnerable facilities and 
     sites worldwide, including measurable milestones, metrics, 
     and estimated costs for the implementation of the plan.
       (3) A summary of each report under this subsection shall 
     also be submitted to Congress in unclassified form.
       (e) Funding.--Amounts authorized to be appropriated to the 
     Secretary of Energy for defense nuclear nonproliferation 
     activities shall be available for purposes of the program 
     under this section.
       (f) Definitions.--In this section:
       (1) The term ``fissile materials'' means plutonium, highly-
     enriched uranium, or other material capable of sustaining an 
     explosive nuclear chain reaction, including irradiated items 
     containing such materials if the radiation field from such 
     items is not sufficient to prevent the theft or misuse of 
     such items.
       (2) The term ``radiological materials'' includes Americium-
     241, Californium-252, Cesium-137, Cobalt-60, Iridium-192, 
     Plutonium-238, Radium-226, Strontium-90, Curium-244, and 
     irradiated items containing such materials, or other 
     materials designated by the Secretary of Energy for purposes 
     of this paragraph.
       (3) The term ``related equipment'' includes equipment 
     useful for enrichment of uranium in the isotope 235 and for 
     extraction of fissile materials from irradiated fuel rods and 
     other equipment designated by the Secretary of Energy for 
     purposes of this section.
       (4) The term ``highly-enriched uranium'' means uranium 
     enriched to or above 20 percent in the isotope 235.
       (5) The term ``low-enriched uranium'' means uranium 
     enriched below 20 percent in the isotope 235.
       (6) The term ``proliferation-attractive'', in the case of 
     fissile materials and radiological materials, means 
     quantities and types of such materials that are determined by 
     the Secretary of Energy to present a significant risk to the 
     national security of the United States if diverted to a use 
     relating to proliferation.

     SEC. 3133. SILK ROAD INITIATIVE.

       (a) Program Authorized.--(1) The Secretary of Energy may 
     carry out a program, to be known as the Silk Road Initiative, 
     to promote non-weapons-related employment opportunities for 
     scientists, engineers, and technicians formerly engaged in 
     activities to develop and produce weapons of mass destruction 
     in Silk Road nations. The program should--
       (A) incorporate best practices under the Initiatives for 
     Proliferation Prevention program; and
       (B) facilitate commercial partnerships between private 
     entities in the United States and scientists, engineers, and 
     technicians in the Silk Road nations.
       (2) Before implementing the program with respect to 
     multiple Silk Road nations, the Secretary of Energy shall 
     carry out a pilot program with respect to one Silk Road 
     nation selected by the Secretary. It is the sense of Congress 
     that the Secretary should select the Republic of Georgia.
       (b) Silk Road Nations Defined.--In this section, the Silk 
     Road nations are Armenia, Azerbaijan, the Republic of 
     Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, 
     and Uzbekistan.
       (c) Funding.--Of the funds authorized to be appropriated to 
     the Department of Energy for nonproliferation and 
     international security for fiscal year 2005, up to 
     $10,000,000 may be used to carry out this section.

     SEC. 3134. NUCLEAR NONPROLIFERATION FELLOWSHIPS FOR 
                   SCIENTISTS EMPLOYED BY UNITED STATES AND 
                   RUSSIAN FEDERATION.

       (a) In General.--(1) From amounts made available to carry 
     out this section, the Administrator for Nuclear Security may 
     carry out a program under which the Administrator awards, to 
     scientists employed at nonproliferation research laboratories 
     of the Russian Federation and the United States, 
     international exchange fellowships, to be known as Nuclear 
     Nonproliferation Fellowships, in the nuclear nonproliferation 
     sciences.
       (2) The purpose of the program shall be to provide 
     opportunities for advancement in the nuclear nonproliferation 
     sciences to scientists who, as demonstrated by their academic 
     or professional achievements, show particular promise of 
     making significant contributions in those sciences.
       (3) A fellowship awarded to a scientist under the program 
     shall be for collaborative study and training or advanced 
     research at--
       (A) a nonproliferation research laboratory of the Russian 
     Federation, in the case of a scientist employed at a 
     nonproliferation research laboratory of the United States; 
     and
       (B) a nonproliferation research laboratory of the United 
     States, in the case of a scientist employed at a 
     nonproliferation research laboratory of the Russian 
     Federation.
       (4) The duration of a fellowship under the program may not 
     exceed two years, except that the Administrator may provide 
     for a longer duration in an individual case to the extent 
     warranted by extraordinary circumstances, as determined by 
     the Administrator.
       (5) In a calendar year, the Administrator may not award 
     more than--
       (A) one fellowship to a scientist employed at a 
     nonproliferation research laboratory of the Russian 
     Federation; and
       (B) one fellowship to a scientist employed at a 
     nonproliferation research laboratory of the United States.
       (6) A fellowship under the program shall include--
       (A) travel expenses; and
       (B) any other expenses that the Administrator considers 
     appropriate, such as room and board.
       (b) Definitions.--In this section:
       (1) The term ``nonproliferation research laboratory'' 
     means, with respect to a country, a national laboratory of 
     that country at which research in the nuclear 
     nonproliferation sciences is carried out.
       (2) The term ``nuclear nonproliferation sciences'' means 
     bodies of scientific knowledge relevant to developing or 
     advancing the means to prevent or impede the proliferation of 
     nuclear weaponry.
       (3) The term ``scientist'' means an individual who has a 
     degree from an institution of higher education in a science 
     that has practical application in the nuclear 
     nonproliferation sciences.
       (c) Funding.--Amounts available to the Department of Energy 
     for defense nuclear nonproliferation activities shall be 
     available for the fellowships authorized by subsection (a).

     SEC. 3135. UTILIZATION OF INTERNATIONAL CONTRIBUTIONS TO THE 
                   ELIMINATION OF WEAPONS GRADE PLUTONIUM 
                   PRODUCTION PROGRAM.

       Section 3151 of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314; 
     116 Stat. 2736; 22 U.S.C. 5952 note) is amended by adding at 
     the end the following new subsection:
       ``(e) International Participation in Program.--(1) In order 
     to achieve international participation in the program 
     referred to in subsection (a), the Secretary of Energy may, 
     in consultation with the Secretary of State, enter into one 
     or more agreements with any person, foreign government, or 
     other international organization that the Secretary considers 
     appropriate for the contribution of funds by such person, 
     government, or organization for purposes of the program.
       ``(2) Notwithstanding section 3302 of title 31, United 
     States Code, and subject to paragraphs (3) and (4), the 
     Secretary may retain and utilize any amounts contributed by a 
     person, government, or organization under an agreement under 
     paragraph (1) for purposes of the program without further 
     appropriation and without fiscal year limitation.
       ``(3) The Secretary may not utilize under paragraph (2) any 
     amount contributed under an agreement under paragraph (1) 
     until 30 days after the date on which the Secretary notifies 
     the congressional defense committees of the intent to utilize 
     such amount, including the source of such amount and the 
     proposed purpose for which such amount will be utilized.
       ``(4) If any amount contributed under paragraph (1) has not 
     been utilized within five years of receipt under that 
     paragraph, the Secretary shall return such amount to the 
     person, government, or organization contributing such amount 
     under that paragraph.
       ``(5) Not later than 30 days after the receipt of any 
     amount contributed under paragraph (1), the Secretary shall 
     submit to the congressional defense committees a notice of 
     the receipt of such amount.
       ``(6) Not later than October 31 each year, the Secretary 
     shall submit to the congressional defense committees a report 
     on the receipt and utilization of amounts under this 
     subsection during the preceding fiscal year. Each report for 
     a fiscal year shall set forth--
       ``(A) a statement of any amounts received under this 
     subsection, including the source of each such amount; and
       ``(B) a statement of any amounts utilized under this 
     subsection, including the purpose for which such amounts were 
     utilized.
       ``(7) The authority of the Secretary to accept and utilize 
     amounts under this subsection shall expire on December 31, 
     2011.''.

                       Subtitle D--Other Matters

     SEC. 3141. INDEMNIFICATION OF DEPARTMENT OF ENERGY 
                   CONTRACTORS.

       Section 170 d.(1)(A) of the Atomic Energy Act of 1954 (42 
     U.S.C. 2210(d)(1)(A)) is amended by striking ``until December 
     31, 2004'' and inserting ``until December 31, 2006''.

     SEC. 3142. REPORT ON MAINTENANCE OF RETIREMENT BENEFITS FOR 
                   CERTAIN WORKERS AT 2006 CLOSURE SITES AFTER 
                   CLOSURE OF SITES.

       (a) Report Required.--Not later than 60 days after the date 
     of the enactment of this Act, the Assistant Secretary of 
     Energy for Environmental Management shall submit to the 
     Secretary of Energy a report on the maintenance of retirement 
     benefits for workers at Department of Energy 2006 closure 
     sites after closure of such sites.
       (b) Elements.--The report under subsection (a) shall 
     include the following:
       (1) The number of workers at Department of Energy 2006 
     closure sites who would be eligible for regular or early 
     retirement benefits if such sites close on or after their 
     target completion dates, but who would not be eligible for 
     regular or early retirement benefits if such sites close 
     before their target completion dates (by calendar quarter).
       (2) The cost of providing regular or full retirement 
     benefits, after the closure of Department of Energy 2006 
     closure sites, to workers at such sites who would fail to 
     qualify for regular or early retirement benefits because of 
     the early closure of such sites (by calendar quarter).
       (3) The impact on collective-bargaining agreements and any 
     applicable retirement benefit plan documents covering workers 
     at Department of Energy 2006 closure sites of providing 
     regular or early retirement benefits as set forth herein.
       (c) Transmittal to Congress.--Not later than 30 days after 
     receiving the report under

[[Page H9290]]

     subsection (a), the Secretary shall transmit the report to 
     Congress, together with such recommendations, including 
     recommendations for legislative action, as the Secretary 
     considers appropriate.
       (d) Definitions.--In this section:
       (1) The term ``Department of Energy 2006 closure site'' 
     means the following:
       (A) The Rocky Flats Environmental Technology Site, 
     Colorado.
       (B) The Fernald Plant, Ohio.
       (C) The Mound Plant, Ohio.
       (2) The term ``worker'' means any employee who is employed 
     by contract or first or second tier subcontract to perform 
     cleanup, security, or administrative duties or 
     responsibilities at a Department of Energy 2006 closure site.
       (3) The term ``retirement benefits'' means pension, health, 
     and other similar post-retirement benefits.
       (4) The term ``target completion date'', with respect to a 
     Department of Energy 2006 closure site, means the physical 
     completion date specified in the site contracts.

     SEC. 3143. REPORT ON EFFORTS OF NATIONAL NUCLEAR SECURITY 
                   ADMINISTRATION TO UNDERSTAND PLUTONIUM AGING.

       (a) Study.--(1) The Administrator for Nuclear Security 
     shall enter into a contract with a Federally Funded Research 
     and Development Center (FFRDC) providing for a study to 
     assess the efforts of the National Nuclear Security 
     Administration to understand the aging of plutonium in 
     nuclear weapons.
       (2) The Administrator shall make available to the FFRDC 
     contractor under this subsection all information that is 
     necessary for the contractor to successfully complete a 
     meaningful study on a timely basis.
       (b) Report Required.--(1) Not later than two years after 
     the date of the enactment of this Act, the Administrator 
     shall submit to Congress a report on the findings of the 
     study required by subsection (a)(1).
       (2) The report shall include the recommendations of the 
     study for improving the knowledge, understanding, and 
     application of the fundamental and applied sciences related 
     to the study of plutonium aging.
       (3) The report shall be submitted in unclassified form, but 
     may include a classified annex.

     SEC. 3144. SUPPORT FOR PUBLIC EDUCATION IN THE VICINITY OF 
                   LOS ALAMOS NATIONAL LABORATORY, NEW MEXICO.

       The Secretary of Energy shall require that the primary 
     management and operations contract for Los Alamos National 
     Laboratory, New Mexico, that involves Laboratory operations 
     after September 30, 2005, shall contain terms requiring the 
     contractor under such contract to provide support to the Los 
     Alamos Public School District, New Mexico, for the elementary 
     and secondary education of students in the school district in 
     the amount of $8,000,000 in each fiscal year.

     SEC. 3145. REVIEW OF WASTE ISOLATION PILOT PLANT, NEW MEXICO, 
                   PURSUANT TO COMPETITIVE CONTRACT.

       (a) Contract Requirement.--The Secretary of Energy shall 
     use competitive procedures to enter into a contract to 
     conduct independent reviews and evaluations of the design, 
     construction, and operations of the Waste Isolation Pilot 
     Plant in New Mexico (in this section referred to as the 
     ``WIPP'') as they relate to the protection of the public 
     health and safety and the environment. The contract shall be 
     for a period of one year, beginning on October 1, 2004, and 
     shall be renewable for four additional one-year periods with 
     the consent of the contractor and subject to the 
     authorization and appropriation of funds for such purpose.
       (b) Content of Contract.--A contract entered into under 
     subsection (a) shall require the following:
       (1) The contractor shall appoint a Director and Deputy 
     Director, who shall be scientists of national eminence in the 
     field of nuclear waste disposal, shall be free from any 
     biases related to the activities of the WIPP, and shall be 
     widely known for their integrity and scientific expertise.
       (2) The Director shall appoint staff. The professional 
     staff shall consist of scientists and engineers of recognized 
     integrity and scientific expertise who represent scientific 
     and engineering disciplines needed for a thorough review of 
     the WIPP, including disciplines such as geology, hydrology, 
     health physics, environmental engineering, probability risk 
     analysis, mining engineering, and radiation chemistry. The 
     disciplines represented in the staff shall change as may be 
     necessary to meet changed needs in carrying out the contract 
     for expertise in any certain scientific or engineering 
     discipline. Scientists and engineers employed under the 
     contract shall have qualifications and experience equivalent 
     to the qualifications and experience required for scientists 
     and engineers employed by the Federal Government in grades 
     GS-13 through GS-15.
       (3) Scientists and engineers employed under the contract 
     shall have an appropriate support staff.
       (4) The Director and Deputy Director shall each be 
     appointed for a term of 5 years, subject to contract renewal, 
     and may be removed only for misconduct or incompetence. The 
     staff shall be appointed for such terms as the Director 
     considers appropriate.
       (5) The rates of pay of professional staff and the 
     procedures for increasing the rates of pay of professional 
     staff shall be equivalent to those rates and procedures 
     provided for the General Schedule pay system under chapter 53 
     of title 5, United States Code.
       (6) The results of reviews and evaluations carried out 
     under the contract shall be published.
       (c) Administration.--The contractor shall establish general 
     policies and guidelines to be used by the Director in 
     carrying out the work under the contract.

     SEC. 3146. NATIONAL ACADEMY OF SCIENCES STUDY ON MANAGEMENT 
                   BY DEPARTMENT OF ENERGY OF CERTAIN RADIOACTIVE 
                   WASTE STREAMS.

       (a) Study Required.--The Secretary of Energy shall, as soon 
     as practicable, enter into an arrangement with the National 
     Research Council of the National Academy of Sciences to carry 
     out a study of the plans of the Department of Energy to 
     manage those waste streams specified in subsection (b) that--
       (1) exceed the concentration limits for Class C low-level 
     waste as set out in section 61.55 of title 10, Code of 
     Federal Regulations; and
       (2) the Department plans to dispose of on the sites 
     specified in subsection (b)(3) rather than in a repository 
     for spent nuclear fuel and high-level waste.
       (b) Covered Waste Streams.--The waste streams referred to 
     in subsection (a) are the streams of waste, from reprocessed 
     spent nuclear fuel, that--
       (1) exceed the concentration limits for Class C low-level 
     waste as set out in section 61.55 of title 10, Code of 
     Federal Regulations;
       (2) the Department does not plan for disposal in a 
     repository for spent nuclear fuel and high-level waste; and
       (3) are stored in tanks at the following sites:
       (A) The Savannah River Site, South Carolina.
       (B) The Idaho National Engineering Laboratory, Idaho.
       (C) The Hanford Reservation, Washington.
       (c) Matters Included.--The study required by subsection (a) 
     shall evaluate--
       (1) the state of the Department's understanding of the 
     physical, chemical, and radiological characteristics of the 
     waste referred to in subsection (b), including an assessment 
     of data uncertainties;
       (2) any actions additional to those contained in current 
     plans that the Department should consider to ensure that the 
     plans referred to in subsection (a) will comply with the 
     performance objectives of part 61 of title 10, Code of 
     Federal Regulations;
       (3) the adequacy of the Department's plans for monitoring 
     disposal sites and the surrounding environment to verify 
     compliance with those performance objectives;
       (4) existing technology alternatives to the plans referred 
     to in subsection (a) and, for each such alternative, an 
     assessment of the cost, consequences for worker safety, and 
     long-term consequences for environmental and human health;
       (5) any technology gaps that exist to effect improved 
     efficiency in removal and treatment of waste from the tanks 
     referred to in subsection (b)(3); and
       (6) any other matters that the National Research Council 
     considers appropriate and directly related to the subject 
     matter of the study.
       (d) Recommendations.--In carrying out the study required by 
     subsection (a), the National Research Council may develop 
     recommendations it considers appropriate and directly related 
     to the subject matter of the study. It is the sense of 
     Congress that the National Research Council should develop 
     recommendations on--
       (1) improvements to the scientific and technical basis for 
     managing the waste covered by the study, including the 
     identification of technology alternatives and mitigation of 
     technology gaps; and
       (2) the best means of monitoring any on-site disposal sites 
     from the waste streams referred to in subsection (b), to 
     include soil, groundwater, and surface water monitoring.
       (e) Reports.--(1) The National Research Council shall 
     submit to the Secretary of Energy and the congressional 
     committees described in paragraph (2)--
       (A) not later than six months after entering into the 
     arrangement required by subsection (a), an interim report on 
     the study that, with respect to the requirements of 
     subsection (c)(2), specifically addresses any additional 
     actions the Department should consider to ensure that the 
     Department's plans for the Savannah River Site, including 
     plans for grouting of tanks, will comply with the performance 
     objectives referred to in that subsection in a more effective 
     manner; and
       (B) not later than one year after entering into the 
     arrangement required by subsection (a), a final report on the 
     study that includes all findings, conclusions, and 
     recommendations.
       (2) The congressional committees referred to in paragraph 
     (1) are as follows:
       (A) The Committee on Appropriations, Committee on Armed 
     Services, and Committee on Energy and Commerce of the House 
     of Representatives.
       (B) The Committee on Appropriations, Committee on Armed 
     Services, Committee on Energy and Natural Resources, and 
     Committee on Environment and Public Works of the Senate.
       (f) Provision of Information.--The Secretary of Energy 
     shall, in a timely manner, make available to the National 
     Research Council all information that the National Research 
     Council considers necessary to carry out its responsibilities 
     under this section.
       (g) Rule of Construction.--This section shall not be 
     construed to affect section 3116.
       (h) Funding.--Of the amounts made available to the 
     Department of Energy pursuant to the authorization of 
     appropriations in section 3102, $1,500,000 shall be available 
     only for carrying out the study required by this section.

     SEC. 3147. COMPENSATION OF PAJARITO PLATEAU, NEW MEXICO, 
                   HOMESTEADERS FOR ACQUISITION OF LANDS FOR 
                   MANHATTAN PROJECT IN WORLD WAR II.

       (a) Establishment of Compensation Fund.--There is 
     established in the Treasury of the United States a fund to be 
     known as the Pajarito Plateau Homesteaders Compensation Fund 
     (in this section referred to as the ``Fund''). The Fund shall 
     be dedicated to the

[[Page H9291]]

     settlement of the two lawsuits in the United States District 
     Court for the District of New Mexico consolidated as Civ. No. 
     00-60.
       (b) Elements of Fund.--The Fund shall consist of the 
     following:
       (1) Amounts available for deposit in the Fund under 
     subsection (j).
       (2) Interest earned on amounts in the Fund under subsection 
     (g).
       (c) Use of Fund.--The Fund shall be available for the 
     settlement of the consolidated lawsuits in accordance with 
     the following requirements:
       (1) The settlement shall be subject to preliminary and 
     final approval by the Court in accordance with rule 23(e) of 
     the Federal Rules of Civil Procedure.
       (2) The Court shall appoint a special master in accordance 
     with rule 53 of the Federal Rules of Civil Procedure to--
       (A) identify class members;
       (B) receive claims from class members so identified;
       (C) determine in accordance with subsection (d) eligible 
     claimants from among class members so identified;
       (D) resolve contests, if any, among claimants with respect 
     to a particular eligible tract, regarding the disbursement of 
     monies in the Fund with respect to that eligible tract; and
       (E) address such other matters as the Court may order.
       (3) Lead counsel for claimants shall provide evidence to 
     the special master to assist the special master in the duties 
     set forth in paragraph (2).
       (4) If more than 10 percent of the class members object to 
     the settlement, or the Court fails to approve the 
     settlement--
       (A) the Fund shall not serve as the basis for the 
     settlement of the consolidated lawsuits and the provisions of 
     this section shall have no further force or effect; and
       (B) amounts in the Fund shall not be disbursed, but shall 
     be retained in the Treasury as miscellaneous receipts.
       (5) The Court may award compensation for the special master 
     and attorney fees and expenses from the Fund pursuant to rule 
     23 of the Federal Rules of Civil Procedure, except that the 
     award of attorney fees may not exceed 20 percent of the Fund 
     and the award of expenses may not exceed 2 percent of the 
     Fund. Any compensation and attorney fees and expenses so paid 
     shall be paid from the Fund by the Court before distribution 
     of the amount in the Fund to eligible claimants entitled 
     thereto.
       (6) The Fund shall be available to pay settlement awards in 
     accordance with the following:
       (A) The balance of the amount of the Fund that is available 
     for disbursement after any award of attorney fees and 
     expenses under paragraph (5) shall be allocated 
     proportionally by eligible tract according to its acreage as 
     compared with all eligible tracts.
       (B) The allocation for each eligible tract shall be 
     allocated pro rata among all eligible claimants having an 
     interest in such eligible tract according to the extent of 
     their interest in such eligible tract, as determined under 
     the laws of the State of New Mexico.
       (7) The special master shall disburse the allocated amounts 
     from the Fund after approval by the Court.
       (8) Any amounts available for disbursement with respect to 
     an eligible tract that are not awarded to eligible claimants 
     with respect to that tract shall be retained in the Treasury 
     as miscellaneous receipts.
       (d) Eligible Claimants.--(1) For purposes of this section, 
     an eligible claimant is any class member determined by the 
     Court, by a preponderance of evidence, to be a person or 
     entity who held a fee simple ownership in an eligible tract 
     at the time of its acquisition by the United States during 
     World War II for use in the Manhattan Project, or the heir, 
     successor in interest, assignee, or beneficiary of such a 
     person or entity.
       (2) The status of a person or entity as an heir, successor 
     in interest, assignee, or beneficiary for purposes of this 
     subsection shall be determined under the laws of the State of 
     New Mexico, including the descent and distribution law of the 
     State of New Mexico.
       (e) Full Resolution of Claims Against United States.--(1) 
     The acceptance of a disbursement from the Fund by an eligible 
     claimant under this section shall constitute a final and 
     complete release of the defendants in the consolidated 
     lawsuits with respect to such eligible claimant, and shall be 
     in full satisfaction of any and all claims of such eligible 
     claimant against the United States arising out of acts 
     described in the consolidated lawsuits.
       (2) Upon the disbursement of the amount in the Fund to 
     eligible claimants entitled thereto under this section, the 
     Court shall, subject to the provisions of rule 23(e) of the 
     Federal Rules of Civil Procedure, enter a final judgment 
     dismissing with prejudice the consolidated lawsuits and all 
     claims and potential claims on matters covered by the 
     consolidated lawsuits.
       (f) Compensation Limited to Amounts in Fund.--(1) An 
     eligible claimant may be paid under this section only from 
     amounts in the Fund.
       (2) Nothing in this section shall authorize the payment to 
     a class member by the United States Government of any amount 
     authorized by this section from any source other than the 
     Fund.
       (g) Investment of Fund.--(1) The Secretary of the Treasury 
     shall, in accordance with the requirements of section 9702 of 
     title 31, United States Code, and the provisions of this 
     subsection, direct the form and manner by which the Fund 
     shall be safeguarded and invested so as to maximize its 
     safety while earning a return comparable to other common 
     funds in which the United States Treasury is the source of 
     payment.
       (2) Interest on the amount deposited in the Fund shall 
     accrue from the date of the enactment of the Act 
     appropriating amounts for deposit in the Fund until the date 
     on which the Secretary of the Treasury disburses the amount 
     in the Fund to eligible claimants who are entitled thereto 
     under subsection (c).
       (h) Preservation of Records.--(1) All documents, personal 
     testimony, and other records created or received by the Court 
     in the consolidated lawsuits shall be kept and maintained by 
     the Archivist of the United States, who shall preserve such 
     documents, testimony, and records in the National Archives of 
     the United States.
       (2) The Archivist shall make available to the public the 
     materials kept and maintained under paragraph (1).
       (i) Definitions.--In this section:
       (1) The term ``Court'' means the United States District 
     Court for the District of New Mexico having jurisdiction over 
     the consolidated lawsuits.
       (2) The term ``consolidated lawsuits'' means the two 
     lawsuits in the United States District Court for the District 
     of New Mexico consolidated as Civ. No. 00-60.
       (3)(A) The term ``eligible tract'' means private real 
     property located on the Pajarito Plateau of what is now Los 
     Alamos County, New Mexico, that was acquired by the United 
     States during World War II for use in the Manhattan Project 
     and which is the subject of the consolidated lawsuits.
       (B) The term does not include lands of the Los Alamos Ranch 
     School and of the A.M. Ross Estate (doing business as Anchor 
     Ranch).
       (4) The term ``class member'' means the following:
       (A) Any person or entity who claims to have held a fee 
     simple ownership in an eligible tract at the time of its 
     acquisition by the United States during World War II for use 
     in the Manhattan Project.
       (B) Any person or entity claiming to be the heir, successor 
     in interest, assignee, or beneficiary of a person or entity 
     who held a fee simple ownership in an eligible tract at the 
     time of its acquisition by the United States during World War 
     II for use in the Manhattan Project.
       (j) Funding.--Of the amount authorized to be appropriated 
     by section 3101(a)(4) for the National Nuclear Security 
     Administration for the Office of the Administrator for 
     Nuclear Security, $10,000,000 shall be available for deposit 
     in the Fund under subsection (b)(1).

     SEC. 3148. MODIFICATION OF REQUIREMENTS RELATING TO 
                   CONVEYANCES AND TRANSFER OF CERTAIN LAND AT LOS 
                   ALAMOS NATIONAL LABORATORY, NEW MEXICO.

       Section 632(a) of Public Law 105-119 (111 Stat. 2523; 42 
     U.S.C. 2391 note) is amended--
       (1) in paragraph (1)--
       (A) by inserting ``except as provided in paragraph (2),'' 
     before ``convey''; and
       (B) by striking ``and'' at the end;
       (2) by redesignating paragraph (2) as paragraph (3); and
       (3) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) notwithstanding paragraph (1) and the agreement under 
     subsection (e), convey, without consideration, to the Board 
     of Education of the Los Alamos Public Schools, New Mexico, 
     within the County, fee title to the parcels of land 
     identified by the Department of Energy as Parcel A-8 and 
     Parcel A-15-1 that are currently located in Technical Area-21 
     of Los Alamos National Laboratory upon the entry of Los 
     Alamos Public Schools and the County into an agreement for 
     the use of the parcel of land identified as Parcel A-8; 
     and''.

 Subtitle E--Energy Employees Occupational Illness Compensation Program

     SEC. 3161. CONTRACTOR EMPLOYEE COMPENSATION.

       The Energy Employees Occupational Illness Compensation 
     Program Act of 2000 (title XXXVI of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted into law by Public Law 106-398)) is amended by adding 
     after subtitle D (42 U.S.C. 7385o) the following new title:

             ``Subtitle E--Contractor Employee Compensation

     ``SEC. 3671. DEFINITIONS.

       ``In this subtitle:
       ``(1) The term `covered DOE contractor employee' means any 
     Department of Energy contractor employee determined under 
     section 3675 to have contracted a covered illness through 
     exposure at a Department of Energy facility.
       ``(2) The term `covered illness' means an illness or death 
     resulting from exposure to a toxic substance.
       ``(3) The term `Secretary' means the Secretary of Labor.

     ``SEC. 3672. COMPENSATION TO BE PROVIDED.

       ``Subject to the other provisions of this subtitle:
       ``(1) Contractor employees.--A covered DOE contractor 
     employee shall receive contractor employee compensation under 
     this subtitle in accordance with section 3673.
       ``(2) Survivors.--After the death of a covered DOE 
     contractor employee, compensation referred to in paragraph 
     (1) shall not be paid. Instead, the survivor of that employee 
     shall receive compensation as follows:
       ``(A) Except as provided in subparagraph (B), the survivor 
     of that employee shall receive contractor employee 
     compensation under this subtitle in accordance with section 
     3674.
       ``(B) In a case in which the employee's death occurred 
     after the employee applied under this subtitle and before 
     compensation was paid under paragraph (1), and the employee's 
     death occurred from a cause other than the covered illness of 
     the employee, the survivor of that employee may elect to 
     receive, in lieu of compensation under subparagraph (A), the 
     amount of contractor employee compensation that the employee 
     would have received in accordance with

[[Page H9292]]

     section 3673 if the employee's death had not occurred before 
     compensation was paid under paragraph (1).

     ``SEC. 3673. COMPENSATION SCHEDULE FOR CONTRACTOR EMPLOYEES.

       ``(a) Compensation Provided.--The amount of contractor 
     employee compensation under this subtitle for a covered DOE 
     contractor employee shall be the sum of the amounts 
     determined under paragraphs (1) and (2), as follows:
       ``(1) Impairment.--(A) The Secretary shall determine--
       ``(i) the minimum impairment rating of that employee, 
     expressed as a number of percentage points; and
       ``(ii) the number of those points that are the result of 
     any covered illness contracted by that employee through 
     exposure to a toxic substance at a Department of Energy 
     facility.
       ``(B) The employee shall receive an amount under this 
     paragraph equal to $2,500 multiplied by the number referred 
     to in clause (ii) of subparagraph (A).
       ``(2) Wage loss.--(A) The Secretary shall determine--
       ``(i) the calendar month during which the employee first 
     experienced wage loss as the result of any covered illness 
     contracted by that employee through exposure to a toxic 
     substance at a Department of Energy facility;
       ``(ii) the average annual wage of the employee for the 36-
     month period immediately preceding the calendar month 
     referred to in clause (i), excluding any portions of that 
     period during which the employee was unemployed; and
       ``(iii) beginning with the calendar year that includes the 
     calendar month referred to in clause (i), through and 
     including the calendar year during which the employee 
     attained normal retirement age (for purposes of the Social 
     Security Act)--
       ``(I) the number of calendar years during which, as the 
     result of any covered illness contracted by that employee 
     through exposure to a toxic substance at a Department of 
     Energy facility, the employee's annual wage exceeded 50 
     percent of the average annual wage determined under clause 
     (ii), but did not exceed 75 percent of the average annual 
     wage determined under clause (ii); and
       ``(II) the number of calendar years during which, as the 
     result of any covered illness contracted by that employee 
     through exposure to a toxic substance at a Department of 
     Energy facility, the employee's annual wage did not exceed 50 
     percent of the average annual wage determined under clause 
     (ii).
       ``(B) The employee shall receive an amount under this 
     paragraph equal to the sum of--
       ``(i) $10,000 multiplied by the number referred to in 
     clause (iii)(I) of subparagraph (A); and
       ``(ii) $15,000 multiplied by the number referred to in 
     clause (iii)(II) of subparagraph (A).
       ``(b) Determination of Minimum Impairment Rating.--For 
     purposes of subsection (a), a minimum impairment rating shall 
     be determined in accordance with the American Medical 
     Association's Guides to the Evaluation of Permanent 
     Impairment.

     ``SEC. 3674. COMPENSATION SCHEDULE FOR SURVIVORS.

       ``(a) Categories of Compensation.--The amount of contractor 
     employee compensation under this subtitle for the survivor of 
     a covered DOE contractor employee shall be determined as 
     follows:
       ``(1) Category one.--The survivor shall receive the amount 
     of $125,000, if the Secretary determines that--
       ``(A) the employee would have been entitled to compensation 
     under section 3675 for a covered illness; and
       ``(B) it is at least as likely as not that exposure to a 
     toxic substance at a Department of Energy facility was a 
     significant factor in aggravating, contributing to, or 
     causing the death of such employee.
       ``(2) Category two.--The survivor shall receive the amount 
     of $150,000, if paragraph (1) applies to the employee and the 
     Secretary also determines that there was an aggregate period 
     of not less than 10 years, before the employee attained 
     normal retirement age (for purposes of the Social Security 
     Act), during which, as the result of any covered illness 
     contracted by that employee through exposure to a toxic 
     substance at a Department of Energy facility, the employee's 
     annual wage did not exceed 50 percent of the average annual 
     wage of that employee, as determined under section 
     3673(a)(2)(A)(ii).
       ``(3) Category three.--The survivor shall receive the 
     amount of $175,000, if paragraph (1) applies to the employee 
     and the Secretary also determines that there was an aggregate 
     period of not less than 20 years, before the employee 
     attained normal retirement age (for purposes of the Social 
     Security Act), during which, as the result of any covered 
     illness contracted by that employee through exposure to a 
     toxic substance at a Department of Energy facility, the 
     employee's annual wage did not exceed 50 percent of the 
     average annual wage of that employee, as determined under 
     section 3673(a)(2)(A)(ii).
       ``(b) One Amount Only.--The survivor of a covered DOE 
     contractor employee to whom more than one amount under 
     subsection (a) applies shall receive only the highest such 
     amount.
       ``(c) Determination and Allocation of Shares.--The amount 
     under subsection (a) shall be paid only as follows:
       ``(1) If a covered spouse is alive at the time of payment, 
     such payment shall be made to such surviving spouse.
       ``(2) If there is no covered spouse described in paragraph 
     (1), such payment shall be made in equal shares to all 
     covered children who are alive at the time of payment.
       ``(3) Notwithstanding the other provisions of this 
     subsection, if there is--
       ``(A) a covered spouse described in paragraph (1); and
       ``(B) at least one covered child of the employee who is 
     living at the time of payment and who is not a recognized 
     natural child or adopted child of such covered spouse,

     ``then half of such payment shall be made to such covered 
     spouse, and the other half of such payment shall be made in 
     equal shares to each covered child of the employee who is 
     living at the time of payment.
       ``(d) Definitions.--In this section:
       ``(1) The term `covered spouse' means a spouse of the 
     employee who was married to the employee for at least one 
     year immediately before the employee's death.
       ``(2) The term `covered child' means a child of the 
     employee who, as of the employee's death--
       ``(A) had not attained the age of 18 years;
       ``(B) had not attained the age of 23 years and was a full-
     time student who had been continuously enrolled as a full-
     time student in one or more educational institutions since 
     attaining the age of 18 years; or
       ``(C) had been incapable of self-support.
       ``(3) The term `child' includes a recognized natural child, 
     a stepchild who lived with an individual in a regular parent-
     child relationship, and an adopted child.

     ``SEC. 3675. DETERMINATIONS REGARDING CONTRACTION OF COVERED 
                   ILLNESSES.

       ``(a) Cases Determined Under Subtitle B.--A determination 
     under subtitle B that a Department of Energy contractor 
     employee is entitled to compensation under that subtitle for 
     an occupational illness shall be treated for purposes of this 
     subtitle as a determination that the employee contracted that 
     illness through exposure at a Department of Energy facility.
       ``(b) Cases Determined Under Former Subtitle D.--In the 
     case of a covered illness of an employee with respect to 
     which a panel has made a positive determination under section 
     3661(d) and the Secretary of Energy has accepted that 
     determination under section 3661(e)(2), or with respect to 
     which a panel has made a negative determination under section 
     3661(d) and the Secretary of Energy has found significant 
     evidence to the contrary under section 3661(e)(2), that 
     determination shall be treated for purposes of this subtitle 
     as a determination that the employee contracted the covered 
     illness through exposure at a Department of Energy facility.
       ``(c) Other Cases.--(1) In any other case, a Department of 
     Energy contractor employee shall be determined for purposes 
     of this subtitle to have contracted a covered illness through 
     exposure at a Department of Energy facility if--
       ``(A) it is at least as likely as not that exposure to a 
     toxic substance at a Department of Energy facility was a 
     significant factor in aggravating, contributing to, or 
     causing the illness; and
       ``(B) it is at least as likely as not that the exposure to 
     such toxic substance was related to employment at a 
     Department of Energy facility.
       ``(2) A determination under paragraph (1) shall be made by 
     the Secretary.
       ``(d) Applications by Spouses and Children.--If a spouse or 
     child of a Department of Energy contractor employee applies 
     for benefits under this subtitle, the Secretary shall make a 
     determination under this section with respect to that 
     employee without regard to whether the spouse is a `covered 
     spouse', or the child is a `covered child', under this 
     subtitle.

     ``SEC. 3676. APPLICABILITY TO CERTAIN URANIUM EMPLOYEES.

       ``(a) In General.--This subtitle shall apply to--
       ``(1) a section 5 payment recipient who contracted a 
     section 5 illness through a section 5 exposure at a section 5 
     facility, or
       ``(2) a section 5 uranium worker determined under section 
     3675(c) to have contracted a covered illness through exposure 
     to a toxic substance at a section 5 mine or mill,

     ``(or to the survivor of that employee, as applicable) on the 
     same basis as it applies to a Department of Energy contractor 
     employee determined under section 3675 to have contracted a 
     covered illness through exposure to a toxic substance at a 
     Department of Energy facility (or to the survivor of that 
     employee, as applicable).
       ``(b) Definitions.--In this section:
       ``(1) The term `section 5 payment recipient' means an 
     individual who receives, or has received, $100,000 under 
     section 5 of the Radiation Exposure Compensation Act (42 
     U.S.C. 2210 note) for a claim made under that Act.
       ``(2) The terms `section 5 exposure', `section 5 facility', 
     and `section 5 illness' mean the exposure, facility, and 
     illness, respectively, to which an individual's status as a 
     section 5 payment recipient relates.
       ``(3) The term `section 5 uranium worker' means an 
     individual to whom subsection (a)(1)(A)(i) of section 5 of 
     the Radiation Exposure Compensation Act applies (whether 
     directly or by reason of subsection (a)(2)).
       ``(4) The term `section 5 mine or mill' means the mine or 
     mill to which an individual's status as a section 5 uranium 
     worker relates.

     ``SEC. 3677. ADMINISTRATIVE AND JUDICIAL REVIEW.

       ``(a) Judicial Review.--A person adversely affected or 
     aggrieved by a final decision of the Secretary under this 
     subtitle may review that order in the United States district 
     court in the district in which the injury was sustained, the 
     employee lives, the survivor lives, or the District of 
     Columbia, by filing in such court within 60 days after the 
     date on which that final decision was issued a written 
     petition praying that such decision be modified or set aside. 
     The person shall also provide a copy of the petition to the 
     Secretary. Upon such filing, the court shall have 
     jurisdiction over the proceeding and shall have the power to 
     affirm, modify, or set aside, in whole or in part, such 
     decision. The court may modify or set aside such decision 
     only if the

[[Page H9293]]

     court determines that such decision was arbitrary and 
     capricious.
       ``(b) Administrative Review.--The Secretary shall ensure 
     that recommended decisions of the Secretary with respect to a 
     claim under this subtitle are subject to administrative 
     review. The Secretary shall prescribe regulations for 
     carrying out such review or shall apply to this subtitle the 
     regulations applicable to recommended decisions under 
     subtitle B.

     ``SEC. 3678. PHYSICIANS SERVICES.

       ``(a) In General.--The Secretary may utilize the services 
     of physicians for purposes of making determinations under 
     this subtitle.
       ``(b) Physicians.--Any physicians whose services are 
     utilized under subsection (a) of this section shall possess 
     appropriate expertise and experience in the evaluation and 
     determination of the extent of permanent physical impairments 
     or in the evaluation and diagnosis of illnesses or deaths 
     aggravated, contributed to, or caused by exposure to toxic 
     substances.
       ``(c) Arrangement.--The Secretary may secure the services 
     of physicians utilized under subsection (a) of this section 
     through the appointment of physicians or by contract.

     ``SEC. 3679. MEDICAL BENEFITS.

       ``A covered DOE contractor employee shall be furnished 
     medical benefits specified in section 3629 for the covered 
     illness to the same extent, and under the same conditions and 
     limitations, as an individual eligible for medical benefits 
     under that section is furnished medical benefits under that 
     section.

     ``SEC. 3680. ATTORNEY FEES.

       ``Section 3648 shall apply to a payment under this subtitle 
     to the same extent that it applies to a payment under 
     subtitle B.

     ``SEC. 3681. ADMINISTRATIVE MATTERS.

       ``(a) In General.--The Secretary shall administer this 
     subtitle.
       ``(b) Contract Authority.--The Secretary may enter into 
     contracts with appropriate persons and entities to administer 
     this subtitle.
       ``(c) Records.--(1)(A) The Secretary of Energy shall 
     provide to the Secretary all records, files, and other data, 
     whether paper, electronic, imaged, or otherwise, developed by 
     the Secretary of Energy that are applicable to the 
     administration of this subtitle, including records, files, 
     and data on facility industrial hygiene, employment of 
     individuals or groups, exposure and medical records, and 
     claims applications.
       ``(B) In providing records, files, and other data under 
     this paragraph, the Secretary of Energy shall preserve the 
     current organization of such records, files, and other data, 
     and shall provide such description and indexing of such 
     records, files, and other data as the Secretary considers 
     appropriate to facilitate their use by the Secretary.
       ``(2) The Secretary of Energy and the Secretary shall 
     jointly undertake such actions as are appropriate to retrieve 
     records applicable to the claims of Department of Energy 
     contractor employees for contractor employee compensation 
     under this subtitle, including employment records, records of 
     exposure to beryllium, radiation, silica, or other toxic 
     substances, and records regarding medical treatment.
       ``(d) Information.--At the request of the Secretary, the 
     Secretary of Energy and any contractor who employed a 
     Department of Energy contractor employee shall, within time 
     periods specified by the Secretary, provide to the Secretary 
     and to the employee information or documents in response to 
     the request.
       ``(e) Regulations.--The Secretary shall prescribe 
     regulations necessary for the administration of this 
     subtitle. The initial regulations shall be prescribed not 
     later than 210 days after the date of the enactment of this 
     subtitle. The Secretary may prescribe interim final 
     regulations necessary to meet the deadlines specified in this 
     subtitle.
       ``(f) Transition Provisions.--(1) The Secretary shall 
     commence the administration of the provisions of this 
     subtitle not later than 210 days after the date of the 
     enactment of this subtitle.
       ``(2) Until the commencement of the administration of this 
     subtitle, the Department of Energy Physicians Panels 
     appointed pursuant to subtitle D shall continue to consider 
     and issue determinations concerning any cases pending before 
     such Panels immediately before the date of the enactment of 
     this subtitle.
       ``(3) The Secretary shall take such actions as are 
     appropriate to identify other activities under subtitle D 
     that will continue until the commencement of the 
     administration of subtitle E.
       ``(g) Previous Applications.--Upon the commencement of the 
     administration of this subtitle, any application previously 
     filed with the Secretary of Energy pursuant to subtitle D 
     shall be considered to have been filed with the Secretary as 
     a claim for benefits pursuant to this subtitle.

     ``SEC. 3682. COORDINATION OF BENEFITS WITH RESPECT TO STATE 
                   WORKERS COMPENSATION.

       ``(a) In General.--An individual who has been awarded 
     compensation under this subtitle, and who has also received 
     benefits from a State workers compensation system by reason 
     of the same covered illness, shall receive compensation 
     specified in this subtitle reduced by the amount of any 
     workers compensation benefits, other than medical benefits 
     and benefits for vocational rehabilitation, that the 
     individual has received under the State workers compensation 
     system by reason of the covered illness, after deducting the 
     reasonable costs, as determined by the Secretary, of 
     obtaining those benefits under the State workers compensation 
     system.
       ``(b) Waiver.--The Secretary may waive the provisions of 
     subsection (a) if the Secretary determines that the 
     administrative costs and burdens of implementing subsection 
     (a) with respect to a particular case or class of cases 
     justifies such a waiver.
       ``(c) Information.--Notwithstanding any other provision of 
     law, each State workers compensation authority shall, upon 
     request of the Secretary, provide to the Secretary on a 
     quarterly basis information concerning workers compensation 
     benefits received by any covered DOE contractor employee 
     entitled to compensation or benefits under this subtitle, 
     which shall include the name, Social Security number, and 
     nature and amount of workers compensation benefits for each 
     such employee for which the request was made.

     ``SEC. 3683. MAXIMUM AGGREGATE COMPENSATION.

       ``For each individual whose illness or death serves as the 
     basis for compensation or benefits under this subtitle, the 
     total amount of compensation (other than medical benefits) 
     paid under this subtitle, to all persons, in the aggregate, 
     on the basis of that illness or death shall not exceed 
     $250,000.

     ``SEC. 3684. FUNDING OF ADMINISTRATIVE COSTS.

       ``There is authorized and hereby appropriated to the 
     Secretary for fiscal year 2005 and thereafter such sums as 
     may be necessary to carry out this subtitle.

     ``SEC. 3685. PAYMENT OF COMPENSATION AND BENEFITS FROM 
                   COMPENSATION FUND.

       ``The compensation and benefits provided under this title, 
     when authorized or approved by the President, shall be paid 
     from the compensation fund established under section 3612.

     ``SEC. 3686. OFFICE OF OMBUDSMAN.

       ``(a) Establishment.--There is established in the 
     Department of Labor an office to be known as the `Office of 
     the Ombudsman' (in this section referred to as the `Office').
       ``(b) Head.--The head of the Office shall be the Ombudsman. 
     The individual serving as Ombudsman shall be either of the 
     following:
       ``(1) An officer or employee of the Department of Labor 
     designated by the Secretary for purposes of this section from 
     among officers and employees of the Department who have 
     experience and expertise necessary to carry out the duties of 
     the Office specified in subsection (c).
       ``(2) An individual employed by the Secretary from the 
     private sector from among individuals in the private sector 
     who have experience and expertise necessary to carry out the 
     duties of the Office specified in subsection (c).
       ``(c) Duties.--The duties of the Office shall be as 
     follows:
       ``(1) To provide information on the benefits available 
     under this subtitle and on the requirements and procedures 
     applicable to the provision of such benefits.
       ``(2) To make recommendations to the Secretary regarding 
     the location of centers (to be known as `resource centers') 
     for the acceptance and development of claims for benefits 
     under this subtitle.
       ``(3) To carry out such other duties with respect to this 
     subtitle as the Secretary shall specify for purposes of this 
     section.
       ``(d) Independent Office.--The Secretary shall take 
     appropriate actions to ensure the independence of the Office 
     within the Department of Labor, including independence from 
     other officers and employees of the Department engaged in 
     activities relating to the administration of the provisions 
     of this subtitle.
       ``(e) Annual Report.--(1) Not later than February 15 each 
     year, the Ombudsman shall submit to Congress a report on 
     activities under this subtitle.
       ``(2) Each report under paragraph (1) shall set forth the 
     following:
       ``(A) The number and types of complaints, grievances, and 
     requests for assistance received by the Ombudsman under this 
     subtitle during the preceding year.
       ``(B) An assessment of the most common difficulties 
     encountered by claimants and potential claimants under this 
     subtitle during the preceding year.
       ``(3) The first report under paragraph (1) shall be the 
     report submitted in 2006.
       ``(f) Outreach.--The Secretary of Labor and the Secretary 
     of Health and Human Services shall each undertake outreach to 
     advise the public of the existence and duties of the Office.
       ``(g) Sunset.--Effective on the date that is 3 years after 
     the date of the enactment of this section, this section shall 
     have no further force or effect.''.

     SEC. 3162. CONFORMING AMENDMENTS.

       (a) Offset for Certain Payments.--Section 3641 of the 
     Energy Employees Occupational Illness Compensation Program 
     Act of 2000 (42 U.S.C. 7385) is amended--
       (1) by striking ``subtitle B'' and inserting ``this 
     title''; and
       (2) by striking ``on account of'' and all that follows 
     through the period at the end and inserting ``on account of 
     the exposure for which compensation is payable under this 
     title.''.
       (b) Subrogation of the United States.--Section 3642 of such 
     Act (42 U.S.C. 7385a) is amended by striking ``subtitle B'' 
     and inserting ``this title''.
       (c) Payment in Full Settlement of Claims.--Section 3643 of 
     such Act (42 U.S.C. 7385b) is amended by striking ``The 
     acceptance'' and inserting ``Except as provided in subtitle 
     E, the acceptance''.
       (d) Exclusivity of Remedy.--Section 3644 of such Act (42 
     U.S.C. 7385c(a)) is amended by adding at the end the 
     following new subsection:
       ``(d) Applicability to Subtitle E.--This section applies 
     with respect to subtitle E to the covered medical condition 
     or covered illness or death of a covered DOE contractor 
     employee on the same basis as it applies with respect to 
     subtitle B to the cancer (including a specified cancer), 
     chronic silicosis, covered beryllium illness, or death of a 
     covered employee.''.
       (e) Certification of Treatment of Payments Under Other 
     Laws.--Section 3646 of such Act (42 U.S.C. 7385e) is amended 
     by striking ``subtitle B'' and inserting ``this title''.

[[Page H9294]]

       (f) Claims Not Assignable or Transferable.--Section 3647(a) 
     of such Act (42 U.S.C. 7385f(a)) is amended by striking 
     ``subtitle B'' and inserting ``this title''.
       (g) Certain Claims Not Affected By Awards of Damages.--
     Section 3649 of such Act (42 U.S.C. 7385h) is amended by 
     striking ``subtitle B'' both places such term appears and 
     inserting ``this title''.
       (h) Forfeiture of Benefits by Convicted Felons.--Section 
     3650 of such Act (42 U.S.C. 7385i) is amended by striking 
     ``subtitle B'' each place such term appears and inserting 
     ``this title''.
       (i) Repeal of Subtitle D.--Subtitle D of the Energy 
     Employees Occupational Illness Compensation Program Act of 
     2000 (title XXXVI of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398); 42 U.S.C. 7385o) is repealed.

     SEC. 3163. TECHNICAL AMENDMENTS.

       (a) Subpoenas.--Subtitle B of such Act is amended by adding 
     after section 3631 (42 U.S.C. 7384v) the following new 
     section:

     ``SEC. 3632. SUBPOENAS; OATHS; EXAMINATION OF WITNESSES.

       ``The Secretary of Labor, with respect to any matter under 
     this subtitle, may--
       ``(1) issue subpoenas for and compel the attendance of 
     witnesses;
       ``(2) administer oaths;
       ``(3) examine witnesses; and
       ``(4) require the production of books, papers, documents, 
     and other evidence.''.
       (b) Social Security Earnings Information.--Subtitle C of 
     such Act is amended by adding after section 3651 (42 U.S.C. 
     7385j) the following new section:

     ``SEC. 3652. SOCIAL SECURITY EARNINGS INFORMATION.

       ``Notwithstanding the provision of section 552a of title 5, 
     United States Code, or any other provision of Federal or 
     State law, the Social Security Administration shall make 
     available to the Secretary of Labor, upon written request, 
     the Social Security earnings information of living or 
     deceased employees who may have sustained an illness that is 
     the subject of a claim under this title, which the Secretary 
     of Labor may require to carry out the provisions of this 
     title.''.
       (c) Recovery of Overpayment.--Subtitle C of such Act is 
     further amended by adding after section 3652 (as added by 
     subsection (b)) the following new section:

     ``SEC. 3653. RECOVERY AND WAIVER OF OVERPAYMENTS.

       ``(a) In General.--When an overpayment has been made to an 
     individual under this title because of an error of fact or 
     law, recovery shall be made under regulations prescribed by 
     the Secretary of Labor by decreasing later payments to which 
     the individual is entitled. If the individual dies before the 
     recovery is completed, recovery shall be made by decreasing 
     later benefits payable under this title with respect to the 
     individual's death.
       ``(b) Waiver.--Recovery by the United States under this 
     section may not be made when incorrect payment has been made 
     to an individual who is without fault and when adjustment or 
     recovery would defeat the purpose of this title or would be 
     against equity and good conscience.
       ``(c) Liability.--A certifying or disbursing official is 
     not liable for an amount certified or paid by him when 
     recovery of the amount is waived under subsection (b) of this 
     section, or when recovery under subsection (a) of this 
     section is not completed before the death of all individuals 
     against whose benefits deductions are authorized.''.

     SEC. 3164. TRANSFER OF FUNDS FOR FISCAL YEAR 2005.

       Of the funds appropriated to the Secretary of Energy for 
     fiscal year 2005 for the Energy Employees Occupational 
     Illness Compensation Program, the Secretary of Energy shall 
     transfer to the Secretary of Labor the amount of funds that 
     the Secretary of Energy, in consultation with the Secretary 
     of Labor, determine will be necessary for fiscal year 2005 to 
     administer the provisions of subtitle E of the Energy 
     Employees Occupational Illness Compensation Program Act of 
     2000, as added by this Act.

     SEC. 3165. USE OF ENERGY EMPLOYEES OCCUPATIONAL ILLNESS 
                   COMPENSATION FUND FOR CERTAIN PAYMENTS TO 
                   COVERED URANIUM EMPLOYEES.

       (a) In General.--Section 3630 of the Energy Employees 
     Occupational Illness Compensation Program Act of 2000 (42 
     U.S.C. 7384u) is amended in subsection (d) by inserting after 
     ``The compensation provided under this section'' the 
     following: ``and the compensation provided under section 5 of 
     the Radiation Exposure Compensation Act''.
       (b) Conforming Amendment.--Section 6(c)(1) of the Radiation 
     Exposure Compensation Act (42 U.S.C. 2210 note) is amended by 
     inserting after ``Fund'' the following: ``(or, in the case of 
     a payment under section 5, from the Energy Employees 
     Occupational Illness Compensation Fund, pursuant to section 
     3630(d) of the Energy Employees Occupational Illness 
     Compensation Program Act of 2000)''.

     SEC. 3166. IMPROVEMENTS TO SUBTITLE B OF ENERGY EMPLOYEES 
                   OCCUPATIONAL ILLNESS COMPENSATION PROGRAM ACT 
                   OF 2000.

       (a) Advisory Board.--Section 3624 of the Energy Employees 
     Occupational Illness Compensation Program Act of 2000 (42 
     U.S.C. 7384o) is amended by adding at the end the following 
     new subsections:
       ``(e) Security Clearances.--(1) The Secretary of Energy 
     shall ensure that the members and staff of the Board, and the 
     contractors performing work in support of the Board, are 
     afforded the opportunity to apply for a security clearance 
     for any matter for which such a clearance is appropriate. The 
     Secretary should, not later than 180 days after receiving a 
     completed application, make a determination whether or not 
     the individual concerned is eligible for the clearance.
       ``(2) For fiscal year 2007 and each fiscal year thereafter, 
     the Secretary of Energy shall include in the budget 
     justification materials submitted to Congress in support of 
     the Department of Energy budget for that fiscal year (as 
     submitted with the budget of the President under section 
     1105(a) of title 31, United States Code) a report specifying 
     the number of applications for security clearances under this 
     subsection, the number of such applications granted, and the 
     number of such applications denied.
       ``(f) Information.--The Secretary of Energy shall, in 
     accordance with law, provide to the Board and the contractors 
     of the Board access to any information that the Board 
     considers relevant to carry out its responsibilities under 
     this title, including information such as Restricted Data (as 
     defined in section 11 y. of the Atomic Energy Act of 1954 (42 
     U.S.C. 2014(y))) and information covered by the Privacy 
     Act.''.
       (b) Deadlines for Special Exposure Cohort Actions.--(1) 
     Section 3626 of the Energy Employees Occupational Illness 
     Compensation Program Act of 2000 (42 U.S.C. 7384q) is 
     amended--
       (A) by redesignating subsection (c) as subsection (d); and
       (B) by inserting after subsection (b) the following new 
     subsection:
       ``(c) Deadlines.--(1) Not later than 180 days after the 
     date on which the President receives a petition for 
     designation as members of the Special Exposure Cohort, the 
     Director of the National Institute for Occupational Safety 
     and Health shall submit to the Advisory Board on Radiation 
     and Worker Health a recommendation on that petition, 
     including all supporting documentation.
       ``(2)(A) Upon receipt by the President of a recommendation 
     of the Advisory Board on Radiation and Worker Health that the 
     President should determine in the affirmative that paragraphs 
     (1) and (2) of subsection (b) apply to a class, the President 
     shall have a period of 30 days in which to determine whether 
     such paragraphs apply to the class and to submit that 
     determination (whether affirmative or negative) to Congress.
       ``(B) If the determination submitted by the President under 
     subparagraph (A) is in the affirmative, the President shall 
     also submit a report meeting the requirements of section 
     3621(14)(C)(ii).
       ``(C) If the President does not submit a determination 
     required by subparagraph (A) within the period required by 
     subparagraph (A), then upon the day following the expiration 
     of that period, it shall be deemed for purposes of section 
     3621(14)(C)(ii) that the President submitted the report under 
     that provision on that day.''.
       (2) Section 3621(14)(C)(ii) of that Act (42 U.S.C. 
     7384l(14)(C)(ii)) is amended by striking ``180 days'' and 
     inserting ``30 days''.
       (c) Site Profiles.--Subtitle B of that Act is amended by 
     adding after section 3632 (as added by section 3163(a)) the 
     following new section:

     ``SEC. 3633. COMPLETION OF SITE PROFILES.

       ``(a) In General.--To the extent that the Secretary of 
     Labor determines it useful and practicable, the Secretary of 
     Labor shall direct the Director of the National Institute for 
     Occupational Safety and Health to prepare site profiles for a 
     Department of Energy facility based on the records, files, 
     and other data provided by the Secretary of Energy and such 
     other information as is available, including information 
     available from the former worker medical screening programs 
     of the Department of Energy.
       ``(b) Information.--The Secretary of Energy shall furnish 
     to the Secretary of Labor any information that the Secretary 
     of Labor finds necessary or useful for the production of such 
     site profiles, including records from the Department of 
     Energy former worker medical screening program.
       ``(c) Definition.--In this section, the term `site profile' 
     means an exposure assessment of a facility that identifies 
     the toxic substances or processes that were commonly used in 
     each building or process of the facility, and the time frame 
     during which the potential for exposure to toxic substances 
     existed.
       ``(d) Time Frames.--The Secretary of Health and Human 
     Services shall establish time frames for completing site 
     profiles for those Department of Energy facilities for which 
     a site profile has not been completed. Not later than March 
     1, 2005, the Secretary of Health and Human Services shall 
     submit to Congress a report setting forth those time 
     frames.''.

     SEC. 3167. EMERGENCY SPECIAL EXPOSURE COHORT MEETING AND 
                   REPORT.

       (a) Meeting of Advisory Board.--(1) For purposes of 
     carrying out section 3626 of the Energy Employees 
     Occupational Illness Compensation Program Act of 2000 (42 
     U.S.C. 7384q), the President shall require the Advisory Board 
     on Radiation and Worker Health to convene a meeting of the 
     Board at which the Board considers each petition for 
     designation as members of the Special Exposure Cohort--
       (A) that was filed not later than October 1, 2004; and
       (B) the evaluation of which (by the Director of the 
     National Institute of Occupational Safety and Health) was 
     completed more than 10 days before a previously scheduled 
     meeting of the Board.
       (2) Effective March 1, 2005, this subsection shall have no 
     further force or effect.
       (b) Report to Congress.--Not later than March 15, 2005, the 
     President shall submit to Congress a report on the status of 
     the petitions referred to in subsection (a). The report shall 
     include, for each petition, the estimated time to complete 
     the consideration of that petition and any anticipated 
     actions or circumstances that

[[Page H9295]]

     could preclude the Board from acting upon that petition 
     before the end of fiscal year 2005.

     SEC. 3168. COVERAGE OF INDIVIDUALS EMPLOYED AT ATOMIC WEAPONS 
                   EMPLOYER FACILITIES DURING PERIODS OF RESIDUAL 
                   CONTAMINATION.

       (a) Coverage.--Paragraph (3) of section 3621 of the Energy 
     Employees Occupational Illness Compensation Program Act of 
     2000 (title XXXVI of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398); 42 U.S.C. 7384l) is amended to read 
     as follows:
       ``(3) The term `atomic weapons employee' means any of the 
     following:
       ``(A) An individual employed by an atomic weapons employer 
     during a period when the employer was processing or 
     producing, for the use by the United States, material that 
     emitted radiation and was used in the production of an atomic 
     weapon, excluding uranium mining and milling.
       ``(B) An individual employed--
       ``(i) at a facility with respect to which the National 
     Institute for Occupational Safety and Health, in its report 
     dated October 2003 and titled `Report on Residual Radioactive 
     and Beryllium Contamination at Atomic Weapons Employer 
     Facilities and Beryllium Vendor Facilities', or any update to 
     that report, found that there is a potential for significant 
     residual contamination outside of the period in which 
     weapons-related production occurred;
       ``(ii) by an atomic weapons employer or subsequent owner or 
     operators of a facility described in clause (i); and
       ``(iii) during a period, as specified in such report or any 
     update to such report, of potential for significant residual 
     radioactive contamination at such facility.''.
       (b) Radiation Dose for Certain Atomic Weapons Employees.--
     Section 3623 of that Act (42 U.S.C. 7384n) is amended by 
     adding at the end of subsection (c) the following new 
     paragraph:
       ``(4) In the case of an atomic weapons employee described 
     in section 3621(3)(B), the following doses of radiation shall 
     be treated, for purposes of paragraph (3)(A) of this 
     subsection, as part of the radiation dose received by the 
     employee at such facility:
       ``(A) Any dose of ionizing radiation received by that 
     employee from facilities, materials, devices, or byproducts 
     used or generated in the research, development, production, 
     dismantlement, transportation, or testing of nuclear weapons, 
     or from any activities to research, produce, process, store, 
     remediate, or dispose of radioactive materials by or on 
     behalf of the Department of Energy (except for activities 
     covered by Executive Order No. 12344, dated February 1, 1982 
     (42 U.S.C. 7158 note) pertaining to the Naval Nuclear 
     Propulsion Program).
       ``(B) Any dose of ionizing radiation received by that 
     employee from a source not covered by subparagraph (A) that 
     is not distinguishable through reliable documentation from a 
     dose covered by subparagraph (A).''.

     SEC. 3169. UPDATE OF REPORT ON RESIDUAL CONTAMINATION OF 
                   FACILITIES.

       (a) Update of Report.--Not later than December 31, 2006, 
     the Director of the National Institute for Occupational 
     Safety and Health shall submit to Congress an update to the 
     report required by section 3151(b) of the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107; 
     42 U.S.C. 7384 note).
       (b) Elements.--The update shall--
       (1) for each facility for which such report found that 
     insufficient information was available to determine whether 
     significant residual contamination was present, determine 
     whether significant residual contamination was present;
       (2) for each facility for which such report found that 
     significant residual contamination remained present as of the 
     date of the report, determine the date on which such 
     contamination ceased to be present;
       (3) for each facility for which such report found that 
     significant residual contamination was present but for which 
     the Director has been unable to determine the extent to which 
     such contamination is attributable to atomic weapons-related 
     activities, identify the specific dates of coverage 
     attributable to such activities and, in so identifying, 
     presume that such contamination is attributable to such 
     activities until there is evidence of decontamination of 
     residual contamination identified with atomic weapons-related 
     activities;
       (4) for each facility for which such report found 
     significant residual contamination, determine whether it is 
     at least as likely as not that such contamination could have 
     caused an employee who was employed at such facility only 
     during the residual contamination period to contract a cancer 
     or beryllium illness compensable under subtitle B of the 
     Energy Employees Occupational Illness Compensation Program 
     Act of 2000; and
       (5) if new information that pertains to the report has been 
     made available to the Director since that report was 
     submitted, identify and describe such information.
       (c) Publication.--The Director shall ensure that the report 
     referred to in subsection (a) is published in the Federal 
     Register not later than 15 days after being released.

     SEC. 3170. SENSE OF CONGRESS ON RESOURCE CENTER FOR ENERGY 
                   EMPLOYEES UNDER ENERGY EMPLOYEE OCCUPATIONAL 
                   ILLNESS COMPENSATION PROGRAM IN WESTERN NEW 
                   YORK AND WESTERN PENNSYLVANIA REGION.

       (a) Findings.--Congress makes the following findings:
       (1) New York has 36 current or former Department of Energy 
     facilities involved in nuclear weapons production-related 
     activities statewide, mostly atomic weapons employer 
     facilities, and 14 such facilities in western New York. 
     Despite having one of the greatest concentrations of such 
     facilities in the United States, western New York, and 
     abutting areas of Pennsylvania, continue to be severely 
     underserved by the Energy Employees Occupational Illness 
     Compensation Program under the Energy Employees Occupational 
     Illness Compensation Program Act of 2000 (title XXXVI of the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001 (as enacted into law by Public Law 106-398); 42 
     U.S.C. 7384 et seq.).
       (2) The establishment of a permanent resource center in 
     western New York would represent a substantial step toward 
     improving services under the Energy Employees Occupational 
     Illness Compensation Program for energy employees in this 
     region.
       (3) The number of claims submitted to the Department under 
     subtitle B of the Energy Employees Occupational Illness 
     Compensation Program Act of 2000 from the western New York 
     region, including western Pennsylvania, exceeds the number of 
     such claims filed at resource centers in Hanford, Washington, 
     Portsmouth, Ohio, Los Alamos, New Mexico, the Nevada Test 
     Site, Nevada, the Rocky Flats Environmental Technology Site, 
     Colorado, the Idaho National Engineering Laboratory, Idaho, 
     and the Amchitka Test Site, Alaska.
       (4) Energy employees in the western New York region, 
     including western Pennsylvania, deserve assistance under 
     subtitle B of the Energy Employees Occupational Illness 
     Compensation Program Act of 2000 commensurate with the 
     assistance provided energy employees at other locations in 
     the United States.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Secretary of Labor should--
       (1) review the availability of assistance under subtitle B 
     of the Energy Employees Occupational Illness Compensation 
     Program Act of 2000 for energy employees in the western New 
     York region, including western Pennsylvania; and
       (2) recommend a location in that region for a resource 
     center to provide such assistance to such energy employees.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

     SEC. 3201. AUTHORIZATION.

       There are authorized to be appropriated for fiscal year 
     2005, $21,268,000 for the operation of the Defense Nuclear 
     Facilities Safety Board under chapter 21 of the Atomic Energy 
     Act of 1954 (42 U.S.C. 2286 et seq.).

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

Sec. 3301. Authorized uses of National Defense Stockpile funds.
Sec. 3302. Revision of earlier authority to dispose of certain 
              materials in National Defense Stockpile.
Sec. 3303. Disposal of ferromanganese.
Sec. 3304. Prohibition on storage of mercury at certain facilities.

     SEC. 3301. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE 
                   FUNDS.

       (a) Obligation of Stockpile Funds.--During fiscal year 
     2005, the National Defense Stockpile Manager may obligate up 
     to $59,700,000 of the funds in the National Defense Stockpile 
     Transaction Fund established under subsection (a) of section 
     9 of the Strategic and Critical Materials Stock Piling Act 
     (50 U.S.C. 98h) for the authorized uses of such funds under 
     subsection (b)(2) of such section, including the disposal of 
     hazardous materials that are environmentally sensitive.
       (b) Additional Obligations.--The National Defense Stockpile 
     Manager may obligate amounts in excess of the amount 
     specified in subsection (a) if the National Defense Stockpile 
     Manager notifies Congress that extraordinary or emergency 
     conditions necessitate the additional obligations. The 
     National Defense Stockpile Manager may make the additional 
     obligations described in the notification after the end of 
     the 45-day period beginning on the date on which Congress 
     receives the notification.
       (c) Limitations.--The authorities provided by this section 
     shall be subject to such limitations as may be provided in 
     appropriations Acts.

     SEC. 3302. REVISION OF EARLIER AUTHORITY TO DISPOSE OF 
                   CERTAIN MATERIALS IN NATIONAL DEFENSE 
                   STOCKPILE.

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

     SEC. 3303. DISPOSAL OF FERROMANGANESE.

       (a) Disposal Authorized.--The Secretary of Defense may 
     dispose of up to 50,000 tons of ferromanganese from the 
     National Defense Stockpile during fiscal year 2005.
       (b) Contingent Authority for Additional Disposal.--(1) If 
     the Secretary of Defense completes the disposal of the total 
     quantity of ferromanganese authorized for disposal by 
     subsection (a) before September 30, 2005, the Secretary of 
     Defense may dispose of up to an additional 25,000 tons of 
     ferromanganese from the National Defense Stockpile before 
     that date.
       (2) If the Secretary completes the disposal of the total 
     quantity of additional ferromanganese authorized for disposal 
     by paragraph (1) before September 30, 2005, the Secretary may 
     dispose of up to an additional 25,000 tons of ferromanganese 
     from the National Defense Stockpile before that date.
       (c) Certification.--The Secretary of Defense may dispose of 
     ferromanganese under the authority of paragraph (1) or (2) of 
     subsection (b) only if the Secretary submits written 
     certification to the Committee on Armed Services of

[[Page H9296]]

     the Senate and the Committee on Armed Services of the House 
     of Representatives, not later than 30 days before the 
     commencement of disposal under the applicable paragraph, 
     that--
       (1) the disposal of the additional ferromanganese from the 
     National Defense Stockpile is in the interest of national 
     defense;
       (2) the disposal of the additional ferromanganese will not 
     cause undue disruption to the usual markets of producers and 
     processors of ferromanganese in the United States; and
       (3) the disposal of the additional ferromanganese is 
     consistent with the requirements and purpose of the National 
     Defense Stockpile.
       (d) Delegation of Responsibility.--The Secretary of Defense 
     may delegate the responsibility of the Secretary under 
     subsection (c) to an appropriate official within the 
     Department of Defense.
       (e) National Defense Stockpile Defined.--In this section, 
     the term ``National Defense Stockpile'' means the stockpile 
     provided for in section 4 of the Strategic and Critical 
     Materials Stock Piling Act (50 U.S.C. 98c).

     SEC. 3304. PROHIBITION ON STORAGE OF MERCURY AT CERTAIN 
                   FACILITIES.

       (a) Prohibition.--During fiscal year 2005, the Secretary of 
     Defense may not store mercury from the National Defense 
     Stockpile at any facility that is not owned or leased by the 
     United States.
       (b) National Defense Stockpile Defined.--In this section, 
     the term ``National Defense Stockpile'' means the stockpile 
     provided for in section 4 of the Strategic and Critical 
     Materials Stock Piling Act (50 U.S.C. 98c).

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

     SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

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

                  TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for Maritime Administration.
Sec. 3502. Extension of authority to provide war risk insurance for 
              merchant marine vessels.
Sec. 3503. Modification of priority afforded applications for national 
              defense tank vessel construction assistance.

     SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR MARITIME 
                   ADMINISTRATION.

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

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

       (a) Extension.--Section 1214 of the Merchant Marine Act, 
     1936 (46 U.S.C. App. 1294), is amended by striking ``June 30, 
     2005'' and inserting ``December 31, 2010''.
       (b) Investment of Assets in Insurance Fund.--Section 
     1208(a) of such Act (46 U.S.C. App. 1288), is amended by 
     striking the third sentence and inserting the following: 
     ``The Secretary of Transportation may request the Secretary 
     of the Treasury to invest such portion of the Fund as is not, 
     in the judgment of the Secretary of Transportation, required 
     to meet the current needs of the fund. Such investments shall 
     be made by the Secretary of the Treasury in public debt 
     securities of the United States, with maturities suitable to 
     the needs of the fund, and bearing interest rates determined 
     by the Secretary of the Treasury, taking into consideration 
     current market yields on outstanding marketable obligations 
     of the United States of comparable maturity.''.

     SEC. 3503. MODIFICATION OF PRIORITY AFFORDED APPLICATIONS FOR 
                   NATIONAL DEFENSE TANK VESSEL CONSTRUCTION 
                   ASSISTANCE.

       Section 3542(d)(2) of the Maritime Security Act of 2003 
     (title XXXV of Public Law 108-136; 117 Stat. 1821; 46 U.S.C. 
     53101 note) is amended--
       (1) in subparagraph (A), by striking ``and'' at the end;
       (2) in subparagraph (B) by striking the period at the end 
     and inserting ``; and''; and
       (3) by adding at the end the following:
       ``(C) with respect to any proposal for financial assistance 
     to be provided from amounts appropriated for a fiscal year 
     after fiscal year 2005, acceptance of the vessel to be 
     constructed with the assistance for participation in the 
     Shipboard Technology Evaluation Program as outlined in 
     Navigation and Vessel Inspection Circular 01-04, issued by 
     the Commandant of the United States Coast Guard on January 2, 
     2004.''.

                TITLE XXXVI--ASSISTANCE TO FIREFIGHTERS

Sec. 3601. Short title.
Sec. 3602. Amendments to Federal Fire Prevention and Control Act of 
              1974.
Sec. 3603. Report on assistance to firefighters.

     SEC. 3601. SHORT TITLE.

       This title may be cited as the ``Assistance to Firefighters 
     Grant Program Reauthorization Act of 2004''.

     SEC. 3602. AMENDMENTS TO FEDERAL FIRE PREVENTION AND CONTROL 
                   ACT OF 1974.

       Section 33 of the Federal Fire Prevention and Control Act 
     of 1974 (15 U.S.C. 2229) is amended--
       (1) in subsection (b)(1)(A)--
       (A) by inserting ``throughout the Nation'' after 
     ``personnel''; and
       (B) by striking ``and'' at the end;
       (2) in subsection (b)(1)(B)--
       (A) by inserting ``and firefighter safety research and 
     development'' after ``fire prevention''; and
       (B) by striking the period and inserting ``; and'';
       (3) by adding at the end of subsection (b)(1) the following 
     new subparagraph:
       ``(C) provide assistance for nonaffiliated EMS 
     organizations for the purpose of paragraph (3)(F).'';
       (4) in subsection (b)(3)(F), by inserting ``and 
     nonaffiliated EMS organizations'' after ``fire departments'';
       (5) in subsection (b)(4)--
       (A) by inserting ``and firefighter safety research and 
     development'' after ``prevention'' in the paragraph heading;
       (B) in subparagraph (A)(ii)--
       (i) by inserting ``that are not fire departments and'' 
     after ``community organizations'';
       (ii) by inserting ``and firefighter research and 
     development programs,'' after ``fire safety programs and 
     activities,''; and
       (iii) by inserting ``and research to improve firefighter 
     health and life safety'' after ``fire prevention programs'';
       (C) in subparagraph (B), by striking ``to children from 
     fire'' and inserting ``to high risk groups from fire, as well 
     as research programs that demonstrate the potential to 
     improve firefighter safety''; and
       (D) by adding at the end the following new subparagraph:
       ``(C) Grant limitation.--A grant under this paragraph shall 
     not be greater than $1,000,000 for a fiscal year.'';
       (6) in subsection (b)(5)(B)--
       (A) by redesignating clause (iv) as clause (v); and
       (B) by inserting after clause (iii) the following new 
     clause:
       ``(iv) Other federal support.--A list of other sources of 
     Federal funding received by the applicant. The Director, in 
     coordination with the Secretary of Homeland Security, shall 
     use such list to prevent unnecessary duplication of grant 
     funds.''.
       (7) in subsection (b)(6), by striking subparagraphs (A) and 
     (B) and inserting the following:
       ``(A) In general.--Subject to subparagraphs (B) and (C), 
     the Director may provide assistance under this subsection 
     only if the applicant for such assistance agrees to match 20 
     percent of such assistance for any fiscal year with an equal 
     amount of non-Federal funds.
       ``(B) Requirement for small community organizations.--In 
     the case of an applicant whose personnel--
       ``(i) serve jurisdictions of 50,000 or fewer residents, the 
     percent applied under the matching requirement of 
     subparagraph (A) shall be 10 percent; and
       ``(ii) serve jurisdictions of 20,000 or fewer residents, 
     the percent applied under the matching requirement of 
     subparagraph (A) shall be 5 percent.
       ``(C) Fire prevention and firefighter safety grants.--There 
     shall be no matching requirement for a grant described in 
     paragraph (4)(A)(ii).'';
       (8) in subsection (b)(10)--
       (A) by amending subparagraph (A) to read as follows:
       ``(A) Recipient limitations.--A grant recipient under 
     subsection (b)(1)(A)--
       ``(i) that serves a jurisdiction with 500,000 people or 
     less may not receive grants in excess of $1,000,000 for any 
     fiscal year;
       ``(ii) that serves a jurisdiction with more than 500,000 
     but not more than 1,000,000 people may not receive grants in 
     excess of $1,750,000 for any fiscal year; and
       ``(iii) that serves a jurisdiction with more than 1,000,000 
     people may not receive grants in excess of $2,750,000 for any 
     fiscal year.

     The Director may award grants in excess of the limitations 
     provided in clause (i) and (ii) if the Director determines 
     that extraordinary need for assistance by a jurisdiction 
     warrants a waiver.'';
       (B) by redesignating subparagraph (B) as subparagraph (C);
       (C) by inserting after subparagraph (A) the following new 
     subparagraph:
       ``(B) Distribution.--Notwithstanding subparagraph (A), no 
     single recipient may receive more than the lesser of 
     $2,750,000 or one half of one percent of the funds 
     appropriated under this section for a single fiscal year.''; 
     and
       (D) by adding at the end the following new subparagraphs:
       ``(D) Requirements for grants for emergency medical 
     services.--Subject to the restrictions in subparagraph (E), 
     not less than 3.5 percent of the funds appropriated under 
     this section for a fiscal year shall be awarded for purposes 
     described in paragraph (3)(F).
       ``(E) Nonaffiliated ems limitation.--Not more than 2 
     percent of the funds appropriated to provide grants under 
     this section for a fiscal year shall be awarded to 
     nonaffiliated EMS organizations.
       ``(F) Application of selection criteria to grant 
     applications from nonaffiliated ems

[[Page H9297]]

     organizations.--In reviewing applications submitted by 
     nonaffiliated EMS organizations, the Director shall consider 
     the extent to which other sources of Federal funding are 
     available to provide assistance requested in such grant 
     applications.'';
       (9) in subsection (b), by adding at the end the following 
     new paragraphs:
       ``(13) Annual meeting.--The Director shall convene an 
     annual meeting of individuals who are members of national 
     fire service organizations and are recognized for expertise 
     in firefighting or emergency medical services provided by 
     fire services, and who are not employees of the Federal 
     Government, for the purpose of recommending criteria for 
     awarding grants under this section for the next fiscal year 
     and recommending any necessary administrative changes to the 
     grant program.
       ``(14) Guidelines.--(A) Each year, prior to making any 
     grants under this section, the Director shall publish in the 
     Federal Register--
       ``(i) guidelines that describe the process for applying for 
     grants and the criteria for awarding grants; and
       ``(ii) an explanation of any differences between the 
     guidelines and the recommendations made pursuant to paragraph 
     (13).
       ``(B) The criteria for awarding grants under subsection 
     (b)(1)(A) shall include the extent to which the grant would 
     enhance the daily operations of the applicant and the impact 
     of such a grant on the protection of lives and property.
       ``(15) Peer review.--The Director shall, after consultation 
     with national fire service organizations, appoint fire 
     service personnel to conduct peer review of applications 
     received under paragraph (5). In making grants under this 
     section, the Director shall consider the results of such peer 
     review evaluations.
       ``(16) Applicability of federal advisory committee act.--
     The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
     apply to activities under paragraphs (13) and (15).
       ``(17) Accounting determination.--Notwithstanding any other 
     provision of law, rule, regulation, or guidance, for purposes 
     of receiving assistance under this section, equipment costs 
     shall include, but not be limited to, all costs attributable 
     to any design, purchase of components, assembly, manufacture, 
     and transportation of equipment not otherwise commercially 
     available.'';
       (10) by amending subsection (d) to read as follows:
       ``(d) Definitions.--In this section--
       ``(1) the term `Director' means the Director, acting 
     through the Administrator;
       ``(2) the term `nonaffiliated EMS organization' means a 
     public or private nonprofit emergency medical services 
     organization that is not affiliated with a hospital and does 
     not serve a geographic area in which the Director finds that 
     emergency medical services are adequately provided by a fire 
     department; and
       ``(3) the term `State' includes the District of Columbia 
     and the Commonwealth of Puerto Rico.''; and
       (11) in subsection (e)(1), by striking the first sentence 
     and inserting ``There are authorized to be appropriated for 
     the purposes of this section $900,000,000 for fiscal year 
     2005, $950,000,000 for fiscal year 2006, and $1,000,000,000 
     for each of the fiscal years 2007 through 2009.''.

     SEC. 3603. REPORT ON ASSISTANCE TO FIREFIGHTERS.

       (a) Study and Report on Assistance to Firefighters.--
       (1) Study.--The Administrator of the United States Fire 
     Administration, in conjunction with the National Fire 
     Protection Association, shall conduct a study to--
       (A) define the current roles and activities associated with 
     the fire services on a national, State, regional, and local 
     level;
       (B) identify the equipment, staffing, and training required 
     to fulfill the roles and activities defined under 
     subparagraph (A);
       (C) conduct an assessment to identify gaps between what 
     fire departments currently possess and what they require to 
     meet the equipment, staffing, and training needs identified 
     under subparagraph (B) on a national and State-by-State 
     basis; and
       (D) measure the impact of the Assistance to Firefighters 
     Grant program under section 33 of the Federal Fire Prevention 
     and Control Act of 1974 (15 U.S.C. 2229) in meeting the needs 
     of the fire services identified in the report submitted to 
     Congress under section 1701(b) of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 and 
     filling the gaps identified under subparagraph (C).
       (2) Report.--Not later than 18 months after the date of 
     enactment of this Act, the Administrator shall submit to the 
     Committee on Commerce, Science, and Transportation of the 
     Senate and the Committee on Science of the House of 
     Representatives a report on the findings of the study 
     described in paragraph (1).
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated to the United States Fire Administration 
     $300,000 for fiscal year 2005 to carry out the study required 
     by subsection (a).
       And the Senate agree to the same.

     From the Committee on Armed Services, for consideration of 
     the House bill and the Senate amendment, and modifications 
     committed to conference:
     Duncan Hunter,
     Curt Weldon,
     Joel Hefley,
     Jim Saxton,
     John M. McHugh,
     Terry Everett,
     Roscoe G. Bartlett,
     Howard P. ``Buck'' McKeon,
     Mac Thornberry,
     John N. Hostettler,
     Jim Ryun,
     Jim Gibbons,
     Robin Hayes,
     Ken Calvert,
     Rob Simmons,
     Ike Skelton,
     John Spratt,
     Solomon P. Ortiz,
     Lane Evans,
     Neil Abercrombie,
     Martin T. Meehan,
     Silvestre Reyes,
     Vic Snyder,
     Jim Turner,
     Adam Smith,
     Loretta Sanchez,
     Baron Hill,
     From the Permanent Select Committee on Intelligence, for 
     consideration of matters within the jurisdiction of that 
     committee under clause 11 of rule X:
     Pete Hoekstra,
     Ray LaHood,
     Jane Harman,
     From the Committee on Agriculture, for consideration of sec. 
     1076 of the Senate amendment, and modifications committed to 
     conference:
     Bob Goodlatte,
     Max Burns,
     Charles W. Stenholm,
     From the Committee on Education and the Workforce, for 
     consideration of secs. 590, 595, 596, 904, and 3135 of the 
     House bill, and secs. 351, 352, 532, 533, 707, 868, 1079, 
     3143, and 3151-3157 of the Senate amendment, and 
     modifications committed to conference:
     Sam Johnson,
     Timothy Bishop,
     From the Committee on Government Reform, for consideration of 
     secs. 801, 806, 807, 825, 1061, 1101-1104, 2833, 2842, and 
     2843 of the House bill, and secs. 801, 805, 832, 851, 852, 
     869, 870, 1034, 1059B, 1091, 1101, 1103-1107, 1110, 2823, 
     2824, 2833, and 3121 of the Senate amendment, and 
     modifications committed to conference:
     Tom Davis,
     From the Committee on House Administration, for consideration 
     of secs. 572 and 1065 of the Senate amendment, and 
     modifications committed to conference:
     Bob Ney,
     Vernon J. Ehlers,
     John B. Larson,
     From the Committee on International Relations, for 
     consideration of secs. 811, 1013, 1031, 1212, 1215, Title 
     XIII, secs. 1401-1405, 1411, 1412, 1421, and 1422 of the 
     house bill, and secs. 1014, 1051-1053, 1058, 1059A, 1059B, 
     1070, Title XII, secs. 3131 and 3132 of the Senate amendment, 
     and modifications committed to conference:
     Harry Hyde,
     James Leach,
     From the Committee on the Judiciary, for consideration of 
     secs. 551, 573, 616, 652, 825, 1075, 1078, 1105, 2833, 2842, 
     and 2843 of the House Bill, and secs. 620, 842, 1063, 1068, 
     1074, 1080-1082, 1101, 1106, 1107, 2821, 2823, 2824, 3143, 
     3146, 3151-3157, 3401-3410 of the Senate amendment, and 
     modifications committed to conference:
     F. James Sensenbrenner, Jr.,
     Lamar Smith,
     From the Committee on Resources, for consideration of secs. 
     601 and 2834 of the House bill, and sec. 1076 of the Senate 
     amendment, and modifications committed to conference:
     Greg Walden,
     Jay Inslee,
     From the Committee on Science, for consideration of sec. 596 
     of the House bill and secs. 1034, 1092, and Title XXXV of the 
     Senate amendment, and modifications committed to conference:
     Sherwood Boehlert,
     Nick Smith,
     Bart Gordon,
     From the Committee on Small Business, for consideration of 
     secs. 807 and 3601 of the House bill, and secs. 805, 822, 
     823, 912, and 1083 of the Senate amendment, and modifications 
     committed to conference:
     Donald A. Manzullo,
     Sue Kelly,
     From the Committee on Transportation and Infrastructure, for 
     consideration of secs. 555, 558, 596, 601, 905, 1051, 1063, 
     1072, and 3502 of the House bill, and sec. 321, 323, 325, 
     717, 1066, 1076, 1091, 2828, 2833-2836, and Title XXXV of the 
     Senate amendment, and modifications committed to conference:
     Don Young,
     John J. Duncan, Jr.,
     Michael E. Capuano,
     From the Committee on Veterans' Affairs, for consideration of 
     secs. 2810 and 2831 of the House bill, and secs. 642, 2821, 
     and 2823 of the Senate amendment, and modifications committed 
     to conference:
     Christopher H. Smith,
     From the Committee on Ways and Means, for consideration of 
     sec. 585 of the House bill, and sec. 653 of the Senate 
     amendment, and modifications committed to conference:
     E. Clay Shaw, Jr.,
     Dave Camp,
                                Managers on the Part of the House.

     John W. Warner,
     John McCain,
     Pat Roberts,
     Wayne Allard,
     Jeff Sessions,
     Susan M. Collins,
     John Ensign,
     Jim Talent,
     Saxby Chambliss,
     Lindsey Graham,
     Elizabeth Dole,
     John Cornyn,

[[Page H9298]]

     Carl Levin,
     Edward M. Kennedy,
     Robert C. Byrd,
     Joe Lieberman,
     Jack Reed,
     Daniel K. Akaka,
     Bill Nelson,
     E. Benjamin Nelson,
     Mark Dayton,
     Evan Bayh,
     Hillary Rodham Clinton,
     Mark Pryor,
                               Managers on the Part of the Senate.

       Joint Explanatory Statement of the Committee of Conference

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the Senate to the bill (H.R. 4200), to authorize 
     appropriations for fiscal year 2005 for military activities 
     of the Department of Defense, for military construction, and 
     for defense activities of the Department of Energy, to 
     prescribe personnel strengths for such fiscal year for the 
     Armed Forces, and for other purposes, submit the following 
     joint statement to the House and the Senate in explanation of 
     the effect of the action agreed upon by the managers and 
     recommended in the accompanying conference report:
       The Senate amendment struck all of the House bill after the 
     enacting clause and inserted a substitute text.
       The House recedes from its disagreement to the amendment of 
     the Senate with an amendment that is a substitute for the 
     House bill and the Senate amendment. The differences between 
     the House bill, the Senate amendment, and the substitute 
     agreed to in conference are noted below, except for clerical 
     corrections, conforming changes made necessary by agreements 
     reached by the conferees, and minor drafting and clarifying 
     changes.

                Summary Statement of Conference Actions

       The Conferees recommend authorization of appropriations for 
     fiscal year 2005 for the Department of Defense for 
     procurement; research and development; test and evaluation; 
     operation and maintenance; working capital funds; military 
     construction and family housing; and for weapons and 
     environmental restoration programs of the Department of 
     Energy; that have a budget authority implication of $445.6 
     billion for the national defense function.
     Summary table of authorizations
       The defense authorization act provides authorizations for 
     appropriations but does not generally provide budget 
     authority. Budget authority is provided in the appropriations 
     act.
       In order to relate the conference recommendations to the 
     budget resolution, matters in addition to the dollar 
     authorizations contained in this bill must be taken into 
     account. A number of programs in the national defense 
     function are authorized in other legislation.
       The following table summarizes authorizations included in 
     the bill for fiscal year 2005 and, in addition, summarizes 
     the implications of the conference action for the budget 
     authority totals for national defense (budget function 050).

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                          TITLE I--PROCUREMENT

     Procurement Overview
       The budget request for fiscal year 2005 included an 
     authorization of $74,653.3 million in Procurement for the 
     Department of Defense.
       The House bill would authorize $76,278.7 million.
       The Senate amendment would authorize $76,467.1 million.
       The conferees recommend an authorization of $74,183.0 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Aircraft Procurement, Army Overview
       The budget request for fiscal year 2005 included an 
     authorization of $2,658.2 million in Aircraft Procurement, 
     Army for the Department of Defense.
       The House bill would authorize $2,809.9 million.
       The Senate amendment would authorize $2,702.6 million.
       The conferees recommend an authorization of $2,611.5 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Missile Procurement, Army Overview
       The budget request for fiscal year 2005 included an 
     authorization of $1,398.3 million in Missile Procurement, 
     Army for the Department of Defense.
       The House bill would authorize $1,504.3 million.
       The Senate amendment would authorize $1,488.3 million.
       The conferees recommend an authorization of $1,307.0 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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   Procurement of Weapons and Tracked Combat Vehicles, Army Overview

       The budget request for fiscal year 2005 included an 
     authorization of $1,639.7 million in Procurement of Weapons 
     and Tracked Combat Vehicles, Army for the Department of 
     Defense.
       The House bill would authorize $1,739.7 million.
       The Senate amendment would authorize $1,698.6 million.
       The conferees recommend an authorization of $1,702.7 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement of Ammunition, Army Overview
       The budget request for fiscal year 2005 included an 
     authorization of $1,556.9 million in Procurement of 
     Ammunition, Army for the Department of Defense.
       The House bill would authorize $1,729.4 million.
       The Senate amendment would authorize $1,598.3 million.
       The conferees recommend an authorization of $1,545.7 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Other Procurement, Army Overview
       The budget request for fiscal year 2005 included an 
     authorization of $4,240.9 million in Other Procurement, Army 
     for the Department of Defense.
       The House bill would authorize $4,309.6 million.
       The Senate amendment would authorize $5,383.3 million.
       The conferees recommend an authorization of $4,345.2 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Aircraft Procurement, Navy Overview
       The budget request for fiscal year 2005 included an 
     authorization of $8,767.9 million in Aircraft Procurement, 
     Navy for the Department of Defense.
       The House bill would authorize $8,912.7 million.
       The Senate amendment would authorize $8,870.8 million.
       The conferees recommend an authorization of $8,814.4 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Weapons Procurement, Navy Overview
       The budget request for fiscal year 2005 included an 
     authorization of $2,101.5 million in Weapons Procurement, 
     Navy for the Department of Defense.
       The House bill would authorize $2,253.5 million.
       The Senate amendment would authorize $2,183.8 million.
       The conferees recommend an authorization of $2,067.5 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement of Ammunition, Navy and Marine Corps Overview
       The budget request for fiscal year 2005 included an 
     authorization of $858.6 million in Procurement of Ammunition, 
     Navy and Marine Corps for the Department of Defense.
       The House bill would authorize $870.8 million.
       The Senate amendment would authorize $873.1 million.
       The conferees recommend an authorization of $878.1 million. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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     Shipbuilding and Conversion, Navy Overview
       The budget request for fiscal year 2005 included an 
     authorization of $9,962.0 million in Shipbuilding and 
     Conversion, Navy for the Department of Defense.
       The House bill would authorize $10,120.0 million.
       The Senate amendment would authorize $10,127.0 million.
       The conferees recommend an authorization of $10,116.8 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Other Procurement, Navy Overview
       The budget request for fiscal year 2005 included an 
     authorization of $4,834.3 million in Other Procurement, Navy 
     for the Department of Defense.
       The House bill would authorize $4,876.7 million.
       The Senate amendment would authorize $4,905.0 million.
       The conferees recommend an authorization of $4,633.9 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement, Marine Corps Overview
       The budget request for fiscal year 2005 included an 
     authorization of $1,190.1 million in Procurement, Marine 
     Corps for the Department of Defense.
       The House bill would authorize $1,315.1 million.
       The Senate amendment would authorize $1,302.7 million.
       The conferees recommend an authorization of $1,268.5 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Aircraft Procurement, Air Force Overview
       The budget request for fiscal year 2005 included an 
     authorization of $13,163.2 million in Aircraft Procurement, 
     Air Force for the Department of Defense.
       The House bill would authorize $13,649.2 million.
       The Senate amendment would authorize $13,035.7 million.
       The conferees recommend an authorization of $13,228.1 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     F/A-22 aircraft
       The budget request included $4.128 billion for the 
     procurement of 24 F/A-22 aircraft.
       The House bill would authorize the budget request.
       The Senate amendment would authorize $3.848 billion for the 
     procurement of 22 F/A-22 aircraft, a reduction of $280.2 
     million. The Senate amendment also included language that 
     would allow the Air Force to procure more than 22 aircraft 
     with the authorized funds if the Secretary of the Air Force 
     certifies that the contractual delivery schedule is being met 
     and that the program is fully funded.
       The conferees agree to authorize $4.098 billion for the 
     procurement of 24 F/A-22 aircraft, a reduction of $30.0 
     million. The conferees agree that the certification required 
     in the Senate amendment is not required to procure more than 
     22 aircraft.
     Procurement of Ammunition, Air Force Overview
       The budget request for fiscal year 2005 included an 
     authorization of $1,396.5 million in Procurement of 
     Ammunition, Air Force for the Department of Defense.
       The House bill would authorize $1,396.5 million.
       The Senate amendment would authorize $1,396.5 million.
       The conferees recommend an authorization of $1,319.0 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Missile Procurement, Air Force Overview
       The budget request for fiscal year 2005 included an 
     authorization of $4,718.3 million in Missile Procurement, Air 
     Force for the Department of Defense.
       The House bill would authorize $4,611.3 million.
       The Senate amendment would authorize $4,635.6 million.
       The conferees recommend an authorization of $4,548.5 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Other Procurement, Air Force Overview
       The budget request for fiscal year 2005 included an 
     authorization of $13,283.6 million in Other Procurement, Air 
     Force for the Department of Defense.
       The House bill would authorize $13,229.3 million.
       The Senate amendment would authorize $13,298.3 million.
       The conferees recommend an authorization of $12,949.3 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Procurement, Defense-Wide Overview
       The budget request for fiscal year 2005 included an 
     authorization of $2,883.3 million in Procurement, Defense-
     wide for the Department of Defense.
       The House bill would authorize $2,950.7 million.
       The Senate amendment would authorize $2,967.4 million.
       The conferees recommend an authorization of $2,846.6 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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                       Items of Special Interest

     Joint surveillance and target attack radar system re-engining
       The conference report accompanying the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136) 
     included a requirement for the Secretary of Defense to submit 
     a report to the congressional defense committees by February 
     13, 2004, that provides an economic analysis of options for 
     maintaining engines for the E-8C joint surveillance and 
     target attack radar system (JSTARS) aircraft. In the Senate 
     report accompanying S. 2400 (S. Rept. 108-260), the committee 
     noted that although the required report had not yet been 
     received from the Department of Defense, the committee 
     encouraged the Air Force to take into account the 
     recommendations of the report when deciding what to do with 
     the JSTARS fleet.
       The congressional defense committees received the required 
     report on July 8, 2004. The report states that there are both 
     economic and operational advantages to acquiring new engines 
     for the JSTARS aircraft, but the letter accompanying the 
     report states that the Department's preferred solution is to 
     maintain the current engines while carefully considering the 
     need for JSTARS re-engining in the fiscal year 2006 budget 
     request. Since the current engines have significant 
     operational shortfalls and since maintaining the current 
     engines would be more costly in terms of total life cycle 
     costs than any option that would acquire new engines, the 
     conferees encourage the Secretary to reevaluate the decision 
     to maintain the current engines in the JSTARS fleet of 
     aircraft.
     Halvorsen loaders
       The conferees are aware that as a result of the global war 
     on terrorism, the Air Force has been required to 
     significantly expand its expeditionary logistics capability. 
     The conferees note Halvorsen 25K loaders play a significant 
     role in material handling and are currently in use around the 
     world, including Iraq and Afghanistan.
       The Commander, U.S. Transportation Command (USTRANSCOM) has 
     a stated mobility requirement for 618 Halvorsen 25K loaders, 
     of which 316 have been acquired between the fiscal years 
     2000-2004. Given the high operational tempo in air mobility 
     missions and heavy use of the Air Force's mobility and 
     material handling equipment (MHE) fleet, the Congress 
     increased funding for this program in fiscal year 2004 and 
     fiscal year 2005 to help meet the requirements for 
     USTRANSCOM.
       The conferees encourage the Air Force to continue its 
     effort to modernize its MHE to include planning and funding 
     for the Halvorsen 25K loader program.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (sec. 101-104)
       The House bill contained provisions (sec. 101-104) that 
     would authorize the recommended fiscal year 2005 funding 
     levels for procurement Army, Navy, Marine Corps, Air Force, 
     and Defense-wide activities.
       The Senate amendment contained similar provisions (secs. 
     101-104).
       The conference agreement includes these provisions.

                       Subtitle B--Army Programs

     Multiyear procurement authority for the lightweight 155-
         millimeter howitzer program (sec. 111)
       The House bill contained a provision (sec. 111) that would 
     permit the Secretary of the Army and the Secretary of the 
     Navy to enter into a joint service, multiyear contract for 
     procurement of the lightweight 155 millimeter howitzer.
       The Senate amendment contained a provision (sec. 122) that 
     would authorize the Secretary of the Navy to enter into a 
     multiyear contract for procurement of the lightweight 155 
     millimeter howitzer.
       The Senate recedes.
     Light utility helicopter program (sec. 112)
       The Senate amendment contained a provision (sec. 111) that 
     would preclude authorization of appropriations for the 
     procurement of light utility helicopters until the Secretary 
     of the Army provides a report to the congressional defense 
     committees. The report will include: (1) The Secretary's 
     certification that all required documentation for the 
     acquisition of light utility helicopters has been completed 
     and approved; (2) an updated Army Aviation modernization plan 
     that contains detailed justification and information which 
     affected the decision to terminate the Comanche helicopter 
     program; and (3) a summary and copy of the results of the 
     analysis of alternatives that the Secretary considered in the 
     determination to procure light utility helicopters, including 
     the analysis of alternatives of using light armed 
     reconnaissance helicopters and UH-60 Black Hawk helicopters 
     instead of light utility helicopters.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                       Subtitle C--Navy Programs

     DDG-51 modernization program (sec. 121)
       The House bill contained a provision (sec. 112) that would 
     require the Secretary of the Navy to accelerate the 
     modernization program for the DDG-51 Arleigh Burke-class of 
     destroyers. The provision would also require the Secretary to 
     place emphasis in this program on determining a means by 
     which the crew size on this class of ships could be reduced 
     from approximately 300 to about 200. The provision would also 
     require the Secretary to submit a report to the congressional 
     defense committees by March 31, 2005, on the steps taken in 
     this program.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would modify the 
     reporting requirement so that the report would include the 
     elements of the modernization program, and specify those 
     elements of the program that are expected to contribute to 
     the goal of reducing the crew size on this class of ships by 
     one-third and explain the basis for those expectations.
     Repeal of authority for pilot program for flexible funding of 
         cruiser conversions and overhauls (sec. 122)
       The House bill contained a provision (sec. 113) that would 
     repeal section 126 of the National Defense Authorization Act 
     for Fiscal Year 2004 (Public Law 108-136, 117 Stat. 1410, 
     U.S.C. 7291 note).
       The Senate amendment contained no similar provision.
       The Senate recedes.
     LHA(R) amphibious assault ship program (sec. 123)
       The Senate amendment contained a provision (sec. 121) that 
     would authorize the Secretary of the Navy to procure the 
     first amphibious ship of the LHA(R) class. It would also 
     authorize $150.0 million of shipbuilding and conversion 
     funds, and authorize the Secretary of the Navy to enter into 
     a contract or contracts for the advance procurement and 
     advance construction of components for this ship with these 
     funds.
       The House bill contained no similar provision.
       The House recedes.

                     Subtitle D--Air Force Programs

     Prohibition of retirement of KC-135E aircraft (sec. 131)
       The Senate amendment contained a provision (sec. 131) that 
     would prohibit the Secretary of the Air Force from retiring 
     any KC-135E aerial refueling aircraft in fiscal year 2005.
       The House bill contained no similar provision.
       The House recedes.
     Prohibition of retirement of F-117 aircraft (sec. 132)
       The Senate amendment contained a provision (sec. 132) that 
     would prohibit any F-117 aircraft in use by the Air Force in 
     fiscal year 2004 from being retired in fiscal year 2005.
       The House bill contained no similar provision.
       The House recedes.
     Aerial refueling aircraft acquisition program (sec. 133)
       The House bill contained a provision (sec. 116) that would 
     authorize the Secretary of the Air Force to enter into a 
     multiyear procurement contract for 80 tanker aerial refueling 
     aircraft beginning in fiscal year 2005, for a period of up to 
     eight years. The provision would also repeal section 
     subsection (b) of 135 of the National Defense Authorization 
     Act for Fiscal Year 2004 (Public Law 108-136). The provision 
     would prohibit this multiyear procurement from being executed 
     under the authority of either section 135 of the National 
     Defense Authorization Act for Fiscal Year 2004 (Public Law 
     108-36) or section 8159 of the Department of Defense 
     Appropriations Act, 2002 (division A of Public Law 107-117).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would amend 
     section 135 of the National Defense Authorization Act for 
     Fiscal Year 2004 (Public Law 108-136) to: (1) provide that no 
     tanker aircraft can be leased under the multiyear aircraft 
     lease pilot program previously established under section 8159 
     of the Department of Defense Appropriation Act for Fiscal 
     Year 2002; (2) authorize a multiyear procurement of up to 100 
     aerial refueling aircraft, for a period not to exceed ten 
     program years; (3) prohibit the use of incremental funding 
     for the multiyear contract; and (4) remove reference to 
     leasing of aircraft throughout the provision.

                       Subtitle E--Other Matters

     Development of deployable systems to include consideration of 
         force protection in asymmetric threat environment (sec. 
         141)
       The House Bill contained a provision (sec. 114) that would 
     require that all manned ground systems, warfighter 
     survivability systems, and certain manned airborne systems be 
     assessed annually for adequacy in survivability and 
     suitability against asymmetrical threats. The provision also 
     requires the secretary of each military department to 
     implement force protection and survivability enhancements for 
     all assessed systems. Finally, the provision requires that 
     the Secretary of Defense ensure that developmental military 
     system designs account for survivability and suitability 
     against asymmetrical threats.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to revise defense regulations, 
     directives, and guidance to account for survivability and 
     suitability against asymmetric threats in developing any 
     manned system and any equipment intended to enhance personnel 
     survivability.

[[Page H9399]]

     Allocation of equipment authorized by this title to units 
         deployed, or to be deployed to Operation Iraqi Freedom or 
         Operation Enduring Freedom (sec. 142)
       The House bill contained a provision (sec. 115) that would 
     require the Secretary of Defense to give priority to those 
     operational units that are deployed to, or preparing to 
     deploy to, Operation Iraqi Freedom or Operation Enduring 
     Freedom, regardless of the status of those units as Active, 
     Guard, or Reserve component units, when allocating equipment 
     acquired using funds authorized to be appropriated by the 
     National Defense Authorization Act for Fiscal Year 2005.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to ensure that the allocation of equipment acquired 
     using funds authorized to be appropriated by this title to 
     operational units deployed, or scheduled to be deployed, to 
     Operation Iraqi Freedom or Operation Enduring Freedom is made 
     without regard to the status of the units as Active, Guard, 
     or Reserve component.
     Report on options for acquisition of precision-guided 
         munitions (sec. 143)
       The Senate amendment contained a provision (sec. 141) that 
     would require the Secretary of Defense to provide a report on 
     options for the acquisition of precision-guided weapons at 
     various production rates, to include the cost for these 
     options.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     require the report to identify the required costs for each 
     precision-guided munition at the various production rates for 
     each year in the future-years defense program.

                   Legislative Provisions Not Adopted

     Up-armored high mobility multi-purpose wheeled vehicles or 
         wheeled vehicle ballistic add-on armor protection
       The Senate amendment contained a provision (sec. 112) that 
     would authorize an increase of $610.0 million in Other 
     Procurement, Army (OPA), for the procurement of additional 
     up-armored high mobility multi-purpose wheeled vehicles at a 
     rate up to 450 per month or wheeled vehicle ballistic add-on 
     armor protection, the amount of which to be determined and 
     reported by the Secretary of the Army.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize an increase of $572.0 
     million in OPA for the procurement of additional up-armored 
     high mobility multi-purpose wheeled vehicles at a rate up to 
     450 per month, and an increase of $100.0 million for wheeled 
     vehicle ballistic add-on armor protection.
     Command and control vehicles or field artillery ammunition 
         support vehicles
       The Senate amendment contained a provision (sec. 113) that 
     would authorize an increase of $5.0 million in Weapons and 
     Tracked Combat Vehicles, Army, for the procurement of new 
     production command and control vehicles or field artillery 
     ammunition support vehicles.
       The House bill contained no similar provision.
       The Senate recedes.
     Other matters relating to KC-767 tanker aircraft acquisition 
         program
       The House bill contained a provision (sec. 117) that would 
     express a Sense of Congress about the criticality of the 
     aerial refueling mission, the need to proceed with a program 
     to replace the current fleet of aerial refueling aircraft, 
     taking advantage of the U.S. commercial aircraft production 
     base, and encouraging the investigation and prosecution of 
     anyone suspected of improper or illegal activities. The 
     provision would also require the Secretary of the Air Force 
     to enter into one or more contracts for the multi-year tanker 
     program no later than March 1, 2005. The provision would also 
     require a review by an outside panel of any proposed contract 
     for the multi-year tanker program, and required a report of 
     this review be provided to the Secretary of the Air Force and 
     the congressional defense committees.
       The Senate amendment contained no similar provision.
       The House recedes.
     Additional amount for Patriot missile procurement
       The House bill contained a provision (sec. 118) that would 
     increase funds available for procurement of Patriot missiles 
     by $90.0 million and offset the increase with reductions to 
     several other accounts.
       The Senate amendment contained no similar provision.
       The House recedes.
     Transfer of certain Army procurement funds
       The House bill contained a provision (sec. 119) that would 
     authorize an increase of $2.0 million for the Aircraft 
     Wireless Intercom System and $2.0 million for bladefold kits 
     for Apache helicopters, in Aircraft Procurement, Army, offset 
     by a commensurate amount from funds for information systems 
     in Other Procurement, Army.
       The Senate amendment contained no similar provision.
       The House recedes.
     Pilot program for flexible funding of submarine engineered 
         refueling overhaul and conversion
       The Senate amendment contained a provision (sec. 123) that 
     would authorize the Secretary of the Navy to carry out a 
     pilot program of flexible funding of engineered refueling 
     overhauls (EROs) and conversions of submarines. The provision 
     would allow the transfer of authorization of appropriations 
     to provide flexibility in the accomplishment of these EROs, 
     and set certain limitations on these transfers.
       The House bill contained no similar provision.
       The Senate recedes.
     Senior Scout mission bed-down initiative
       The Senate amendment contained a provision (sec. 133) that 
     would authorize an increase of $2.0 million in Aircraft 
     Procurement, Air Force for a bed-down initiative to enable 
     the C-130 aircraft of the Idaho Air National Guard to be the 
     permanent carrier of the Senior Scout mission shelters of the 
     169th Intelligence Squadron of the Utah Air National Guard.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize an increase of $1.4 
     million in Aircraft Procurement, Air Force for the bed-down 
     initiative.

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

     Research, Development, Test and Evaluation Overview
       The budget request for fiscal year 2005 included an 
     authorization of $67,772.3 million in Research and 
     Development for the Department of Defense.
       The House bill would authorize $68,090.4 million.
       The Senate amendment would authorize $68,608.7 million.
       The conferees recommend an authorization of $66,497.8 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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                                  ARMY

     Research, Development, Test and Evaluation, Army Overview
       The budget request for fiscal year 2005 included an 
     authorization of $9,266.3 million in Research, Development, 
     Test and Evaluation, Army for the Department of Defense.
       The House bill would authorize $9,478.2 million.
       The Senate amendment would authorize $9,690.5 million.
       The conferees recommend an authorization of $9,307.2 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Advanced battery technology initiative
       The budget request included $41.2 million in PE 62705A for 
     applied research in electronics and electronic devices.
       The House bill would authorize an increase of $20.0 million 
     in PE 62705A for an advanced battery technology initiative.
       The Senate amendment contained no similar authorization.
       The conferees agree to authorize an increase of $15.6 
     million in PE 62705A for an advanced battery technology 
     initiative, which would fund programs selected on the basis 
     of technical merit, cost effectiveness, and potential to meet 
     service requirements, including the following areas: alkaline 
     cylindrical cells; cylindrical zinc air batteries; high 
     capacity nickel/zinc rechargeable cells; lithium battery 
     technologies; lithium carbon monoflouride cells; and proton 
     exchange membrane fuel cells.
       The conferees note that in a recent study, ``Meeting the 
     Energy Needs of Future Warriors,'' the National Research 
     Council highlighted the importance of Army research on 
     soldier power technologies, and indicated that ``energy to 
     power soldier systems, . . . must now be viewed on par with 
     the other critical logistics commodities--ammunition, fuel, 
     food, and water.''
     Medical technology applied research initiative
       The budget request included $60.9 million in PE 62787A for 
     medical technology.
       The House bill would authorize an increase of $25.0 million 
     in PE 62787A for a medical technology applied research 
     initiative.
       The Senate amendment contained no similar authorization.
       The conferees agree to authorize an increase of $7.05 
     million for an applied initiative in medical technologies of 
     specific military application and value, including: dermal 
     phase meter; gene delivery technology; fibrin bandages from 
     non-mammalian sources; nano-fabricated bioartificial kidney; 
     and rapid bio-pathogen detection technology. Projects are to 
     be selected on the basis of technical merit, cost 
     effectiveness, and potential to meet service requirements.
     Lightweight Structures Initiative
       The budget request included $203.1 million in PE 63005A for 
     combat vehicle and automotive technology.
       The House bill would authorize an increase of $9.0 million 
     in PE 63005A for the Lightweight Structures Initiative.
       The Senate amendment would authorize an increase of $7.5 
     million for components of the Lightweight Structures 
     Initiative including: $3.0 million for advanced titanium 
     armor systems; $1.5 million for Future Combat System common 
     chassis design; and $3.0 million for non-line of sight cannon 
     structure design.
       The conferees agree to authorize an increase of $7.9 
     million in PE 63005A for the Lightweight Structures 
     Initiative.
     Mobile tactical high energy laser
       The budget request included $53.5 million in PE 63305A for 
     Army missile defense systems integration, of which $39.0 
     million was for the mobile tactical high energy laser 
     (MTHEL).
       The House bill would authorize the budget request.
       The Senate amendment would authorize an increase of $15.0 
     million for MTHEL.
       The conferees agree to authorize an increase of $8.0 
     million in PE 63305A for MTHEL.
       The conferees are aware of successful tests of the Army's 
     heat capacity solid state laser and believe that laser 
     weapons could play an important role in future missile, air, 
     and counter-mortar defenses. The conferees direct that the 
     increase be used to accelerate development of a 100 kilowatt 
     solid state laser and to initiate a system demonstration 
     using a solid state laser.
       The conferees note that the Joint Technology Office (JTO) 
     plays a key role in maturing a range of laser technologies. 
     The JTO was established pursuant to subtitle E, title II, of 
     the National Defense Authorization Act for Fiscal Year 2001 
     (Public Law 106-398) with the intent of establishing an 
     office that would accelerate progress in high energy laser 
     technology and provide incentives to services to invest in 
     such technologies. The conferees are concerned that the JTO 
     may not be effective in accomplishing the goals defined in 
     subtitle E or transitioning laser technology to the services. 
     The conferees direct the Secretary of Defense to provide a 
     report to the congressional defense committees by January 15, 
     2005 on the effectiveness of the JTO in achieving the 
     objectives of subtitle E, the impact of shifting funding 
     responsibility for JTO efforts to the Air Force, and the 
     effectiveness of the JTO structure in transitioning laser 
     technologies to the warfighter. The conferees further direct 
     the Comptroller General to review this assessment and to 
     report the results of this review to congressional defense 
     committees no later March 15, 2005.


                                  NAVY

     Research, Development, Test and Evaluation, Navy Overview
       The budget request for fiscal year 2005 included an 
     authorization of $16,346.4 million in Research, Development, 
     Test and Evaluation, Navy for the Department of Defense.
       The House bill would authorize $16,052.8 million.
       The Senate amendment would authorize $16,690.4 million.
       The conferees recommend an authorization of $16,200.6 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Littoral Combat Ship
       The budget request included $352.1 million in PE 63581N for 
     the Littoral Combat Ship (LCS), including $244.4 million for 
     LCS development and $107.7 million for construction.
       The House bill would authorize $244.4 million in PE 63581N 
     for LCS development, a decrease of $107.7 million, delaying 
     construction of the first LCS until fiscal year 2006.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $350.1 million, a decrease 
     of $2.0 million for phase one design of the Flight One LCS 
     design.
       The conferees note the concerns expressed in the House 
     report accompanying H.R. 4200 (H. Rept. 108-491) regarding 
     whether the LCS program schedule provides sufficient time and 
     opportunities for experimentation and evaluation of the 
     operational concepts for LCS in Flight Zero before committing 
     to major serial production of the ship with Flight One. The 
     program plan provided with the fiscal year 2005 budget 
     request had construction starting on Flight One ships before 
     delivery and evaluation of Flight Zero ships. This 
     concurrency could require expensive retrofit to Flight One 
     ships after lessons have been learned from operating Flight 
     Zero ships.
       The conferees are concerned with a potential industrial 
     impact induced by making fiscal year 2006 a gap year in LCS 
     production, which could lead to increased ship costs or 
     technology insertion challenges. However, the conferees agree 
     with the rationale of section 8092 of the Department of 
     Defense Appropriations Act for Fiscal Year 2005 (section A of 
     Public Law 108-287), which directs that no funds be obligated 
     for construction of a third vessel in the fiscal year 2006 
     budget request. The conferees expect that the Navy will 
     include a plan that reduces the risk of concurrency in the 
     LCS justification submitted as part of the fiscal year 2006 
     budget request.
     Land attack technology
       The budget request included $82.0 million in PE 63795N for 
     land attack technology. This included $28.9 million for the 
     affordable weapons system (AWS) and $11.3 million for the 
     continued development of the extended range guided munition 
     (ERGM).
       The House bill would authorize $105.0 million in PE 63795N 
     for land attack technology. This included $51.9 million for 
     AWS, an increase of $23.0 million, and would authorize the 
     budget request for ERGM.
       The Senate amendment would authorize $53.1 million in PE 
     63795N for land attack technology. This would authorize no 
     funding for AWS, and would authorize the budget request for 
     ERGM.
       The conferees agree to authorize $95.2 million in PE 63795N 
     for land attack technology. This includes an authorization of 
     $48.9 million for AWS, an increase of $20.0 million. This 
     also includes an authorization of $4.5 million for ERGM, a 
     decrease of $6.8 million.
       The conferees are aware of past testing problems in the 
     ERGM program, but have supported fielding of ERGM capability 
     as soon as possible. The conferees are also aware that the 
     Navy has issued a notice to industry stating that it will 
     issue a solicitation for a capability to mirror that of ERGM. 
     While supportive of this risk-reduction strategy, the 
     conferees also expect that funds appropriated for the ERGM 
     program be applied to continued developmental testing of 
     ERGM.
     Open architecture
       The budget request included $146.5 million in PE 64307N for 
     surface combatant combat system engineering and $48.2 million 
     in PE 64755N for ship self-defense (detect and control).
       The House bill would authorize an increase of $21.8 million 
     in PE 64307N for open architecture systems and would also 
     authorize an increase of $21.8 million in PE 64755N for open 
     architecture warfare systems.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $4.3 
     million in PE 64307N and an increase of $3.4 million in PE 
     64755N for open architecture warfare systems.
       The conferees concur with the Navy's decision to move to 
     open architecture (OA)-based warfare systems, and recognize 
     OA as an enabling step to modernizing warfighting 
     capabilities at an affordable cost. Similarly, given the 
     rapid rate that commercial, off-the-shelf computing equipment 
     and software is becoming obsolescent, delaying the 
     implementation of OA will result in military systems falling 
     further and further behind the commercial sector's 
     capability. While an OA approach to development and fielding 
     requires increased cooperation at all levels, it also creates 
     interdependencies among programs as a result of design and 
     development components that will be used in multiple systems. 
     With this approach, the impact of a delay or funding cut in a 
     program implementing OA could have impact on other programs.
       The Navy identified the implementation of OA into Navy 
     surface forces as its highest unfunded priority in fiscal 
     year 2005. Under the Navy's plan, modernization of existing 
     forces (cruiser modernization and DDG modernization) and 
     recapitalization of the surface fleet (DD(X), CVN-21, and the 
     Littoral Combat Ship) are all inextricably linked to the 
     overall execution of the OA initiative. The conferees believe 
     that there could be serious, cascading effects on these 
     programs unless the Navy ensures that the OA initiative is 
     fully funded, and urge the Navy to pursue any shortfalls 
     through supplemental submissions for fiscal year 2005. The 
     conferees also believe the Navy should consider grouping 
     various OA efforts in a separate program element, so that: 
     (1) the Navy can coordinate its efforts more efficiently; and 
     (2) difficulties with individual platform programs do not 
     jeopardize the entire effort.


                               AIR FORCE

     Research, Development, Test and Evaluation, Air Force 
         Overview
       The budget request for fiscal year 2005 included an 
     authorization of $21,114.7 million in Research Development, 
     Test and Evaluation, Air Force for the Department of Defense.
       The House bill would authorize $21,533.0 million.
       The Senate amendment would authorize $21,264.3 million.
       The conferees recommend an authorization of $20,432.9 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Transformational satellite communications
       The budget request included $674.8 million in PE 63845F for 
     tranformational military satellite communications (TSAT).
       The House bill would authorize a decrease of $100.0 million 
     in PE 63845F.
       The Senate amendment would authorize a decrease of $100.0 
     million in PE 63845F.
       The conferees agree to authorize $374.8 million in PE 
     63845F, a decrease of $300.0 million.
       The conferees strongly support the objectives of the TSAT 
     program, including much higher communications capacity, 
     assured connectivity for a much larger number of mobile and 
     fixed forces, and the ability to protect these capabilities 
     against emerging threats. The conferees, however, have had 
     continuing concerns related to the risk of the current 
     acquisition approach and potential program delays, which the 
     conferees believe could elevate operational risks resulting 
     from gaps in the military satellite communications 
     (MILSATCOM) architecture.
       The conferees are aware of program options that could 
     leverage both current MILSATCOM program investments and TSAT 
     development efforts. The conferees believe that such an 
     approach could accelerate the deployment of advanced 
     communications capabilities, provide the opportunity to 
     incrementally demonstrate advanced satellite communications 
     technology, and provide a lower risk path to meeting TSAT 
     requirements. The conferees believe that such an approach is 
     potentially more consistent with spiral development and 
     capabilities-based acquisition.
       The conferees direct the Secretary of Defense to evaluate 
     modified TSAT acquisition strategies that streamline the 
     program structure and leverage current MILSATCOM investment, 
     and to provide a report to the congressional defense 
     committees on that evaluation by March 1, 2005.
     Space based radar
       The budget request included $327.7 million in PE 63858F for 
     space based radar (SBR).
       The House bill would authorize the budget request.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $75.0 million in PE 63858F 
     for SBR, a decrease of $252.7 million.
       The conferees believe that the United States must continue 
     to improve its space-based and airborne intelligence, 
     reconnaissance, and surveillance (ISR) systems; and believe 
     that persistent surveillance will be critical to future U.S. 
     military and intelligence capabilities. The conferees note 
     that space based radar can make a significant contribution to 
     persistent surveillance and that radars provide the only all 
     weather, day/night ISR capabilities.
       While strongly supportive of radar satellites, the 
     conferees are concerned that the Air Force cost estimates for 
     the notional SBR architecture that served as the basis for 
     the fiscal year 2005 budget request were very high. If 
     accurate, these estimates could render the system 
     unaffordable.
       The conferees believe that affordability will be critically 
     dependent on the development and deployment of a single radar 
     satellite system to meet both military and intelligence 
     community needs and the thorough integration of space based 
     radar ISR capabilities into a system of systems architecture 
     that includes air assets, other national technical means, 
     responsive space assets, and possibly near-space assets. Such 
     an integration will have direct and significant implications 
     for the capabilities needed in any one element of a system of 
     systems. The conferees believe that an integrated 
     architecture, that leverages and evolves existing 
     architectures as well as innovative technologies, will 
     provide greater capabilities earlier and at a more affordable 
     cost.
       Consequently, the conferees believe that the number of 
     satellites and technical capabilities needed in an SBR 
     system, and how an SBR system might evolve over time, is 
     critically dependent on a more complete understanding of an 
     integrated ISR system. The conferees direct that the SBR 
     effort be restructured to focus on continued technology 
     maturation (including satellite integration), architectural 
     analysis, and system evolution. The conferees further direct 
     the Secretary of Defense to submit a report to the 
     congressional defense committees no later than March 1, 2005, 
     outlining the key features and programmatic implications of 
     an ISR system of systems architecture that includes national 
     technical means and other space, air, responsive space, near-
     space and terrestrial systems.
     Space based infrared system
       The budget request included $508.4 million in PE 64441F for 
     the space based infrared system (SBIRS).
       The House bill would authorize the budget request.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $35.0 
     million in PEG 4441F.
       The conferees remain concerned with continued SBIRS cost 
     increases, schedule delays, and technical problems. The 
     conferees note that the initial 1996 cost estimate for SBIRS 
     was $3.6 billion; that estimate has increased by nearly $4 
     billion in the last three years and is now $10.0 billion. 
     While strongly supportive of the development of next 
     generation early warning capabilities, the conferees do not 
     believe that continuation of this program can be justified if 
     such increases continue in the future. The conferees direct 
     the Secretary of Defense to provide a report in classified 
     and unclassified form to the congressional defense committees 
     no later than February 1, 2005 on the cause of the most 
     recent SBIRS cost increases, schedule delays, and technical 
     problems; the most recent Defense Support Program gap 
     analysis and any effect that further delays will have on U.S. 
     early warning, technical intelligence, and missile defense 
     capabilities; steps taken to address the most recent SBIRS 
     technical difficulties; any adjustments in management and 
     contract arrangements with the contractor to reflect the most 
     recent program challenges; remaining risk areas; and an 
     assessment of the confidence level in the SBIRS schedule and 
     cost estimates current as of October 1, 2004.


                              DEFENSE-WIDE

     Research, Development, Test and Evaluation, Defense-wide 
         Overview
       The budget request for fiscal year 2005 included an 
     authorization of $20,739.8 million in Research, Development, 
     Test and Evaluation, Defense-wide for the Department of 
     Defense.
       The House bill would authorize $20,721.3 million.
       The Senate amendment would authorize $20,654.4 million.
       The conferees recommend an authorization of $20,252.9 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Chemical and biological defense basic research program
       The budget request included $36.8 million in PE 61384BP for 
     chemical and biological defense program basic research.
       The House bill would authorize an increase of $15.0 million 
     in PE 61384BP for a chemical and biological defense basic 
     research initiative.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $11.0 
     million in PE 61384BP for a chemical and biological defense 
     basic research initiative. The conferees note that projects 
     and technologies to be considered for funding under the 
     chemical and biological defense basic research initiative 
     should be selected on the basis of technical merit and 
     potential operational utility. The conferees recommend that 
     the projects and technologies to be considered for funding 
     under the chemical and biological defense basic research 
     initiative should include, but not be limited to, the 
     following: engineered pathogen identification and 
     countermeasures, multipurpose biodefense immunoarrays and 
     fluorescence activated sensing technologies.
     Chemical and biological defense applied research program
       The budget request included $104.4 million in PE 62384BP 
     for chemical and biological defense program applied research.
       The House bill would authorize an increase of $25.0 million 
     in PE 62384BP for a chemical and biological defense applied 
     research initiative.
       The Senate amendment would authorize an increase of $8.9 
     million in PE 62384BP, including $3.0 million for mustard gas 
     antidotes; $2.0 million for bioinformatics; $2.0 million for 
     neurotoxin mitigation research; and $2.9 million for chemical 
     agent persistence models.
       The conferees agree to authorize an increase of $33.4 
     million in PE 62384BP for chemical and biological defense 
     program applied research, including $3.0 million for mustard 
     gas antidote; $2.0 million for bioinformatics; $1.0 million 
     for neurotoxin mitigation research; $2.9 million chemical 
     agent persistence models; and $24.5 million for a chemical 
     and biological applied research initiative.
       The conferees note that projects and technologies to be 
     considered for funding under the chemical and biological 
     defense program applied research initiative should be 
     selected on the basis of technical merit and potential 
     operational utility. The conferees recommend that the 
     projects and technologies to be considered for funding under 
     the chemical and biological defense applied research 
     initiative should include, but not be limited to, the 
     following: air contamination monitoring systems; hand-held 
     detectors; heat shock protein vaccine creation processes; 
     low-cost chemical-biological protective shelters; membrane 
     research for next generation chemical-biological protective 
     suits; rapid anti-body based biological countermeasures; and 
     rapid decontamination systems for nerve agents.
     Stimulated isomer energy release
       The budget request included $339.2 million in PE 62702E for 
     tactical technology applied research, including $4.0 million 
     for the Defense Advanced Research Project Agency's (DARPA) 
     stimulated isomer energy release (SIER) project.
       The House bill and the Senate amendment would reduce the 
     budget request for the SIER project by $4.0 million. The 
     House bill also directed the Secretary of Defense to 
     terminate the project.
       The conferees agree to authorize no funds for continuation 
     of the DARPA SIER project and direct that the DARPA project 
     be terminated.
     Combating terrorism technology support
       The budget request included $46.7 million in PE 63122D8Z 
     for combating terrorism technology support programs.
       The House bill would authorize an increase of $27.5 million 
     in PE 63122D8Z for combating terrorism technology support 
     programs, including $25.0 million for advanced combating 
     terrorism technology support.
       The Senate amendment would authorize an increase of $10.0 
     million in PE 63122D8Z for blast mitigation research. The 
     conferees agree to authorize an increase of $13.5 million in 
     PE 63122D8Z for combating terrorism technology support, 
     including $7.0 million for blast mitigation; $5.0 million for 
     advanced combating terrorism technology support; and $1.5 
     million for combating terrorism intelligence, surveillance, 
     and reconnaissance research.
     Chemical and biological defense program advanced technology 
         development
       The budget request included $117.3 million in PE 63384BP 
     for the chemical and biological defense program for advanced 
     technology development.
       The House bill would authorize an increase of $35.0 million 
     in PE 63384BP for a chemical and biological defense program 
     advanced technology initiative.
       The Senate amendment would authorize an increase of $9.5 
     million for chemical and biological defense program advanced 
     technology development, including $6.0 million for anthrax 
     and plague oral vaccine development; and $3.5 million for 
     water quality sensors.
       The conferees agree to authorize an increase of 
     $38.3 million for chemical and biological defense program 
     for advanced technology development, including $32.9 
     million for an advanced technology development initiative; 
     $2.8 million for anthrax and plague oral vaccine 
     development; and $2.6 million for water quality sensors.
       The conferees note that projects and technologies to be 
     considered for funding under the chemical and biological 
     defense advanced technology development initiative should be 
     selected on the basis of technical merit and potential 
     operational utility. The conferees recommend that the 
     projects and technologies to be considered for funding under 
     the chemical and biological defense basic research initiative 
     should include, but not be limited to, the following: hand-
     held biological detection systems; immuno biological/chemical 
     threat agent detectors; non-invasive vectored vaccine 
     development; and recombinant protein vaccines.
     Airborne laser
       The budget request included $474.3 million in PE 63883C for 
     the airborne laser (ABL).
       The House bill would authorize the budget request.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize the budget request.
       The conferees remain convinced of the importance of boost 
     phase intercept in the ballistic missile defense 
     architecture, and note that ABL has potentially revolutionary 
     capabilities. The conferees also note that, in response to 
     consistent cost overruns and schedule delays, the program has 
     been restructured to reflect these difficulties and its 
     developmental nature. The conferees applaud this 
     restructuring and are aware of progress in recent months 
     toward achieving key milestones in the ABL program, 
     particularly first light from conjoined laser modules. The 
     conferees note that demonstrated progress in these areas will 
     be critical to the continuation of the ABL effort.
       The conferees direct the Secretary of Defense to provide a 
     report to the congressional defense committees by February 
     15, 2005 that provides the status of ABL laser tests and the 
     beam control/fire control system and recommendations on the 
     future of the ABL program.
     Kinetic energy interceptor
       The budget request included $511.3 million in PE 63886C for 
     the kinetic energy interceptor (KEI) and associated boost 
     phase intercept efforts.
       The House bill authorized a decrease of $75.0 million in PE 
     63886C.
       The Senate amendment authorized a decrease of $200.0 
     million in PE 63886C.
       The conferees agree to authorize $348.3 million in PE 
     63886C, a decrease of $163.0 million.
       The conferees remain convinced that the KEI could be an 
     important aspect of the overall ballistic missile defense 
     architecture, potentially contributing intercept capabilities 
     in boost, midcourse, and terminal phases of the threat 
     missile flight. The conferees are concerned, however, with 
     the lack of progress in defining basing modes. The conferees 
     note that:
       (1) Recent justifications for the KEI ground-based variant 
     suggest that it might serve as the basis for midcourse 
     intercept capability in Europe. At the same time, however, 
     the budget request included $35.0 million for additional 
     ground-based interceptors (GBI) for the ground-based 
     midcourse defense element that could be deployed in Europe; 
     and
       (2) Consideration of sea-based concepts of operations and 
     platforms do not appear to be progressing.
       The conferees direct the Director of the Missile Defense 
     Agency to provide a report to the congressional defense 
     committees by February 1, 2005 that includes planned ground- 
     and sea-basing modes for KEI (including specific sea-based 
     platforms) and the concept of operations for each basing 
     mode; how KEI will enhance ballistic missile defense system 
     capabilities; the role KEI may play in European missile 
     defense and how that role relates to the fielding of 
     additional GBIs; and a comparison of anticipated sea-based 
     KEI capabilities with other sea-based missile defense 
     options.
     Operationally responsive space
       The budget request included $19.6 million in PE 65799D8Z 
     for the force transformation directorate, but no funds for 
     operationally responsive satellite payloads and busses.
       The House bill would authorize an increase of $25.0 million 
     in PE 65799D8Z for operationally responsive satellite 
     payloads.
       The Senate amendment would authorize $25.0 million in a new 
     program element for operationally responsive satellite 
     payloads.
       The conferees believe that smaller, less expensive 
     satellites may provide a means of achieving more rapid and 
     effective deployment of space-based military capabilities 
     than is now possible. The conferees are encouraged by Air 
     Force efforts to develop small, low-cost space launch 
     vehicles as an essential step for enabling the launch of such 
     satellites, but are concerned that the effort to develop 
     viable payloads for these rockets is not adequately funded. 
     The conferees note that the Office of Transformation is 
     working with the Air Force Research Laboratory to develop 
     lightweight, experimental tactical satellites (TACSATs), but 
     that this effort lacks dedicated funding. The conferees also 
     believe that the development of standards, protocols, and 
     interfaces for common satellite bus components will be key to 
     producing affordable small satellites. The conferees agree to 
     authorize $39.6 million in PE

[[Page H9474]]

     65799D8Z, an increase of $20.0 million, for further 
     development of TACSATs and common small satellite bus 
     components. The conferees expect, consistent with section 913 
     of this Act, that future funding requests for operationally 
     responsive payloads will be forwarded in a separate and 
     dedicated program element.


                          TEST AND EVALUATION

     Operational Test and Evaluation, Defense Overview
       The budget request for fiscal year 2005 included an 
     authorization of $305.1 million in Operational Test and 
     Evaluation, Defense for the Department of Defense.
       The House bill would authorize $305.1 million.
       The Senate amendment would authorize $309.1 million.
       The conferees recommend an authorization of $304.1 million. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page H9475]]

     [GRAPHIC] [TIFF OMITTED] TH08OC04.152
     


[[Page H9476]]

                       Items of Special Interest

     Department of Defense--National Aeronautics and Space 
         Administration coordination
       The conferees note that in the areas of aeronautics and 
     space research technology development, the Department of 
     Defense and the National Aeronautics and Space Administration 
     (NASA) must coordinate closely in order to ensure that the 
     nation continues its global leadership in these technologies.
       The conferees believe that as NASA evaluates its future 
     plans for aeronautics, it is essential that the Department 
     and NASA provide for the continued availability of unique 
     wind tunnels and other research, test, and evaluation 
     facilities and services critical to the development of 
     military systems. The conferees direct the Under Secretary of 
     Defense for Acquisition, Technology and Logistics to identify 
     and analyze aeronautics facilities currently managed by NASA 
     that are considered by the Department to be critical to the 
     accomplishment of defense missions and to the maintenance of 
     U.S. leadership in aeronautics.
       The conferees also endorse the Secretary of Defense's 
     emphasis on transformational technologies. One of the more 
     promising technologies under development is hypersonic 
     propulsion, which when further developed will provide 
     significantly improved operational capabilities for both 
     manned and unmanned flight, missile defense and a single-
     stage-to-flight capability that could provide rapid access to 
     space. Unfortunately, due to changing priorities within both 
     the Air Force and NASA, funding for such efforts has been 
     reduced to insignificant levels.
       The conferees direct the Secretary of Defense to submit a 
     report to the congressional defense committees by March 15, 
     2005, which details the Department's plans to provide the 
     required funding to pursue a development program for 
     transition of hypersonic technologies to an integrated 
     demonstration system that validates their affordability and 
     effectiveness to support prompt global strike and assured 
     space access missions. The report should analyze the results 
     and technological advances enabled by the X-43 series of 
     programs and other efforts to develop a detailed technology 
     roadmap and investment strategy consistent with meeting 
     future military needs in hypersonics. The conferees believe 
     the capabilities to be realized through a successful 
     hypersonic development program justify the sustained and full 
     support of the Department and NASA.
     Enterprise Resource Planning for Army Combat Logistics
       The Army logistics systems arm, fuel, repair, move, and 
     sustain combat forces. The Army's goals for modernization of 
     its legacy logistics systems include improved sustainment of 
     combat forces using fewer soldiers, increased readiness and 
     operational availability, and significantly lowering cost. 
     The Army plans to modernize its logistics systems using 
     enterprise resource planning systems, which will provide 
     essential information for timely decision making and accurate 
     performance measurement. They use no custom software code and 
     only commercial, off-the-shelf computer technology. They are 
     also web-based with a robust telecommunications 
     infrastructure and have been tested at thousands of sites 
     outside the Army.
       The conferees encourage the Army to leverage existing Army 
     information technology assets and expertise to augment funds 
     within the Global Combat Support System account to complete 
     the blueprinting and accelerate fielding of the system, 
     wherever feasible, to replace 20-year-old systems which are 
     unable to fully support combat operations.
     Patriot air and missile defense system
       The conferees note that the Patriot air and missile defense 
     system destroyed all nine theater ballistic missiles launched 
     at coalition forces during Operation Iraqi Freedom (OIF) for 
     which intercept was attempted. The conferees also note, 
     however, that the Patriot was also involved in three 
     ``friendly fire'' incidents during that conflict and that 
     electromagnetic interference (EMI) between Patriot and other 
     systems contributed to these incidents. Similar interference 
     problems with the Patriot occurred during the Gulf War in 
     1991.
       The conferees strongly support the Patriot system, note 
     with approval that the Army has reprogrammed funding to fix 
     the known ``friendly-fire'' problems associated with the 
     Patriot, and are encouraged at the level of attention given 
     to this problem since the OIF incidents. The conferees 
     expect, however, that as more radars, communications systems, 
     and other emitting systems are added to the battlefield in 
     the future, EMI problems will continue to grow in complexity.
       The conferees direct the Secretary of Defense to submit a 
     report to the congressional defense committees by March 1, 
     2005 summarizing the tests, exercises, and changes to 
     operational procedures and requirements that are planned or 
     being implemented to prevent or reduce future EMI problems 
     with the Patriot system. The conferees also direct the 
     Director of Operational Test and Evaluation to include an 
     assessment of the Department's plans to reduce EMI problems 
     with the Patriot system in his Annual Report to Congress, 
     required by section 139 of title 10, United States Code.
     Russian-American missile defense cooperation
       The conferees understand that the Secretary of Defense 
     desires to explore opportunities for missile defense 
     cooperative programs with the Russian Federation that build 
     upon the experience gained in the Russian-American 
     Observation Satellite (RAMOS) program that was terminated 
     earlier this year. The conferees recognize the potential 
     importance of such cooperative efforts, both to the technical 
     success of the U.S. missile defense effort and to the 
     establishment of a cooperative strategic relationship with 
     the Russian Federation.
       The conferees urge the Secretary to engage in serious 
     negotiations with the Russian Federation as soon as possible 
     on joint missile defense programs. The conferees believe that 
     previous efforts under the RAMOS program, including Russian 
     Presidential and Government decrees and the U.S.-Russian 
     Federation technical agreement, should be leveraged to help 
     ensure the successful initiation of such efforts.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (sec. 201)
       The House bill contained a provision (sec. 201) that would 
     authorize the recommended fiscal year 2005 funding levels for 
     the Research, Development, Test and Evaluation accounts for 
     the Army, Navy, Marine Corps, Air Force, Defense-wide 
     activities and the Director of Operational Test and 
     Evaluation.
       The Senate amendment contained a similar provision (sec. 
     201).
       The conference agreement includes this provision.
     Amount for defense science and technology (sec. 202)
       The budget request included $10,550.3 million for 
     Department of Defense science and technology (S&T) programs.
       The House bill would authorize $11,067.7 million for 
     defense S&T programs.
       The Senate amendment would authorize $11,012.4 million for 
     defense S&T programs.
       The conferees agree to authorize $11,191.6 million for S&T 
     programs, an increase of $641.3 million over the request. The 
     increase provided by the conferees brings the Department 
     closer to 3 percent of total spending, the goal stated by the 
     Department and outside experts as the desired investment for 
     these programs. In recognition of the key role played by S&T 
     in maintaining the best equipped, best protected fighting 
     force in the world, the conferees have targeted increases to 
     project areas which improve current capabilities, while 
     focusing on basic research and long-term projects that ensure 
     future innovation.
       The conferees note that current operations in Iraq, 
     Afghanistan, and elsewhere continue to demonstrate how 
     technologies transitioned from the Department's S&T programs 
     are enhancing the combat effectiveness of warfighters, 
     reducing casualties, and improving the efficiency and 
     flexibility of our military forces. The conferees commend the 
     Department for mobilizing its technical capabilities in the 
     science and technology community to support these current 
     global operations.
       The conferees expect to see an increased commitment by the 
     Department to robustly fund S&T in the fiscal year 2006 
     budget, along with an appropriate balance within the accounts 
     that acknowledges the importance of long-term research in an 
     era of immediate and pressing needs.
       Conferees also urge continued attention to a key component 
     of ensuring the U.S. military's technological edge--
     development, recruitment and retention of skilled scientists 
     and engineers.

    Subtitle B--Program Requirements, Restrictions, and Limitations

     Future Combat Systems program strategy (sec. 211)
       The House bill contained a provision (sec. 211) that would 
     direct the Secretary of the Army to establish and implement a 
     program strategy for the Future Combat Systems (FCS) 
     acquisition program. The provision limits authorization of 
     appropriations for FCS in fiscal year 2005 to $2.2 billion 
     until the Secretary of the Army certifies that elements of 
     the program strategy includes certain technical and 
     performance criteria before production facilitization and 
     long lead items are placed on contract. The provision also 
     requires the Under Secretary of Defense for Acquisition, 
     Technology and Logistics (USD(AT&L)) to submit to the 
     Congress: (1) an independent program cost estimate; (2) a 
     report, prepared by an independent panel, on the maturity 
     levels of critical technologies; (3) a report on the status 
     of the network and command, control, communications, 
     computers, intelligence, surveillance, and reconnaissance 
     components; and (4) key performance parameters, prior to the 
     Milestone B update required by the FCS acquisition decision 
     memorandum.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that limits the 
     authorization of appropriations for FCS in fiscal year 2005 
     to $2.2 billion until the Secretary of the Army certifies 
     that elements of the program strategy includes certain 
     technical and performance criteria before production 
     facilitization and long lead items are placed on contract. 
     The amendment requires the USD(AT&L) to submit to Congress: 
     (1) a program cost estimate; (2) a report, prepared by an 
     independent panel, on the maturity levels of critical 
     technologies; (3) a report on the status of the network 
     and command, control, communications, computers, 
     intelligence, surveillance,

[[Page H9477]]

     and reconnaissance components; and (4) key performance 
     parameters, prior to the Milestone B update required by 
     the FCS acquisition decision memorandum. The amendment 
     also requires the USD (AT&L) submit to Congress an 
     independent cost estimate of the FCS program not later 
     than March 1, 2005.
       The conferees continue to support FCS and believe that the 
     Army has made a sound decision to restructure the FCS 
     program. With this restructure, the Army will reduce FCS 
     program risk while providing increased capabilities for the 
     current force.
     Collaborative program for research and development of vacuum 
         electronics technologies (sec. 212)
       The House bill contained a provision (sec. 212) that would 
     require the Secretary of Defense to establish a program for 
     research and development in advanced vacuum electronics 
     technology to meet Department of Defense requirements.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Director, Defense Research and Engineering to submit a report 
     on establishment of a collaborative vacuum electronics 
     research and development program that: identifies a 
     department lead to carry out the effort; assesses the role of 
     investing in vacuum electronics technologies as part of the 
     overall strategy of the Department's investments to meet 
     electronic technology needs; provides a management plan and 
     schedule for the program; identifies required funding and a 
     list of program capability goals and objectives; outlines the 
     role of basic and applied research in support of the program; 
     and assesses global capabilities in the technology area.
       The conferees note that vacuum electronics are utilized in 
     a variety of the Department's systems, particularly many 
     legacy systems. While there is a trend toward solid state 
     electronics in most defense systems, the Department must 
     ensure that systems which depend on the use of vacuum 
     electronics will have access to the most advanced 
     technologies available.
     Annual Comptroller General report on Joint Strike Fighter 
         program (sec. 213)
       The House bill contained a provision (sec. 213) that would 
     require the Comptroller General to conduct an annual review 
     of the Joint Strike Fighter (JSF) aircraft program, and 
     submit a report of that review to Congress by March 15 of 
     each year from fiscal year 2005 through fiscal year 2009.
       Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     annual report to be submitted to the congressional defense 
     committees.
       The conferees are aware of the recently conducted study by 
     a senior independent review team on the JSF program, and 
     believe that the first report submitted by March 15, 2005 
     should place emphasis on the degree to which the program 
     office and contractor have incorporated the recommendations 
     of that team.
     Amounts for U.S. Joint Forces Command to be derived only from 
         Defense-wide accounts (sec. 214)
       The House bill contained a provision (sec. 214) that would 
     transfer funding for the joint warfare experimentation 
     programs of U.S. Joint Forces Command (JFCOM) from Research, 
     Development, Test and Evaluation (RDT&E), Navy accounts to an 
     RDT&E, Defense-wide account.
       The Senate amendment contained a similar provision (sec. 
     216).
       The Senate recedes with an amendment that would require, 
     beginning in fiscal year 2007, all RDT&E funds for JFCOM be 
     derived from Defense-wide RDT&E funds, and that this be 
     clearly reflected in the budget request.
       The conferees note that this provision does not take effect 
     until fiscal year 2007. The conferees direct, however, that 
     the amounts requested for JFCOM joint warfare experimentation 
     programs be separately identified in the fiscal year 2006 
     budget request, and distinguished within any executive agent 
     account in which they are included. The conferees also note 
     that JFCOM is responsible for a number of critical efforts 
     directly related to increasing the joint warfighting 
     capability of the military services, and that funding those 
     efforts through executive agents does not provide Congress 
     with clear visibility into the amounts dedicated to those key 
     joint initiatives. The practice of requesting funding through 
     executive agents also distorts the amount of funding for 
     military service activities that carry funding for joint 
     initiatives. The conferees have strong interest not only in 
     joint experimentation, which is addressed by this provision, 
     but in JFCOM joint training initiatives as well. Therefore 
     the conferees direct the Department of Defense, when 
     submitting its fiscal year 2006 budget request, to clearly 
     identify funding for joint training activities in Defense-
     wide and executive agent accounts to enhance congressional 
     visibility into funding dedicated to joint training in future 
     budgets.
       The conferees further note the unique, important role that 
     JFCOM plays in developing doctrine and capabilities for other 
     combatant commanders, and in developing and monitoring joint 
     training standards for elements of the Armed Forces and 
     coalition partners. The conferees believe that the Department 
     should consider the establishment of a major force program or 
     similar consolidation of related budget activities for joint 
     experimentation, procurement, and training activities.
     Global Positioning System III satellite (sec. 215)
       The Senate amendment contained a provision (sec. 212) that 
     would prohibit the obligation or expenditure of any more than 
     80 percent of the funds authorized to be appropriated for the 
     Global Positioning System III (GPS) until the Secretary of 
     Defense completes an analysis of alternatives and submits a 
     report on that analysis to the congressional defense 
     committees.
       The House bill contained no similar provision.
       The House recedes.
       The conferees expect the analysis of alternatives to 
     include an assessment of architectures that take advantage of 
     smaller, lighter weight, and potentially less expensive GPS 
     satellites.
     Initiation of concept demonstration of Global Hawk high 
         altitude endurance unmanned aerial vehicle (sec. 216)
       The Senate amendment contained a provision (sec. 213) that 
     would amend section 221(c) of the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001 (Public Law 
     106-398) by changing the date by which the Secretary of 
     Defense is to initiate the demonstration of the Global Hawk 
     high altitude endurance unmanned aerial vehicle from March 1, 
     2001 to March 1, 2005.
       The House bill contained no similar provision.
       The House recedes.
     Joint unmanned combat air systems program (sec. 217)
       The Senate amendment contained a provision (sec. 214) that 
     would require the Secretary of Defense to establish an 
     executive committee, which would provide guidance and 
     recommendations for the management of the joint unmanned 
     combat air systems program to the Director of the Defense 
     Advanced Research Projects Agency (DARPA) for as long as the 
     program is managed by DARPA.
       The House bill contained no similar provision.
       The House recedes.

                  Subtitle C--Missile Defense Programs

     Fielding of ballistic missile defense capabilities (sec. 231)
       The House bill contained a provision (sec. 221) that would 
     authorize the Department of Defense to use Research, 
     Development, Test and Evaluation funds appropriated in fiscal 
     years 2005 and 2006 for the Missile Defense Agency to develop 
     and field ballistic missile defense capabilities.
       The Senate amendment contained a similar provision (sec. 
     231) that would authorize the use of Research, Development, 
     Test and Evaluation funds appropriated in fiscal year 2005 
     for the development and fielding of an initial set of missile 
     defense capabilities.
       The Senate recedes.
     Integration of Patriot Advanced Capability-3 and Medium 
         Extended Air Defense System into ballistic missile 
         defense system (sec. 232)
       The Senate amendment contained a provision (sec. 232) that 
     would require the Secretary of the Army to obtain approval of 
     the Director of the Missile Defense Agency (MDA) prior to 
     making changes to system level specifications or establishing 
     new system level specifications for the combined Patriot 
     Advanced Capability-3 (PAC-3) and Medium Extended Air Defense 
     System (MEADS) program. It would also require such approval 
     prior to making any significant change in procurement 
     quantities or the baseline schedule for the PAC-3/MEADS 
     combined program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would define the 
     PAC-3/MEADS air and missile defense program as part of the 
     integrated ballistic missile defense system (BMDS), and 
     require that the Director of MDA, in consultation with the 
     Secretary of the Army (acting through the Assistant Secretary 
     of the Army for Acquisition, Logistics and Technology), 
     ensure that any configuration change to the PAC-3/MEADS 
     program is subject to MDA's configuration control processes. 
     The amendment would also require that the Secretary of the 
     Army (acting through the Assistant Secretary of the Army for 
     Acquisition, Logistics and Technology) make significant 
     changes to the baseline technical specifications and schedule 
     for the PAC-3/MEADS program only with the concurrence of the 
     Director of the Missile Defense Agency. The amendment would 
     further require the Secretary of Defense to establish 
     procedures to determine the effect of significant changes 
     proposed by the Secretary of the Army to planned PAC-3/MEADS 
     procurement quantities on BMDS capabilities; to provide for 
     reviews of the proposed procurement changes by all relevant 
     Department of Defense commands and agencies; to obtain the 
     concurrence or nonconcurrence of those commands and agencies 
     with the proposed procurement changes; and to submit a report 
     to the congressional defense committees on the procedures the 
     Secretary of Defense establishes.
     Comptroller General assessments of ballistic missile defense 
         programs (sec. 233)
       The Senate amendment contained a provision (sec. 233) 
     that would require assessments by the Comptroller General 
     of the extent to which missile defense programs met their 
     cost, schedule, test, and performance goals for the years 
     2004 through 2009. The provision also requires the 
     Comptroller General to submit reports on those assessments 
     to the congressional defense committees.

[[Page H9478]]

       The House bill contained no similar provision.
       The House recedes with an amendment that would require 
     assessments by the Comptroller General of the extent to which 
     missile defense programs met their cost, schedule, test, and 
     performance goals for the years 2004 through 2006.
     Baselines and operational test and evaluation for ballistic 
         missile defense system (sec. 234)
       The Senate amendment contained a provision (sec. 234) that 
     would require: 1) the Secretary of Defense, in consultation 
     with the Director of Operational Test and Evaluation (DOT&E), 
     to prepare appropriate criteria for operationally realistic 
     testing of the ballistic missile defense system (BMDS); 2) 
     the conduct of a test consistent with those criteria not 
     later than October 1, 2005; 3) the conduct of tests 
     consistent with those criteria for each block configuration 
     of the BMDS; 4) evaluation of those tests by the DOT&E 4) 
     the establishment of baselines for each block configuration 
     of the BMDS; and 5) the Director of the Missile Defense 
     Agency to report variances in program performance from those 
     baselines to Congress and the reasons for any changes made to 
     the baselines.
       The House bill contained no similar provision.
       The House recedes.

                       Subtitle D--Other Matters

     Annual report on submarine technology insertion (sec. 241)
       The Senate amendment contained a provision (sec. 241) that 
     would require the Secretary of Defense to submit an annual 
     report on available or potentially available technologies for 
     insertion into submarines for each of fiscal years 2006, 
     2007, 2008, and 2009.
       The House bill contained no similar provision.
       The House recedes.
     Sense of the Congress regarding funding of the Advanced 
         Shipbuilding Enterprise under the National Shipbuilding 
         Research Program of the Navy (sec. 242)
       The Senate amendment contained a provision (sec. 242) that 
     would express the sense of the Senate in support of continued 
     funding for the Advanced Shipbuilding Enterprise under the 
     National Shipbuilding Research Program of the Navy, citing it 
     as a method for exploring and collaborating on innovation in 
     shipbuilding and ship repair that collectively benefits all 
     components of the industry.
       The House bill contained no similar provision.
       The House recedes with an amendment that would change the 
     provision to a sense of the Congress.

                   Legislative Provisions Not Adopted

     Program increases
       The House bill contained a provision (sec. 203) that would 
     authorize an increase of $5.0 million in PE 25633N for 
     Research, Development, Test and Evaluation, Navy, for nano 
     composite hard-coat for aircraft canopies, and an increase of 
     $5.0 million in PE 27443F for Research, Development, Test and 
     Evaluation, Air Force, for command and control service-level 
     management.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees agree to authorize an increase of $2.3 
     million in PE 25633N for nano composite hard-coat for 
     aircraft canopies, and an increase of $3.8 million in PE 
     27443F for command and control service-level management. 
     DD(X)-class destroyer program.
       The Senate amendment contained a provision (sec. 211) that 
     would authorize the Secretary of the Navy to fund the second 
     destroyer of the DD(X)-class with Research, Development, Test 
     and Evaluation, Navy funds, and would direct that $99.4 
     million be authorized for detail design of the second ship.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize a total of $1,471.5 
     million in PE 64300N for the DD(X) destroyer, including $84.4 
     million to begin detail design of the second ship of the 
     class.
       The conferees have strongly supported both the DD(X) 
     program and the Navy's acquisition strategy, which uses the 
     construction and test of engineering development models 
     (EDMs) to mitigate technical risk.
       The conferees are aware of the assessment by the Government 
     Accountability Office (GAO) of the maturity of 12 
     technologies critical to DD(X), as the program entered the 
     system development and demonstration (SDD) phase, and the 
     GAO's further assessment that DD(X) technology maturity and 
     design stability will not be demonstrated before the 
     Milestone B decision scheduled for March 2005. Many of the 
     tests to demonstrate technical maturity will occur around the 
     time of the critical design review (CDR) late in fiscal year 
     2005. Program officials acknowledge the risks associated with 
     the advanced technologies, but the conferees believe that 
     taking such risks is warranted to ensure that the DD(X) 
     technologies are not obsolete, and that the Navy has taken 
     adequate steps to mitigate the risks before ship 
     construction begins. These steps include the 
     identification of fall back options if new technologies 
     are not available.
       In particular, the conferees note the concerns expressed in 
     the House report (H. Rept. 108-491) regarding the schedule 
     for land-based testing of the integrated power system and 
     advanced gun system EDMs. These two system EDMs are not 
     scheduled to complete land-based testing until late in fiscal 
     year 2005, coincident with the DD(X) CDR.
       The conferees agree that the integrated power system and 
     advanced gun system are key elements which drive much of the 
     DD(X) design, and that land-based testing of these systems 
     should be essentially complete prior to the DD(X) CDR. The 
     conferees direct the Secretary of the Navy, in coordination 
     with the Under Secretary of Defense for Acquisition, 
     Technology and Logistics, to report to the congressional 
     defense committees following completion of the DD(X) CDR. 
     That report should include the results of the CDR and an 
     assessment of the readiness of the program to proceed beyond 
     the SDD phase of the program.
       The conferees share the concerns raised in the Senate 
     Report (S. Rept. 108-260) regarding maintaining the viability 
     of a competitive industrial base for the design and 
     construction of Navy surface combatants. As noted in that 
     report, the Navy had originally planned to compete the 
     construction phase of the DD(X), but made a decision to award 
     that contract on a sole-source basis to the shipyard with 
     lead design responsibility. The conferees expect the Navy to 
     take all actions necessary to ensure the viability of the 
     second shipyard in order to maintain a healthy and 
     competitive industrial base for surface combatants.
     Joint Strike Fighter aircraft program
       The Senate amendment contained a provision (sec. 215) that 
     would require the Secretary of Defense to have the Defense 
     Science Board (DSB) conduct a study of the Joint Strike 
     Fighter (JSF) aircraft program, which would be delivered to 
     the congressional defense committees with the budget request 
     for fiscal year 2006. This study would focus primarily on the 
     issue of excess weight in the aircraft, the potential 
     performance penalties that would be incurred, and the 
     technical approaches to solve these issues.
       The House bill amendment contained no similar provision.
       The Senate recedes.
       The conferees have been made aware of the results of a 
     recently completed study by a senior-level independent review 
     team which reviewed almost identical areas of the JSF 
     program, and believe another study by the DSB would be 
     redundant at this time.
     Space based radar
       The House bill contained a provision (sec. 215) that would 
     prohibit the Department of Defense from proceeding to 
     Milestone B in the Space Based Radar program until 30 days 
     after meeting a requirement to provide the congressional 
     defense committees and intelligence committees a report that 
     includes independent cost and technology maturity and 
     readiness assessments and the system design concept for the 
     program.
       The Senate amendment contained no similar provision.
       The House recedes.
     Mark-54 torpedo product improvement program
       The House bill contained a provision (sec. 216) that would 
     make available $2.0 million of the funds in PE 64610N for 
     Research, Development, Test, and Evaluation, Navy for the 
     Mark-54 torpedo product improvement program.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees agree to authorize an increase of $1.5 
     million in PE 64610N for the Mark-54 torpedo product 
     improvement program.
     Infrastructure system security engineering development for 
         the Navy
       The Senate amendment contained a provision (sec. 217) that 
     would authorize an increase of $3.0 million in PE 26313M for 
     Research, Development, Test and Evaluation, Navy, for 
     infrastructure system security engineering development.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize an increase of $1.5 
     million in PE 26313M for infrastructure system security 
     engineering at the Critical Infrastructure Protection Center.
     Neurotoxin Mitigation Research
       The Senate amendment contained a provision (sec. 218) that 
     would authorize an increase of $2.0 million in PE 62384BP for 
     Research, Development, Test and Evaluation, Defense-wide 
     activities for neurotoxin mitigation research.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize an increase of $1.0 
     million in PE 62384BP for neurotoxin mitigation research.
     Spiral development of Joint Threat Warning System maritime 
         variants
       The Senate amendment contained a provision (sec. 219) that 
     would authorize an increase of $2.0 million in PE 116405BB 
     for the development of maritime variants for the Joint Threat 
     Warning System (JTWS), to be offset by a decrease of $2.0 
     million of the amount authorized to be appropriated for 
     military personnel (sec. 421), with the amount of the 
     reduction to be derived from excess amounts provided for 
     military personnel of the Air Force.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize an increase of $2.0 
     million in PE116405BB for spiral development of maritime 
     variants for JTWS.

[[Page H9479]]

     Advanced ferrite antenna
       The Senate amendment contained a provision (sec. 220) that 
     would authorize an increase of $3.0 million in PE 26313M for 
     Research, Development, Test, and Evaluation, Navy, for 
     advanced ferrite antenna development.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize an increase of $2.1 
     million in PE 26313M for advanced ferrite antenna 
     development.
     Prototype littoral array system for operating submarines
       The Senate amendment contained a provision (sec. 221) that 
     would authorize an increase of $5.0 million in PE 64503N for 
     Research, Development, Test and Evaluation, Navy for the 
     design, development, and testing of a prototype littoral 
     array system for operating submarines.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize an increase of $3.3 
     million in PE 64503N for the design, development, and testing 
     of a prototype littoral array system for operating 
     submarines.
     Advanced manufacturing technologies and radiation casualty 
         research
       The Senate amendment contained a provision (sec. 222) that 
     would authorize an increase of $2.0 million in PE 78011S for 
     advanced manufacturing technologies and $3.0 million in PE 
     63002D8Z for radiation casualty research.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize an increase of $4.5 
     million in PE 78011S for advanced manufacturing technologies.
     Research and development for improved prevention of 
         leishmaniasis
       The Senate amendment contained a provision (sec. 328) that 
     would authorize an increase of $0.5 million in the Defense 
     Health Program and $4.5 million in PE 64807A for research and 
     development for improved prevention of leishmaniasis.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize an increase of $0.5 
     million in the Defense Health Program, $1.4 million in PE 
     63002A, and $4.5 million in PE 64807A for research and 
     development for the prevention and treatment of 
     leishmaniasis.

                  TITLE III--OPERATION AND MAINTENANCE

     Operation and Maintenance Overview
       The budget request included an authorization of $121,874.6 
     million in Operation and Maintenance, $20,109.6 million in 
     Other Programs, and $2,955.1 million in Working Capital Fund 
     accounts for the Department for Defense.
       The House bill would authorize $119,758.9 million in 
     Operation and Maintenance, $20,229.8 million in Other 
     Programs, and $2,767.1 million in Working Capital Fund 
     accounts.
       The Senate amendment would authorize $120,522.3 million in 
     Operation and Maintenance, $20,529.0 million in Other 
     Programs, and $2,894.9 million in Working Capital Fund 
     accounts.
       The conferees recommend an authorization of $121,520.2 
     million in Operation and Maintenance, $20,086.9 million in 
     Other Programs, and $2,896.1 million in Working Capital Fund 
     accounts. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page H9526]]

                       Items of Special Interest

     Navy Marine Corps Intranet
       The conferees note that the Navy Marine Corps Intranet 
     (NMCI) program is working to transfer legacy applications and 
     networks into the NMCI environment. The conferees note that 
     the scope of this process is large and the original goals 
     relating to termination or migration of legacy applications 
     have not been achieved. The conferees understand that there 
     may be valid operational reasons for not migrating some 
     legacy applications into the NMCI environment. The Secretary 
     of the Navy should accelerate the migration or termination of 
     legacy applications and networks, and the conferees direct 
     the Secretary to report to the Congress on the progress in 
     this area, as well as on a plan for the future funding of any 
     legacy systems support by September 30, 2005. The conferees 
     take no position on matters of NMCI contract administration 
     and direct the Secretary to resolve any matters in 
     contractual arrangements relating to legacy application 
     termination, transition, and support in a manner consistent 
     with established procedures and acquisition policies.
     Transforming the Department of the Army's logistics 
         maintenance information
       The conferees support the Department of the Army's recent 
     decision to allocate funds to reduce the cost, while 
     increasing the speed of transforming its logistics 
     maintenance information into modern and usable formats. The 
     conferees urge the Army to continue these efforts as a means 
     to improve maintenance support tools available to soldiers.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (secs. 301-303)
       The House bill contained provisions (sec. 301-303) that 
     would authorize fiscal year 2005 funding levels for all 
     operation and maintenance accounts, working capital funds, 
     and other Department of Defense programs, including the 
     Defense Inspector General, the Chemical Demilitarization 
     Program, Drug Interdiction and Counter-Drug Activities, and 
     the Defense Health Program.
       The Senate amendment contained similar provisions (secs. 
     301-303).
       The conference agreement includes these provisions.
     Chemical Agents and Munitions Destruction, Defense (sec. 
         303b)
       The budget request included $1,372.0 million in Chemical 
     Agents and Munitions Destruction, Army for the Department of 
     Defense.
       The House bill contained a provision (sec. 303(b)) that 
     would provide a total of $1,372.0 million in Chemical Agents 
     and Munitions Destruction, Defense (CAMD,D) for the 
     Department of Defense.
       The Senate amendment contained a provision (sec. 303(b)) 
     that would provide a total of $1,519.0 million for CAMD,D, 
     including an increase of $147.0 million to restore the 
     funding for the chemical demilitarization research and 
     development program at the Pueblo Chemical Agent Disposal 
     Facility, Pueblo, Colorado, to the original estimates 
     developed by the Department's Cost Analysis Improvement 
     Group, which were provided in the Future Years Defense 
     Program submitted with the fiscal year 2004 budget request.
       The House recedes with an amendment that would authorize 
     $1,372.0 million for CAMD,D, as follows: $1,088.8 million for 
     Operation and Maintenance; $204.2 million for Research and 
     Development, (an increase of $50.0 million to the budget 
     request to be used for the chemical demilitarization research 
     and development program at Pueblo); and $79.0 million for 
     Procurement.
       Elsewhere in this report the conferees recommend an 
     authorization of $81.9 million for military construction for 
     the Chemical Agents and Munitions Destruction program.
       The conferees note the reduction in the fiscal year 2005 
     budget request from the fiscal year budget estimate for the 
     chemical demilitarization program, particularly for the 
     Pueblo facility, and concerns raised in the Senate report 
     accompanying S.2400 (S. Rept. 108-260) regarding the need to 
     provide sufficient funding in the program for the United 
     States to meet its obligations under the Chemical Weapons 
     Convention. The conferees also note the views expressed in 
     the House report accompanying H.R. 4200 (H. Rept. 108-491) 
     that the United States proceed as rapidly as possible in 
     destroying the stockpile of bulk VX nerve agent stored at 
     Newport Chemical Depot, Indiana, in order to ensure maximum 
     safety and to meet international treaty commitments, while 
     proceeding objectively and deliberately in ensuring that the 
     disposal of the hydrolysate hazardous waste, which results 
     from neutralization of the VX agent, in a commercial 
     hazardous water treatment facility does not compromise the 
     public health and safety of the citizens or the environment 
     near such a facility.
       Elsewhere in this report the conferees have recommended a 
     provision that would require the Under Secretary of Defense 
     for Acquisition, Technology and Logistics and the Secretary 
     of the Army to jointly prepare and annually update a 
     strategic report for future activities and funding of the 
     chemical demilitarization program.
       Section 1421 of the Department of Defense Authorization 
     Act, 1986 (section 1521 of title 50, United States Code, 
     Public Law 99-145) requires that funds for the chemical 
     demilitarization program, including those for military 
     construction, shall be set forth in the budget of the 
     Department for any fiscal year as a separate account and 
     shall not be included in the budget accounts for any military 
     department. Section 141 of the National Defense Authorization 
     Act for fiscal year 2003 (Public Law 107-314) requires that 
     the Under Secretary of Defense (Comptroller) annually certify 
     to the congressional defense committees that the budget 
     request for the chemical agents and munition destruction 
     program has been submitted in accordance with the 
     requirements of section 1421. The Department submitted the 
     fiscal year 2005 budget request for chemical demilitarization 
     in an Army account, contrary to the law. The conferees expect 
     the Department to comply with the law in future budget 
     requests by submitting the budget request for chemical agents 
     and munitions destruction in a Department of Defense account.

                  Subtitle B--Environmental Provisions

     Satisfaction of Superfund audit requirements by the Inspector 
         General of the Department of Defense (sec. 311)
       The Senate amendment contained a provision (sec. 323) that 
     would allow the Inspector General of the Department of 
     Defense the discretion to audit Superfund financial 
     transactions on a periodic basis.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       The conferees expect that a periodic review would result in 
     an audit at least every three years.
     Reimbursement of Environmental Protection Agency for certain 
         costs in connection with Moses Lake Wellfield Superfund 
         Site, Moses Lake, Washington (sec. 312)
       The Senate amendment contained a provision (sec. 322) that 
     would provide discretionary authority to the Secretary of 
     Defense to transfer not more than $524,927 to the Moses Lake 
     Wellfield Superfund Site (Moses Lake), 10-6J Special Account, 
     formerly the home of Larson Air Force Base. This payment 
     would be for reimbursement to the Environmental Protection 
     Agency for costs and interest incurred to perform a remedial 
     investigation and feasibility study at Moses Lake, where the 
     groundwater is apparently contaminated with 
     trichloroethylene.
       The House bill contained no similar provision.
       The House recedes.
     Increase in authorized amount of environmental remediation, 
         Front Royal, Virginia (sec. 313)
       The Senate amendment contained a provision (sec. 325) that 
     would amend section 591(a)(2) of the Water Resources 
     Development Act of 1999 (Public Law 106-53) by increasing the 
     authorized level by $10.0 million for environmental 
     remediation in Front Royal, Virginia.
       The House bill contained no similar provision.
       The House recedes.
     Small Boat Harbor, Unalaska, Alaska (sec. 314)
       The conferees agree to include a provision that requires 
     the Secretary of the Army to carry out the small boat harbor 
     project in Unalaska, Alaska. The conferees note that the 
     total estimated cost is $23.2 million, with an estimated 
     federal cost of $11.5 million and an estimated non-federal 
     cost of $11.7 million. The project shall be carried out in 
     accordance with the plans and subject to the conditions 
     recommended in a final report of the Chief of Engineers, if a 
     favorable final report of the Chief for the project is 
     completed not later than December 31, 2004.
     Report regarding encroachment issues affecting Utah Test and 
         Training Range, Utah (sec. 315)
       The House bill included a provision (sec. 311) that would 
     require the Secretary of the Air Force to submit a report to 
     the Committees on Armed Services of the Senate and the House 
     of Representatives that outlines current and anticipated 
     encroachments on the use of the special use airspace of the 
     Utah Test and Training Range (UTTR). The Senate amendment 
     included a similar provision (sec. 329). The Senate amendment 
     also confirmed a prohibition on ground military operations in 
     the covered wilderness study area within UTTR. The Senate 
     amendment further clarified that nothing in the provision 
     would prevent required maintenance of existing 
     communications, instrumentation, or electronic tracking 
     systems necessary for effective testing and training to meet 
     military requirements in UTTR.
       The House recedes with a technical amendment.
     Comptroller General Study and report on Alternative 
         Technologies to decontaminate groundwater at Department 
         of Defense installations (sec. 316)
       The Senate amendment contained a provision (sec. 326) which 
     would require the Comptroller General of the United States to 
     conduct a study to determine whether or not cost-effective 
     technologies are available to the Department of Defense for 
     the cleanup of groundwater contamination at Department 
     installations in lieu of traditional methods.
       The House bill contained no similar provision.
       The House recedes with an amendment clarifying the scope of 
     the study.
     Comptroller General study and report on drinking water 
         contamination and related health effects at Camp Lejeune, 
         North Carolina (sec. 317)
       The Senate amendment contained a provision (sec. 324) that 
     would require the Comptroller General of the U.S. to conduct 
     a

[[Page H9527]]

     study of the history of drinking water contamination at the 
     United States Marine Corps (USMC) base at Camp Lejeune, North 
     Carolina.
       The House bill contained no similar provision.
       The House recedes with an amendment clarifying the scope of 
     the study.
     Sense of Congress regarding perchlorate contamination of 
         ground and surface water from Department of Defense 
         activities (sec. 318)
       The Senate amendment contained a provision (sec. 327) that 
     would express the sense of the Senate that the Department of 
     Defense should develop a national plan to remediate 
     perchlorate contamination specifically to: (1) ensure the 
     Department is prepared to respond quickly and appropriately 
     once a drinking water standard is established; (2) continue 
     remediation at those sites where perchlorate contamination 
     poses an imminent and substantial endangerment to public 
     health; (3) develop a plan to remediate perchlorate 
     contamination in cases in which such contamination from the 
     Department's activities is present in ground or surface water 
     at levels the Department determines pose a hazard to human 
     health; and (4) continue the process of evaluating and 
     prioritizing sites without waiting for the development of a 
     federal standard.
       The House bill contained no similar provision.
       The House recedes with an amendment clarifying the scope of 
     the sense of the Congress.

                 Subtitle C-Workplace and Depot Issues

     Simplification of annual reporting requirements concerning 
         funds expended for depot maintenance and repair workloads 
         (sec. 321)
       The House bill contained a provision (sec. 321) that would 
     amend section 2466(d) of title 10, United States Code, to 
     require the Secretary of Defense to submit to Congress a 
     report on the percentage of funds expended or expected to be 
     expended for depot maintenance and repair workloads in the 
     public and private sectors.
       The Senate amendment contained a similar provision (section 
     331) that would simplify and improve the two separate annual 
     reports required by section 2466(d) of title 10, United 
     States Code, that the Department of Defense prepares relating 
     to the percentage of funds expended or projected to be 
     expended for depot maintenance and repair workloads in the 
     public and private sectors.
       The House recedes with a technical amendment.
     Repeal of annual reporting requirement concerning management 
         of depot employees (sec. 322)
       The House bill contained a provision (sec. 322) that would 
     repeal section 2472(b) of title 10, United States Code, which 
     currently requires the Secretary of Defense to report 
     annually to the Committees on Armed Services of the Senate 
     and the House of Representatives the number of Department of 
     Defense employees employed and expected to be employed during 
     that fiscal year to perform depot level maintenance and 
     repair of materiel.
       The Senate amendment contained a similar provision (sec. 
     332).
       The Senate recedes.
     Extension of special treatment for certain expenditures 
         incurred in the operation of Centers of Industrial and 
         Technical Excellence (sec. 323)
       The Senate amendment contained a provision (sec. 333) that 
     would extend for three years section 2474(f) of title 10, 
     United States Code. Section 2474(f) excludes all work 
     performed by non-federal personnel at designated Centers of 
     Industrial and Technical Excellence from the 50 percent 
     limitation on contracting for depot maintenance in section 
     2466(a) of title 10, United States Code, if the personnel are 
     performing the work pursuant to a public-private partnership.
       The House bill contained no similar provision.
       The House recedes.
     Temporary authority for contractor performance of security-
         guard functions (sec. 324)
       The Senate amendment contained a provision (sec. 362) that 
     would extend for two years the authority granted in section 
     332 of the Bob Stump National Defense Authorization Act for 
     Fiscal Year 2003 (Public Law 107-314) to hire contract 
     security guards on a temporary basis to fill positions that 
     would otherwise be filled by members of the Armed Forces.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to submit a report on the use of this 
     authority no later than December 1, 2005.
     Pilot program for purchase of certain municipal services for 
         Army installation (sec. 325)
       The Senate amendment contained a provision (sec. 363) that 
     would authorize a pilot program under which the secretary of 
     a military department could provide for the purchase of local 
     governmental services at a Department of Defense installation 
     from the local government responsible for serving the area.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     pilot program to two Department of Army installations located 
     in the United States.
     Bid protests by federal employees in actions under Office of 
         Management and Budget Circular A-76 (sec. 326)
       The House bill contained a provision (sec. 325) that would 
     express the sense of Congress that Department of Defense 
     civilian employees (or their representatives) and contractors 
     (or their representatives) should receive comparable 
     treatment regarding legal standing to challenge the way in 
     which a public-private competition has been conducted before 
     the Government Accountability Office (GAO) or in the U.S. 
     Court of Federal Claims.
       The Senate amendment contained a provision (sec. 1107) that 
     would provide such legal standing, in GAO bid protests only, 
     to both: (1) the official who submits an agency tender in a 
     public-private competition (the Agency Tender Official 
     (ATO)); and (2) a person representing a majority of the 
     employees of the federal agency who are engaged in the 
     performance of the activity or function that is subject to 
     the competition. The Senate amendment also authorized the ATO 
     or a person representing a majority of the employees to 
     intervene in protests filed in the U.S. Court of Federal 
     Claims.
       The House recedes with an amendment providing the ATO legal 
     standing in GAO bid protests of public-private competitions 
     for functions performed by more than 65 full-time federal 
     employees.
       Under the conference agreement, the ATO would be required 
     to file a protest at the request of a majority of the 
     employees of the federal agency who are engaged in the 
     performance of the activity or function that is subject to 
     the competition unless the ATO determines that there is no 
     reasonable basis for the protest. A determination by the ATO 
     would not be subject to judicial or administrative appeal, 
     but would be reported to the congressional defense 
     committees. A person representing a majority of the employees 
     would not have standing to file a protest, but would have the 
     right to intervene in a protest filed by an interested party, 
     including the ATO. The conference agreement would not address 
     protests that are filed in the United States Court of Federal 
     Claims.
     Limitations on conversion of work performed by Department of 
         Defense civilian employees to contractor performance 
         (sec. 327)
       The House bill contained a provision (sec. 323) that would: 
     (1) codify the prohibition on converting an activity or 
     function to private sector performance unless the conversion 
     would result in savings of at least 10 percent or $10.0 
     million; (2) prohibit the Department from breaking up a 
     function to avoid applicable thresholds for conducting a 
     public competition; (3) ensure that a public competitor is 
     not disadvantaged by the offer of a private competitor to 
     reduce costs by reducing health care benefits for its 
     employees; and (4) require the Department to conduct a 
     competition, including an agency tender, a most efficient 
     organization plan, and a formal cost comparison for any 
     function performed by 10 or more civilian employees.
       The Senate amendment contained a similar provision (sec. 
     851).
       The Senate recedes with an amendment that would: (1) codify 
     the prohibition on converting an activity or function to 
     private sector performance unless the conversion would result 
     in savings of at least 10 percent or $10.0 million when 
     conducting a public-private competition under OMB circular A-
     76 dated May 29, 2003; and (2) prohibit the Department of 
     Defense from breaking up a function to avoid applicable 
     thresholds for conducting a public-private competition under 
     A-76 Circular A-76, May 29, 2003.
       The conferees agree to exclude the pilot program for best-
     value source selection authorized by section 336 of the 
     National Defense Authorization Act for Fiscal Year 2004 
     (Public Law 103-136) from the requirement to apply a price 
     differential of 10 percent or $10.0 million. The conferees 
     expect the Secretary of Defense to utilize the price 
     differential in the cost or price component of an evaluation 
     under the pilot program, but understand that cost or price 
     alone is not determinative in a best value competition.
       The conferees note that the Department of Defense 
     Appropriations Act for Fiscal Year 2005 (Public Law 108-257) 
     includes a provision that would require the Department to 
     ensure, in fiscal year 2005, that a public competitor is 
     not disadvantaged by the offer of a private competitor to 
     reduce costs by reducing health care benefits for its 
     employees and that the Department must conduct a 
     competition, including an agency tender, a most efficient 
     organization plan, and a formal cost comparison for any 
     function performed by 10 or more civilian employees.
       The conferees direct the Comptroller General to review the 
     implementation and impact of the Appropriations provision 
     with regard to health care costs and competition of small 
     agency functions. The Comptroller General's review should 
     also address the full range of benefits provided by public 
     and private sector employers, the manner in which these 
     benefits are considered in a public-private competition, the 
     impact of any benefit changes on employees who transition to 
     private sector employment as a result of a public-private 
     competition, and steps that could be taken to ameliorate any 
     adverse impact of such a transition.
       The conferees direct the Comptroller General to provide a 
     preliminary report on this review to the congressional 
     defense committees by no later than May 1, 2005, and a final 
     report by no later than three months after the end of fiscal 
     year 2005.

[[Page H9528]]

     Competitive sourcing reporting requirement (sec. 328)
       The House bill contained a provision (sec. 326) that would 
     require the Inspector General of the Department of Defense to 
     submit to Congress a report addressing whether the Department 
     has implemented a comprehensive and reliable system to track 
     and assess the results of public-private competitions. The 
     House provision would establish a number of specific elements 
     to be addressed in the tracking system.
       The Senate amendment contained a compatible provision (sec. 
     853). The Senate provision would not establish the specific 
     reporting elements to be addressed in the tracking system.
       The House recedes.
       The conferees note that section 354 of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 
     (Public Law 106-398) and section 385 of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85) 
     required the Department to maintain a system for tracking the 
     results of public-private competitions and established the 
     specific elements to be addressed in the tracking system.

                   Subtitle D--Information Technology

     Preparation of Department of Defense plan for transition to 
         Internet Protocol version 6 (sec. 331)
       The House bill contained a provision (sec. 331) that would 
     require the Secretary of Defense to prepare a transition plan 
     to evaluate how the Department of Defense's information 
     technology systems may be affected by the Department's 
     decision to transition from the current protocols to Internet 
     Protocol version 6 (IPv6). The provision would also direct 
     the Secretary to conduct and manage tests of IPv6 and the 
     global information grid to ensure the needs of the warfighter 
     will continue to be met.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to include cost estimates in the IPv6 transition 
     plan.
       The conferees expect that any testing will be performed 
     under the direction and review of the Director of Operational 
     Test and Evaluation, who shall identify the most appropriate 
     facilities and organizations to perform the testing. The 
     conferees direct the Director to provide an update on the 
     ongoing test program and test results no later than September 
     30, 2005.
     Defense business enterprise architecture, system 
         accountability, and conditions for obligation of funds 
         for defense business system modernization (sec. 332)
       The House bill contained a provision (sec. 332) that would 
     require the Department of Defense to develop a comprehensive 
     architecture for all business systems of the Department. The 
     provision would also prohibit significant investments in new 
     business systems or upgrades to existing business systems 
     that would be inconsistent with the new architecture.
       The Senate amendment contained a similar provision (sec. 
     1004).
       The Senate recedes with an amendment that would: (1) 
     clarify the criteria for approving business system 
     modernization expenditures; (2) provide that a covered 
     expenditure for a business system that has not been approved 
     is a violation of the Anti-Deficiency Act (31 U.S.C., section 
     1341); (3) provide additional detail on the composition of 
     the enterprise architecture and transition plan; (4) clarify 
     that domain managers have responsibility for the review, 
     approval, and oversight of defense business system 
     acquisition and operation, but not for the execution of such 
     requirements; (5) clarify the budget justification material 
     to be provided by the Secretary of Defense in support of the 
     President's budget; (6) require the Secretary to appoint a 
     Vice Chairman of the Defense Business System Management 
     Committee; (7) clarify the responsibilities of the Committee; 
     and (8) require the Comptroller General to assess the 
     Department's compliance with the requirements of the 
     provision.
     Report on maturity and effectiveness of the Global 
         Information Grid Bandwidth Expansion (GIG-BE) (sec. 333)
       The Senate amendment contained a provision (sec. 142) that 
     would require the Secretary of Defense to submit a report to 
     the congressional defense committees on a test program to 
     demonstrate the maturity and effectiveness of the Global 
     Information Grid-Bandwidth Expansion (GIG-BE).
       The House bill amendment contained no similar provision.
       The House recedes with a technical amendment.

             Subtitle E--Extensions of Program Authorities

     Two-year extension of Department of Defense 
         telecommunications benefit (sec. 341)
       The Senate amendment contained a provision (sec. 341) that 
     would extend until September 30, 2006 the Department of 
     Defense telecommunications benefit authorized in section 344 
     of the National Defense Authorization Act for Fiscal Year 
     2004 (Public Law 108-136).
       The House bill contained no similar provision.
       The House recedes.
       The conferees are concerned that the Department has not 
     competitively awarded a contract under this section, relying 
     instead on an existing contract. The conferees expect that 
     the Secretary of Defense will, as soon as possible, award a 
     contract to a commercial firm for the purposes of this 
     provision through competitive procedures.
     Extension of Arsenal Support Program Initiative (sec. 342)
       The House bill contained a provision (sec. 351) that would 
     amend Section 343 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (Public Law 106-398), 
     to authorize the Secretary of the Army to extend the Arsenal 
     Support Initiative Program through fiscal year 2008. This 
     section would also require the Secretary to report to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives by March 1, 2007, the benefits of the 
     program, the extent to which the program met its goals, and 
     whether the program should be made permanent.
       The Senate amendment contained a similar provision (sec. 
     342) that would extend the Arsenal Support Program Initiative 
     through the end of fiscal year 2006.
       The Senate recedes.
     Two-year extension of warranty claims recovery pilot program 
         (sec. 343)
       The Senate amendment contained a provision (sec. 343) that 
     would extend, through September 30, 2006, the warranty claims 
     recovery pilot program authorized in section 391 of the 
     National Defense Authorization Act for Fiscal Year 1998 
     (Public Law 105-85).
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to submit a report on the commercial use 
     of warranty recovery services, and to determine whether the 
     pilot should be made permanent or extended beyond 2006.

                       Subtitle F--Other Matters

     Reimbursement for certain protective, safety, or health 
         equipment purchased by or for members of the Armed Forces 
         deployed in contingency operations (sec. 351)
       The House bill contained a provision (sec. 304) that would 
     authorize the Secretary of Defense to reimburse service 
     members who purchased protective body armor for use while 
     deployed in connection with Operation Noble Eagle, Operation 
     Enduring Freedom, or Operation Iraqi Freedom, if the service 
     member did not receive the protective body armor before 
     engaging in such operations where such body armor might be 
     necessary. Reimbursement would be available to service 
     members who purchased the body armor between September 1, 
     2003 and December 31, 2003.
       The Senate amendment contained a provision (sec. 1072) that 
     would direct the Secretary to reimburse service members, a 
     relative of the service member, a nonprofit organization, or 
     a community group, who purchased any protective, safety, or 
     health equipment for use by such service member while 
     deployed in connection with Operation Noble Eagle, Operation 
     Enduring Freedom, or Operation Iraqi Freedom, provided that 
     the unit commander of the service member certifies that such 
     equipment was critical to the protection, safety, or health 
     of the service member. The provision also stated that the 
     type of protective, safety, or health equipment would include 
     personal body armor, collective armor or protective equipment 
     (including armor or protective equipment for high mobility 
     multi-purpose wheeled vehicles), and items provided through 
     the Rapid Fielding Initiative of the Army such as the 
     advanced (on-the-move) hydration system, the advanced combat 
     helmet, the close combat optics system, a Global Positioning 
     System (GPS) receiver, and a solder intercommunication 
     device. Non-military equipment would be treated as 
     protective, safety, and health equipment only if such 
     equipment provides protection, safety, or health benefits, as 
     the case may be, such as would be provided by equipment 
     meeting military specifications. Reimbursement would be 
     available for armor or protective equipment purchased for 
     high mobility multi-purpose wheeled vehicles between 
     September 11, 2001 and July 31, 2004, and for any other 
     protective, safety, and health equipment purchased between 
     September 11, 2001 and December 31, 2003 or any date 
     thereafter as determined by the Secretary. The provision 
     would further establish a limit on the amount of 
     reimbursement, and provide authority for the Secretary to 
     assume title or ownership of any protective, safety, or 
     health equipment for which a service member was 
     reimbursed.
       The House recedes with an amendment that would direct the 
     Secretary to reimburse service members who purchased, or had 
     another person purchase on their behalf, any protective, 
     safety, or health equipment for use while deployed in 
     connection with Operation Noble Eagle, Operation Enduring 
     Freedom, or Operation Iraqi Freedom, provided that: (1) the 
     Secretary certifies that the equipment was critical to the 
     protection, safety, and health of the service member; (2) the 
     equipment was not issued to the service member before the 
     service member was on duty in an area in which the service 
     member was in imminent danger of being exposed to hostile 
     fire; and (3) the equipment was purchased between September 
     11, 2001 and July 31, 2004. The amendment would also limit 
     the amount of reimbursement to $1,100 per item, establish a 
     one-year period for the submission of claims for 
     reimbursement, and direct the Secretary to establish rules 
     not later

[[Page H9529]]

     than 120 days after date of enactment of this Act to expedite 
     reimbursements, to include addressing circumstances under 
     which the United States will assume title or ownership of any 
     protective, safety, or health equipment for which a service 
     member was reimbursed.
       The conferees direct the Secretary to consult with the 
     appropriate chain of command to ensure all criteria for 
     reimbursement are attained. The conferees also note that the 
     type of protective, safety, or health equipment for which a 
     reimbursement is made may include personal body armor, 
     collective armor or protective equipment (including armor or 
     protective equipment for high mobility multi-purpose wheeled 
     vehicles), and items provided through the Rapid Fielding 
     Initiative of the Army such as the advanced (on-the-move) 
     hydration system, the advanced combat helmet, the close 
     combat optics system, a Global Positioning System (GPS) 
     receiver, and a solder intercommunication device. Non-
     military equipment for which a reimbursement could be made 
     should be treated as protective, safety, and health equipment 
     only if such equipment provides protection, safety, or health 
     benefits, as the case may be, such as would be provided by 
     equipment meeting military specifications.
     Limitation on preparation or implementation of Mid-Range 
         Financial Improvement Plan pending report (sec. 352)
       The House bill contained a provision (sec. 352) that would 
     prohibit the Secretary of Defense from obligating operation 
     and maintenance funds to implement the Mid-Range Financial 
     Improvement Plan until the Secretary provides to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives an explanation of how the operation and 
     maintenance funds are to be utilized in fiscal year 2005 and 
     the estimated cost for this plan in future years.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would also 
     require the Secretary to provide a written determination that 
     the Department has developed an enterprise architecture and 
     transition plan for its business systems that meets the 
     requirements of section 2222 of title 10, United States Code 
     (as added by section 332.
     Pilot program to authorize Army working-capital funded 
         facilities to engage in cooperative activities with non-
         Army entities (sec. 353)
       The Senate amendment contained a provision (sec. 364) that 
     would authorize Army industrial activities that operate under 
     the working capital fund to enter into public-private 
     partnerships with non-Army entities, and allow the proceeds 
     to be retained by the entity engaged in the partnership.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     such contracts or cooperative arrangements, but would not 
     direct that the facility involved retain the proceeds.
     Transfer of excess Department of Defense personal property to 
         assist firefighting agencies (sec. 354)
       The House bill contained a provision (sec. 1079) that would 
     amend section 2576b of title 10, United States Code, to 
     modify the recipients of the Department of Defense excess 
     personal property to assist rural firefighting agencies. The 
     provision would require the Secretary of Defense to enter 
     into an agreement with the Secretary of Agriculture to 
     facilitate the reutilization of the Department's excess 
     personal property by firefighting agencies in rural areas. 
     The agreement between the Secretary of Defense and Secretary 
     of Agriculture would include a prohibition on the transfer of 
     the Department's aircraft until the end of a one-year period 
     beginning on the date that the Secretary of Agriculture 
     submits a report to the House Committee on Agriculture, the 
     Senate Committee on Agriculture, Nutrition and Forestry, and 
     the Committee on Armed Services of the Senate and the House 
     of Representatives on the measures taken by the U.S. Forest 
     Service in response to National Transportation Safety Board 
     Recommendations A-04-29 through A-04-33. The provision would 
     also require that personal property being transferred for 
     reutilization by firefighting agencies in rural areas be 
     afforded a property disposal priority at least equal to the 
     priority given to the military departments and other 
     entities within the United States.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would amend 
     section 2576b of title 10, United States Code, to direct the 
     Secretary of Defense to transfer to a firefighting agency in 
     a State any personal property of the Department that the 
     Secretary determines is excess to the needs of the Department 
     and suitable for use in providing fire and emergency medical 
     services, including personal protective equipment and 
     equipment for communications and monitoring.

                   Legislative Provisions Not Adopted

     Amount for One Source military counseling and referral 
         hotline
       The Senate amendment contained a provision (sec. 304) that 
     would authorize an increase of $5.0 million for the 
     Department of Defense One Source counseling and referral 
     hotline.
       The House bill contained no similar provision.
       The Senate recedes.
     Reduction in authorization for Air Force operations and 
         maintenance
       The House bill contained a provision (sec. 305) that would 
     reduce the amount authorized to be appropriated to the Air 
     Force by $10.0 million, to be derived from the transportation 
     working capital fund.
       The Senate amendment contained no similar provision.
       The House recedes.
     Family Readiness Program of the National Guard
       The Senate amendment contained a provision (sec. 313) that 
     would increase the amount authorized to be appropriated in 
     Operation and Maintenance, Army by $10.0 million for the 
     Family Readiness Program of the National Guard.
       The House bill contained no similar provision.
       The Senate recedes.
     Payment of certain private cleanup costs in connection with 
         Defense Environmental Restoration Program
       The Senate amendment contained a provision (sec. 321) that 
     would allow the Secretary of Defense to execute environmental 
     restoration agreements with owners of covenant properties.
       The House bill contained no similar provision.
       The Senate recedes.
     Public-private competition pilot program
       The House bill contained a provision (sec. 324) that would 
     require the Secretary of Defense to establish a pilot program 
     to examine the use of public-private competition process on 
     new requirements and functions currently being performed by 
     contractors that could be performed by civilian employees. 
     Under the pilot program, the Secretary would be required to 
     allow civilian employees to compete through the standard 
     competitive process of Office of Management and Budget 
     Circular A-76 for: (1) approximately one-tenth of the new 
     requirements of the Department of Defense; and (2) functions 
     currently being performed by a number of contractor employees 
     that is approximately one-tenth of the number of civilian 
     employees subject to public-private competition during the 
     same period.
       The Senate amendment contained a provision (sec. 852) that 
     would require the Secretary to prescribe guidelines and 
     procedures for ensuring that fair consideration is given to 
     using federal government employees to perform new work and 
     functions that are currently performed by contractors. The 
     provision would provide that no public-private competition 
     may be required before assigning government employees to 
     perform new work or work that was previously performed by 
     contractors.
       The conference report does not include either provision.
       The conferees believe that the Department's workforce of 
     civilian employees is an important resource that the 
     Department should fully utilize. The National Security 
     Personnel System gives the Secretary broad authority to hire 
     new civilian employees and to develop new competencies within 
     the Department's civilian workforce. The conferees believe 
     that Department of Defense managers must have flexibility not 
     only to assign work to civilian employees, but also to build 
     and structure the civilian workforce to perform appropriate 
     tasks, free of artificial or unneeded regulatory constraints.
       The conferees direct the Secretary to work with the 
     Director of the Office of Management and Budget and other 
     appropriate officials to ensure that the Department has the 
     flexibility that it needs to assign work to its civilian 
     workforce and to build needed capabilities in that workforce.
     Establishment of joint program office to improve 
         interoperability of battlefield management command and 
         control systems
       The House bill contained a provision (sec 333) that would 
     establish a joint program office to improve interoperability 
     of battlefield management command and control systems.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that the Department of Defense has 
     struggled for many years to develop and field command, 
     control, communications, computers, and intelligence, 
     surveillance, and reconnaissance systems that interoperate 
     effectively across all of the military services and with 
     coalition forces. The conferees note that there are a number 
     of current efforts throughout the Department to develop 
     portions of a ``Family of Interoperable Operating Pictures'', 
     including the Single Integrated Air Picture, the Single 
     Integrated Ground Picture, the Single Integrated Maritime 
     Picture, the Special Operations Forces Picture, and the 
     Single Integrated Space Picture. The conferees are concerned 
     that without proper management, oversight, and coordination, 
     as well as a single over-arching architecture that controls 
     all systems, these efforts could become redundant and 
     wasteful, and lack the interoperability required to 
     effectively support joint warfighting missions.
       Therefore, the conferees direct the Secretary of Defense to 
     provide to the congressional defense committees a report no 
     later than March 15, 2005 that identifies all funds for 
     research and procurement activities related to the 
     development of joint battlefield

[[Page H9530]]

     management command and control systems in the Department.
       This report shall also include baselines for the Family of 
     Interoperable Pictures, including a baseline for the Single 
     Integrated Air Picture, the Single Integrated Ground Picture, 
     the Single Integrated Maritime Picture, the Special 
     Operations Forces Picture, and the Single Integrated Space 
     Picture. The baselines shall be consistent with those 
     required for major defense acquisition programs under 
     Department regulations, and shall include a description of 
     the overall systems architecture, specific milestones and 
     performance measures for each developmental block, the 
     schedule for achieving those performance goals, the estimated 
     total and annual costs to meet that schedule, and a 
     description of the management approach being used to achieve 
     program goals.
     Procurement of follow-on contracts for the operation of five 
         Champion-class T-5 tank vessels
       The House bill contained a provision (sec. 353) that would 
     direct the Secretary of the Navy to consider proposals for 
     the follow-on Department of the Navy contracts to operate 
     five Champion-class T-5 tank vessels only from an entity that 
     is a citizen under section 2 of the Shipping Act, 1916 (46 
     App. U.S.C. 802).
       The Senate amendment contained no similar provision.
       The House recedes.
     Expansion of Department of Defense excess personal property 
         disposal program to include health agencies
       The House bill contained a provision (sec. 1080) that would 
     amend section 2576b of title 10, United States Code, to 
     authorize the Secretary of Defense to expand the Department 
     of Defense excess personal property program to include State 
     health agencies.
       The Senate amendment contained no similar provision.
       The House recedes.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                     Legislative Provisions Adopted

                       Subtitle A--Active Forces

     End strengths for active forces (sec. 401)
       The House bill contained a provision (sec. 401) that would 
     authorize the following end strengths for active forces as of 
     September 30, 2005: Army, 482,400; Navy, 365,900; Marine 
     Corps, 175,000; and Air Force, 359,700.
       The Senate amendment contained a similar provision (sec. 
     401) that would authorize an active-duty end strength for the 
     Army of 502,400, subject to the condition that costs of 
     active-duty personnel of the Army in excess of 482,400 shall 
     be paid out of funds authorized to be appropriated for fiscal 
     year 2005 for a contingent emergency reserve fund or as an 
     emergency supplemental appropriation.
       The House recedes with an amendment that would authorize an 
     end strength of 178,000 for the Marine Corps subject to the 
     condition that costs in excess of 175,000 active-duty Marines 
     shall be paid out of funds authorized to be appropriated for 
     fiscal year 2005 for a contingent emergency reserve fund or 
     as an emergency supplemental appropriation.
       The conferees recommend end strength levels for active 
     forces for fiscal year 2005 as set forth in the following 
     table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   FY 2005                         Change from
                                                                         FY 2004     -------------------------------------------------------------------
                              Service                                   authorized                         Conferee         FY 2005          FY 2004
                                                                                          Request       recommendation      request         authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army...............................................................          482,400          482,400          502,400           20,000           20,000
Navy...............................................................          373,800          365,900          365,900                0           -7,900
Marine Corps.......................................................          175,000          175,000          178,000            3,000            3,000
Air Force..........................................................          359,300          359,700          359,700                0              400
                                                                    ------------------------------------------------------------------------------------
      DoD Total....................................................        1,390,500        1,383,000        1,406,000           23,000           15,500
--------------------------------------------------------------------------------------------------------------------------------------------------------

     Revision in permanent active duty end strength minimum levels 
         (sec. 402)
       The House bill contained a provision (sec. 402) that would 
     establish new minimum active-duty end strengths for the Navy 
     of 365,900 and Air Force of 359,700 as of October 1, 2004.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would establish 
     new minimum active-duty end strengths for the Army of 502,400 
     and the Marine Corps of 178,000.
     Additional authority for increases of Army and Marine Corps 
         active duty personnel end strengths for fiscal years 2005 
         through 2009 (sec. 403)
       The House bill contained provisions (sec. 1531 and 1532) 
     that would increase the active Army and Marine Corps end 
     strength authorized for fiscal year 2005 by 10,000 and 3,000 
     respectively above the authorization in section 401 of the 
     National Defense Authorization Act for Fiscal Year 2004. 
     These provisions would also authorize corresponding active-
     duty Army and Marine Corps end strengths for fiscal years 
     2006 and 2007 and prescribe corresponding minimum end 
     strengths under section 691(b) of title 10, United States 
     Code.
       The Senate amendment contained a provision (sec. 402) that 
     would authorize a temporary increase in the Army's active-
     duty end strength of up to 30,000 during fiscal years 2005 
     through 2009. The provision would require that if the 
     Secretary of Defense plans to increase the Army active-duty 
     end strength above the levels authorized for fiscal year 
     2004, then the budget for the Department for such fiscal 
     years as submitted to Congress shall specify the amounts 
     necessary for funding the active duty end strength of the 
     Army in excess of 482,400.
       The House recedes with an amendment that would authorize a 
     temporary increase in the Marine Corps' active-duty end 
     strength of up to 9,000 over 175,000, the level set forth in 
     section 401 of the National Defense Authorization Act for 
     Fiscal Year 2004 during fiscal years 2005 through 2009. The 
     amendment would also require that if the Secretary of Defense 
     plans to increase the Army or Marine Corps active-duty end 
     strength for a fiscal year, then the budget for the 
     Department for such fiscal years as submitted to Congress 
     shall specify the amounts necessary for funding the active 
     duty end strength of the Army or Marine Corps in excess of 
     482,400 and 175,000 respectively.
     Exclusion of service academy permanent and career professors 
         from a limitation on certain officer grade strengths 
         (sec. 404)
       The Senate amendment contained a provision (sec. 403) that 
     would amend section 523(b) of title 10, United States Code, 
     to exclude up to 50 permanent professors at both the U.S. 
     Military Academy and U.S. Air Force Academy, and up to 50 
     career military professors at the U.S. Naval Academy from the 
     determination of authorized strengths in prescribed officer 
     grades.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                       Subtitle B--Reserve Forces

     End strengths for Selected Reserve (sec. 411)
       The House bill contained a provision (sec. 411) that would 
     authorize the following end strengths for Selected Reserve 
     personnel, including the end strengths for Reserves on active 
     duty in support of the Reserves as of September 30, 2005: the 
     Army National Guard of the United States, 350,000; the Army 
     Reserve, 205,000; the Naval Reserve, 83,400; the Marine Corps 
     Reserve, 39,600; the Air National Guard of the United States, 
     106,800; the Air Force Reserve, 76,100; and the Coast Guard 
     Reserve, 10,000.
       The Senate amendment contained an identical provision (sec. 
     411).
       The conference agreement includes this provision.
       The conferees recommend end strength levels for the 
     Selected Reserve for fiscal year 2005 as set forth in the 
     following table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   FY 2005                         Change from
                                                                         FY 2004     -------------------------------------------------------------------
                              Service                                   authorized                         Conferee         FY 2005          FY 2004
                                                                                          Request       recommendation      request         authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army National Guard................................................          350,000          350,000          350,000                0                0
Army Reserve.......................................................          205,000          205,000          205,000                0                0
Naval Reserve......................................................           85,900           83,400           83,400                0           -2,500
Marine Corps Reserve...............................................           39,600           39,600           39,600                0                0
Air National Guard.................................................          107,030          106,800          106,800                0             -230
Air Force Reserve..................................................           75,800           76,100           76,100                0              300
                                                                    ------------------------------------------------------------------------------------
      DoD Total....................................................          863,330          860,900          860,900                0           -2,430
Coast Guard Reserve................................................           10,000           10,000           10,000                0                0
--------------------------------------------------------------------------------------------------------------------------------------------------------


[[Page H9531]]

     End strengths for Reserves on active duty in support of the 
         Reserves (sec. 412)
       The House bill contained a provision (sec. 412) that would 
     authorize the following end strengths for Reserves on active 
     duty in support of the Reserves as of September 30, 2005: the 
     Army National Guard of the United States, 26,476; the Army 
     Reserve, 14,970; the Naval Reserve, 14,152; the Marine Corps 
     Reserve, 2,261; the Air National Guard of the United States, 
     12,225; and the Air Force Reserve, 1,900.
       The Senate amendment contained a similar provision (sec. 
     412) that would authorize end strengths of 26,602 for the 
     Army National Guard, 12,253 for the Air National Guard, and 
     identical end strengths for the other services.
       The House recedes.
       The conferees recommend end strength levels for Reserves on 
     active duty in support of the Reserves as set forth in the 
     following table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   FY 2005                         Change from
                                                                         FY 2004     -------------------------------------------------------------------
                              Service                                   authorized                         Conferee         FY 2005          FY 2004
                                                                                          Request       recommendation      request         authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army National Guard................................................           25,599           26,476           26,602              126             1003
Army Reserve.......................................................           14,374           14,970           14,970                0              596
Naval Reserve......................................................           14,384           14,152           14,152                0             -232
Marine Corps Reserve...............................................            2,261            2,261            2,261                0                0
Air National Guard.................................................           12,191           12,225           12,263               28               62
Air Force Reserve..................................................            1,660            1,900            1,900                0              240
                                                                    ------------------------------------------------------------------------------------
      DoD Total....................................................           70,469           71,984           72,138              154             1669
--------------------------------------------------------------------------------------------------------------------------------------------------------

     End strengths for military technicians (dual status) (sec. 
         413)
       The House bill contained a provision (sec. 413) that would 
     authorize the following end strengths for military 
     technicians (dual status) as of September 30, 2005: the Army 
     National Guard of the United States, 25,076; the Army 
     Reserve, 7,299; the Air National Guard of the United States, 
     22,956; and the Air Force Reserve, 9,954.
       The Senate amendment contained an identical provision (sec. 
     413).
       The conference agreement includes this provision.
       The conferees recommend end strength levels for military 
     technicians (dual status) as set forth in the following 
     table:

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   FY 2005                         Change from
                                                                         FY 2004     -------------------------------------------------------------------
                              Service                                   authorized                         Conferee         FY 2005          FY 2004
                                                                                          Request       recommendation      request         authorized
--------------------------------------------------------------------------------------------------------------------------------------------------------
Army National Guard................................................           24,589           25,076           25,076                0              487
Army Reserve.......................................................            6,949            7,299            7,299                0              350
Air National Guard.................................................           22,806           22,956           22,956                0              150
Air Force Reserve..................................................            9,991            9,954            9,954                0              -37
                                                                    ------------------------------------------------------------------------------------
      DoD Total....................................................           64,335           65,285           65,285                0              950
--------------------------------------------------------------------------------------------------------------------------------------------------------

     Fiscal year 2005 limitation on number of non-dual status 
         technicians (sec. 414)
       The House bill contained a provision (sec. 414) that would 
     establish the maximum end strengths for the Reserve 
     components of the Army and Air Force for non-dual status 
     technicians as of September 30, 2005.
       The Senate amendment contained an identical provision (sec. 
     414).
       The conference agreement includes this provision.
     Maximum number of Reserve personnel authorized to be on 
         active duty for operational support (sec. 415)
       The House bill contained a provision (sec. 403) that would 
     authorize the maximum number of Reserve component personnel 
     who may be on active duty or full-time National Guard duty 
     under section 115(b) of title 10, United States Code, during 
     fiscal year 2005 to provide operational support.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees recommend maximum levels by service for 
     Reserve component personnel on full-time, active duty who are 
     providing operational support as set forth in the following 
     table:

------------------------------------------------------------------------
                                                             FY 2005
                        Service                             conference
                                                          recommendation
------------------------------------------------------------------------
Army National Guard....................................           10,300
Army Reserve...........................................            5,000
Naval Reserve..........................................            6,200
Marine Corps Reserve...................................            2,500
Air National Guard.....................................           10,100
Air Force Reserve......................................            3,600
                                                        ----------------
      DoD Total........................................           37,700
------------------------------------------------------------------------

     Accounting and management of Reserve component personnel 
         performing active duty or full-time National Guard duty 
         for operational support (sec. 416)
       The House bill contained a provision (sec. 404) that would 
     establish the requirement for an annual congressional 
     authorization of the maximum number of Reserve component 
     personnel to be on active duty or full-time National Guard 
     duty providing operational support. This provision would 
     eliminate the current 180-day strength accounting metric that 
     requires all reservists on active duty beyond that limit to 
     count against Active component end strengths. In its place, 
     the section would authorize Reserve component members who are 
     voluntarily on active duty for up to three years, or a 
     cumulative three years over a four-year period, to not be 
     counted against Active component end strengths. The section 
     would also exempt Reserve component personnel, authorized by 
     this section, from certain officer and enlisted grade limits.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.

              Subtitle C--Authorization of Appropriations

     Military personnel (sec. 421)
       The House bill contained a provision (sec. 421) that would 
     authorize a total of $104,647.6 million for military 
     personnel for the Department of Defense in fiscal year 2005.
       The Senate amendment contained a similar provision (sec. 
     421) that would authorize a total of $104,535.5 million for 
     military personnel for the Department of Defense in fiscal 
     year 2005. The Senate amendment also contained $57.5 million 
     in military personnel reductions in other titles of the 
     amendment that were not reflected in the total contained in 
     section 421. Therefore, the net amount authorized to be 
     appropriated to the Department by the Senate amendment was 
     $104,478.0 millions.
       The House recedes with an amendment that would authorize 
     $106,543.0 million for military personnel for the Department 
     of Defense in fiscal year 2005, an increase of $1,731.4 
     million above the budget request.
       The conferees note that in addition to the amounts shown 
     below, $1,250.0 million was made available in title XV of 
     this act for the additional costs of military personnel 
     associated with ongoing operations in Iraq and Afghanistan. 
     The conferees provide the following itemization of the 
     increases from the budget request related to the military 
     personnel accounts:

                        [Additions in millions]

Add AGR strength for WMD-CST teams...............................$ 14.7
Imminent Danger Pay................................................92.5
Family Separation Allowance.......................................135.0
Eliminate SBP-Social Security Offset (Accrual Payment)............439.0
Enhanced Reserve Education Benefit (Accrual Payment)..............222.0
Additional military personnel costs...............................828.2
                                                             __________
                                                             
    Total......................................................$1,731.4
     Armed Forces Retirement Home (sec. 422)
       The House bill contained a provision (sec. 422) that would 
     authorize $61.2 million to be appropriated for the operation 
     of the Armed Forces Retirement Home during fiscal year 2005.
       The Senate amendment contained an identical provision (sec. 
     422).
       The conference agreement includes this provision.

                   TITLE V--MILITARY PERSONNEL POLICY

                       Items of Special Interest

     Space cadre
       The conferees appreciate the submission by the Secretary of 
     Defense of the human capital resources strategy for space 
     personnel, as required in section 547 of the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-87). 
     The conferees note, however, that the strategy lacks a 
     detailed implementation plan and direct the Secretary to 
     develop such an implementation plan. The conferees further 
     direct the Secretary of Defense to submit this plan and the 
     Secretary of the Air Force to submit the detailed career 
     planning guidance for the Air Force space cadre, consistent 
     with direction in the Senate report accompanying S. 2400 (S. 
     Rept. 108-260).
       The conferees believe that a comprehensive view of the 
     military space community must also consider competencies and 
     skills embodied in academia and industry. These

[[Page H9532]]

     institutions have valuable tools, expertise, and a skill base 
     that contribute to the military space community, as well as 
     unique organizational cultures with which the military space 
     cadre must interact. The conferees are concerned that the 
     human capital resources strategy lacks breadth and depth with 
     respect to the relationship of academia and industry to the 
     development, education, and training of the space cadre.
       The conferees direct the Secretary of Defense to provide 
     the Committees on Armed Services of the Senate and the House 
     of Representatives an interim report by March 15, 2005, and a 
     full report concurrent with the Department of Defense fiscal 
     year 2007 budget submission that: (1) assess the ability in 
     academia, industry, and government to educate and train a 
     community of space professionals, and (2) recommend 
     corrective actions to address any shortfalls identified in 
     these education and training activities. The reports should 
     also address the definition and development of key 
     competencies and skill levels in the areas of systems 
     engineering, program management, financial management, 
     operations and tactics, and any other areas deemed necessary 
     by the Secretary of Defense as they relate to military space 
     systems.
     Time for holding grade of general, admiral, lieutenant 
         general, or vice admiral
       The conferees are aware of the legislative proposal 
     affecting senior military officers in the grades of admiral, 
     general, vice admiral, and lieutenant general. This proposal 
     would give authority to the Secretary of Defense to exempt 
     senior officers in these grades who are on terminal leave 
     from counting against applicable grade limits and would 
     enable senior military officers, after Senate confirmation 
     and upon the assumption of the duties of a position of 
     importance and responsibility under section 601 of title 10, 
     United States Code, to be promoted. It would repeal the 
     authority to ``frock'' these officers, or allow them, in 
     advance of their actual promotion to a higher grade, to wear 
     the insignia of the higher rank of the position that they are 
     assigned to. The conferees have long sought to limit the 
     practice of frocking, but also have had concerns about 
     continuing efforts by the Department to waive senior general 
     and flag officer grade limits. The conferees believe this 
     proposal would benefit from more time for consideration to 
     better understand the implications of the changes in law 
     contained in the informal legislative proposal. The conferees 
     urge the Secretary of Defense to formally submit a 
     legislative proposal for the conferees' consideration during 
     the next defense authorization budget request.

                     Legislative Provisions Adopted

                  Subtitle A--Officer Personnel Policy

     Transition of active-duty list officer force to a force of 
         all regular officers (sec. 501)
       The House bill contained a provision (sec. 511) that would 
     authorize the Secretary of Defense to commission all new 
     officer accessions as Regular officer and transition all 
     officers on the active-duty list to regular status. The 
     provision would implement the recommendation of the Defense 
     Science Board Task Force on Human Resources Strategy that all 
     new officers, regardless of their commissioning source, be 
     given regular commissions in order to enhance 
     professionalism, esprit de corps, and retention.
       The Senate amendment contained a similar provision (sec. 
     511).
       The House recedes with an amendment that would repeal the 
     requirement that a member serve the last six years in a 
     Reserve component before being eligible for nonregular 
     service retirement.
     Repeal of requirement that Deputy Chiefs and Assistant Chiefs 
         of Naval Operations be selected from officers in the line 
         of the Navy (sec. 502)
       The House bill contained a provision (sec. 502) that would 
     eliminate the requirement that officers serving in the 
     positions of Deputy Chief of Naval Operations and Assistant 
     Chief of Naval Operations be line officers. This provision 
     would expand the pool of officers who may be considered for 
     assignment in these highly responsible positions within the 
     Office of the Chief of Naval Operations, to include officers 
     of the Navy staff corps.
       The Senate amendment contained an identical provision (sec. 
     512).
       The conference agreement includes this provision.
     Limitation on number of officers frocked to major general and 
         rear admiral (sec. 503)
       The Senate amendment contained a provision (sec. 514) that 
     would provide that the total number of brigadier generals and 
     rear admirals (lower half) on the active-duty list who are 
     authorized to be frocked to the grade of major general or 
     rear admiral (upper half) may not exceed 30.
       The House bill contained no similar provision.
       The House recedes.
     Distribution in grade of Marine Corps Reserve officers in an 
         active status in grades below brigadier general (sec. 
         504)
       The House bill contained a provision (sec. 513) that would 
     correct a technical discrepancy in the existing grade table 
     for the Marine Corps Reserve that could unnecessarily limit 
     the overall numbers of Marine Corps Reserve officers in an 
     active status under section 12005 of title 10, United States 
     Code.
       The Senate amendment contained a similar provision (sec. 
     415).
       The Senate recedes.
     Authority for Federal recognition of National Guard 
         commissioned officers appointed from former Coast Guard 
         personnel (sec. 505)
       The House bill contained a provision (sec. 588) that would 
     make current and former officers and enlisted members of the 
     U.S. Coast Guard, as well as graduates of the U.S. Coast 
     Guard Academy, eligible for federal recognition after 
     becoming commissioned officers of the National Guard.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Study regarding promotion eligibility of retired officers 
         recalled to active duty (sec. 506)
       The Senate amendment contained a provision (sec. 515) that 
     would require the Secretary of Defense to carry out a study 
     to determine whether it would be equitable for retired 
     warrant officers on active duty, but not on the active-duty 
     list by reason of section 582(2) of title 10, United States 
     Code, to be eligible for consideration for promotion under 
     section 573 of such title. The Secretary would be required to 
     submit a report on the results of the study not later than 
     180 days after the date of enactment of this Act.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     extend the scope of the study to include all retired 
     officers.
     Succession for office of Chief, National Guard Bureau (sec. 
         507)
       The House bill contained a provision (sec. 507) that would 
     establish a chain of succession when there is a vacancy in 
     the Office of the Chief of the National Guard Bureau or in 
     the event that the Chief is unable to perform the duties of 
     the office. In such cases, the more senior officer of either 
     the Army National Guard or of the Air National Guard on duty 
     with the National Guard Bureau would assume responsibility as 
     the Acting Chief.
       The Senate amendment contained a similar provision (sec. 
     903).
       The Senate recedes with a technical amendment.
     Redesignation of Vice Chief of the National Guard Bureau as 
         Director of the Joint Staff of the National Guard Bureau 
         (sec. 508)
       The House bill contained a provision (sec. 508) that would 
     change the title of the Vice Chief of the National Guard 
     Bureau to the Director of the Joint Staff of the National 
     Guard Bureau.
       The Senate amendment contained a similar provision (sec. 
     904).
       The House recedes with a technical amendment.

              Subtitle B--Reserve Component Policy Matters

     Modification of stated purpose of the Reserve components 
         (sec. 511)
       The House bill contained a provision (sec. 521) that would 
     clarify the purpose of the Reserve components. By eliminating 
     statutory reference to planned mobilizations, the provision 
     would more accurately reflect the operational mission, 
     responsibilities, and contributions of National Guard and 
     Reserve members and the manner in which Reserve forces will 
     be employed in the future.
       The Senate amendment contained a similar provision (sec. 
     901).
       The Senate recedes with a technical amendment.
     Homeland defense activities conducted by the National Guard 
         under authority of title 32 (sec. 512)
       The House bill contained a provision (sec. 529) that would 
     amend title 32, United States Code, to authorize the 
     Secretary of Defense to provide funds to the governor of a 
     State to employ National Guard units and personnel to conduct 
     operational activities that the Secretary determines to be in 
     the national interest. This provision would also establish a 
     process by which the governor of a State may request funding 
     from the Secretary for the operational activities of that 
     State's National Guard.
       The Senate amendment contained a similar provision (sec. 
     906).
       The Senate recedes with an amendment that would authorize 
     the Secretary to provide funds to a governor of a State to 
     employ National Guard units or members to conduct homeland 
     defense activities. Homeland defense activities include those 
     undertaken for the military protection of the territory or 
     domestic population of the United States, or of 
     infrastructure or other assets of the United States 
     determined by the Secretary as being critical to national 
     security, from a threat or aggression against the United 
     States. National Guard personnel could perform homeland 
     defense activities under this provision for up to 180 days, 
     which could be extended for an additional 90 days to meet 
     extraordinary circumstances.
     Commission on the National Guard and Reserves (sec. 513)
       The Senate amendment contained a provision (sec. 902) that 
     would establish a Commission on the National Guard and 
     Reserves. The commission would study the roles and missions 
     of the National Guard and Reserve and the compensation and 
     other benefits that are provided to members of the Reserve 
     components. Among the issues the commission would be required 
     to assess are the following: (1) the current and future roles 
     and missions of the Reserve components; (2) the capabilities 
     of the Reserve components and the manner in which the Reserve 
     components may be best used to support the military 
     operations of the Armed Forces and the

[[Page H9533]]

     achievement of national security objectives, including 
     homeland defense; (3) the current and future organization and 
     structure of the National Guard and Reserve; (4) the 
     organization and funding of training for the Reserve; and (5) 
     options for improving compensation and benefits. The 
     provision would also require the establishment of an 
     independent review board in 2006, following the termination 
     of the commission, to annually review the roles and missions 
     of the Reserve components and the compensation and other 
     benefits provided for members of the Reserve components.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require an 
     annual review by the Secretary of Defense of the roles and 
     missions of the Reserve components and the compensation and 
     benefits provided for members of the Reserve components 
     beginning in fiscal year 2006.
     Repeal of exclusion of active duty for training from 
         authority to order Reserves to active duty (sec. 514)
       The House bill contained a provision (sec. 522) that would 
     authorize units and members of the Reserve components to be 
     involuntarily mobilized for the purpose of training. This 
     would provide the Department of Defense with improved access 
     to Reserve component personnel during war or national 
     emergency for the purpose of individual or collective skill 
     training required to meet deployment standards and timelines 
     for emergent missions or contingencies. The provision would 
     also require that the time spent in such training be counted 
     against the mobilization timelines that are established in 
     law.
       The Senate amendment contained a similar provision (sec. 
     521).
       The House recedes with a technical amendment.
     Army program for assignment of Active component advisers to 
         units of the Selected Reserve (sec. 515)
       The House bill contained a provision (sec. 530) that would 
     reduce from 5,000 to 3,500 the minimum number of Army Active 
     component advisers that are required to be assigned to 
     support the training and readiness of Selected Reserve units 
     of the Army. This provision would prohibit the Secretary of 
     the Army from making any reductions in the numbers of Active 
     component advisers until the Secretary reports, as required 
     by March 31, 2005, to the Committees on Armed Services of the 
     Senate and the House of Representatives on the support by the 
     Active component of the Army for training and readiness of 
     the Army National Guard and Army Reserve.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Authority to accept certain voluntary services (sec. 516)
       The House bill contained a provision (sec. 1078) that would 
     authorize the secretaries concerned to accept voluntary 
     services to support programs of the National Committee for 
     Employer Support of the Guard and Reserve as authorized by 
     the Secretary of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Authority to redesignate the Naval Reserve as the Navy 
         Reserve (sec. 517)
       The Senate amendment contained a provision (sec. 905) that 
     would authorize the Secretary of the Navy, with the approval 
     of the President, to redesignate the Naval Reserve as the 
     ``Navy Reserve'' effective 180 days after the date on which 
     the Secretary submits recommended legislation.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Comptroller General assessment of integration of Active and 
         Reserve components of the Navy (sec. 518)
       The House bill contained a provision (sec. 528) that would 
     require the Comptroller General to review the Navy's 
     implementation plans for the integration of the service's 
     Active and Reserve components. This provision would require 
     the Comptroller General to submit a report on the results of 
     that assessment to the Committees on Armed Services of the 
     Senate and the House of Representatives by March 31, 2005.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that eliminates the 
     provision that would prohibit appropriated funds being made 
     available for the decommissioning of any Naval Reserve or 
     Marine Corps Reserve aviation squadrons until the report 
     required by this section is completed.
     Limitation on number of STARBASE academies in a State (sec. 
         519)
       The House bill contained a provision (sec. 527) that would 
     authorize the Secretary of Defense to support the 
     establishment of more than two STARBASE academies in a State 
     under criteria to be established by the Secretary.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment that would 
     provide that waivers granted by the Secretary for the 
     establishment and operation of additional STARBASE academies 
     in a State should be based on the availability of 
     appropriated funds for that purpose.
       The conferees believe that limiting the number of STARBASE 
     academies eligible for Department of Defense financial 
     support to two per State could lead to inequities, 
     particularly in states with several military installations 
     located in separate communities. The conferees urge the 
     Secretary to develop criteria for waivers that will 
     appropriately balance increased program costs associated 
     with establishment and operation of additional STARBASE 
     academies with anticipated measurable gains in realizing 
     the mission of the program.
     Recognition items for certain Reserve component personnel 
         (sec. 520)
       The conferees agree to include a provision that would 
     authorize the use of official funds by the Army National 
     Guard, Air National Guard, and Army Reserve in order to 
     recognize and retain Guardsmen and Reservists, family 
     members, and other individuals who have served and supported 
     members of the National Guard and Army Reserve. The provision 
     would permit procurement of recognition items of nominal or 
     modest value such as coins, medals, trophies, flags, posters, 
     or other similar items that are valued at less than $50 per 
     item. The authorization would be effective as of November 24, 
     2003, and would expire on December 31, 2005.

            Subtitle C--Reserve Component Personnel Matters

     Status under disability retirement system for Reserve members 
         released from active duty due to inability to perform 
         within 30 days of call to active duty (sec. 521)
       The House bill contained a provision (sec. 523) that would 
     clarify that mobilized Reserve members who, within 30 days of 
     being called to active duty, are unable to serve the full 
     period for which they were mobilized due to pre-existing 
     medical conditions, which were not aggravated while on active 
     duty, may be separated. Such members would be considered as 
     serving under an order to active duty for a period of 30 days 
     or less.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Requirement for retention of Reserves on active duty to 
         qualify for retired pay not applicable to nonregular 
         service retirement system (sec. 522)
       The House bill contained a provision (sec. 512) that would 
     clarify that section 12686 of title 10, United States Code, 
     does not require that reservists serving on active duty with 
     over 18 years of reserve service be retained on active duty 
     for the purpose of qualifying the member for reserve 
     retirement.
       The Senate amendment contained a similar provision (sec. 
     522).
       The Senate recedes with a technical amendment.
     Federal civil service military leave for Reserve and National 
         Guard civilian technicians (sec. 523)
       The House bill contained a provision (sec. 524) that would 
     eliminate the restriction on the use of military leave 
     specified in section 6323 of title 5, United States Code, 
     during a war or national emergency declared by the President, 
     for Reserve and National Guard civilian technicians who are 
     federal employees.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Expanded educational assistance authority for officers 
         commissioned through ROTC program at military junior 
         colleges (sec. 524)
       The House bill contained a provision (sec. 525(a), (b), and 
     (d)), that would allow commissioned officers who graduate 
     from military junior colleges to receive additional financial 
     assistance to complete their baccalaureate degree 
     requirements. Individuals who participate in this program 
     would be attached to a Senior Reserve Officers' Training 
     Corps unit to ensure that they maintain their military 
     training, bearing, and education as they complete their post-
     secondary education.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Repeal of sunset provision for financial assistance program 
         for students not eligible for advanced training (sec. 
         525)
       The House bill contained a provision (sec. 525(c)) that 
     would repeal section 2103a(d) of title 10, United States 
     Code. This section provided that after December 31, 2006 
     contracts by members of the Senior Reserve Officers' Training 
     Corps program, under the authority of section 2103a, could no 
     longer be entered into force.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Effect of appointment or commission as officer on eligibility 
         for selected Reserve education loan repayment program for 
         enlisted members (sec. 526)
       The House bill contained a provision (sec. 526) that would 
     authorize the Secretary of Defense to continue to repay 
     educational loans for enlisted members in a Reserve 
     component after they are commissioned as officers, if the 
     members continue to serve the period specified in the 
     original loan repayment agreement.

[[Page H9534]]

       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Educational assistance for certain Reserve component members 
         who perform active service (sec. 527)
       The conferees agree to include a provision that would 
     authorize a new educational assistance benefit for members of 
     the reserve components who have been ordered to active 
     service in support of a contingency operation or in response 
     to a war or national emergency. The provision would be 
     effective on or after September 11, 2001, and would 
     authorize: (1) payment of 40 percent of the amount of basic 
     educational assistance provided under section 3015 of title 
     38 for a member whose entitlement is based on completion of 
     an obligated period of active duty of three years for 
     reservists who perform active service for a period of 90 days 
     to one year; (2) payment of 60 percent of the amount of basic 
     educational assistance in the case of a member who performed 
     active service for one continuous year but less than two 
     continuous years; and (3) payment of 80 percent of the amount 
     of basic educational assistance for those members who serve 
     for two continuous years or more. The maximum number of 
     months of educational assistance that would be permitted 
     under this provision would be 36, or the equivalent thereof 
     in part-time educational assistance. Eligible reservists 
     would remain entitled to educational assistance under this 
     provision while serving in the Selected Reserve, in the case 
     of members who were ordered to active duty while serving in 
     the Selected Reserve, or in the Ready Reserve, in the case of 
     a member who was ordered to active duty while serving in the 
     Ready Reserve other than the Selected Reserve.
     Sense of Congress on guidance concerning treatment of 
         employer-provided compensation and other benefits 
         voluntarily provided to employees who are activated 
         reservists (sec. 528)
       The Senate amendment contained a provision (sec. 1075) that 
     would express the sense of the Senate that the Internal 
     Revenue Service should provide guidance consistent with the 
     goal of promoting and ensuring the validity of differential 
     pay arrangements, benefits payments, and contributions to 
     retirement savings plans made by employers of reservists who 
     have been called to active duty.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       The conferees note that employers of reservists called up 
     for active duty are required under the Uniformed Services 
     Employment and Reemployment Rights Act of 1994 (USERRA) to 
     treat their reservist-employees as if they are on a leave of 
     absence or furlough and are not required to pay their 
     salaries. Many patriotic employers, however, have paid their 
     reservist-employees who have been mobilized the difference 
     between their military pay and their civilian salaries, and 
     have allowed deductions from these differential payments for 
     contributions to employer-provided retirement savings plans. 
     The conferees believe that insufficient guidance exists for 
     the tax status of these payments for both reservist-employees 
     and employers under existing Internal Revenue Service 
     regulations and that additional guidance should be provided.

    Subtitle D--Joint Officer Management and Professional Military 
                               Education

     Strategic plan to link joint officer development to overall 
         missions and goals of Department of Defense (sec. 531)
       The House bill contained a provision (sec. 531) that would 
     require the Secretary of Defense, with the advice of the 
     Chairman of the Joint Chiefs of Staff, to develop a strategic 
     plan for joint officer management and joint professional 
     military education. This strategic plan would link future 
     requirements for Active and Reserve military personnel, who 
     are trained and educated in joint matters, to the resources 
     required to develop those persons in terms of manpower, 
     formal education, practical experience, and other 
     requirements. Additionally, the strategic plan would identify 
     the methods the Secretary would use to fulfill those 
     requirements.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that, among other data 
     elements, would call for assessment of emerging issues 
     related to joint officer management, including problems 
     stemming from linkage of qualification as a joint specialty 
     officer to eligibility for promotion, expected rates of 
     promotion, and prescribed tour lengths.
     Improvement to professional military education in the 
         Department of Defense (sec. 532)
       The House bill contained a provision (sec. 541) that would 
     establish a new chapter 107 in title 10, United States Code, 
     consisting of eight new sections that would consolidate 
     sections of law related to joint professional military 
     education. The provision would define the term ``joint 
     professional military education,'' as well as 
     ``intermediate'' and ``senior level'' schools. It would 
     require the secretaries of the military departments to use 
     a written examination as a portion of the evaluation 
     criteria in selecting officers for full-time attendance at 
     intermediate level service schools and would require 
     phasing of joint professional military education and 
     student to faculty ratios. The provision would also 
     require that the length of the principal course of 
     instruction at the Joint Forces Staff College could not be 
     less than 10 weeks.
       The Senate amendment contained a provision (sec. 505) that 
     would repeal the minimum period requirement for phase II 
     joint professional military education in section 663 of title 
     10, United States Code.
       The Senate recedes with an amendment that would reduce and 
     consolidate the number of subjects that joint professional 
     military education must include. The amendment would specify 
     that the Chairman of the Joint Chiefs of Staff will advise 
     and assist the Secretary of Defense in designating and 
     certifying certain courses of instruction and would delete 
     the requirement for a written examination as a portion of the 
     evaluation criteria in selecting officers for full-time 
     attendance at intermediate level service schools.
       Although the conferees did not establish a statutory 
     minimum length for the duration of the principal course of 
     instruction offered at the primary resident campus of each 
     intermediate level service school and each senior level 
     service school, the conferees believe that such courses 
     should consist of not less than 10 months of resident 
     instruction, except in times of war or national emergency. 
     The conferees will continue to review this matter with each 
     of the military services as changes and modifications to such 
     courses are proposed.
     Joint requirements for promotion to flag or general officer 
         grade (sec. 533)
       The House bill contained a provision (sec. 532) that would 
     extend from September 30, 2007 to September 30, 2008, the 
     date after which an officer must be selected for the joint 
     specialty before promotion to the grade of brigadier general 
     or rear admiral (lower half). The provision would also 
     eliminate the requirement that an officer serve in a joint 
     assignment at least 180 days prior to the convening of a 
     promotion board for selection to the grade of brigadier 
     general or rear admiral (lower half).
       The Senate amendment contained a provision (sec. 501) that 
     would also eliminate the requirement for 180 days of service 
     in a joint duty assignment before an officer may be 
     considered for promotion to flag or general officer rank.
       The Senate recedes.
     Clarification of tours of duty qualifying as a joint duty 
         assignment (sec. 534)
       The House bill contained a provision (sec. 533) that would 
     modify the definition of the term ``tour of duty'' in section 
     668(c) of title 10, United States Code, to allow officers to 
     continue accumulating joint credit if they serve consecutive 
     joint duty assignments, even if those assignments are not 
     within the same organization.
       The Senate amendment contained a similar provision (sec. 
     506).
       The Senate recedes with an amendment that would insert the 
     term ``joint duty assignment list'' in section 668 of title 
     10, United States Code.
     Two-year extension of temporary standard for promotion policy 
         objectives for joint officers (sec. 535)
       The Senate amendment contained a provision (sec. 503) that 
     would require the military departments to ensure that an 
     adequate number of officers are eligible for promotion to 
     brigadier general and rear admiral (lower half) to meet joint 
     qualification requirements under section 619a of title 10, 
     United States Code. The provision would also make permanent 
     the temporary authority regarding promotion comparison 
     standards for joint specialty officers under section 662 of 
     title 10, United States Code.
       The House bill contained no similar provision.
       The House recedes with an amendment that would extend the 
     temporary authority regarding promotion comparison standards 
     for officers with the joint specialty under section 662 of 
     title 10, United States Code, until December 27, 2006.
     Two-year extension of authority to waive requirement that 
         Reserve Chiefs and National Guard Directors have 
         significant joint duty experience (sec. 536)
       The House bill contained a provision (sec. 509) that would 
     extend for two years, until December 31, 2006, the authority 
     of the Secretary of Defense to waive the requirement that the 
     chiefs of the Reserves and the directors of the Army and Air 
     National Guard must have significant joint duty experience to 
     be eligible for appointment. The provision would also require 
     that the Secretary develop a plan to ensure that officers 
     selected after December 31, 2006, to be the chiefs of the 
     Reserves and the directors of the Army and Air National 
     Guard, have significant joint duty experience in order to 
     ensure a concerted effort to develop a system to eliminate 
     the need for this waiver.
       The Senate amendment contained a provision (sec. 513) that 
     would extend the Secretary's waiver authority for one year.
       The Senate recedes.

                 Subtitle E--Military Service Academies

     Revision to conditions on service of officers as service 
         academy superintendents (sec. 541)
       The House bill contained a provision (sec. 557) that would 
     repeal the requirement that

[[Page H9535]]

     the superintendents of the military service academies retire 
     upon completion of their assignments. The provision would 
     also require that an officer serve at least a three-year tour 
     of duty as superintendent, and that if the officer is re-
     assigned before that period elapses, the secretary of the 
     military department concerned must notify the Committees on 
     Armed Services of the Senate and the House of Representatives 
     of the reasons for the re-assignment.
       The Senate amendment contained a provision (sec. 535) that 
     would repeal the requirement under sections 8921 and 9333a of 
     title 10, U.S. Code, that the Superintendent of the U.S. Air 
     Force Academy retire upon termination of his or her 
     assignment.
       The Senate recedes with an amendment that would retain the 
     requirement that the superintendents retire upon completion 
     of their tours of duty. It would, however, authorize the 
     Secretary of Defense to waive this requirement for good 
     cause, and would require written notification to Congress of 
     the President's intent to nominate a superintendent of a 
     service academy for re-assignment.
     Academic qualifications of the Dean of the Faculty of United 
         States Air Force Academy (sec. 542)
       The House bill contained a provision (sec. 559) that would 
     require that a person selected to be the Dean of the Faculty 
     at the U.S. Air Force Academy, who is not an officer on 
     active duty, must be either a retired or former officer of 
     the Armed Forces. Furthermore, the provision would prohibit 
     the appointment or assignment of a person to be the Dean 
     unless that person holds the highest academic degree in their 
     academic field.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would delete the 
     requirement that the Dean of the Faculty at the U.S. Air 
     Force Academy must be either a retired or former officer of 
     the Armed Forces.
     Board of Visitors of United States Air Force Academy (sec. 
         543)
       The House bill contained a provision (sec. 560A) that would 
     modify section 9355 of title 10, United States Code, to 
     change the composition of the Board of Visitors of the U.S. 
     Air Force Academy. The provision would also prescribe: (1) 
     procedures for when a member of the Board dies, resigns, or 
     is absent from meetings; (2) four meetings of the Board and 
     reports to Congress each year; and (3) candid and complete 
     disclosure by the Secretary of the Air Force and the 
     Superintendent of the Air Force Academy of all institutional 
     problems.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would retain the 
     current criteria in section 9355 of title 10, United States 
     Code, for designation of U.S. Senators to serve on the Board 
     of Visitors. The amendment would also modify the conditions 
     for termination of board members who are members of Congress, 
     assigning discretion to designating authorities to take 
     appropriate action if Board of Visitors meetings are 
     unattended without good cause. The amendment would further 
     require semiannual reports from the Board of Visitors to 
     Congress.
     Appropriated funds for service academy athletic and 
         recreational extracurricular programs to be treated in 
         same manner as for military morale, welfare, and 
         recreation programs (sec. 544)
       The Senate amendment contained a provision (sec. 1005) that 
     would authorize the service academies to treat funds 
     appropriated for morale, welfare, and recreation athletics 
     and extracurricular programs as non-appropriated funds in 
     order to achieve uniform funding and management of those 
     funds.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Codification of prohibition on imposition of certain charges 
         and fees at the service academies (sec. 545)
       The House bill contained a provision (sec. 558) that would 
     codify section 553 of the National Defense Authorization Act 
     for Fiscal Year 1995 (Public Law 103-337). This provision 
     would prohibit the imposition of charges or fees for tuition, 
     room, or board for attendance by cadets and midshipmen at the 
     service academies.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.

            Subtitle F--Other Education and Training Matters

     College First delayed enlistment program (sec. 551)
       The House bill contained a provision (sec. 551) that would 
     permanently authorize the Army College First Pilot Program, 
     and extend the authority to implement the program to the 
     other service secretaries.
       The Senate amendment contained a provision (sec. 531) that 
     would extend for one year the duration of the Army's College 
     First Pilot Program.
       The Senate recedes with a technical amendment.
     Senior Reserve Officer Training Corps and recruiter access at 
         institutions of higher education (sec. 552)
       The House bill contained a provision (sec. 596) that would: 
     (1) require that military recruiters be given access to 
     campuses and students at institutions of higher education 
     that is at least equal in quality and scope to the access 
     provided to any other employer; (2) require the Secretary of 
     Defense to obtain an annual verification from colleges and 
     universities which already support the Senior Reserve 
     Officers' Training Corps (ROTC) program that they will 
     continue to do so in the upcoming academic year; (3) specify 
     that federal funding that is provided to an institution of 
     higher education, or to an individual, to be available solely 
     for student financial assistance is exempt from the stricture 
     of section 983 of title 10, United States Code; and (4) add 
     additional defense-related funding sources to include: the 
     Department of Homeland Security, the Central Intelligence 
     Agency, and the National Nuclear Security Administration of 
     the Department of Energy, and would restore the funds of the 
     Department of Transportation to the list of covered funds 
     that potentially could be terminated if an institution is 
     determined to prevent recruiter access or maintains anti-ROTC 
     policies.
       The Senate amendment contained two provisions (sec. 532 and 
     533) that would require colleges and universities to give 
     equal treatment to military recruiters, and specify that 
     federal funding for student financial assistance may be used 
     for the purpose for which the funding is provided.
       The Senate recedes with an amendment that would delete the 
     requirement for the Secretary to obtain an annual 
     verification from colleges and universities that they would 
     continue to support Senior ROTC.
     Tuition assistance for officers (sec. 553)
       The House bill contained a provision (sec. 514) that would 
     authorize the secretaries of the military departments to 
     waive for Reserve component officers the two-year Active-Duty 
     service obligation required as a condition for receipt of 
     tuition assistance while on active duty. The provision would 
     also allow an increase in tuition assistance authorized for 
     Army officers in the Selected Reserve.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Increased maximum period for leave of absence for pursuit of 
         a program of education in a health care profession (sec. 
         554)
       The House bill contained a provision (sec. 554) that 
     extends from two to three years the educational leave of 
     absence authorized for members of the Armed Forces in section 
     708 of title 10, United States Code.
       The Senate amendment contained a provision (sec. 651) that 
     would extend from two to three years the period of time that 
     a military member may take educational leave of absence for a 
     health profession education program.
       The House recedes.
     Eligibility of cadets and midshipmen for medical and dental 
         care and disability benefits (sec. 555)
       The House bill contained a provision (sec. 555) that would 
     provide the capability to effectively respond to injuries and 
     illness sustained during accession training by cadets and 
     midshipmen. The provision would authorize service academy 
     cadets and midshipmen to be eligible for disability 
     evaluation and retirement under chapter 61 of title 10, 
     United States Code, and cadets and midshipmen participating 
     in the Senior Reserve Officers' Training Corps (ROTC) to be 
     eligible for medical and dental care for injuries and illness 
     sustained in the line of duty and not due to gross negligence 
     or misconduct.
       The Senate amendment contained a similar provision (sec. 
     717).
       The House recedes with a technical amendment.
       The conferees were greatly assisted by the Department of 
     Defense's report on health and disability benefits for pre-
     accession training and education programs required by section 
     546 of the National Defense Authorization Act for Fiscal Year 
     2002 (Public Law 107-107). This report proved essential in 
     gaining an understanding of the origins of current law and 
     the steps that are needed to be taken to ensure equitable 
     treatment of cadets and midshipmen and their families.
       The conferees urge the Department to continue to identify 
     ways to improve the treatment of Senior ROTC cadets and 
     midshipmen who have experienced illness or injury and whose 
     continued participation in ROTC is jeopardized as a result. 
     The conferees, for example, are aware that under current 
     service regulations cadets in Army ROTC and midshipmen in 
     Naval ROTC who become ill or who are injured through no fault 
     of their own are involuntarily being placed on ``leave of 
     absence'' and denied scholarship payments and monthly 
     stipends, even when it is apparent that these cadets and 
     midshipmen will recover fully and they continue to attend 
     classes and participate fully in ROTC activities. The 
     conferees urge the Department and the services to act 
     expeditiously, but no later than April 1, 2005, to 
     revise Departmental regulations to achieve uniformity 
     among the services in responding to medical conditions to 
     avoid unnecessary hardships on ROTC cadets, midshipmen, 
     and their families.
     Transfer of authority to confer degrees upon graduates of the 
         Community College of the Air Force (sec. 556)
       The House bill contained a provision (sec. 552) that would 
     authorize the Commander of the Air University to confer 
     associate level

[[Page H9536]]

     academic degrees on graduates of the Community College of the 
     Air Force. This change would align the Community College with 
     all other Air University programs by ensuring that only the 
     Commander of the Air University is responsible for conferring 
     degrees.
       The Senate amendment contained a similar provision (sec. 
     534).
       The House recedes with a technical amendment.
     Change in titles of leadership positions at the Naval 
         Postgraduate School (sec. 557)
       The House bill contained a provision (sec. 553) that would 
     change the title of the Superintendent of the Naval 
     Postgraduate School from Superintendent to President. This 
     provision would also establish a new civilian position of 
     Provost and Academic Dean, and revise the procedures to fill 
     this position.
       The Senate amendment contained a similar provision (sec. 
     913).
       The House recedes with a technical amendment.

   Subtitle G--Assistance to Local Educational Agencies for Defense 
                          Dependents Education

     Continuation of impact aid assistance on behalf of dependents 
         of certain members despite change in status of member 
         (sec. 558)
       The House bill contained a provision (sec. 590) that would 
     temporarily adjust the process for computing the amount of 
     funding provided by the Department of Education to certain 
     local educational agencies heavily impacted by dependents of 
     military personnel. The adjustment, limited to school year 
     2004-2005, would require that certain children continue to be 
     counted as a child enrolled in school when computing the 
     average daily attendance. Such children include those who 
     attend the school but no longer live on a military base 
     because both parents are deployed, or are children who 
     temporarily reside in military base housing following the 
     death of a military parent on active duty.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Assistance to local educational agencies that benefit 
         dependents of members of the Armed Forces and Department 
         of Defense civilian employees (sec. 559)
       The House bill contained a provision (sec. 595) that would 
     provide $50.0 million in Operation and Maintenance, Defense-
     wide activities, for assistance to local educational agencies 
     that benefit dependents of members of the Armed Forces and 
     Department of Defense civilian employees.
       The Senate amendment contained a similar provision (sec. 
     351) that would authorize $30.0 million for assistance to 
     local educational agencies.
       The House recedes.
     Impact aid for children with severe disabilities (sec. 560)
       The Senate amendment contained a provision (sec. 352) that 
     would authorize $5.0 million in Operation and Maintenance, 
     Defense-wide, for impact aid payments for children with 
     disabilities under section 8003(d) of the Elementary and 
     Secondary Education Act of 1965 (20 U.S.C. 7703(d)), using 
     the formula set forth in section 363 of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 
     (Public Law 106-398), for continuation of the Department of 
     Defense's assistance program to local educational agencies 
     that benefit dependents with severe disabilities.
       The House bill contained no similar provision.
       The House recedes.

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

     Award of medal of honor to individual interred in the Tomb of 
         the Unknowns as representative of casualties of a war 
         (sec. 561)
       The Senate amendment contained a provision (sec. 541) that 
     would clarify that the posthumous award of a medal of honor 
     to the deceased member of the Armed Forces who is interred in 
     the Tomb of the Unknowns at Arlington National Cemetery is 
     awarded to that member as a representative of the unknown 
     members of the Armed Forces who died in such war or other 
     armed conflict, and not to the individual personally.
       The House bill contained no similar provision.
       The House recedes.
     Plan for revised criteria and eligibility requirements for 
         award of combat infantryman badge and combat medical 
         badge for service in Korea after July 28, 1953 (sec. 562)
       The House bill contained a provision (sec. 565) that would 
     revise the criteria and eligibility requirements for award of 
     the combat infantry badge and combat medical badge to Army 
     personnel for service in the Republic of Korea after July 28, 
     1953.
       The Senate amendment contained a provision (sec. 543) that 
     would require the Secretary of the Army to submit a plan not 
     later than 90 days after the date of enactment of this Act 
     for the revision of the criteria and eligibility requirements 
     for these badges for service in Korea.
       The House recedes.
       The conferees note that the mutual purpose of the House and 
     Senate provisions is to ensure modification of the 
     eligibility requirements, which over time have become 
     inequitable for soldiers who are serving or have served in 
     Korea. The Commander, U.S. Forces Korea, has expressed his 
     support for this initiative. The conferees expect the 
     Secretary to promptly and equitably revise the criteria for 
     the award of the combat infantryman and combat medical 
     badges, and act upon applications from veterans of Korea 
     service who qualify for these awards.
     Authority to appoint Brigadier General Charles E. Yeager, 
         United States Air Force (retired), to the grade of major 
         general on the retired list (sec. 563)
       The House bill contained a provision (sec. 563) that would 
     authorize the President, by and with the advice and consent 
     of the Senate, to appoint Brigadier General Charles E. Yeager 
     U. S. Air Force (retired), to the grade of major general on 
     the retired list of the U.S. Air Force.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Posthumous commission of William Mitchell in the grade of 
         major general in the Army (sec. 564)
       The House bill contained a provision (sec. 564) that would 
     authorize the President, by and with the advice and consent 
     of the Senate, to issue a posthumous commission in the grade 
     of major general in the Army to William Mitchell, formerly a 
     colonel in the U.S. Army. A commission issued under this 
     authority would become effective as of the date of the death 
     of William Mitchell on February 19, 1936.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                      Subtitle I--Military Voting

     Federal write-in ballots for absentee military voters located 
         in the United States (sec. 566)
       The Senate amendment contained a provision (sec. 572) that 
     would amend section 1973ff of title 42, United States Code, 
     to authorize military voters and their dependents, who are 
     stationed in the United States but absent from their home 
     states, to use federal write-in absentee ballots. Operational 
     requirements and the mobility of military personnel may 
     prevent them from receiving state-provided absentee ballots 
     in the mail in time for an election. Allowing absentee 
     military voters and their dependents to use the federal 
     write-in ballots, even while stationed in the United States, 
     would serve to remedy these problems.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Repeal of requirement to conduct electronic voting 
         demonstration project for the federal election to be held 
         in November 2004 (sec. 567)
       The House bill contained a provision (sec. 592) that would 
     repeal the requirement in section 1604 of the National 
     Defense Authorization Act for Fiscal Year 2002 (Public Law 
     107-107) for the Secretary of Defense to conduct a 
     demonstration project to permit absentee uniformed service 
     voters to cast their ballots through an electronic voting 
     system.
       The Senate amendment contained a provision (sec. 1065) that 
     would authorize delay in carrying out an electronic voting 
     demonstration project until November 2006.
       The House recedes with an amendment that would delay the 
     electronic voting demonstration project until the first 
     regularly scheduled general election for federal office that 
     occurs after the Election Assistance Commission notifies the 
     Secretary that the commission has established electronic 
     absentee voting guidelines and certifies that the commission 
     will assist the Secretary in carrying out the project.
       The conferees recognize the magnitude of the technical 
     challenge associated with ensuring the security of electronic 
     voting using the Internet. The Department of Defense's Secure 
     Electronic Registration and Voting Experiment (SERVE) was an 
     important prototype for electronic voting that should not be 
     abandoned. The conferees encourage the Secretary to provide 
     funding to the Election Assistance Commission and the 
     National Institute of Standards and Technology to advance 
     electronic absentee voting by U.S. voters located overseas 
     and Uniformed Services voters.
     Reports on operation of Federal Voting Assistance Program and 
         military postal system (sec. 568)
       The Senate amendment contained a provision (sec. 1026) that 
     would require the Secretary of Defense to submit reports to 
     Congress on: (1) the actions that the Secretary has taken to 
     ensure that the Federal Voting Assistance Program functions 
     effectively to support absentee voting; (2) the actions that 
     the Secretary has taken to ensure that the military postal 
     system functions effectively to support the morale of 
     military members and their ability to vote by absentee 
     ballot; and (3) the actions taken to implement the 
     recommendations of the Military Postal Service Agency Task 
     Force of August 28, 2000.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                  Subtitle J--Military Justice Matters

     Review on how sexual offenses are covered by Uniform Code of 
         Military Justice (sec. 571)
       The House bill contained a provision (sec. 571) that would 
     require the Secretary of Defense to review the Uniform Code 
     of Military Justice and the Manual for Courts-Martial to

[[Page H9537]]

     determine what changes are required to improve the ability of 
     the military justice system relating to sexual assault, and 
     to conform the Code and the Manual more closely to other 
     federal laws and regulations that address such issues. The 
     Secretary is to report on the review to the Committees on 
     Armed Services of the Senate and the House of Representatives 
     by March 1, 2005. The report is to include the Secretary's 
     recommendations for revisions to the Code.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees understand that the Department of Defense is 
     already undertaking such a review. The conferees expect that 
     the Department's legislative proposal for fiscal year 2006 
     will include any suggestions for revisions in the Code 
     provisions dealing with sexual assault that are determined to 
     be desirable.
     Waiver of recoupment of time lost for confinement in 
         connection with a trial (sec. 572)
       The Senate amendment contained a provision (sec. 552) that 
     would amend section 972 of title 10, United States Code, to 
     require the Secretary concerned to waive time lost when a 
     member is confined by military or civilian authorities for 
     more than one day in connection with a trial, if the charge 
     is thereafter dismissed, the trial results in an acquittal, a 
     conviction is thereafter set aside (other than for clemency), 
     or a judgment of acquittal or dismissal is entered upon a 
     reversal of the conviction of on appeal.
       The House bill contained a similar provision.
       The House recedes.
     Processing of forensic evidence collection kits and 
         acquisition of sufficient stocks of such kits (sec. 573)
       The House bill contained a provision (sec. 306) that would 
     require the Secretary of Defense to take steps to eliminate 
     the current backlog in the processing of forensic evidence 
     collection kits, to shorten the time period between the use 
     of such kits and their processing, and to ensure that there 
     is an adequate supply of rape kits for all domestic and 
     overseas U.S. military installations.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to ensure that the United States Army Criminal 
     Investigation Laboratory has the personnel and resources to 
     effectively process forensic evidence used by the Department 
     of Defense within 60 days of its receipt, and that military 
     personnel are properly trained in the use of forensic 
     evidence collection kits and in procedures to ensure 
     protection of the chain of custody of the kits once used.
     Authorities of the Judge Advocates General (sec. 574)
       The Senate amendment contained a provision (sec. 915) that 
     would amend the title 10, United States Code, provisions 
     relating to the Judge Advocates General (TJAG) of the 
     services and the General Counsels (GC) of the military 
     departments to make the TJAGs the legal advisers of the 
     service secretaries, the service chiefs and their staffs, and 
     the offices and agencies of the military departments, provide 
     for TJAG direction and supervision of judge advocates and of 
     civilian attorneys outside the offices of the service general 
     counsels, provide for the responsibilities of the TJAGs under 
     the Uniform Code of Military Justice (UCMJ), provide for 
     other duties as may be directed by the service secretaries, 
     and provide that the TJAGs shall be appointed in the grade of 
     lieutenant general or vice admiral, as appropriate.
       The House bill contained no similar provision.
       The House recedes with an amendment that would prohibit any 
     officer or employee of the Department of Defense from 
     interfering with the ability of the TJAGs to provide 
     independent legal advice to their service secretaries and 
     service chiefs, or of judge advocates assigned, attached, or 
     performing duty with military units to provide such advice to 
     commanders. The provision would also require the Secretary of 
     Defense to appoint an independent panel to conduct a study of 
     the relationships between the legal elements of each service 
     and transmit the panel's recommendations as to statutory, 
     regulatory, and policy changes which it believes to be 
     desirable, together with the Secretary's comments, to 
     the Committees on Armed Services by May 1, 2005. The 
     conferees expect that this panel will be truly 
     independent, expert, and disinterested. They will examine 
     the panel's findings and recommendations with care in the 
     fiscal year 2006 authorization process.
       The conferees note that this is the second time in 12 years 
     that attempts to consolidate legal services in the Department 
     of Defense have led to congressional action. In 1992, the 
     Deputy Secretary of Defense issued a memorandum that would 
     have moved substantially in the direction of centralization 
     under the General Counsel of the Department of Defense. In 
     response, the Senate version of the National Defense 
     Authorization Act for Fiscal Year 1993 contained a provision 
     directing that the memorandum be rescinded. After the 
     memorandum was rescinded, the provision was dropped in 
     conference.
       In May 2003, the Secretary of the Air Force issued an order 
     subordinating the Judge Advocate General to the General 
     Counsel of the Department of the Air Force as her military 
     deputy. The order also stated that the General Counsel had 
     ``full legal authority to . . . become involved in . . . any 
     particular case or matter within the Department.'' Thereafter 
     the General Counsel issued a draft operating instruction in 
     which she asserted the right to exercise legal oversight and 
     review over virtually every legal issue arising in the 
     Department of the Air Force, including the field of military 
     justice which is statutorily reserved to the TJAGs. The Air 
     Force situation, while the most aggravated, is not unique.
       Consistent with the legislative provision included in the 
     conference report, the conferees direct the Secretary of the 
     Air Force to rescind his order of May 15, 2003, ``Functions 
     and Duties of the General Counsel and the Judge Advocate 
     General.'' The conferees further direct the General Counsel 
     of the Department of the Air Force to rescind all internal 
     operating instructions and memoranda issued in reliance on 
     the Secretary's May 15, 2003, order.

             Subtitle K--Sexual Assault in the Armed Forces

     Examination of sexual assault in the Armed Forces by the 
         defense task force established to examine sexual 
         harassment and violence at the military service academies 
         (sec. 576)
       The House bill contained a provision (sec. 593) that would 
     require the Secretary of Defense to expand the mission of the 
     Task Force on Sexual Harassment and Violence at the Military 
     Service Academies that was established in the National 
     Defense Authorization Act for Fiscal year 2004 (Public Law 
     108-136). Upon completion of its current work, the task force 
     would be renamed the Defense Task Force on Sexual Assault in 
     the Military Services and would be extended for at least l8 
     months. It would examine matters relating to sexual assault 
     in the Armed Forces and would be required to report its 
     findings and recommendations to the Secretary of Defense 
     within 12 months of its initial meeting. The Secretary of 
     Defense would be required to provide the report, together 
     with an evaluation of it, to the Committees on Armed Services 
     of the Senate and the House of Representatives, along with an 
     assessment of the effectiveness of the corrective actions 
     being taken by the Department of Defense and the military 
     services as a result of various investigations and reviews 
     into matters involving sexual assault.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment to expand the scope of 
     the task force report to include: a report on the use of data 
     relating to sexual assault by senior military and civilian 
     leaders; development of measures of effectiveness for 
     responding to victim needs by sexual assault programs; 
     progress in developing means to investigate and prosecute 
     assailants who are foreign nationals; the adequacy of 
     Department resources supporting sexual assault prevention and 
     victim advocacy programs, particularly for deployed units and 
     personnel; training of military and civilian personnel 
     responsible for implementation of sexual assault polices; and 
     programs and policies, including those related to 
     confidentiality, designed to encourage victims to seek 
     services and report offenses.
       The Senate amendment also would authorize the Secretary to 
     change the composition of the Defense Task Force on Sexual 
     Assault in the Military Services as appropriate, but 
     remaining consistent with the qualifications required by 
     section 526(f) of Public Law 108-136, and not before the task 
     force established to examine sexual harassment and violence 
     at the service military academies has completed its 
     statutorily mandated functions.
       The conferees intend to closely monitor the development and 
     implementation of uniform policies and programs on sexual 
     assault required elsewhere in this Act. Given the urgency of 
     the need for effective action to prevent and resolve sexual 
     assault offenses against military members, the conferees 
     expect that the task force, re-designated as the Task Force 
     on Sexual Assault in the Military Services, will provide an 
     independent assessment of the effectiveness of policies and 
     programs developed by the Department, as well as the success 
     of the military services at all levels in achieving their 
     implementation.
     Department of Defense policy and procedures on prevention and 
         response to sexual assaults involving members of the 
         Armed Forces (sec. 577)
       The House bill contained a provision (sec. 598) that would 
     require the Department of Defense to promulgate a uniform 
     Department of Defense policy for the prevention of and 
     response to sexual assaults involving members of the Armed 
     Forces, and would require service secretaries to prescribe 
     regulations on policies and procedures to prevent and respond 
     to sexual assaults involving members of the Armed Forces. The 
     provision would also require the secretaries of the military 
     departments to prescribe programs throughout each service 
     designated for victim advocacy and intervention, both at home 
     and in deployed locations, and provide an annual assessment 
     of the implementation of sexual assault prevention policies 
     and procedures during the preceeding year. Additionally, the 
     provision would require the Secretary to develop a definition 
     of sexual assault that is uniform for all the Armed Forces. 
     The provision would require an annual report to Congress by 
     the Secretary of Defense on the number of sexual assaults, 
     rapes, and other sexual offenses involving military 
     personnel; a synopsis of disciplinary

[[Page H9538]]

     action taken in substantiated cases; the policies and 
     programs implemented by the Secretary to respond to sexual 
     assault and violence against military members; and a plan for 
     future actions to be taken.
       The Senate amendment contained a similar provision (sec. 
     553).
       The Senate recedes with an amendment that would clarify 
     reporting requirements by the Secretary and service 
     secretaries, and would require a definition of sexual assault 
     that is uniform for all the Armed Forces.

           Subtitle L--Management and Administrative Matters

     Three-year extension of limitation on reductions of personnel 
         of agencies responsible for review and correction of 
         military records (sec. 581)
       The House bill contained a provision (sec. 581) that would 
     extend through September 30, 2008 the prohibition precluding 
     the secretaries of the military departments from reducing the 
     number of military and civilian personnel assigned to duty 
     within the boards for correction of military records until 90 
     days after the secretary of the military department concerned 
     submits a report to Congress that describes the proposed 
     reduction, provides the rationale for the reduction, and 
     specifies the number of personnel that will be assigned to 
     the board after the reduction is complete.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Staffing for Defense Prisoner of War/Missing Personnel Office 
         (DPMO) (sec. 582)
       The House bill contained a provision (sec. 582) that would 
     establish specific, permanent minimum levels of military and 
     civilian personnel assigned to the Defense Prisoner of War/
     Missing Personnel Office (DPMO). The provision would require 
     that the number of permanent positions and full-time 
     Department of Defense personnel permanently assigned or 
     detailed to the DPMO would not be less than 46 military 
     members and 69 civilian employees of the Department.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would modify 
     section 1501(a)(5) of title 10, United States Code, to 
     provide that the number of military and civilian personnel, 
     whether temporary or permanent, who are assigned or detailed 
     to the DPMO may not be less than the number requested in the 
     President's budget for fiscal year 2003. The conferees note 
     that the budget request for fiscal year 2003 provided for 46 
     military personnel and 69 civilian personnel and included a 
     budget request for $16.0 million.
       The Senate amendment would also require a study by the 
     Government Accountability Office in order to provide a 
     comprehensive examination of trends in staffing and funding 
     levels of the DPMO compared to mission requirements and the 
     Comptroller General's assessment of the adequacy of current 
     manning and funding levels of the DPMO in light of current 
     mission requirements.
     Permanent ID cards for retiree dependents age 75 and older 
         (sec. 583)
       The House bill contained a provision (sec. 583) that would 
     require the service secretaries to issue permanent 
     identification cards to dependents of military retirees and 
     survivors of military retirees eligible for benefits for 
     periods after the dependent or survivor attains age 75.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would establish 
     the age for issuance of permanent military identification 
     cards to dependents and survivors of military retirees at 75 
     years of age.
     Authority to provide civilian clothing to members traveling 
         in connection with medical evacuation (sec. 584)
       The House bill contained a provision (sec. 584) that would 
     authorize the secretaries of the military departments to 
     furnish members, who have been medically evacuated, civilian 
     clothing at a cost not to exceed $250 or to reimburse the 
     member for the purchase of civilian clothing in an amount not 
     to exceed $250.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to provide civilian clothing to members 
     traveling in connection with medical evacuation. This 
     authority is a continuation of the authority provided in 
     section 1319 of the Emergency Wartime Supplemental 
     Appropriations Act, 2003 (Public Law 108-11) and later in 
     section 1103 of the Emergency Supplemental Appropriations Act 
     for Defense and for the Reconstruction of Iraq and 
     Afghanistan, 2004 (Public Law 108-106).
     Authority to accept donation of frequent traveler miles, 
         credits, and tickets to facilitate rest and recuperation 
         travel of deployed members of the Armed Forces and their 
         families (sec. 585)
       The House bill contained a provision (sec. 585) that would 
     authorize the Secretary of Defense to accept the donation of 
     frequent traveler miles, credits, and tickets for the purpose 
     of facilitating the travel of members of the Armed Forces who 
     are deployed away from their permanent duty station and are 
     granted leave, to include rest and recuperative leave, 
     emergency leave, convalescent leave, or another form of leave 
     authorized for the member, and for facilitating the travel of 
     family members to be reunited with such a member.
       The Senate amendment contained a similar provision (sec. 
     653) that, in addition, would authorize the Secretary, in an 
     exceptional case, to permit a person who is not a family 
     member to use frequent traveler miles, credits, and tickets, 
     if that person has a notably close relationship with the 
     member. The Senate amendment also contained a provision that 
     would authorize the Secretary to enter into an agreement with 
     a nonprofit organization to assist in administering the 
     collection, distribution, and use of donated frequent 
     traveler miles, credits, and tickets.
       The House recedes with an amendment that would eliminate a 
     requirement that the Secretary encourage air and surface 
     carriers to participate in the donation of frequent traveler 
     miles, credits, and tickets. The amendment would also amend 
     section 134 of the Internal Revenue Code of l986 to exempt 
     recipients of frequent traveler miles, credits, and tickets 
     authorized in this Act from tax liability for receipt of such 
     frequent traveler miles, credits, or tickets.
     Annual report identifying reasons for discharges from the 
         Armed Forces during preceding fiscal year (sec. 586)
       The House bill contained a provision (sec. 587) that would 
     require the Secretary of Defense to report annually to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives detailed information regarding the numbers of 
     persons discharged from each of the military services in the 
     preceding fiscal year.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment that would 
     authorize the use of generic interservice separation codes 
     providing similar, consistent data across the services in 
     this report, and that would terminate the authority for this 
     report after 1 March 2011.
     Study of blended wing concept for the Air Force (sec. 587)
       The House bill contained a provision (sec. 589) that would 
     require the Secretary of the Air Force to submit by March 1, 
     2005 a report on matters related to the Air Force's current 
     implementation of and future plans for blended wings to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       In describing the manner in which current blended wings are 
     functioning, the conferees request the Secretary of the Air 
     Force to comment on the efficacy of the provisions of section 
     516 of the National Defense Authorization Act for Fiscal Year 
     2004 (Public Law 108-136). The Secretary should include 
     recommendations for legislative changes, if needed, to ensure 
     the ability of officers of the Army or Air National Guard, 
     called to active duty for the purpose of commanding a unit 
     composed of both active and Reserve component personnel, to 
     successfully perform their duties.
     Sense of Congress regarding return of members to active-duty 
         service upon rehabilitation from service-related injuries 
         (sec. 588)
       The Senate amendment contained a provision (sec. 575) that 
     would find that in cases involving combat-related injuries or 
     other service-related injuries, it is possible, as a result 
     of advances in technology and extensive rehabilitative 
     services, to restore to members of the Armed Forces 
     sustaining such injuries the capability to resume active 
     military service, including, in a few cases, the capability 
     to participate directly in the performance of combat 
     missions.
       The provision would express the sense of the Senate that 
     members of the Armed Forces who, on their own initiative, are 
     highly motivated to return to active-duty service following 
     rehabilitation from injuries incurred in service of the Armed 
     Forces should, after appropriate medical review and physical 
     disability evaluation, be given the opportunity to present 
     their case for continuing service on active duty in varied 
     military capacities. Additionally, the provision would 
     express the sense of the Senate that there should be no 
     barrier in policy or law to members having the option to 
     return to military service on active duty, and that the 
     Secretary of Defense should develop specific protocols 
     that include options for such members to return to active-
     duty service and to be retrained to perform military 
     missions for which they are fully capable.
       The House bill contained no similar provision.
       The House recedes with an amendment that would express a 
     sense of Congress.

                       Subtitle M--Other Matters

     Protection of Armed Forces personnel from retaliatory actions 
         for communications made through the chain of command 
         (sec. 591)
       The Senate amendment contained a provision (sec. 1069) that 
     would amend section 1034 of title 10, United States Code, to 
     allow a protected communication to be made to any person in 
     the chain of command of a member of the Armed Forces making 
     such a communication, as well as any other person or 
     organization designated by regulations or other procedures 
     for such communications.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

[[Page H9539]]

     Implementation plan for accession of persons with specialized 
         skills (sec. 592)
       The Senate amendment contained a provision (sec. 571) that 
     would authorize the service secretaries to establish an 
     alternate minimum military service obligation for accession 
     of persons into the Armed Forces who have unique skills. The 
     provision would also authorize establishment of expedited 
     basic training requirements for certain individuals in order 
     to allow the Department of Defense to meet exigent mission 
     requirements.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense, not later than 180 days after the date 
     of enactment of this Act, to submit a plan for implementation 
     of authority, if subsequently provided by law, to allow for 
     accession into the Armed Forces of persons with specialized 
     skills for duty involving the use of such skills. The 
     Secretary would also be required to include a comparison of 
     the plan submitted with an alternative plan of using civilian 
     contractor personnel to meet the specialized skills required 
     by the Armed Forces.
       The conferees believe that there may be a valid requirement 
     for an alternate minimum military service obligation for 
     certain individuals and for expedited basic training that 
     would justify exceptions under sections 651 and 671 of title 
     10, United States Code. The Department has not sufficiently 
     explained, however, the manner in which such new authorities 
     would be used and the potential effects such exceptional 
     treatment of new accessions could have on other special or 
     lateral entry programs. The conferees expect the Department 
     to use the report to address these concerns.
       The provision would also require the Secretary to conduct a 
     feasibility study of how to implement a system that would 
     make civilian volunteers, with skills determined by the 
     Secretary to be critical, rapidly available for use in, or in 
     support of, units of the Armed Forces on a temporary basis to 
     meet no-notice or short-notice operational requirements. The 
     requirement to conduct this feasibility study was included in 
     the House bill (sec. 597) and is appropriately submitted in 
     the context of better evaluating expedited, short-term 
     manpower needs of the military services.
       The conferees suggest that coordinating the foregoing 
     feasibility study with the separate report required elsewhere 
     in this Act on acceptance of voluntary services under section 
     1588 of title 10, United States Code, could be useful.
     Enhanced screening methods and process improvements for 
         recruitment of home schooled and National Guard Challenge 
         program GED recipients (sec. 593)
       The House bill contained a provision (sec. 594) that would 
     reestablish the pilot program under section 571 of the Strom 
     Thurmond National Defense Authorization Act for Fiscal Year 
     1999 (Public Law 105-261). This pilot program permitted 
     participants in a National Guard Challenge Program who 
     received a general education development (GED) certificate, 
     and those who completed their high school requirements 
     through a home schooling program to enlist in the Armed 
     Forces as if they had received a high school diploma.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of the Army to carry out an initiative aimed at 
     developing screening methods and process improvements for 
     recruiting specified GED recipients. The purpose would be to 
     achieve attrition patterns among the recruited recipients of 
     a GED that match those of Army recruits who are high school 
     diploma graduates and, following review by the Secretary of 
     Defense, to implement such screening methods and process 
     improvements on a test basis.
     Redesignation of National Guard Challenge Program as National 
         Guard Youth Challenge Program (sec. 594)
       The Senate amendment contained a provision (sec. 573) that 
     would change the name of the National Guard Challenge Program 
     to the National Guard Youth Challenge Program. Additionally, 
     the provision would phase in over three years an increase in 
     the matching funds ratio to increase the amount of federal 
     funds that may be provided to a State program.
       The House bill contained no similar provision. The House 
     recedes with an amendment that would redesignate the National 
     Guard Challenge Program as the National Guard Youth Challenge 
     Program.
       The conferees were disappointed that the Secretary of 
     Defense, in the report required by section 587 of the 
     National Defense Authorization Act for Fiscal Year 2004 
     (Public Law 108-136), did not provide alternatives to the 
     current matching funds structure for the National Guard Youth 
     Challenge Program. The conferees believe that such 
     alternatives would provide greater flexibility in the 
     management of the program to better respond to temporary 
     fiscal conditions.
       The conferees direct the Comptroller General to conduct a 
     study of the National Guard Youth Challenge program to 
     determine the effects of current fiscal constraints at the 
     State level on the operation of individual programs. The 
     study should assess the Department of Defense's oversight of 
     the program, the efforts of both the Department and the 
     States to secure alternative and supplemental funding support 
     for the programs, and the impact of changes to the existing 
     60-40 DOD-to-State matching funds ratio.
     Reports on certain milestones relating to Department of 
         Defense transformation (sec. 595)
       The House bill contained a provision (sec. 597) that would 
     require the Secretary of Defense to submit reports to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives on implementation of transformational 
     milestones identified by the Department of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment to remove the 
     requirement for a feasibility study on a civilian skill 
     corps.
       The conferees expect that a study on the feasibility of a 
     civilian skill corps will be conducted under authority 
     provided elsewhere in this Act concerning accession of 
     persons with specialized skills.
       With respect to military-to-civilian conversions in Navy 
     medical and dental fields that are proposed for fiscal year 
     2005, the conferees are concerned that the specialties 
     targeted for conversion are those most needed by military 
     families, including pediatrics, family practice, and 
     pharmacy. The conferees urge not only the Secretary of the 
     Navy but also the secretaries of the other military 
     departments to ensure that plans for military-to-civilian 
     conversions do not adversely affect the quality and access of 
     military health care required by military families. The 
     conferees direct the Secretary of Defense to provide a report 
     to the Committees on Armed Services of the Senate and the 
     House of Representatives not later than 90 days following 
     enactment of this Act that describes the plans of each 
     military department for military-to-civilian conversions of 
     medical and dental personnel in fiscal year 2006.
     Report on issues relating to removal of remains of persons 
         interred in United States military cemeteries overseas 
         (sec. 596)
       The House bill contained a provision (sec. 599) that would 
     authorize the Secretary of Defense, upon application of a 
     qualifying survivor, to authorize disinterment and removal of 
     the remains of military personnel interred in overseas 
     military cemeteries.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of the Army, in consultation with the American 
     Battle Monuments Commission (ABMC), to examine the history of 
     the overseas cemeteries and the processes used to ensure that 
     the initial disposition decision was carried out, together 
     with a review and explanation of the existing policy and 
     procedures regarding requests for disinterment and any 
     exceptions that have been made. Additionally, the examination 
     should include an analysis of potential reasons for 
     justifying disinterment or remains from overseas cemeteries 
     and the potential impact on the operation of U.S. overseas 
     military cemeteries of permitting disinterment of remains 
     from those cemeteries. Not later than September 30, 2005, the 
     Secretary would be required to submit a report to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives on the results of the examination, a 
     description of the changes to policy that would be necessary 
     to support a system for requesting and authorizing 
     disinterment of remains, and the recommendations of the 
     Secretary and the ABMC with respect to changes in policy and 
     procedures with respect to such disinterments.
       The conferees believe that a comprehensive examination and 
     report on the history of the overseas military cemeteries and 
     the reasons for the policy prohibiting disinterments is 
     needed. Survivors of military veterans buried in the overseas 
     military cemeteries must be assisted in every way possible in 
     understanding the history of the overseas cemeteries and the 
     reasons justifying the policy barring disinterments. The 
     conferees express no opinion about this policy, however, to 
     the extent that exceptions to the policy have been made or 
     may be deemed warranted by the Secretary and the ABMC, 
     survivors should have a clear understanding through the 
     report that would be required by this provision of what 
     burden of proof must be satisfied.
     Comptroller General reports on closure of Department of 
         Defense Dependent Elementary and Secondary Schools and 
         commissary stores (sec. 597)
       The Senate amendment contained a provision (sec. 2845) that 
     would require the Comptroller General of the United States to 
     submit a report to the appropriate committees of Congress 
     which includes an assessment of the policy and criteria 
     utilized by the Department of Defense regarding the closure 
     of schools and commissary stores, including whether or not 
     such policy and criteria are consistent with policies and 
     procedures on the preservation of the quality of life of 
     members of the Armed Forces.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Comptroller General report on transition assistance programs 
         for members separating from the Armed Forces (sec. 598)
       The Senate amendment contained a provision (sec. 1029A) 
     that would require the Comptroller General to carry out a 
     study of the programs of the Department of Defense and other 
     departments and agencies of the

[[Page H9540]]

     Federal Government, including the Department of Veterans 
     Affairs, under which transition assistance is provided to 
     personnel who are separating from active-duty service in the 
     Armed Forces. The report would include an analysis of the 
     extent to which transition assistance programs authorized 
     under sections 1142 and 1144 of title 10, United States Code, 
     are adequate to meet the needs of the Reserve components, as 
     well as recommendations by the Comptroller General to improve 
     the content and uniformity of pre-separation counseling. The 
     provision would also include an analysis of pre- and post-
     deployment health screening, and programs that are in place 
     to identify and treat post-traumatic stress disorder and 
     related health conditions.
       The House bill contained no similar provision.
       The House recedes with an amendment to clarify that the 
     Comptroller General report will include an assessment of the 
     quality and thoroughness of information being provided during 
     the pre-separation briefings conducted by the Department of 
     Veterans Affairs.
     Study on coordination of job training standards with 
         certification standards for military occupational 
         specialties (sec. 599)
       The Senate amendment contained a provision (sec. 1029B) 
     that would require the Secretary of Defense and the Secretary 
     of Labor to jointly carry out a study on ways to coordinate 
     the standards applied by the Armed Forces for the training 
     and certification of members of the Armed Forces in military 
     occupational specialties with the standards that are applied 
     to corresponding civilian occupations by governmental and 
     private sector certification agencies.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                   Legislative Provisions Not Adopted

     Length of service for service chiefs
       The House bill contained a provision (sec. 501) that would 
     authorize the President to extend the term of service of an 
     officer serving as the Chief of Staff of the Army, the Chief 
     of Naval Operations, the Commandant of the Marine Corps, or 
     the Chief of Staff of the Air Force for a period of up to two 
     years beyond the initial four-year appointment.
       The Senate amendment contained no similar provision.
       The House recedes.
     Modification of conditions of eligibility for waiver of joint 
         duty credit requirement for promotion to general or flag 
         officer
       The Senate amendment contained a provision (sec. 501) that 
     would allow waivers of certain tour length requirements in 
     cases in which an officer's proposed selection for promotion 
     is based primarily upon a career field specialty, vice 
     scientific and technical qualification, for which joint 
     requirements do not exist. The provision would also eliminate 
     the requirement that an officer serve in a joint duty 
     assignment at least 180 days prior to the convening of a 
     selection board for that officer to qualify for promotion to 
     the rank of brigadier general or rear admiral (lower half).
       The House bill had no similar provision regarding waivers 
     of tour length requirements but a provision (sec. 532) that 
     also repealed the requirement for 180 days service in a joint 
     duty assignment before an officer may be considered for 
     promotion to flag or general officer rank.
       The Senate recedes.
     Management of joint specialty officers
       The Senate amendment contained a provision (sec. 502) that 
     would provide that officers shall be designated as joint 
     specialty officers upon successfully completing, in any 
     sequence, a program accredited by the Chairman of the Joint 
     Chiefs of Staff that is offered by a joint professional 
     military education institution and a full tour of duty in 
     a joint duty assignment, or after completing two full 
     tours of duty in joint duty assignments. This provision 
     would also specify that general and flag officer positions 
     identified as joint duty assignments must be filled by 
     officers with joint specialty unless the Secretary of 
     Defense determines that the assignment of officers without 
     the joint specialty is necessary and waives the 
     requirement.
       The House bill contained no similar provision.
       The Senate recedes.
     Increase in age limit for deferral of mandatory retirement 
         for up to 10 senior general and flag officers
       The House bill contained a provision (sec. 503) that would 
     increase from 64 to 66 the mandatory retirement age for 
     senior general and flag officers whom the President had 
     previously retained on active duty beyond the statutory 
     limits on either time-in-grade or age.
       The Senate amendment contained no similar provision.
       The House recedes.
     Increased flexibility for voluntary retirement for military 
         officers
       The House bill contained a provision (sec. 504) that would 
     require officers serving in grades above colonel or captain 
     in the Navy to serve a minimum of one year time-in-grade 
     before being allowed to retire in that grade. Additionally, 
     the provision would modify existing law to give the authority 
     to the secretary of the military department concerned to 
     approve retirement of officers in grades above major general 
     or rear admiral in the Navy with the concurrence of the 
     Secretary of Defense.
       The Senate amendment contained no similar provision.
       The House recedes.
     Length of joint duty assignments
       The Senate amendment contained a provision (sec. 504) that 
     would prescribe certain conditions under which officers would 
     qualify to receive full credit for joint duty. The provision 
     would also allow the Secretary of Defense to waive the 
     applicability of section 664 of title 10, United States Code, 
     if the Secretary determines that it is in the national 
     security interests of the United States to do so.
       The House bill contained no similar provision.
       The Senate recedes.
     Repeal of requirement that no more than 50 percent of active 
         duty general and flag officers be in grades above 
         brigadier general and rear admiral (lower half)
       The House bill contained a provision (sec. 505) that would 
     repeal the limitation in section 525 of title 10, United 
     States Code, that no more than 50 percent of general and flag 
     officers in a military service on active duty can be in 
     grades above brigadier general and rear admiral (lower half).
       The Senate amendment contained no similar provision.
       The House recedes.
     Revision to terms for assistants to the Chairman of the Joint 
         Chiefs of Staff for National Guard and Reserve matters
       The House bill contained a provision (sec. 506) that would 
     authorize the assistants to the Chairman of the Joint Chiefs 
     of Staff for National Guard and Reserve matters to serve an 
     initial term of four years.
       The Senate amendment contained no similar provision.
       The House recedes.
     Repeal of distribution requirements for Naval Reserve flag 
         officers
       The House bill contained a provision (sec. 510) that would 
     amend section 12004(c) of title 10, United States Code, and 
     repeal the existing distribution of flag officer billets for 
     staff corps officers in the U.S. Naval Reserve.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that the allocations for flag officer 
     billets in section 12004(c) apply to the Medical Corps, Nurse 
     Corps, Dental Corps, Judge Advocate General's Corps, Civil 
     Engineer Corps, Supply Corps, Chaplain Corps, and Medical 
     Service Corps of the U.S. Naval Reserve. At a time when the 
     Naval Reserve is engaged in an ongoing zero-based review of 
     Reserve component force structure and development of 
     initiatives to improve the integration of the Active and 
     Reserve components of the Navy, the conferees question the 
     Department of Defense's position that flag officer 
     allocations for these vital Naval Reserve staff corps 
     communities should be totally eliminated in order to 
     establish additional line and restricted line Naval Reserve 
     flag officer billets. The conferees expect the Navy to 
     provide the Committees on Armed Services of the Senate and 
     the House of Representatives with additional information 
     justifying modifications to existing allocations in section 
     12004(c) based on the results of its zero-based review.
     Authority for Reserve officers to qualify as joint specialty 
         officers
       The House bill contained a provision (sec. 534) that would 
     authorize the Secretary of Defense to award the joint 
     specialty officer designation to Reserve officers who have 
     met the prescribed requirements for such designation.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees strongly support the inclusion of Reserve 
     officers in the Department of Defense planning and policies 
     regarding designation, career development, and management of 
     officers skilled in joint matters. The conferees anticipate 
     that the report on the applicability of the term ``joint 
     specialty officer'' to qualified reservists, required by the 
     Senate report accompanying S. 2400 (S. Rept. 108-260), will 
     be useful in identifying legislative and regulatory changes 
     needed to accomplish this goal. Additionally, the conferees 
     expect the strategic plan linking joint officer development 
     to overall missions and goals of the Department to fully 
     address Reserve officer matters.
     Ribbons to recognize completion of joint professional 
         military education
       The House bill contained a provision (sec. 542) that would 
     authorize the Secretary of Defense to award a military 
     decoration to persons who have successfully completed joint 
     professional military education phase I and to subsequently 
     award a device to affix to the ribbon when a person has 
     successfully completed joint professional military education 
     phase II.
       The Senate amendment contained no similar provision.
       The House recedes.
     Increase in number of private-sector civilians who may be 
         enrolled for instruction at National Defense University
       The House bill contained a provision (sec. 543) that would 
     increase the maximum number of eligible private-sector 
     employees who may receive instruction at the National Defense 
     University from 10 to 20.

[[Page H9541]]

       The Senate amendment contained no similar provision.
       The House recedes.
     Requirement for completion of phase I joint professional 
         military education before promotion to colonel or Navy 
         captain
       The House bill contained a provision (sec. 544) that, with 
     certain exceptions, would require that after September 30, 
     2007 officers on the active-duty list must complete joint 
     professional military education phase I or phase II before 
     being appointed to the grade of colonel or captain in the 
     Navy.
       The Senate amendment contained no similar provision.
       The House recedes.
     Reduced blood alcohol content limit for offense of drunken 
         operation of a vehicle, aircraft, or vessel
       The Senate amendment contained a provision (sec. 551) that 
     would amend Article 111 of the Uniform Code of Military 
     Justice (10 U.S.C. 911) to lower the permissible blood 
     alcohol concentration for the offense of drunken operation of 
     a vehicle, aircraft, or vessel from the lesser of 0.10 grams 
     or the limit prescribed in the State in which the offense 
     occurred to the lesser of 0.08 grams or the limit prescribed 
     in the State in which the offense occurred.
       The House bill contained no similar provision.
       The Senate recedes.
     Prayer at military service academy activities
       The House bill contained a provision (sec. 556) that would 
     authorize the superintendent of a service academy to 
     establish a policy with respect to the offering of a 
     voluntary, nondenominational prayer at an authorized activity 
     of the academy.
       The Senate amendment contained no similar provision.
       The House recedes.
     Establishment of college financial assistance program for 
         District of Columbia National Guard
       The House bill contained a provision (sec. 560B) that would 
     authorize the Department of Defense to provide financial 
     assistance for college expenses, not to exceed $2,500 for any 
     academic year, to eligible members of the National Guard of 
     the District of Columbia.
       The Senate amendment contained no similar provision.
       The House recedes.
       Separate military campaign medals to recognize service in 
     Operation Enduring Freedom and service in Operation Iraqi 
     Freedom
       The House bill contained a provision (sec. 561) that would 
     require the President to establish separate campaign medals 
     to recognize the service of members during Operation Enduring 
     Freedom and Operation Iraqi Freedom.
       The Senate amendment contained a similar provision (sec. 
     542).
       This provision is not included in the conference report 
     because it is unnecessary. On May 28, 2004, H.R. 3104, an Act 
     to provide for the establishment of separate campaign medals 
     to be awarded to members of the uniformed services who 
     participate in Operation Enduring Freedom and Operation Iraqi 
     Freedom, was enacted as Public Law 108-234.
     Redesignation of inactive-duty training to encompass 
         operational and other duties performed by Reserves while 
         in inactive duty status
       The Senate amendment contained a provision (sec. 561) that 
     would redesignate the duty status applicable to members of 
     the Reserve components of the Armed Forces known as 
     ``inactive duty training'' as ``inactive duty.''
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees acknowledge that the intent of the Department 
     of Defense in requesting this statutory change is to more 
     accurately reflect the current mission, capabilities, and 
     actual utilization of the modern Reserve component. The 
     conferees are concerned, however, that the full implications 
     of this extensive change on the requirement for training and 
     the priority to be given to training are not sufficiently 
     defined or understood. The conferees urge the Department to 
     demonstrate in its Reserve continuum of service and 
     corresponding proposals for legislative change, its 
     commitment to preserving periods of training in order to 
     maintain readiness and core capabilities.
     Eligibility of all uniformed services personnel for National 
         Defense Service Medal
       The House bill contained a provision (sec. 562) that would 
     require the President to authorize the award of the National 
     Defense Service Medal to members of the uniformed services.
       The Senate amendment contained no similar provision.
       The House recedes.
     Repeal of unnecessary duty status distinction for funeral 
         honors duty
       The Senate amendment contained a provision (sec. 562) that 
     would repeal section 12503 of title 10, United States Code, 
     relating to funeral honors duty. Section 12503, which 
     authorizes treatment of funeral honors duty as inactive duty 
     training, would have been unnecessary in conjunction with 
     renaming of ``inactive duty training'' as ``inactive duty.''
       The House bill contained no similar provision.
       The Senate recedes.
     Conforming amendments to other laws referring to inactive-
         duty training
       The Senate amendment contained a provision (sec. 563) that 
     would conform certain provision in titles 5 and 38, United 
     States Code, with the proposed change of the term ``inactive 
     duty training'' to ``inactive duty.''
       The House bill contained no similar provision.
       The Senate recedes.
     Conforming amendments to other laws referring to funeral 
         honors duty
       The Senate amendment contained a provision (sec. 564) that 
     would conform certain provisions in titles 5 and 38, United 
     States Code, with the proposed change of the term ``inactive 
     duty training'' to ``inactive duty'' as it would apply to 
     funeral honors duty.
       The House bill contained no similar provision.
       The Senate recedes.
     Army combat recognition ribbon
       The House bill contained a provision (sec. 566) that would 
     require the Secretary of the Army to establish a combat 
     recognition ribbon to recognize participation by members of 
     the Army in combat.
       The Senate amendment contained no similar provision.
       The House recedes.
     Clarification of authority of military legal assistance 
         counsel to provide military legal assistance without 
         regard to licensing requirements
       The House bill contained a provision (sec. 573) that would 
     amend section 1044 of title 10, United States Code, to 
     provide that a judge advocate or a civilian attorney 
     authorized to provide military legal assistance may provide 
     such assistance in any jurisdiction, notwithstanding any law 
     regarding the licensing of attorneys and subject to 
     regulations to be prescribed by the Secretary concerned.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that differing responses were received 
     from the Department of Defense and the services as to the 
     need for and advisability of such a change in law. Concerns 
     were expressed as to the possible effect on judge advocates 
     and federal civilian attorneys practicing outside the legal 
     assistance area, if such a proposal is adopted. The conferees 
     urge the Department to develop a unified position with regard 
     to the need for such a statutory change, and to submit a 
     legislative proposal, if necessary.
     Appearance of veterans service organizations at pre-
         separation counseling provided by the Department of 
         Defense
       The Senate amendment contained a provision (sec. 574) that 
     would authorize the service secretaries to permit a 
     representative from a veterans service organization to appear 
     at and participate in pre-separation counseling for military 
     members, authorized in section 1142 of title 10, United 
     States Code. The provision would also authorize Reserve 
     component units to meet with a veterans service organization 
     upon release from active duty for the purpose of obtaining 
     information and assistance.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees expect that the matter of participation by 
     representatives from veterans service organizations in pre-
     separation counseling for members in both Active and Reserve 
     components will be addressed in the Comptroller General's 
     report on transition assistance programs for members 
     separating from the Armed Forces required elsewhere in this 
     Act.
     Limitation on amendment or cancellation of Department of 
         Defense directive relating to reasonable access to 
         military installations for certain personal commercial 
         solicitation
       The House bill contained a provision (sec. 586) that would 
     prohibit the Secretary of Defense from cancelling or amending 
     Department of Defense (DOD) Directive 1344.7, ``Personal 
     Commercial Solicitation on DOD Installations,'' for a period 
     of one year after the Government Accountability Office (GAO) 
     reports to Congress on the findings of an ongoing review of 
     the financial allotment system and the treatment of insurance 
     agents by military finance offices and local managers and 
     commanders at Department of Defense installations.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that the Statement of Managers 
     accompanying the Department of Defense Appropriations Act for 
     Fiscal Year 2005 (Public Law 108-287) prohibits the use of 
     appropriated funds to amend or cancel DOD Directive 1344.7 
     until 90 days after the report of the results of the 
     investigation regarding insurance premiums allotment 
     processing is submitted.
       In the statement of managers accompanying the National 
     Defense Authorization Act for Fiscal Year 2004 (Public Law 
     108-136), the conferees stated that the Department has taken 
     appropriate steps to thoroughly consider and evaluate 
     potential changes to personal commercial solicitation 
     policies. The conferees believe sufficient time has elapsed 
     for the Department to complete its evaluation. The Secretary 
     is directed to submit a report on the status of its plans to 
     effect changes to personal commercial solicitation policies, 
     including any recommended changes or revisions to DOD 
     Directive 1344.7, to the Committees on Armed Services of the 
     Senate and the House of Representatives by May 1, 2005.

[[Page H9542]]

     Employment preferences for spouses of certain Department of 
         Defense civilian employees subject to relocation 
         agreements
       The House bill contained a provision (sec. 591) that would 
     expand the employment preference for spouses of Department of 
     Defense civilian employees who have been assigned under a 
     mandatory mobility agreement or similar mandatory mobility 
     program. The authority would place spouses of civilian 
     employees in an equivalent position to spouses of military 
     members who already receive employment preferences.
       The Senate amendment contained no similar provision.
       The House recedes.
     Demonstration program on expanded use of Reserves to perform 
         developmental testing, new equipment training, and 
         related activities
       The Senate amendment contained a provision (sec. 862) that 
     would authorize the Secretary of the Army to carry out a 
     demonstration program through September 2009 on the 
     assignment of members of Reserve components to perform test, 
     evaluation, and related activities for acquisition programs.
       The House bill contained no similar provision.
       The Senate recedes.
     Content of pre-separation counseling for personnel separating 
         from active-duty service
       The Senate amendment contained a provision (sec. 1029C) 
     that would require that information on participation in 
     Federal Government procurement opportunities be included in 
     pre-separation counseling authorized by section 1142 of title 
     10, United States Code. The provision would also authorize 
     the secretary concerned to provide pre-separation counseling 
     at medical centers of the Department of Veterans Affairs and 
     the Department of Defense with the consent of the member.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees expect that this requirement will be included 
     in the Comptroller General report on transition assistance 
     programs for members separating from the Armed Forces 
     required elsewhere in this Act.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Legislative Provisions Adopted

                     Subtitle A--Pay and Allowances

     Increase in basic pay for fiscal year 2005 (sec. 601)
       The House bill contained a provision (sec. 601) that would 
     specify the requirement for increased pay for members of the 
     Armed Forces by 3.5 percent effective January 1, 2005, and 
     waiver of the adjustment required by section 1009 of title 
     37, United States Code.
       The Senate amendment contained no similar provision in view 
     of the requirement regarding annual pay adjustment under 
     section 1009(c)(2) of title 37, United States Code.
       The Senate recedes.
     Relationship between eligibility to receive supplemental 
         subsistence allowance and eligibility to receive imminent 
         danger pay, family separation allowance, and certain 
         federal assistance (sec. 602)
       The Senate amendment contained a provision (sec. 621) that 
     would exclude the family separation allowance and special pay 
     relating to duty subject to hostile fire or imminent danger 
     from the calculation of household income for eligibility to 
     receive the family supplemental subsistence allowance (FSSA). 
     The provision would also exclude the amount of FSSA received 
     by service members in determining the eligibility of their 
     spouses and children for certain low income assistance 
     programs, and require a report on the accessibility by 
     members of the Armed Forces and their families to social 
     services.
       The House bill contained no similar provision.
       The House recedes with a technical amendment that would 
     eliminate the reporting requirement.
     Authority to provide family separation basic allowance for 
         housing (sec. 603)
       The House bill contained a provision (sec. 602) that would 
     extend permissive authority to service secretaries to decline 
     to pay family separation housing allowances when, in the 
     secretaries' discretion, members' circumstances do not 
     justify such payments.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees caution that it is not their intent that the 
     service secretaries use the discretion provided in this 
     provision to deny appropriate housing allowances to deserving 
     service members and their families. The conferees intend that 
     service members stationed worldwide should receive a family 
     separation housing allowance in all cases when their families 
     are prohibited from joining them at their current duty 
     station and government-provided quarters are unavailable to 
     the service members at their duty locations.
     Geographic basis for housing allowance during short-
         assignment permanent changes of station for education or 
         training (sec. 604)
       The House bill contained a provision (sec. 603) that would 
     authorize service members who attend professional military 
     education or training lasting 12 months or less to elect to 
     leave their families at their previous duty station and 
     receive basic allowance for housing based on the area where 
     their dependents reside.
       The Senate amendment contained a similar provision (sec. 
     601).
       The House recedes with a technical amendment.
     Immediate lump-sum reimbursement for unusual nonrecurring 
         expenses incurred for duty outside the continental United 
         States (sec. 605)
       The House bill contained a provision (sec. 604) that would 
     authorize the service secretary concerned to pay service 
     members serving outside the continental United States for 
     certain unusual nonrecurring expenses.
       The Senate amendment contained a similar provision (sec. 
     602).
       The House recedes with a technical amendment.
     Authority for certain members deployed in combat zones to 
         receive limited advances on future basic pay (sec. 606)
       The House bill contained a provision (sec. 606) that would 
     authorize the secretary concerned to pay advances on future 
     basic pay for service members assigned to locations where 
     they would receive imminent danger pay and their assignment 
     is pursuant to orders specifying an assignment of one year or 
     more or the assignment is extended beyond one year.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment that would 
     require the service member to repay the advance in equal 
     monthly installments over a one-year period beginning the 
     month after the advance is received.
     Repeal of requirement that members entitled to basic 
         allowance for subsistence pay subsistence charges while 
         hospitalized (sec. 607)
       The House bill contained a provision (sec. 661) that would 
     repeal the requirement for officers and certain enlisted 
     members to pay subsistence charges when they are 
     hospitalized.
       The Senate amendment contained a similar provision (sec. 
     711).
       The Senate recedes with a technical amendment.

           Subtitle B--Bonuses and Special and Incentive Pays

     One-year extension of certain bonus and special pay 
         authorities for Reserve forces (sec. 611)
       The House bill contained a provision (sec. 611) that would 
     extend the authority for various bonuses and special pays for 
     Active and Reserve members.
       The Senate amendment contained a provision (sec. 611) that 
     would extend for one year the authority to pay the Selected 
     Reserve reenlistment bonus, the Selected Reserve enlistment 
     bonus, the special pay for enlisted members assigned to 
     certain high priority units in the Selected Reserve, the 
     Selected Reserve affiliation bonus, the Ready Reserve 
     enlistment and reenlistment bonus, and the prior service 
     enlistment bonus.
       The House recedes.
     One-year extension of certain bonus and special pay 
         authorities for certain health care professionals (sec. 
         612)
       The House bill contained a provision (sec. 611) that would 
     extend the authority for various bonuses and special pays for 
     Active and Reserve members, including certain health care 
     professionals.
       The Senate amendment contained a provision (sec. 612) that 
     would extend for one year the authority to pay the nurse 
     officer candidate accession bonus, the accession bonus for 
     registered nurses, incentive special pay for nurse 
     anesthetists, special pay for Selected Reserve health 
     professionals in critically short wartime specialties, the 
     accession bonus for dental officers, and to repay education 
     loans for certain Selected Reserve health professionals.
       The House recedes with an amendment that would also extend 
     the authority to pay the accession bonus for pharmacy 
     officers until December 31, 2005.
     One-year extension of special pay and bonus authorities for 
         nuclear officers (sec. 613)
       The House bill contained a provision (sec. 611) that would 
     extend the authority for various bonuses and special pays for 
     Active and Reserve members, including nuclear officers.
       The Senate amendment contained a provision (sec. 613) that 
     would extend for one year the authority to pay the special 
     pay for nuclear-qualified officers extending their period of 
     active service, the nuclear career accession bonus, and the 
     nuclear career annual incentive bonus.
       The House recedes.
     One-year extension of other bonus and special pay authorities 
         (sec. 614)
       The House bill contained a provision (sec. 611) that would 
     extend the authority for various bonuses and special pays for 
     Active and Reserve members.
       The Senate amendment contained a provision (sec. 614) that 
     would extend for one year the authority to pay the aviation 
     officer retention bonus, assignment incentive pay, the 
     reenlistment bonus for Active members, the enlistment bonus 
     for Active members, the retention bonus for members with 
     critical military skills, and the accession bonus for new 
     officers in critical military skills.
       The House recedes.
     Authority to provide hazardous duty incentive pay to military 
         firefighters (sec. 615)
       The House bill contained a provision (sec. 620) that would 
     authorize a new hazardous duty incentive pay of $150 per 
     month for members of the uniformed services who regularly 
     perform duty as a member of a firefighting crew.

[[Page H9543]]

       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would modify 
     section 301 of title 37, United States Code, to authorize 
     incentive pay at a monthly rate not to exceed $150 per month 
     for any month during which a member performs duty involving 
     regular participation as a firefighting crew member, as 
     determined by the secretary concerned.
     Reduced service obligation for nurses receiving nurse 
         accession bonus (sec. 616)
       The House bill contained a provision (sec. 612) that would 
     reduce the service commitment required for the nurse 
     accession bonus from four to three years of service.
       The Senate amendment contained a similar amendment (sec. 
     615).
       The House recedes with an amendment that the authority 
     shall apply on or after the date of enactment of this Act.
     Assignment incentive pay (sec. 617)
       The House bill contained a provision (sec. 614) that would 
     require termination of assignment incentive pay when the 
     member is placed on terminal leave and will not be returning 
     to the assignment location.
       The Senate amendment contained a similar provision (sec. 
     616) that would also delete the requirement for a written 
     agreement between the secretary concerned and the member.
       The House recedes with a technical amendment.
       The conferees believe that assignment incentive pay should 
     be a highly flexible means of providing an incentive to 
     members to volunteer for challenging assignments. In this 
     regard, the conferees approve of the actions of the 
     Department of Defense and the Department of the Army in 
     supporting the Commander, U.S. Forces Korea, in aggressively 
     using assignment incentive pay to provide stability and 
     enhanced readiness for soldiers and units in the Republic of 
     Korea.
       The conferees also view assignment incentive pay as a 
     responsive means for service secretaries, on a discretionary 
     basis when mission accomplishment so requires, to 
     appropriately compensate members who are called on to extend 
     their service or tours of duty or otherwise serve in 
     demanding assignments. The requirement for a written 
     agreement under these circumstances is not required and 
     should not be mandatory in all cases.
     Modification of active and Reserve component reenlistment and 
         enlistment bonus authorities (sec. 618)
       The House bill contained a provision (sec. 615) that would 
     consolidate Active and Reserve Component reenlistment and 
     enlistment bonus authorities. The provision would repeal 
     certain special pay provisions and also extend eligibility 
     for the reenlistment bonus through 17 years of service and 
     authorize the use of the reenlistment bonus during war and 
     national emergency to address unit specific retention 
     problems without regard to critical skill eligibility 
     requirements.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     payment of an active-duty or Selected Reserve reenlistment 
     bonus up to 16, vice 14, years of service and increase the 
     maximum amount of the Selected Reserve reenlistment bonus 
     from $5,000 to $15,000 for a reenlistment or extension of six 
     years, from $2500 to $7,500 for a reenlistment or extension 
     of three years, and from $2,000 to $6,000 for a reenlistment 
     or extension of three years when the member has received a 
     bonus for a previous three year enlistment. The amendment 
     would also authorize lump sum payments of the foregoing 
     bonuses.
       The amendment would increase the maximum amount of the 
     Selected Reserve enlistment bonus from $8,000 to $10,000; 
     increase the Ready Reserve enlistment bonus for persons 
     without prior service from $1,000 to $3,000; and increase the 
     maximum amount of the prior service Ready Reserve bonus from 
     $15,00 to $3,000 for a six year enlistment and from $750 to 
     $1,500 for a three year enlistment. The amendment would 
     authorize payment of the prior service enlistment bonus for 
     the Selected Reserve for members who have not more than 16 
     years of total service. It would increase the maximum amount 
     of the bonus from $8,000 to $15,000 for a six year 
     enlistment, from $4,000 to $7,500 for a three year 
     enlistment, and from $3,500 to $6,000 for a three year 
     reenlistment or extension when the member has received a 
     bonus for a previous three year enlistment.
     Bonus for certain initial service of officers in the Selected 
         Reserve (sec. 619)
       The House bill contained a provision (sec. 618) that would 
     modify section 324 of title 37, United States Code, to 
     authorize Reserve component officers to be paid an accession 
     of affiliation bonus using the same authority used to pay 
     active-duty officers.
       The Senate amendment contained a provision (sec. 620) that 
     would authorize an affiliation or accession bonus of up to 
     $6,000 for certain commissioned officers in the Selected 
     Reserve. The provision would help to access and affiliate 
     officers in the Selected Reserve who possess or would train 
     to acquire designated critical skills.
       The House recedes with an amendment that would specify that 
     a member entitled to a bonus under this provision who is 
     called or ordered to active duty shall be paid, during that 
     period of active duty, any amount of the bonus that becomes 
     payable to the member during that period of active duty.
     Revision of authority to provide foreign language proficiency 
         pay (sec. 620)
       The House bill contained a provision (sec. 616) that would 
     authorize the service secretary concerned to pay an annual 
     bonus of up to $12,000 to members of the uniformed services 
     who maintain proficiency in a foreign language.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the monthly rate for foreign language proficiency pay under 
     section 316 of title 37, United States Code, to be determined 
     by the secretary concerned but not to exceed $1,000. 
     Additionally, the amendment would authorize payment of a 
     bonus of up to $6,000 payable in a lump sum or installments 
     for members of the Reserve component. The amendment would 
     require that if a member of a Reserve component serving on 
     active duty receives foreign language monthly special pay 
     during any month for which the member receives a lump sum 
     payment, the amount of the special pay paid to the member for 
     the month shall be reduced by an amount equal to one-twelfth 
     of the bonus amount.
     Eligibility of enlisted members to qualify for critical 
         skills retention bonus while serving on indefinite 
         reenlistment (sec. 621)
       The House bill contained a provision (sec. 617) that would 
     allow Reserve component members to be paid the critical 
     skills retention bonus under the authority of section 323 of 
     title 37, United States Code. The provision would also extend 
     eligibility for the bonus through 17 years of service and, 
     clarify that enlisted members serving pursuant to an 
     indefinite enlistment would be eligible under certain 
     conditions for receipt of the bonus.
       The Senate amendment contained a provision (sec. 618) that 
     would authorize enlisted personnel serving on indefinite 
     reenlistments in designated critical military skills to 
     receive a critical skills retention bonus on the condition 
     that they enter into a written agreement to remain on active 
     duty for at least one year under such enlistments.
       The House recedes with a technical amendment.
       The conferees believe that initiatives to consolidate or 
     extend bonus authorities in the absence of Department of 
     Defense legislative proposals are premature. The Department 
     has indicated that a Defense Advisory Committee on Military 
     Compensation will be appointed by the Secretary of Defense to 
     conduct a comprehensive review of military compensation from 
     the perspective of both the Active and Reserve forces. This 
     Advisory Committee on Military Compensation will perform a 
     comprehensive review and strategic assessment of military pay 
     and benefits with a view towards simplifying and balancing 
     pays to maintain a competitive edge in recruiting and 
     retention. Upon completion of its work, which is anticipated 
     in the late summer of 2005, the advisory committee will 
     publish its conclusions and recommendations and transmit 
     those to the Secretary of Defense. The conferees also expect 
     that the Commission on National Guard and Reserves will 
     contribute to a better informed resolution of questions about 
     potential reform to title 37, United States Code.
     Eligibility of Reserve component members for incentive bonus 
         for conversion to military occupational specialty to ease 
         personnel shortage (sec. 622)
       The House bill contained a provision (sec. 619) that would 
     allow Reserve component members to be paid bonuses for 
     converting to, and serving for a period of not less than 
     three years, in military occupational specialties for which 
     there is a shortage of trained and qualified personnel.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would provide 
     that a bonus under this provision may not exceed $2,000.
     Permanent increase in authorized amounts for imminent danger 
         special pay and family separation allowance (sec. 623)
       The House bill contained a provision (sec. 1533) that would 
     make permanent the increase in the rate of imminent danger 
     pay from $150 per month to $225 per month and the increase in 
     the rate of family separation allowance from $100 per month 
     to $250 per month.
       The Senate amendment contained similar provisions (sec. 603 
     and 617).
       The Senate recedes with a technical amendment.

            Subtitle C--Travel and Transportation Allowances

     Travel and transportation allowances for family members to 
         attend burial ceremony or memorial service of member who 
         dies on duty (sec. 631)
       The House bill contained a provision (sec. 631) that would 
     clarify that family members are authorized to travel at 
     government expense to the burial site of a member who dies 
     while on duty, and that the member's parents are always 
     eligible to travel at government expense to attend the burial 
     ceremony. The House bill included a $2.0 million ceiling on 
     expenditures in fiscal year 2005 for this purpose.
       The Senate amendment included a similar provision (sec. 
     631), but did not include a ceiling on expenditures in fiscal 
     year 2005.
       The House recedes with a clarifying amendment.

[[Page H9544]]

     Transportation of family members incident to serious illness 
         or injury of members of the uniformed services (sec. 632)
       The House bill contained a provision (sec. 632) that would 
     expand the number and categories of family members and other 
     people that would be entitled to transportation at government 
     expense, and would authorize such persons to receive a per 
     diem or be reimbursed for travel expenses.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit the 
     number of family members authorized transportation and travel 
     expenses to three, and would provide authority for the 
     Secretary concerned to waive the limitation on the number of 
     family members in circumstances determined to be appropriate.
     Reimbursement for certain lodging costs incurred in 
         connection with dependent student travel (sec. 633)
       The House bill contained a provision (sec. 633) that would 
     authorize the secretary concerned to reimburse a service 
     member for lodging costs incurred by a dependent child 
     traveling between the child's school and the member's 
     overseas duty station when the lodging expenses are incurred 
     for reasons beyond the control of the dependent child.
       The Senate amendment contained a similar provision (sec. 
     632).
       The House recedes with a technical amendment.

             Subtitle D--Retired Pay and Survivor Benefits

     Computation of high-36 month average for Reserve component 
         members retired for disability while on active duty or 
         dying while on active duty (sec. 641)
       The Senate amendment contained a provision (sec. 641) that 
     would modify the rules controlling the computation of 
     retirement pay and survivor annuities for Reserve component 
     members who are entitled to retired pay for physical 
     disability under sections 1201 and 1202 of title 10, United 
     States Code. The provision would permit more equitable 
     treatment of these Reserve component members by calculating 
     the average of monthly basic pay for purposes of pay and 
     annuity payments as if they had been entitled to basic pay 
     for the 36 months preceding their retirement, regardless of 
     whether the member served the entire period on active duty.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Repeal of phase-in of concurrent receipt of retired pay and 
         veterans' disability compensation for military retirees 
         with service-connected disabilities rated as 100 percent 
         (sec. 642)
       The Senate amendment contained a provision (sec. 643) that 
     would modify section 1414 of title 10, United States Code, to 
     repeal the requirement for phase-in of concurrent receipt of 
     retired pay and veterans' disability compensation for 
     military retirees with service-connected disabilities rated 
     as 100 percent.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Death benefits enhancement (sec. 643)
       The Senate amendment contained a provision (sec. 642) that 
     would index the amount of the death gratuity payable under 
     section 1478 of title 10, United States Code, to the average 
     percentage of the increase in rates of basic pay taking 
     effect each year. Additionally, the amendment would require 
     the President to submit draft legislation to Congress that 
     would increase the maximum benefit provided under 
     Servicemembers' Group Life Insurance (SGLI) to $350,000 and 
     allow a minimum SGLI benefit of $100,000 at no cost for 
     members who elect the maximum coverage. The amendment would 
     also establish an additional set of death benefits, 
     retroactive to October 7, 2001, for survivors of members who 
     die in the line of duty or as a result of hostile action 
     consisting of the total amount of basic pay, allowances, and 
     special pays a member would have received for one or two 
     years respectively. The amendment would also require the 
     budget for fiscal year 2006 to include funds for the 
     implementation of the foregoing enhanced benefits.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     President, at the same time he transmits to Congress the 
     budget for fiscal year 2006, to submit assessments and 
     recommendations on legislation, including budgetary 
     implications for the legislation described in the Senate 
     amendment.
     Phased elimination of two-tier annuity computation for 
         surviving spouses under Survivor Benefit Plan (sec. 644)
       The House bill contained a provision (sec. 641) that would 
     phase in from October 2005 to March 2008 elimination of the 
     Social Security offset under the Survivor Benefit Plan (SBP), 
     and increase the annuities paid to survivors of military 
     retirees who are 62 or older. The provision would also make 
     corresponding adjustments to the SBP supplemental annuity 
     program and require SBP annuities to be recalculated during 
     October 2005, April 2006, April 2007, and April 2008.
       The Senate amendment contained a similar provision (sec. 
     644) that would phase in from October 2005 to October 2014 
     elimination of the Social Security offset under the SBP.
       The Senate recedes with an amendment that would eliminate 
     the requirement that participating retirees continue to pay 
     premiums for supplemental SBP coverage effective on the date 
     of enactment of this Act. Retired members who choose 
     supplemental SBP coverage during the open enrollment period, 
     which would begin on October 1, 2005, would have their 
     additional premium phased out from 2005 through 2008.
     One-year open enrollment period for Survivor Benefit Plan 
         commencing October 1, 2005 (sec. 645)
       The House bill contained a provision (sec. 642) that would 
     authorize an open enrollment period for retired members to 
     participate in the Survivor Benefit Plan (SBP) or to increase 
     the level of their participation if they were previously 
     participating below the maximum allowed level. The provision 
     would authorize the Secretary of Defense to require retirees 
     who enroll to pay an additional premium not to exceed 4.5 
     percent of the retiree's base amount.
       The Senate amendment contained a similar provision (sec. 
     645) that would authorize an open enrollment period similar 
     to that authorized by section 642 of the Strom Thurmond 
     National Defense Authorization Act for Fiscal Year 1999 
     (Public Law 105-261). The open enrollment period under the 
     Senate amendment would last for one year beginning on October 
     1, 2005. The premium would be calculated based on the total 
     amount of the premiums, plus interest, by which members' 
     retired pay would have been reduced if they had elected to 
     participate in the SBP at the first opportunity that they had 
     been afforded.
       The House recedes with a clarifying amendment that would 
     give eligible retirees during the open enrollment period the 
     option of purchasing temporary supplemental SBP coverage that 
     would be phased out by 2008 when the two-tier SBP system is 
     terminated.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

     Consolidation and reorganization of legislative provisions 
         regarding defense commissary system and exchanges and 
         other morale, welfare, and recreation activities (sec. 
         651)
       The House bill contained a provision (sec. 651) that would 
     consolidate and reorganize a wide range of sections from 
     title 10, United States Code, and related laws concerning 
     commissaries, exchanges and other morale, welfare, and 
     recreation activities. The provision would define the 
     commissary benefit; specify criteria for establishment, 
     sizing, and closure of commissaries; and address other 
     commissary management matters.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would define 
     commissary and exchange systems, and clarify that the purpose 
     of the systems is to enhance the quality of life of members 
     of the uniformed services, retired members, and dependents of 
     such members; and to support military readiness, recruitment, 
     and retention. The amendment would require the designation of 
     a senior official to oversee both systems and an executive 
     governing body to ensure complimentary operations of both 
     systems. The amendment would authorize the Secretary of 
     Defense to consider the quality of life of the Reserve 
     components whenever assessing whether to close a commissary 
     store, and would clarify that the closure of a commissary 
     store at an installation not closing under a base closure law 
     would not take effect until 90 days after the Secretary 
     notifies Congress of the reasons for such closure.
       The amendment would authorize the Secretary to conduct a 
     test program on the sale of telephone cards, film, and one-
     time use cameras. Within 90 days of the completion of one 
     year of testing, the Secretary would report findings and 
     recommendations to the Committees on Armed Services of the 
     Senate and the House of Representatives. The amendment would 
     require the report to include an analysis of the actual 
     impact of the sale of such items on the exchange dividend and 
     any recommendations for changes in legislation that may be 
     necessary. The amendment would require the Comptroller 
     General to conduct a study to evaluate the impact of the 
     expansion of categories of merchandise authorized for sale in 
     commissary stores and its impact on the exchange dividend.
       The conferees expect that the oversight body established by 
     this Act will include military members. The conferees also 
     expect that for items procured from the exchange, any revenue 
     above the commissary purchase price of other merchandise 
     items, shall be accounted for and allocated as if it were a 
     uniform sales price surcharge. Finally, the conferees expect 
     the Secretary to maintain the decor, format, and product 
     selection in military commissaries consistent with modern 
     grocery store norms.
     Consistent State treatment of Department of Defense 
         Nonappropriated Fund Health Benefits Program (sec. 652)
       The House bill contained a provision (sec. 652) that would 
     clarify that the Nonappropriated Fund Uniform Health Benefits 
     Program of the Department of Defense is not subject to State, 
     local and territorial taxes, fees, other monetary payment, or 
     health plan mandates.
       The Senate amendment contained a similar provision (sec. 
     1106).

[[Page H9545]]

       The Senate recedes with a technical amendment.

                       Subtitle F--Other Matters

     Eligibility of members for reimbursement of expenses incurred 
         for adoption placements made by foreign governments (sec. 
         661)
       The Senate amendment contained a provision (sec. 652) that 
     would amend section 1052(g) of title 10, United States Code, 
     to include within the definition of ``qualified adoption 
     agency'' a foreign government or an agency authorized by a 
     foreign government to place children for adoption. Section 
     1052 authorizes reimbursement of expenses for certain members 
     of the Armed Forces who adopt children. Although that statute 
     includes intercountry adoptions, the definition of qualified 
     adoption agency does not include either foreign governments 
     or agencies authorized by such governments to place children. 
     Otherwise eligible members who adopt children while on duty 
     outside the United States have been forced to re-adopt them 
     through a domestic agency upon their return to the United 
     States in order to be reimbursed. The provision would 
     authorize reimbursement of expenses for such intercountry 
     adoptions, if the child is either eligible for automatic 
     United States citizenship or has been issued a certificate of 
     citizenship under the Immigration and Nationality Act.
       The House bill contained no similar provision.
       The House recedes.
       The conferees expect that the Secretary of Defense will 
     make the necessary adjustments, including extending the 
     period allowed under regulations for filing for 
     reimbursement, to accommodate members who are outside the 
     United States on military orders.
     Clarification of education loans qualifying for education 
         loan repayment program for Reserve component health 
         professions officers (sec. 662)
       The House bill contained a provision (sec. 662) that would 
     clarify that college loans involving both a basic 
     professional degree and graduate education would qualify for 
     repayment under section 16302 of title 10, United States 
     Code.
       The Senate amendment contained a similar provision (sec. 
     619).
       The Senate recedes.
     Receipt of pay by reservists from civilian employers while on 
         active duty in connection with a contingency operation 
         (sec. 663)
       The Senate amendment contained a provision (sec. 1068) that 
     would modify section 209 of title 18, United States Code, to 
     permit a member of the Reserves on active duty pursuant to a 
     call or order to active duty to receive payment of any part 
     of the salary or wages that a civilian employer would have 
     paid if the reservist's employment had not been interrupted 
     by the order to active duty.
       The House bill contained no similar provision.
       The House recedes.
     Relief for mobilized reservists from certain federal 
         agricultural loan obligations (sec. 664)
       The Senate amendment contained a provision (sec. 655) that 
     would authorize forgiveness of interest payments due under 
     section 1981f of title 7, United States Code, while borrowers 
     are mobilized military reservists. The provision would also 
     authorize deferral of principal payments due while or after 
     borrowers are mobilized reservists, and direct that borrowers 
     who receive assistance under this provision would not be 
     considered to be delinquent or receiving debt forgiveness for 
     purpose of receiving direct or guaranteed loans under title 
     7, United States Code.
       The House bill contained no similar provision.
       The House recedes.
     Survey and analysis of effect of extended and frequent 
         mobilization of reservists for active-duty service on 
         reservist income (sec. 665)
       The House bill contained a provision (sec. 663) that would 
     require the Secretary of Defense to conduct a detailed study 
     of the loss of income by mobilized reservists who have served 
     on active-duty in support of a contingency operation 
     following September 11, 2001.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment to ensure that 
     all sources of income are reported by the member in 
     response to the survey.
       The conferees believe that accurate information regarding 
     loss of income is an important prerequisite to future 
     congressional action, and acknowledge the need to better 
     understand the impact of any such loss of income on members 
     with skills in high demand for deployments.
     Study of disability benefits for veterans of service in the 
         Armed Forces with service-connected disabilities (sec. 
         666)
       The conferees agree to a provision that would require the 
     Secretary of Defense to conduct a study of the totality of 
     all current and projected disability benefits that are 
     available to disabled members and former members of the Armed 
     Forces for service-connected disabilities. The study would 
     compare the disability benefits for members of the Armed 
     Forces with commercial and other private sector disability 
     benefits plans, and identify the Department of Defense 
     personnel policy changes needed to enhance the financial and 
     nonfinancial benefits that are provided to members and former 
     members of the Armed Forces for service-connected 
     disabilities. The Secretary's report would include 
     conclusions resulting from the study and recommended 
     legislation to address the deficiencies in the system of 
     Federal Government disability benefits for disabled members 
     and former members of the Armed Forces.
       The provision would require the Comptroller General to 
     study the disability benefits that are available for 
     employees of the Federal, State and local governments, 
     especially those provided for disabilities incurred in the 
     performance of jobs in which employees perform tasks with 
     risks that are similar to the risks associated with military 
     service.

                   Legislative Provisions Not Adopted

     Income replacement payments for Reserves experiencing 
         extended mobilization for active-duty service
       The House bill contained a provision (sec. 605) that would 
     require the Secretary of Defense to pay involuntarily 
     mobilized Reserve members on a monthly basis the amount 
     necessary to replace the difference in income between their 
     regular military compensation plus special pays and 
     allowances and the average monthly income received by the 
     member during the 12 months preceding the month in which the 
     member was mobilized. Payments would be limited to a minimum 
     of $50 each month and a maximum of $3,000 each month.
       The Senate amendment contained a provision (sec. 1110) that 
     would amend chapter 55 of title 5, United States Code, to 
     require federal agencies to pay any difference between 
     military and civilian compensation for federal employees who, 
     as members of the uniformed services or National Guard, were 
     called to active-duty service in support of a national 
     emergency since October 11, 2002.
       These provisions were not included in the conference report 
     because funding was not appropriated for Reserve income 
     replacement payments to either Reserve members or federal 
     government agencies.
     Increase in maximum monthly rate authorized for hardship duty 
         pay
       The House bill contained a provision (sec. 613) that would 
     increase from $300 to $750 the maximum amount of special pay 
     that may be paid to members performing duty designated by the 
     Secretary of Defense as hardship duty under section 305 of 
     title 37, United States Code.
       The Senate amendment contained no similar provision.
       The House recedes.
     Source of funds for Survivor Benefit Plan annuities for 
         Department of Defense beneficiaries over age 62
       The House bill contained a provision (sec. 643) that would 
     direct that the payments made into the Department of Defense 
     Military Retirement Fund, which is funding the increases in 
     this Act, to the cost of the Survivor Benefit Plan would be 
     made directly by the Secretary of the Treasury.
       The Senate amendment contained no similar provision.
       The House recedes.
     Cooperation and assistance for qualified scouting 
         organizations serving dependents of members of the Armed 
         Forces and civilian employees overseas
       The House bill contained a provision (sec. 653) that would 
     require that professional staff supporting both the Boy 
     Scouts of America and the Girl Scouts of the United States of 
     America in overseas areas be made non-appropriated fund 
     employees of the United States and would clarify that 
     appropriated funds may be used to pay the costs of the 
     employees.
       The Senate amendment contained no similar provision.
       The House recedes.
     Child care for children of members of Armed Forces on active 
         duty for Operation Enduring Freedom or Operation Iraqi 
         Freedom
       The Senate amendment (sec. 654) would authorize the 
     Secretary of Defense to provide funds, to the extent that 
     funds are available for such purpose, to secure access to 
     child care at State licensed child care and development 
     programs in the private sector for members serving in 
     Operation Enduring Freedom and Operation Iraqi Freedom, who 
     are geographically disbursed and do not have practical access 
     to a military child development center.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees acknowledge that the Department of Defense 
     has authority under section 1798 of title 10, United States 
     Code, to subsidize the cost of child and youth services in 
     the private sector, and has initiated programs to provide 
     affordable, quality child care and youth service options for 
     families of activated Guard and Reserve members. Such 
     initiatives include partnerships with civilian child care 
     referral agencies, and the Department of Defense Military One 
     Source referral services available to all members.

                   TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

     TRICARE coverage for members of Reserve components who commit 
         to continued service in the Selected Reserve after 
         release from active duty (sec. 701)
       The Senate amendment contained a provision (sec. 706) that 
     would authorize TRICARE coverage for each member of the Ready 
     Reserve while in a non-active duty status. The provision 
     would authorize the same benefits for members of the Reserve

[[Page H9546]]

     components as a member on active duty or a dependent of an 
     active-duty member, based on a premium payment by the member. 
     The amount of the monthly premium required of the member 
     would be 28 percent of the total amount determined by the 
     Secretary of Defense as being reasonable for the TRICARE 
     coverage. TRICARE coverage for Reserves in a non-active duty 
     status would commence following expiration of transitional 
     health care benefits authorized in section 1145, title 10, 
     United States Code. The amendment would not extend TRICARE 
     eligibility to federal employees entitled to Federal Employee 
     Health Benefits Plan coverage under chapter 89 of title 5, 
     United States Code.
       The House bill contained no similar provision.
       The House recedes with an amendment to authorize TRICARE 
     coverage for Reserves in a non-active duty status for members 
     of Reserve components called or ordered to active duty on or 
     after September 11, 2001 in support of a contingency 
     operation, and who commit to continued service in the 
     Selected Reserve after release from active duty. For each 
     period of 90 consecutive days of extended active-duty 
     service, the Reserve member would be entitled to one year of 
     TRICARE coverage while in a non-active duty status under the 
     TRICARE Standard option. The amendment would authorize one 
     year of coverage for a member who is otherwise eligible but 
     does not serve continuously on active duty for 90 days 
     because of an injury, illness, or disease incurred or 
     aggravated while deployed. The amendment would also require 
     payment of a premium by the Reserve member equal to 28 
     percent of the total amount determined by the Secretary as 
     being reasonable for TRICARE coverage, and execution by the 
     member of a service agreement. The amendment would be in 
     effect within 180 days of enactment of this Act, and would 
     require the Secretary to take all necessary actions to ensure 
     that members eligible for TRICARE coverage receive 
     information on the opportunity to enter into such an 
     agreement.
     Comptroller General report on the cost and feasibility of 
         providing private health insurance stipends for members 
         of the Ready Reserves (sec. 702)
       The House bill contained a provision (sec. 702) that would 
     require the Comptroller General to conduct a study on the 
     cost and feasibility of providing a stipend to members of the 
     Ready Reserves to offset the cost of continuing private 
     health insurance when the member is on active duty for more 
     than 30 days.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Permanent earlier eligibility date for TRICARE benefits for 
         members of Reserve components and their dependents (sec. 
         703)
       The House bill contained a provision (sec. 703) that would 
     make permanent the temporary authority for dependents of 
     Reserve component members to obtain TRICARE benefits up to 90 
     days before the date on which the member's period of active 
     duty is to begin.
       The Senate amendment contained a similar provision (sec. 
     702).
       The House recedes with a technical amendment.
     Waiver of certain deductibles under TRICARE program for 
         members on active duty for a period of more than 30 days 
         (sec. 704)
       The House bill contained a provision (sec. 704) that would 
     authorize the waiver of certain deductibles required by 
     certain TRICARE programs for dependents of certain Reserve 
     component members who are called or ordered to active duty 
     for a period of more than 30 days.
       The Senate amendment contained a similar provision (sec. 
     703).
       The House recedes with a technical amendment.
     Authority for payment by United States of additional amounts 
         billed by health care providers to activated Reserves 
         (sec. 705)
       The House bill contained a provision (sec. 705) that would 
     protect a dependent of a member of a Reserve component who is 
     ordered to active duty for a period of more than 30 days in 
     support of a contingency operation from paying a health care 
     provider any amount above the TRICARE maximum allowable 
     charge.
       The Senate amendment contained a similar provision (sec. 
     704).
       The House recedes with a technical amendment.
     Permanent extension of transitional health care benefits and 
         addition of requirement for pre-separation physical 
         examination (sec. 706)
       The House bill contained a provision (sec. 706) that would 
     make permanent the authority to provide Transition Assistance 
     Medical Program benefits to service members and their 
     dependents for up to 180 days following separation from 
     active duty. The provision would require that eligibility for 
     transition benefits would cease prior to the 180-day limit if 
     the beneficiaries acquire employer-provided insurance. The 
     provision would also limit outlays provided after January 1, 
     2005, to not more than $170.0 million.
       The Senate amendment included a provision (sec. 705) that 
     would make permanent the authority to provide transition 
     benefits for 180 days following separation from active duty 
     for certain Active and Reserve members. The provision would 
     require that as part of such transitional health care 
     coverage, each member shall undergo a comprehensive physical 
     examination before separating from active-duty service.
       The House recedes with an amendment that would authorize 
     the Secretary of Defense to prescribe in regulations the 
     content of the physical provided to each member immediately 
     before separation. The amendment would also authorize a 
     waiver of the requirement for a physical examination if a 
     member has undergone a physical examination within 12 months 
     before the scheduled date of separation, and would require 
     that a waiver may be granted only with the consent of the 
     member and the member's unit commander.

                Subtitle B--Other Benefits Improvements

     Opportunity for young child dependent of deceased member to 
         become eligible for enrollment in a TRICARE dental plan 
         (sec. 711)
       The House bill contained a provision (sec. 711) that would 
     permit certain young children, who are dependents of service 
     members who die while on active duty, to enroll in the 
     TRICARE dental insurance program, regardless of the 
     dependent's dental plan enrollment status on the date of the 
     service member's death. Many young children, due to their 
     age, are not enrolled in the TRICARE dental plan.
       The Senate amendment contained a similar provision (sec. 
     712).
       The House recedes.
     Comptroller General report on provision of health, education, 
         and support services for Exceptional Family Member 
         Program enrollees (sec. 712)
       The House bill contained a provision (sec. 712) that would 
     require the Comptroller General to evaluate the effect of the 
     Exceptional Family Member Program on health and support 
     services in selected civilian communities near military 
     installations with a high concentration of Exceptional Family 
     Member Program enrollees, and to submit a report to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives no later than March 31, 2005.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would include in 
     the Comptroller General's assessment an evaluation of 
     education services, including early childhood intervention 
     and special education services required by Exceptional Family 
     Member Program enrollees. The amendment would also require 
     the report to be submitted no later than one year after the 
     date of enactment of this Act. The conferees specifically 
     request that the report include an assessment of the services 
     available for family members with autism.
     Continuation of sub-acute care for transition period (sec. 
         713)
       The House bill contained a provision (sec. 714) that would 
     allow the Secretary of Defense to extend previous benefits 
     for part-time or intermittent home health care after the 
     transition to new managed care contracts that result in a 
     change of benefits.
       The Senate amendment contained a similar provision (sec. 
     718).
       The House recedes.
     Improvements to pharmacy benefits program (sec. 714)
       The House bill contained a provision (sec. 715) that would 
     prohibit the prescription drug cost-sharing requirements for 
     Medicare-eligible TRICARE beneficiaries from being in excess 
     of the cost-sharing requirements applicable to non-Medicare-
     eligible beneficiaries.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the Secretary of Defense to consider additional 
     determinations by the Department of Defense Pharmacy and 
     Therapeutics Committee of the relative clinical and cost-
     effectiveness of the agents for a preferred formulary status 
     at military treatment facilities.
     Professional accreditation of military dentists (sec. 715)
       The House bill contained a provision (sec. 716) that would 
     allow the secretaries of the military departments to 
     authorize the treatment of no more than 2,000 children under 
     the age of 13 per year at certain military facilities 
     offering residency training programs in oral and 
     maxillofacial surgery and orthodontics.
       The Senate amendment contained a similar provision (sec. 
     713).
       The House recedes with a technical amendment.
     Temporary authority for waiver of collection of payments due 
         for CHAMPUS benefits received by disabled persons unaware 
         of loss of CHAMPUS eligibility (sec. 716)
       The House bill contained a provision (sec. 718) that would 
     allow the Secretary of Defense to waive the collection of 
     certain payments for health care services provided during a 
     period of ineligibility between July 1, 1999 and December 31, 
     2004 for beneficiaries under age 65 entitled to Medicare on 
     the basis of disability or end stage renal disease. The 
     waiver would apply to those beneficiaries who were unaware of 
     their loss of eligibility to receive health benefits at the 
     time they were received. The provision also required a 
     quarterly report to Congress on efforts to identify such 
     individuals and actions taken when individuals are determined 
     to be ineligible.
       The Senate amendment contained a similar provision (sec. 
     719) with no reporting requirement.

[[Page H9547]]

       The House recedes with a technical amendment.
     Services of marriage and family therapists (sec. 717)
       The Senate amendment contained a provision (sec. 714) that 
     would clarify that certified marriage and family therapists 
     can serve as health care professionals under sections 1091 
     and 1094 of title 10, United States Code.
       The House bill contained no similar provision.
       The House recedes.
       The conferees clarify that the term ``marriage and family 
     therapist'' includes masters-level prepared psychologists who 
     are licensed in marriage and family therapy.
     Chiropractic health care benefits advisory committee (sec. 
         718)
       The Senate amendment contained a provision (sec. 715) that 
     would require the Secretary of Defense to establish a 
     Chiropractic Health Care Benefits Advisory Committee to 
     provide advice regarding the implementation of chiropractic 
     benefits for active-duty members, and would require the 
     Committee to meet no fewer than three times in each fiscal 
     year beginning in 2005.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify that 
     not less than three committee members appointed by the 
     Secretary must be practicing representatives of the 
     chiropractic health care profession. The amendment would also 
     require that the Secretary submit a copy of the advisory 
     committee report to the Committee on Armed Services of the 
     Senate and the House of Representatives, including an 
     explanation of the criteria used to determine full 
     implementation of the current program, and views with regard 
     to future implementation of chiropractic health care 
     benefits.

           Subtitle C--Planning, Programming, and Management

     Pilot program for health care delivery (sec. 721)
       The House bill contained a provision (sec. 721) that would 
     authorize the Secretary of Defense to conduct a pilot program 
     for health care delivery to test a model for future health 
     care delivery systems at one or more military installations 
     where the military population is expected to expand. The 
     model would focus on coordinating and leveraging the use of 
     existing health care resources, to include federal, state, 
     local, and contractor assets, to meet increased health care 
     requirements.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the Secretary to conduct a health care delivery pilot program 
     at two or more military installations for the purpose of 
     testing a model of health care delivery that builds 
     cooperative health care arrangements between military 
     installations and local and regional civilian health care 
     systems.
       The conferees find that with increasing requirements to 
     repair or replace aging military treatment facilities and 
     potential realignment of forces, the Department of Defense 
     will be challenged to find new ways of providing enhanced 
     health care for beneficiaries entitled to military health 
     care.
     Study of provision of travel reimbursement to hospitals for 
         certain military disability retirees (sec. 722)
       The House bill contained a provision (sec. 722) that would 
     require the Secretary of Defense to conduct a study of the 
     feasibility and desirability of providing retirees with 
     combat-related disabilities travel and transportation 
     benefits to receive medical treatment at military hospitals 
     for two years after their retirement. The provision would 
     also require the Secretary to report the results of the study 
     to the congressional defense committees by March 1, 2005.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would include all 
     military disability retirees in the study.
     Study of mental health services (sec. 723)
       The House bill contained a provision (sec. 723) that would 
     require the Secretary of Defense to conduct a study of mental 
     health services available to members of the Armed Forces, to 
     include an evaluation of the availability and effectiveness 
     of mental health treatment and screening resources for 
     members before and after deployment, and for the families of 
     deployed members. The provision would also require an 
     assessment of obstacles that prevent members of the Armed 
     Forces and their families from obtaining mental health 
     services, as well as identification of mental health problems 
     unique to members of the Reserve component.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Comptroller General to conduct the study and submit a report 
     to Congress by March 31, 2005. The amendment would also 
     require the report to include recommendations for removing 
     any obstacles to obtaining mental health services for members 
     of the Reserve component.
       The conferees support the recommendations made by the 
     Army's Mental Health Advisory Team and direct the Secretary 
     of the Army to provide a report by March 1, 2005, on the 
     implementation of recommendations for providing mental health 
     assistance to soldiers wanting help and educating soldiers on 
     how to obtain help from forward-deployed mental health units.
     Policy for timely notification of next of kin of members 
         seriously ill or injured in combat zones (sec. 724)
       The Senate amendment contained a provision (sec. 367) that 
     would require the Secretary of Defense, not later than 120 
     days after the date of enactment of this Act, to prescribe 
     the policy for providing timely notification to the next of 
     kin of the status, including health and location of members 
     of the Armed Forces who are seriously ill or injured in a 
     combat zone. The provision also authorized an increase of 
     $10.0 million in research, development, test and evaluation 
     funding for medical equipment and combat casualty care 
     technologies.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees honor the sacrifice of the members of the 
     Armed Forces who have been killed or wounded while bravely 
     serving in ongoing military operations and the heroic efforts 
     of the medical personnel of the Armed Forces in treating 
     wounded military personnel and civilians under combat 
     conditions. In view of modern communications capabilities, 
     the conferees believe the Department of Defense's current 
     policies relating to notification of next of kin about 
     service members who have been seriously wounded or are 
     gravely ill must be revised to include appropriate standards 
     aimed at ensuring timely and ongoing communication, 
     consistent with the desires of individual service members.
       The conferees agree to an increase of $5.3 million for 
     combat casualty care technologies, which is reflected in the 
     tables for title II of this Act.
     Revised funding methodology for military retiree health care 
         benefits (sec. 725)
       The House bill contained a provision (sec. 1541) that would 
     revise the process for funding the annual payments that are 
     required to be paid into the Department of Defense Medicare-
     Eligible Retiree Health Care Accrual Fund. Beginning in 
     fiscal year 2006, the Secretary of the Treasury would make 
     the annual payments from the general fund of the Treasury.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to transmit certifications required 
     under this Act to the Committees on Armed Services of the 
     Senate and the House of Representatives immediately upon 
     transmission to the Secretary of the Treasury.
       The conferees expect that the transmission of funding 
     certifications will include all determinations by the 
     Secretary of Defense concerning the amounts required for 
     deposit into the Medicare-Eligible Retiree Health Care 
     Accrual Fund beginning in fiscal year 2006.
     Grounds for presidential waiver of requirement for informed 
         consent or option to refuse regarding administration of 
         drugs not approved for general use (sec. 726)
       The Senate amendment contained a provision (sec. 716) that 
     would limit to national security interests the grounds on 
     which the President could deny a service member the right to 
     refuse an investigational new drug or product not approved 
     for general use.
       The House bill contained no similar provision.
       The House recedes.
     TRICARE program regional directors (sec. 727)
       The conferees agree to include a provision which would 
     require the Secretary of Defense to develop and report to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives by March 1, 2005 recommendations for a formal 
     TRICARE Regional Director selection process. The selection 
     process would require the Secretary of each military 
     department to nominate one commissioned officer in a grade 
     above colonel or, for the Navy in a grade above the grade of 
     captain, or a member of the Senior Executive Service. The 
     provision would require that the recommendations of the 
     Secretary include the qualifications for Regional Directors, 
     the period of assignment of a commissioned officer as a 
     Regional Director and other requirements as prescribed by the 
     Secretary.
       The conferees expect that, among other duties as prescribed 
     by the Secretary, the TRICARE Regional Director will be 
     responsible for ensuring the adequacy of the number and types 
     of civilian TRICARE providers, both in civilian networks and 
     those who participate in the TRICARE Standard program. The 
     conferees expect that the Regional Director will consider the 
     requirement for the availability of TRICARE Standard 
     providers to support members of the Reserve components and 
     their families who are eligible to participate in TRICARE 
     Standard, as authorized elsewhere in this Act.

     Subtitle D--Medical Readiness Tracking and Health Surveillance

     Medical readiness plan and Joint Medical Readiness Oversight 
         Committee (sec. 731)
       The Senate amendment contained a provision (sec. 1301) that 
     would require the Secretary of Defense to develop a 
     comprehensive plan to improve medical readiness, and 
     Department of Defense tracking of the health status of 
     members of the Armed Forces; and to strengthen medical 
     readiness tracking before, during, and after deployment of 
     members of the Armed Forces overseas. The provision would 
     also require the establishment

[[Page H9548]]

     by the Secretary of a Joint Medical Readiness Oversight 
     Committee to advise the Secretary of Defense on medical 
     readiness and health status of the members of the Active and 
     Reserve components of the Armed Forces and to oversee the 
     development of the comprehensive medical readiness plan 
     required elsewhere in this Act.
       The House bill contained no similar provision.
       The House recedes with an amendment to include the Vice 
     Chiefs of the military services as members of the committee, 
     and a requirement that each year, before the committee 
     submits its report to Congress, that the Secretary shall 
     provide an opportunity for representatives of veterans and 
     military health advocacy organizations, and others the 
     Secretary of Defense considers appropriate, to comment on the 
     report. The amendment requires that the report submitted to 
     Congress shall include a summary of the comments received and 
     the Secretary's response to them.
       The conferees are concerned that a report published by the 
     Comptroller General in September 2004, entitled ``DoD Needs 
     to Address Long-term Reserve Force Availability and Related 
     Mobilization and Demobilization Issues,'' continues to 
     identify problems in the management of the health status of 
     Reserve forces by the Department of Defense. The report finds 
     that, ``DoD's ability to effectively manage the health status 
     of its reserve forces is limited because its centralized 
     database has missing and incomplete health records and it has 
     not maintained full visibility over reserve component members 
     with medical problems.'' The conferees expect the committee 
     and the comprehensive plan authorized in this Act to promptly 
     address the ongoing issues identified by the Comptroller 
     General for the Reserve component, as well as all those 
     matters concerning medical readiness, health surveillance, 
     and force health protection for both active-duty and Reserve 
     components delineated in this Act.
     Medical readiness of Reserves (sec. 732)
       The Senate amendment contained a provision (sec. 1302) that 
     would require the Comptroller General to conduct a study of 
     the health of members of the Reserve components who have been 
     ordered to active duty in support of Operation Enduring 
     Freedom and Operation Iraqi Freedom. The study would review 
     the health and medical fitness of Reserves when they were 
     ordered to active duty, the effects of their health status on 
     planning and deployment schedules, and compliance by military 
     personnel with Department of Defense policies on medical and 
     physical fitness applicable to the reserve components. The 
     provision would also require health assessments not less 
     frequently than once every two years, using the pre-
     deployment health assessments required under section 1074f of 
     title l0, United States Code, as the minimum standard. The 
     provision would require the review of pre-deployment health 
     assessments by a medical professional and any follow-up care 
     that is required by the member. The Senate provision would 
     further require improvement to the pre-deployment assessment 
     form currently in use by the Department, and development of a 
     uniform policy on deferral of medical treatment pending 
     deployment to theaters of operations.
       The House bill contained no similar provision.
       The House recedes with an amendment to clarify that follow-
     up care and treatment provided to Reserve members is care 
     that is otherwise authorized for medical and dental 
     readiness.
     Baseline health data collection program (sec. 733)
       The Senate amendment contained a provision (sec. 1303) that 
     would require the Secretary of Defense to collect baseline 
     health data from each person entering the Armed Forces, and 
     to provide for the computerized compilation and maintenance 
     of the data. The provision would also establish interim 
     standards for blood sampling, not less than 60 days prior to 
     deployment and not later than 30 days after the date on which 
     the deployment ends.
       The House bill contained no similar provision.
       The House recedes with an amendment to require that blood 
     samples be drawn not earlier than 120 days before the date of 
     deployment. The amendment would require the application of 
     interim standards for blood sampling unless the Joint Medical 
     Readiness Oversight Committee established elsewhere in this 
     Act recommends, and the Secretary approves, a different 
     standard.
       The conferees expect that in the development of the health 
     baseline data collection program required by this title, the 
     Department of Defense will work jointly with the Department 
     of Veterans Affairs to examine coding and terminology for all 
     computerized medical data systems to ensure compatibility 
     with those computerized medical data systems of the 
     Department of Veterans Affairs. The conferees acknowledge 
     that much progress has been made in achieving compatibility 
     of medical information systems, both in the clinical setting, 
     such as the Federal Health Information Exchange, and in 
     support of field operational units, such as the Special 
     Operations Forces Medics system. The conferees urge the 
     Department of Defense to continue such efforts with the 
     Department of Veterans Affairs, which are necessary to 
     improve continuity of care.
     Medical care and tracking and health surveillance in the 
         theater of operations (sec. 734)
       The Senate amendment contained a provision (sec. 1304) that 
     would require the Secretary of Defense to establish a policy 
     on health record keeping in the theater of operations, and to 
     evaluate and report to Congress on the strengths and 
     weaknesses and recommend changes to mandatory record keeping 
     systems for military personnel in the theater. The report 
     would also include a summary of scientific literature on 
     blood sampling, and a recommendation for changes to 
     regulations and standards for blood sampling. The provision 
     would require that the Secretary develop a plan for obtaining 
     all records of medical treatment provided to members of the 
     Armed Forces by allies of the United States in Operation 
     Enduring Freedom and Operation Iraqi Freedom. The provision 
     would also require the Secretary to prescribe a policy on the 
     collection and dissemination of in-theater individual 
     personnel location data.
       The House bill contained no similar provision.
       The House recedes.
     Declassification of information on exposures to environmental 
         hazards (sec. 735)
       The Senate amendment contained a provision (sec. 1305) that 
     would require the Secretary of Defense to review and revise 
     as appropriate the classification policies of the Department 
     of Defense to facilitate the declassification of data that is 
     potentially useful for monitoring and assessing the health of 
     members of the Armed Forces who have been exposed to 
     environmental hazards during overseas deployments.
       The House bill contained no similar provision.
       The House recedes.
     Report on training on environmental hazards (sec. 736)
       The Senate amendment contained a provision (sec. 1306) that 
     would require a report by the Secretary of Defense to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives on the training on environmental hazards that 
     is provided by the Armed Forces to medical personnel who are 
     deployed to the field in support of combat personnel. The 
     provision would also require a report to congressional 
     defense committees on actions taken by Department of Defense 
     officials in response to health concerns expressed by members 
     of the Armed Forces during post-deployment health 
     assessments.
       The House recedes with an amendment to remove the reporting 
     requirement on actions taken by Department officials in 
     response to health concerns expressed by members of the Armed 
     Forces during post-deployment health assessments from this 
     provision.
       The conferees intend that the report required by this 
     provision on actions taken by Department officials to health 
     concerns expressed by members of the Armed Forces during 
     post- deployment health assessments will be addressed by a 
     reporting requirement elsewhere in this Act.
     Uniform policy for meeting mobilization-related medical care 
         needs at military installations (sec. 737)
       The Senate amendment contained a provision (sec. 1307) that 
     would require the Secretary of Defense to prescribe through 
     regulations a policy to ensure that anticipated health needs 
     of members of the Armed Forces at mobilization installations 
     can be met at those installations. The policy would include 
     procedures for arrangements for health care provided by the 
     Secretary of Veterans Affairs, services of local health care 
     providers, and temporary employment of health care personnel 
     at such installations.
       The House bill contains no similar amendment.
       The House recedes with an amendment to clarify the 
     definition of the term military installation, and to require 
     the Secretary of Defense to establish a uniform policy 
     through the secretaries concerned and military command 
     structure for meeting anticipated health needs at 
     mobilization installations.
     Full implementation of Medical Readiness Tracking and Health 
         Surveillance Program and Force Health Protection and 
         Readiness Program (sec. 738)
       The Senate amendment contained a provision (sec. 1308) that 
     would require the Secretary of Defense, acting through the 
     Under Secretary of Defense for Personnel and Readiness and in 
     conjunction with the secretaries of the military departments, 
     to fully implement at all levels the Medical Readiness 
     Tracking and Health Surveillance Program under this title, 
     and the Force Health Protection and Readiness Program of the 
     Department of Defense.
       The House recedes.
     Reports and Internet accessibility relating to health matters 
         (sec. 739)
       The Senate amendment contained a provision (sec. 1309) that 
     would require the Secretary of Defense to submit annually to 
     the Committees on Armed Services of the Senate and the House 
     of Representatives a report on the Force Health Protection 
     Quality Assurance Program. The provision would require that 
     the report include an audit of the extent to which the serum 
     samples required to be obtained from members of the Armed 
     Forces before and after deployment are stored in the serum 
     repository of the Department of Defense, and an audit of the 
     extent to which health assessments required before and after 
     deployment are being maintained in the electronic database of 
     the Defense Medical Surveillance System.

[[Page H9549]]

       The provision would also require that the annual report to 
     the congressional defense committees include an analysis of 
     actions taken by the Department to respond to health concerns 
     expressed by members of the Armed Forces upon return from a 
     deployment, and an analysis of actions taken by Department 
     personnel to evaluate or treat members of the Armed Forces 
     who are confirmed to have been exposed to occupational or 
     environmental hazards deleterious to their health during a 
     deployment.
       The provision would include a requirement for an annual 
     report on compliance by the military departments with 
     Department policy on recording of health assessment data in 
     military health records. The provision would also require 
     that the Chief Information Officer of each military 
     department ensure that information on Department policies 
     regarding pre-deployment and post-deployment health policies 
     are available through an online portal website of that 
     military department.
       The House bill contains no similar amendment.
       The House recedes with an amendment to remove the 
     requirement for a report on actions taken by the Department 
     to evaluate or treat former members of the Armed Forces who 
     are confirmed to have been exposed to occupational or 
     environmental hazards during deployment. The amendment would 
     also clarify that health assessment data required in section 
     1074(f) of title 10, United States Code, would be recorded in 
     military health records.

                   Legislative Provisions Not Adopted

     Demonstration project on health benefits for Reserves
       The House bill contained a provision (sec. 701) that would 
     require the Secretary of Defense to conduct a three-year 
     demonstration project to provide TRICARE coverage for Ready 
     Reserve members not on active duty who are ineligible for 
     employer-sponsored health benefits. The purpose of the 
     demonstration would be to determine whether such coverage 
     enhances medical readiness, recruiting, and retention of 
     Reserve component members.
       The Senate amendment contained a provision (sec. 701) that 
     would direct the Secretary to carry out a demonstration 
     project under section 1092 of title 10, United States Code, 
     to determine the need for, and feasibility of, providing 
     benefits under TRICARE to members of the Ready Reserve who 
     are eligible for unemployment compensation, continuously 
     unemployed after the expiration of such compensation, or 
     ineligible for employer-provided health care coverage.
       The conference agreement does not include these provisions.
       The conferees acknowledge the preference of the Secretary 
     to conduct a demonstration project and expect the Secretary 
     to proceed with a demonstration project to assess the 
     feasibility and effectiveness of providing TRICARE benefits 
     to Reserve members without employer-provided health insurance 
     coverage using existing authority in section 1092 of title 
     10, United States Code. The conferees request that the 
     Comptroller General include in the evaluation of the needs of 
     Reserves for health care required by section 705 of the 
     National Defense Authorization Act for Fiscal Year 2004 
     (Public Law 108-136) a report on actions taken by the 
     Department to prepare for a demonstration project on the 
     feasibility of providing TRICARE benefits to Reserve members 
     without employer-provided health insurance.
     Continuation of non-TRICARE health benefits plan coverage for 
         certain Reserves called or ordered to active duty and 
         their dependents
       The Senate amendment contained a provision (sec. 707) that 
     would direct the Secretary of Defense to pay private health 
     insurance premiums for the dependents of a Reserve member 
     ordered to extended active duty and who would then not be 
     eligible for TRICARE.
       The House bill contained no similar provision.
       The Senate recedes.
     Exceptional eligibility for TRICARE Prime Remote
       The House bill contained a provision (sec. 713) that would 
     authorize the Secretary of Defense to waive all restrictions 
     with regard to TRICARE Prime Remote medical coverage for 
     active-duty family members that reside at a remote location 
     without regard to the sponsor's current or past assignment. 
     Such a waiver would occur if the Secretary determines that 
     exceptional circumstances warrant such coverage.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees believe that there exist today situations of 
     extreme hardship for beneficiaries, particularly minor 
     children, caused by exceptional circumstances through no 
     fault of their own and beyond their control. The conferees 
     urge the Secretary to look within existing authorities for 
     means to remedy these extreme circumstances. If existing 
     authorities do not allow for such remedy, the Secretary shall 
     submit to Congress recommendations to address such 
     exceptional situations.
     Addition of certain unremarried former spouses to persons 
         eligible for dental insurance plan of retirees of the 
         uniformed services
       The House bill contained a provision (sec. 717) that would 
     permit certain unremarried former spouses of a member or 
     former member to participate in the TRICARE Retiree Dental 
     Program, if they do not have dental coverage under an 
     employer-sponsored health plan.
       The Senate amendment contained no similar provision.
       The House recedes.
     Vaccine Healthcare Centers Network
       The Senate amendment contained a provision (sec. 720) that 
     would require the Secretary of Defense to establish the 
     Vaccine Healthcare Centers Network for the purpose of 
     monitoring adverse reactions of members of the Armed Forces 
     to vaccines and, in addition, to improve the safety and 
     quality of vaccine administration for members of the Armed 
     Forces.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees acknowledge that the Vaccine Healthcare 
     Centers in existence today have made contributions to the 
     quality monitoring system for adverse reactions to anthrax 
     and smallpox immunization programs conducted by the 
     Department of Defense. The Secretary should examine the 
     feasibility and necessity of the establishment of an expanded 
     Vaccine Healthcare Centers Network in the context of a review 
     of the adequacy of existing clinical immunization safety, 
     educational, training and research programs for military 
     members and providers involved in immunization of military 
     service members. The Secretary should also make 
     recommendations on improvements as necessary in submission of 
     data to the Vaccine-related Events Reporting System, and 
     access to clinical management services for members who 
     experience vaccine adverse events.
       The conferees strongly encourage each of the military 
     departments to continue to provide funds required by the 
     existing Vaccine Healthcare Centers based on each service's 
     share of the total force vaccinated.
     Use of Department of Defense funds for abortion
       The Senate amendment contained a provision (sec. 721) that 
     would authorize the use of Department of Defense funds for 
     abortions in cases in which a pregnancy occurred as a result 
     of an act of rape or incest.
       The House bill contained no similar provision.
       The Senate recedes.
     United States Military Cancer Institute
       The Senate amendment contained a provision (sec. 914) that 
     would establish a United States Military Cancer Institute 
     within the Uniformed Services University of the Health 
     Sciences. The institute would conduct research on the causes, 
     prevention, and early detection of cancer, including 
     epidemiological features of cancer and impact of genetic and 
     environmental factors and disparities in health among 
     populations of various ethnic origins. The research would 
     also include research on oncologic nursing.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees acknowledge that the United States Military 
     Cancer Institute continues to operate under the auspices of 
     the Uniformed Services University of the Health Sciences, and 
     has received appropriations since fiscal year 2002. The 
     conferees commend the United States Military Cancer Institute 
     for its worthy contributions to cancer research, prevention, 
     and treatment.
     Use of civilian experts as consultants
       The Senate amendment contained a provision (sec. 1310) that 
     would clarify that nothing contained in amendments to this 
     title should be construed to limit the authority of the 
     Secretary of Defense to procure the services of experts 
     outside the Federal Government for performing any function to 
     comply with requirements for readiness tracking and health 
     surveillance.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees expect that the Secretary will use existing 
     authority to procure the services of outside experts as 
     needed for any of the requirements of this title.

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

                     Legislative Provisions Adopted

             Subtitle A--Acquisition Policy and Management

     Software-related program costs under major defense 
         acquisition programs (sec. 801)
       The Senate amendment contained a provision (sec. 802) that 
     would modify existing quarterly acquisition reports submitted 
     to Congress by the Secretary of Defense to include 
     information on significant changes in the cost, schedule, or 
     performance of the computer software component of each major 
     defense acquisition program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would delay the 
     effective date of the provision.
     Internal controls for Department of Defense procurements 
         through General Services Administration Client Support 
         Centers (sec. 802)
       The Senate amendment contained a provision (sec. 803) that 
     would prohibit Department of Defense officials from placing 
     orders in excess of $100,000 through a Client Support Center 
     (CSC) of the Federal Technology Service of the General 
     Services Administration (GSA) until the Department Inspector 
     General, in consultation with the GSA Inspector General, 
     determines that the CSC has in place the policies, 
     procedures, and internal controls necessary to ensure 
     compliance with requirements of law and regulation.

[[Page H9550]]

       The House bill contained no similar provision.
       The House recedes with an amendment that would: (1) extend 
     the time frame for Inspector General review of the policies, 
     procedures, and internal controls of the GSA Client Support 
     Centers; (2) permit the Department to continue contracting 
     for an additional year with any CSC that is making 
     significant progress toward implementing effective policies, 
     procedures, and internal controls; (3) require a second 
     Inspector General review and determination at the end of the 
     additional year; and (4) authorize the Under Secretary of 
     Defense for Acquisition, Technology and Logistics to continue 
     contracting through a CSC that has failed to implement 
     appropriate policies, procedures, and internal controls, if 
     he determines that it is necessary to do so in the interest 
     of the Department.
     Defense commercial communications satellite services 
         procurement process (sec. 803)
       The Senate amendment contained a provision (sec. 804) that 
     would require the Secretary of Defense to review alternative 
     mechanisms for procuring commercial satellite services, and 
     provide guidance to the Director of the Defense Information 
     Services Agency and the secretaries of the military 
     departments on how such procurements should be conducted.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     reporting requirement, and require a 30 day waiting period 
     after the submission of the report during which the Secretary 
     could not enter into a new contract for commercial satellite 
     services unless the Secretary determines that such a contract 
     is required to meet urgent national security requirements.
     Contractor performance of acquisition functions closely 
         associated with inherently governmental functions (sec. 
         804)
       The Senate amendment contained a provision (sec. 867) that 
     would limit contracting for functions closely associated with 
     inherently governmental functions unless the Secretary of 
     Defense determines that: (1) appropriate military or civilian 
     personnel are not available to perform such function; (2) 
     appropriate military or civilian personnel are able to 
     supervise and perform all inherently governmental functions; 
     and (3) the contractor to perform the function does not have 
     an organizational conflict of interest or the appearance of 
     an organizational conflict of interest.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     applicability of the provision, and require the agency to 
     address any potential contractor organizational conflict of 
     interest consistent with subpart 9.5 of part 9 of the Federal 
     Acquisition Regulation and the best interest of the 
     Department of Defense.
     Sustainment plans for existing systems while replacement 
         systems are under development (sec. 805)
       The House bill contained a provision (sec. 821) that would 
     require the Department of Defense to plan and budget for the 
     sustainment and modernization of current military systems 
     until such time that the replacement system under development 
     is fielded and assumes responsibility for the mission.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would clarify the 
     requirements of the provision and delete annual review and 
     reporting requirements.
     Applicability of competition exceptions to eligibility of 
         National Guard for financial assistance for performance 
         of additional duties (sec. 806)
       The Senate amendment contained a provision (sec. 863) that 
     would clarify that exceptions to competition requirements 
     provided in the Competition in Contracting Act (10 U.S.C. 
     2304), apply to support activities provided by the Army 
     National Guard under the authority of section 113(b) of title 
     32, United States Code.
       The House bill contained no similar provision.
       The House recedes.
     Inflation adjustment of acquisition-related dollar thresholds 
         (sec. 807)
       The House bill contained a provision (sec. 807) that would 
     authorize the Federal Acquisition Regulatory Council to amend 
     the dollar threshold of procurement statutes in accordance 
     with inflationary rates in order to maintain the constant 
     dollar value of the threshold. This section would not 
     authorize adjustments to the Davis-Bacon Act (40 U.S.C. 
     276(a)), the Service Contract Act of 1965 (Public Law 89-
     286), or title III of the Trade Agreements Act of 1979 
     (Public Law 96-39).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would: (1) codify 
     the provision in the Office of Federal Procurement Policy 
     Act; (2) make adjustment to acquisition thresholds mandatory 
     rather than discretionary to ensure that all thresholds are 
     adjusted in the same way; (3) establish a petition process 
     for thresholds omitted by the Federal Acquisition Regulatory 
     Council; (4) supercede other inflation adjustment statutes to 
     ensure there is no conflicting authority; and (5) address 
     procurement thresholds enacted in law after October 1, 2000.

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

     Rapid acquisition authority to respond to combat emergencies 
         (sec. 811)
       The House bill contained a provision (sec. 801) that would 
     authorize the Secretary of Defense to establish a streamlined 
     acquisition process for use when combat fatalities have 
     occurred, the combatant commander has an urgent need of 
     equipment, and delay would cause a continuation of combat 
     fatalities. This process is to be used as a `quick start' 
     bridge to the normal acquisition process.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would incorporate 
     the new authority into section 806 of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003 (Public Law 
     107-314), provide for waivers to be made on a case-by-case 
     basis, and clarify that a program initiated under this 
     authority must transition to the traditional acquisition 
     process within two years.
     Defense acquisition workforce improvements (sec. 812)
       The House bill contained a provision (sec. 802) that would 
     amend various sections of the Defense Acquisition Workforce 
     Improvement Act, chapter 87 of title 10, United States Code.
       The Senate amendment contained a similar provision (sec. 
     842).
       The House recedes with an amendment that would: (1) clarify 
     the selection criteria for the acquisition corps and for 
     critical acquisition positions; and (2) streamline the 
     provision addressing scholarship program requirements.
     Period for multiyear task and delivery order contracts (sec. 
         813)
       The House bill contained a provision (sec. 803) that would 
     amend section 2304(a) of title 10, United States Code, to 
     clarify time limitations for options in task and delivery 
     order contracts.
       The Senate amendment contained a similar provision (sec. 
     812).
       The House recedes with an amendment to limit the base 
     period of a task and delivery order contract to five years, 
     with options for up to an additional five years, for a total 
     period of not more than ten years. Task and delivery order 
     contracts may have more than five option years, if the head 
     of an agency determines in writing that exceptional 
     circumstances necessitate a longer contract period.
     Funding for contract ceilings for certain multiyear 
         procurement contracts (sec. 814)
       The House bill contained a provision (sec. 804) that would 
     amend section 2306b(g) and section 2306c(d) of title 10, 
     United States Code, to require the head of the agency 
     concerned to provide written notification to the 
     congressional defense committees in those instances when 
     cancellation costs that are above $100.0 million are not 
     fully funded. The written notification would include a 
     financial risk assessment for not fully funding the 
     cancellation ceiling.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would not require 
     the head of the agency to identify up-front funding sources 
     for potential contract cancellation.
     Increased threshold for senior procurement executive approval 
         of use of procedures other than competitive procedures 
         (sec. 815)
       The Senate amendment contained a provision (sec. 811(a)) 
     that would raise from $50.0 million to $75.0 million the 
     threshold in section 2304(f)(1)(B)(iii) of title 10, United 
     States Code, for requiring approval of the senior procurement 
     executive of an agency to award contracts under other than 
     competitive procedures.
       The House bill contained no similar provision.
       The House recedes.
       Section 811(b) of the Senate amendment is addressed 
     elsewhere in this conference report.
     Increased threshold for applicability of requirement for 
         defense contractors to provide information on 
         subcontracting authority of contractor personnel to 
         cooperative agreement holders (sec. 816)
       The House bill contained a provision (sec. 805) that would 
     increase from $500,000 to $1.0 million the threshold in 
     section 2416(d) of title 10, United States Code, at which 
     contractors must provide to cooperative agreement holders a 
     listing of the names and contact information of each 
     contractor employee who has authority to enter into 
     contracts, including subcontracts.
       The Senate amendment contained a similar provision (sec. 
     811(b)).
       The Senate recedes.
       Section 811(a) of the Senate amendment is addressed 
     elsewhere in this conference report.
     Extension of authority for use of simplified acquisition 
         procedures (sec. 817)
       The House bill contained a provision (sec. 806) that would 
     amend section 4202(e) of the Clinger-Cohen Act of 1996 
     (Public Law 104-106) by extending until October 1, 2009, the 
     time frame in which the secretary of an executive agency may 
     use simplified procedures to purchase commercial items that 
     have a value of $5.0 million or less.

[[Page H9551]]

       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would extend this 
     authority for two years.
     Submission of cost or pricing data on noncommercial 
         modifications of commercial items (sec. 818)
       The Senate amendment contained a provision (sec. 813) that 
     would require contractors for Department of Defense contracts 
     to submit cost or pricing data on noncommercial modifications 
     to commercial items, if the modifications are expected to 
     cost in excess of $500,000.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     requirement to apply to noncommercial modifications that are 
     expected to cost in excess of $500,000 or five percent of the 
     total price of the contract, whichever is greater.
     Delegations of authority to make determinations relating to 
         payment of defense contractors for business restructuring 
         costs (sec. 819)
       The Senate amendment contained a provision (sec. 814) that 
     would permit the Secretary of Defense to delegate below the 
     level of an Assistant Secretary of Defense the authority to 
     pay defense contractors for restructuring costs associated 
     with business combinations in cases where the amount of 
     restructuring costs over a five year period is expected to be 
     under $25.0 million. In no case could this authority be 
     delegated below the Director of the Defense Contract 
     Management Agency.
       The House bill contained no similar provision.
       The House recedes.
     Availability of Federal supply schedule supplies and services 
         to United Service Organizations, Incorporated (sec. 820)
       The Senate amendment contained a provision (sec. 870) that 
     would clarify that the Secretary of Defense may provide the 
     United Service Organizations access to the Federal Supply 
     Schedule of the General Services Administration.
       The House bill contained no similar provision.
       The House recedes.
     Addition of landscaping and pest control services to list of 
         designated industry groups participating in the small 
         business competitiveness demonstration program (sec. 821)
       The House bill contained a provision (sec. 3601) that would 
     add landscaping and pest control services to the list of 
     designated industry groups participating in the small 
     business competitiveness demonstration program.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Increased thresholds under special emergency procurement 
         authority (sec. 822)
       The conferees agree to include a provision that would 
     increase the dollar thresholds below which the Department of 
     Defense may use streamlined acquisition procedures for 
     purchases outside the United States in support of a 
     contingency operation or to facilitate the defense against or 
     recovery from nuclear, biological, chemical, or radiological 
     attack against the United States. The provision included in 
     the conference report would raise the simplified acquisition 
     threshold for such purchases from $500,000 to $1,000,000 and 
     it would raise the micropurchase threshold for such purchases 
     from $15,000 to $25,000.

      Subtitle C--United States Defense Industrial Base Provisions

     Defense trade reciprocity (sec. 831)
       The House bill contained a provision (sec. 811) that would 
     limit the ability of the Secretary of Defense to purchase 
     defense items from countries that impose offset regulations 
     or policies on purchases of defense items from the United 
     States.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to develop a defense acquisition trade 
     policy designed to eliminate any adverse impact of offset 
     agreements in defense trade.
     Assessment and report on the acquisition of polyacrylonitrile 
         (PAN) carbon fiber from foreign sources (sec. 832)
       The House bill contained a provision (sec. 813) that would 
     require the Secretary of Defense to delay phasing out of the 
     restriction of acquisition of polyacrylonitrile (PAN) carbon 
     fiber from foreign sources for three years.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would delay the 
     phase out of the domestic source restriction for PAN carbon 
     fibers for 30 days after the Secretary of Defense provides to 
     the Committees on Armed Service of the Senate and the House 
     of Representatives a report on an assessment of the domestic 
     and international industrial structure that produces PAN 
     carbon fibers and market trends for the product.

        Subtitle D--Extensions of Temporary Program Authorities

     Extension of mentor-protege program (sec. 841)
       The Senate amendment contained a provision (sec. 822) that 
     would extend for five years the pilot Mentor-Protege program 
     established by section 831 of the National Defense 
     Authorization Act for Fiscal Year 1991 (Public Law 101-510).
       The House amendment contained no similar provision.
       The House recedes with an amendment requiring a review of 
     the implementation and effectiveness of the Mentor-Protege 
     program.
     Amendment to mentor-protege program (Sec. 842)
       The Senate amendment contained a provision (sec. 1083) that 
     would permit HUBZone small business concerns and small 
     business concerns owned and controlled by service-disabled 
     veterans to participate in the Department of Defense's 
     Mentor-Protege program.
       The House bill contained no similar provision.
       The House recedes.
     Extension of test program for negotiation of comprehensive 
         small business subcontracting plans (sec. 843)
       The Senate amendment contained a provision (sec. 823) that 
     would extend for five years the test program for negotiation 
     of comprehensive small business subcontracting plans 
     established by section 834 of the National Defense 
     Authorization Act for Fiscal Years 1990 and 1991 (Public Law 
     101-189). Under the test program, prime contractors may 
     submit a plan designed to provide the maximum subcontracting 
     opportunity for small, disadvantaged, and women-owned small 
     business concerns that covers all anticipated contracts on a 
     plant, division, or corporate basis, rather than for each 
     Federal contract and subcontract of more than $500,000 (or 
     $1.0 million in the case of construction contracts) awarded 
     as required under section 8(d) of the Small Business Act 
     (Public Law 85-536, as amended).
       The House bill contained no similar provision.
       The House recedes.
     Extension of pilot program on sales of manufactured articles 
         and services of certain Army industrial facilities (sec. 
         844)
       The Senate amendment contained a provision (sec. 824) that 
     would extend for five years the pilot program for the sale of 
     manufactured articles and services from Army industrial 
     facilities enacted in the National Defense Authorization Act 
     for Fiscal Year 1998 (Public Law 105-85). This program tests 
     the efficiency and appropriateness of selling manufactured 
     articles and services at Army facilities under the authority 
     of section 4543 of title 10, United States Code, without 
     regard to the availability of the articles and services from 
     U.S. commercial sources.
       The House bill contained no similar provision.
       The House recedes.

                 Subtitle E--Other Acquisition Matters

     Review and demonstration project relating to contractor 
         employees (Sec. 851)
       The House bill contained a provision (sec. 822) that would 
     require the Secretary of Defense to conduct a review of 
     Department of Defense policies, procedures, and practices 
     relating to employees of defense contractors and their 
     subcontractors. The provision also require the Secretary to 
     conduct a demonstration program for the procurement of 
     military construction, renovation, maintenance or repair 
     service on military installations to ensure employees are 
     properly authorized to be employed in the United States and 
     properly qualified to perform the services required under the 
     contract.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would give the 
     Secretary of Defense general discretion over the types of 
     procurement procedures used in the demonstration project.
     Inapplicability of certain fiscal laws to settlements under 
         special temporary contract closeout authority (sec. 852)
       The Senate amendment contained a provision (sec. 861) that 
     would clarify the authority to settle financial accounts for 
     old contracts that have unreconciled balances of less than 
     $100,000 under section 804 of the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136).
       The House bill contained no similar provision.
       The House recedes.
     Contracting with employers of persons with disabilities (sec. 
         853)
       The Senate amendment contained a provision (sec. 868) that 
     would provide for the continuation and completion of existing 
     contracts (including any options) awarded to the blind and 
     severely disabled for the operation of military troop dining 
     facilities, military mess halls, and other similar military 
     dining facilities.
       The House bill contained no similar provision.
       The House recedes with an amendment that would cover 
     contracts awarded under the Randolph-Sheppard Act (28 U.S.C. 
     107).
     Defense procurements made through contracts of other agencies 
         (sec. 854)
       The Senate amendment contained a provision (sec. 815) that 
     would prohibit the Department of Defense from paying more 
     than a 1 percent service charge for using other agency 
     contracts to purchase goods and services.
       The House bill contained no similar provision.
       The House recedes with an amendment that would delete the 
     prohibition on paying fees in excess of 1 percent of the 
     amount charged by the contractor and substitute: (1)

[[Page H9552]]

     a requirement that the procurement is done in accordance with 
     military department or defense agency procedures for 
     reviewing and approving the use of non-Department contracts; 
     and (2) a reporting requirement for all service charges 
     imposed on purchases in amounts greater than the simplified 
     acquisition threshold in fiscal years 2005 and 2006. 
     Approvals of inter-agency transactions under this provision 
     should be in writing, with supporting rationale, and retained 
     in an official file.
       The conferees expect the Department's review and approval 
     procedures to ensure that any fees are reasonable in relation 
     to the work actually performed by the contracting agency. The 
     conferees do not believe that the Department should pay fees 
     in excess of 1 percent to an outside agency that merely acts 
     as a conduit for Department requirements. The conferees are 
     particularly concerned that in some instances, the 
     Department's orders appear to have been awarded to 
     contractors who charge their own fees for directing the work 
     to preferred subcontractors without providing any value 
     added.
       The conferees also expect the Department's review and 
     approval procedures to ensure that the goods or services to 
     be procured are within the scope of the non-Department 
     contract vehicle, and that the supplies or services to be 
     acquired are consistent with the appropriated funding to be 
     utilized. In addition, the Department's review and approval 
     procedures should ensure that orders placed against non-
     Department contracts are in compliance with all applicable 
     Department-unique statutes, regulations, directives, and 
     other requirements prior to approval. The use of multiple 
     award contracts must be consistent with the requirements of 
     section 803 of the National Defense Authorization Act for 
     Fiscal Year 2002 (Public Law 107-107 (Competition 
     Requirements for Purchase of Services Pursuant to Multiple 
     Award Contracts)); Part 8.002 of the Federal Acquisition 
     Regulation (Priorities for Use of Government Supply Sources); 
     Part 17.5 of the Federal Acquisition Regulation (Interagency 
     Acquisitions under the Economy Act); and the Department of 
     Defense Instruction 4000.19 (Interservice and 
     Intergovernmental Support). Purchases of information 
     technology should also be consistent with Department 
     information security requirements and the requirements of the 
     Department business system enterprise architecture and 
     transition plan. Officials should be familiar with the 
     requirements of the basic contract and should provide to the 
     assisting agency any Department-unique requirements 
     associated with the acquisition.
     Requirements relating to source selection for integrated 
         support of aerial refueling aircraft fleet for the Air 
         Force (sec. 855)
       The Senate amendment contained a provision (sec. 871) that 
     would require the Secretary of Defense to prevent the 
     Secretary of the Air Force from proceeding with the 
     acquisition of aerial refueling aircraft, by lease or other 
     contract, either with full and open competition or under 
     section 135 of the National Defense Authorization Act for 
     Fiscal Year 2004 (Public Law 108-136) until 60 days after the 
     Secretary of Defense has reviewed applicable documentation 
     and submitted a determination to the congressional defense 
     committees that the acquisition is in compliance with all 
     currently applicable laws, Office of Management and Budget 
     circulars, and regulations. The provision would also require 
     an independent review of the acquisition by the Comptroller 
     General and the Inspector General of the Department of 
     Defense. The provision would also require operational testing 
     prior to proceeding beyond low-rate initial production of the 
     aircraft. The provision would also require a competition for 
     the integrated support of the aircraft, and require pricing 
     information with respect to commercial items covered by the 
     lease or contract. The provision would also require the 
     Secretary of the Air Force to contact the Inspector General 
     of the Department of Defense to review and approve any Air 
     Force use of non-Federal audit services for any lease or 
     other contract for the acquisition of aerial refueling 
     aircraft.
       The House bill contained no similar provision.
       The House recedes with an amendment to require the 
     Department to review the costs and benefits of using federal 
     employees or contractors for the logistics support of any new 
     tanker aircraft and, if the Air Force chooses to use a 
     contractor for this support, that any such contract be 
     conducted under the procedures of the Competition in 
     Contracting Act.
       The conferees understand that the Department is working on 
     a new aerial refueling validated capabilities document in 
     accordance with applicable Chairman of Joint Chiefs 
     Instructions. The conferees also note that on February 24, 
     2004, the Acting Undersecretary of Defense for Acquisition, 
     Technology and Logistics directed the Secretary of the Air 
     Force to conduct an analysis of alternatives (AOA) for 
     recapitalizing the KC-135 fleet as required by section 134(b) 
     of the National Defense Authorization Act for Fiscal Year 
     2004 (Public Law 108-136), and that the Secretary of Defense 
     has directed that this analysis, along with a completed 
     aerial refueling portion of the mobility capabilities study 
     be accelerated. In addition, at the direction of the 
     Secretary, the National Defense University, the Defense 
     Science Board and the Department of Defense Inspector General 
     prepared independent evaluations on various aspects of the 
     aerial tanker refueling issue. The conferees expect that the 
     Secretary of Defense will fully consider all of the 
     recommendations from these studies and reports prior to 
     proceeding with the acquisition of aerial refueling aircraft 
     for the Air Force.

                   Legislative Provisions Not Adopted

     Responsibilities of acquisition executives and chief 
         information officers under the Clinger-Cohen Act
       The Senate amendment contained a provision (sec. 801) that 
     would require that the Clinger-Cohen Act requirements as 
     applied to weapons and weapon systems be administered by 
     senior acquisition executives of the three military services 
     and overseen by a board of senior acquisition officials.
       The House bill contained no similar provision.
       The Senate recedes.
       The Clinger-Cohen Act (40 U.S.C. 113) establishes 
     requirements for capital planning, investment control, and 
     performance and results-based management processes in the 
     acquisition of information technology. While the Clinger-
     Cohen Act designates that the Chief Information Officer (CIO) 
     is responsible for information technology in general, the Act 
     does not specify who within the Department of Defense is 
     responsible for administering these requirements for 
     information technology embedded in major weapon systems. The 
     Department's current practice is to administer the 
     requirements of the Clinger-Cohen Act through the 
     Department's CIO, even for information technology embedded in 
     major weapon systems that are acquired by senior acquisition 
     executives of the military departments. This approach raises 
     the possibility of overlapping responsibilities and 
     inefficient and/or duplicative procedures for the acquisition 
     of information technology embedded in major weapon systems.
       Therefore, the conferees direct the Secretary of Defense to 
     review the Department's current approach to implementing the 
     requirements of the Clinger-Cohen Act with respect to 
     information technology embedded in major weapon systems; the 
     conferees also direct the Secretary to identify any 
     overlapping responsibilities and inefficient and/or 
     duplicative procedures arising from possible dual 
     responsibilities of the CIO and senior acquisition executives 
     for the acquisition of such information systems. The 
     conferees further direct the Secretary to report to the 
     congressional defense committees and the Committee on 
     Governmental Affairs of the Senate and the Committee on 
     Governmental Reform of the House of Representatives no later 
     than June 15, 2005, on the Department's strategy for 
     addressing any such overlapping responsibilities and 
     inefficient and/or duplicative procedures, including any 
     legislative changes that the Secretary may choose to 
     recommend.
     Revision and extension of authority for advisory panel on 
         review of government procurement laws and regulations
       The Senate amendment contained a provision (sec. 805) that 
     would revise and extend the authority for the advisory panel 
     on the review of government procurement laws and regulations 
     established by section 1423 of the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136).
       The House bill contained no similar provision.
       The Senate recedes.
     Amendments to domestic source requirements
       The House bill contained a provision (sec. 812) that would 
     amend section 2533a of title 10, United States Code, also 
     known as the Berry Amendment, to require the Secretary of 
     Defense to notify Congress and the public when the Secretary 
     exercises a waiver and describe certain covered items as 
     clothing.
       The Senate amendment contained no similar provision.
       The House recedes.
     Grant program for defense contractors to implement strategies 
         to avoid outsourcing of jobs
       The House bill contained a provision (sec. 814) that would 
     authorize the Secretary of Defense to award grants to 
     qualified defense contractors in order to assist the 
     contractor in avoiding the outsourcing of jobs.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees recognize that improving competitiveness in 
     the defense industrial base is an effective method of 
     retaining domestic defense jobs and reducing the pressure to 
     outsource jobs.
       The conferees recommend that the Secretary of Defense 
     establish a program to encourage qualified defense 
     contractors to implement cost reduction strategies that would 
     improve competitiveness to avoid the outsourcing of jobs. 
     Examples of such strategies could include retraining 
     employees, plant upgrades, technology development, and other 
     production cost-cutting measures.
     Preference for domestic freight forwarding services
       The House bill contained a provision (sec. 815) that would 
     require the Secretary of Defense to grant preferences to 
     freight forwarder companies owned and controlled by U.S. 
     citizens that offer fair and reasonable rates in the award of 
     transportation service contracts for transportation services 
     to, from, or within Iraq or Afghanistan.
       The Senate amendment contained no similar provision.
       The House recedes.

[[Page H9553]]

     Sense of the Senate of effects of cost inflation on the value 
         of the contracts to which a small business contract 
         reservation applies
       The Senate amendment contained a provision (sec. 816) that 
     would express the sense of the Senate that the thresholds for 
     the requirement for the reservation of contracts for small 
     businesses and the use of simplified acquisition procedures 
     should be adjusted in the same amount when adjusting these 
     thresholds for inflation.
       The House bill contained no similar provision.
       The Senate recedes.
     Extension of contract goal for small disadvantaged businesses 
         and certain institutions of higher education
       The Senate amendment contained a provision (sec. 821) that 
     would extend section 2323 of title 10, United States Code, 
     for three years.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that section 2323, which establishes a 5 
     percent goal for Department of Defense contracting with small 
     disadvantaged businesses and certain institutions of higher 
     education, would continue to be effective until September 
     2006, and that a decision on whether to extend this authority 
     will be deferred to later legislation.
     Defense acquisition workforce limitations
       The House bill contained a provision (sec. 823) that would 
     require a 5 percent reduction in the number of defense 
     acquisition and support personnel in the Department of 
     Defense on or before October 1, 2005.
       The Senate amendment contained a provision (sec. 841) that 
     would require a 15 percent increase in the defense 
     acquisition and support workforce during fiscal years 2005 
     through 2007.
       The conference report does not include either provision.
     Provision of information to Congress to enhance transparency 
         in contracting
       The House bill contained a provision (sec. 824) that would 
     require the Secretary of Defense to provide information on 
     contracts and task or delivery orders to the chairmen or 
     ranking members of the Committees on Armed Services of the 
     Senate and the House of Representatives, within 14 days of 
     the request.
       The Senate amendment contained no similar provision.
       The House recedes.
     Requirement to treat sureties in same manner as financing 
         institutions when contractors default
       The House bill contained a provision (sec. 825) that would 
     require that sureties be treated in the same manner as 
     financing institutions in cases of contractor default.
       The Senate amendment contained no similar provision.
       The House recedes.
     Provisions relating to creation of jobs in the United States 
         by defense contractors
       The House bill contained a provision (sec. 826) that would 
     require that the creation of jobs in the United States be 
     used as an evaluation factor in defense procurements.
       The Senate amendment contained no similar provision.
       The House recedes.
     Commission on the future of the national technology and 
         industrial base
       The Senate amendment contained a provision (sec. 831) that 
     would require the President to establish a commission to 
     assess the future of the national technology and industrial 
     base as defined by section 2500 of title 10, United States 
     Code.
       The House bill contained no similar provision.
       The Senate recedes.
     Waiver authority for domestic source or content requirements
       The Senate amendment contained a provision (sec. 832) that 
     would provide the Secretary of Defense the authority to waive 
     the application of statutory domestic source requirements and 
     domestic content requirements for those countries who have 
     signed a Declaration of Principles on defense trade with the 
     United States.
       The House bill contained no similar provision.
       The Senate recedes.
     Consistency with United States obligations under trade 
         agreements
       The Senate amendment contained a provision (sec. 833) that 
     would require that no provision of this Act, or any amendment 
     made by this Act, shall apply if the Secretary of Defense, in 
     consultation with the Secretary of Commerce, the U.S. Trade 
     Representative, and the Secretary of State determines that 
     the application of the provision would be inconsistent with 
     international trade agreements of the United States.
       The House bill contained no similar provision.
       The Senate recedes.
     Repeal of certain requirements and limitations relating to 
         the defense industrial base
       The Senate amendment contained a provision (sec. 834) that 
     would repeal sections 812, 813, 814, and 821 of the National 
     Defense Authorization Act for Fiscal Year 2004 (Public Law 
     108-136).
       The House bill contained no similar provision.
       The Senate recedes.
     Report on contractor performance of security, intelligence, 
         law enforcement, and criminal justice functions in Iraq
       The Senate amendment contained a provision (sec. 865) that 
     would require the Secretary of Defense to report to the 
     congressional defense committees on contractor performance of 
     security, intelligence, law enforcement, and criminal justice 
     functions in Iraq.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to include the intent of this provision 
     in a related provision in this conference report.
     Accreditation study of commercial, off-the-shelf processes 
         for evaluating information technology products and 
         services
       The Senate amendment contained a provision (sec. 866) that 
     would require the Secretary of Defense to carry out a study 
     of commercial, off-the-shelf processes available to measure 
     the quality of information technology, and to determine 
     whether to accredit such a process for use in procurement of 
     information technology and related services throughout the 
     Department of Defense.
       The House bill contained no similar provision.
       The Senate recedes.
     Energy savings performance contracts
       The Senate amendment contained a provision (sec. 869) that 
     would require the Secretary of Defense to exercise existing 
     authority to introduce life-cycle, cost-effective upgrades to 
     federal assets through shared, energy savings contracting; 
     demand management programs; and utility incentive programs.
       The House bill contained no similar provision.
       The Senate recedes.
     Comptroller General analysis of use of transitional benefit 
         corporations in connection with competitive sourcing of 
         performance of Department of Defense activities and 
         functions
       The Senate amendment contained a provision (sec. 1029) that 
     would require the Comptroller General to review the potential 
     for use of transitional benefit corporations in connection 
     with competitive sourcing of the performance of activities 
     and functions of the Department of Defense.
       The House amendment contained no similar provision.
       The Senate recedes. The manner in which employee benefits 
     are addressed in public-private competitions is addressed in 
     a separate section of the conference report.
     Study of effect on defense industrial base of elimination of 
         United States domestic firearms manufacturing base
       The House bill contained a provision (sec. 1042) that would 
     require the Secretary of Defense to submit to the 
     congressional defense committees, within 60 days of enactment 
     of this Act, a report detailing the impact on military 
     readiness and the defense industrial infrastructure of the 
     elimination of the U.S. domestic firearms manufacturing base 
     as a result of ongoing civil litigation.
       The Senate amendment contained no similar provision.
       The House recedes.
     Determination of whether private air carriers are controlled 
         by United States citizens for purposes of eligibility for 
         government contracts for transportation of passengers or 
         supplies
       The House bill contained a provision (sec. 1063) that would 
     amend section 2710 of the Emergency Wartime Supplemental 
     Appropriations Act, 2003 (Public Law 108-11), to clarify that 
     the Secretary of Transportation is responsible for certifying 
     whether an air carrier is effectively controlled by citizens 
     of the United States.
       The Senate amendment contained no similar provision.
       The House recedes.
     Report on offset requirements under certain contracts
       The Senate amendment contained a provision (sec. 1093) that 
     would add additional reporting requirements to the report 
     required under section 8138(b) of the Department of Defense 
     Appropriations Act for Fiscal Year 2004 (Public Law 108-199).
       The House bill contained no similar provision.
       The Senate recedes.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

                     Legislative Provisions Adopted

       Subtitle A--Duties and Functions of Department of Defense

     Study of roles and authorities of the Director of Defense 
         Research and Engineering (sec. 901)
       The Senate amendment contained a provision (sec. 911) that 
     would require the Secretary of Defense, through the Defense 
     Science Board, to carry out a study of the roles and 
     authorities of the Director, Defense Research and 
     Engineering.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Change of membership of specified council (sec. 902)
       The House bill contained a provision (sec. 905) that would 
     amend sections 171 and 179, title 10, United States Code, to 
     include the Commandant of the Coast Guard as a member of the 
     Armed Forces Policy Council

[[Page H9554]]

     (AFPC) and include the Under Secretary of Defense for Policy 
     (USD,P) on the Nuclear Weapons Council (NWC).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would include the 
     USD,P on the NWC, but would leave the membership of the AFPC 
     unchanged.
       The conferees believe that the addition of the USD,P should 
     allow the other members of the NWC to become more closely 
     involved with nuclear related policy decisions. Additionally, 
     the change will make the decisions that flow from the NWC 
     more responsive to policy direction. The conferees note that 
     this is the first time an additional member has been added to 
     the NWC since its inception in 1987. The conferees expect the 
     next two annual reports of the NWC required by subparagraph 
     (f) of section 179 of title 10, United States Code, will 
     discuss implementation of this provision.

                      Subtitle B--Space Activities

     Space posture review (sec. 911)
       The Senate amendment contained a provision (sec. 1031) that 
     would require the Secretary of Defense, jointly with the 
     Director of Central Intelligence, to conduct a comprehensive 
     review of the space posture of the United States for the 
     period of the next 10 years. The provision also would require 
     the Secretary and Director to provide an interim report on 
     that review to congressional defense and intelligence 
     committees by March 15, 2005 and a final report by December 
     31, 2005.
       The House bill amendment contained no similar provision.
       The House recedes with a clarifying amendment.
     Panel on the future of national security space launch (sec. 
         912)
       The Senate amendment contained a provision (sec. 1032) that 
     would establish a panel to examine the future military space 
     launch requirements of the United States and the means of 
     meeting such requirements.
       The House bill contained no similar provision.
       The House recedes with an amendment that would establish a 
     panel to examine the future national security space launch 
     requirements of the United States and the means of meeting 
     such requirements.
       The conferees expect that the panel will consider the full 
     range of national security space launch requirements.
     Operationally responsive national security satellites (sec. 
         913)
       The Senate amendment contained a provision (sec. 1033) that 
     would establish a separate program element for operationally 
     responsive satellite payloads managed by the Office of Force 
     Transformation of the Office of the Secretary of Defense. The 
     provision would also authorize $25.0 million for the new 
     program element.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees agree to authorize an increase of $20.0 
     million in PE 65799D8Z for operationally responsive payloads.
     Nondisclosure of certain products of commercial satellite 
         operations (sec. 914)
       The Senate amendment contained a provision (sec. 1034) that 
     would exempt from disclosure under the Freedom of Information 
     Act (FOIA), section 552 of title 5, United States Code, data 
     that are collected by land remote sensing and are prohibited 
     from sale to customers other than the United States and its 
     affiliated users under the Land Remote Sensing Policy Act of 
     1992, section 5601 et seq. of title 15, United States Code. 
     The exemption would also include any imagery and other 
     product that is derived from such data. State and local laws 
     mandating disclosure would be preempted.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify that 
     the restrictions imposed on such data or imagery are imposed 
     for reasons of national security pursuant to the terms of 
     operating licenses issued pursuant to the Land Remote Sensing 
     Policy Act, and that would extend the preemption to include 
     tribal law. The amendment would also provide that nothing in 
     this section shall be construed to authorize the withholding 
     of information from Congress.

                Subtitle C--Intelligence-Related Matters

     Two-year extension of authority of the Secretary of Defense 
         to engage in commercial activities as security for 
         intelligence collection activities abroad (sec. 921)
       The House bill contained a provision (sec. 1071) that would 
     amend section 431(a) of title 10, United States Code, to 
     extend by two years, to December 31, 2006, the authority of 
     the Secretary of Defense to engage in commercial activities 
     necessary to provide security for authorized intelligence 
     collection activities abroad.
       The Senate amendment contained an identical provision (sec. 
     1062).
       The conference agreement includes this provision.
     Pilot program on cryptologic service training (sec. 922)
       The Senate amendment contained a provision (sec. 1090) that 
     would allow the Director of the National Security Agency 
     (NSA) to establish a pilot program for cryptologic service 
     training by way of scholarships for college study in order to 
     increase the number of qualified language analysts and 
     intelligence analysts available to work at NSA or other 
     elements of the intelligence community.
       The House bill contained no similar provision.
       The House recedes.

                       Subtitle D--Other Matters

     Strategic plan for destruction of lethal Chemical Agents and 
         Munitions Stockpile (sec. 931)
       The conferees agree to include a provision that would 
     require the Under Secretary of Defense for Acquisition, 
     Technology and Logistics and the Secretary of the Army, who 
     is responsible for executing the Chemical Agents and 
     Munitions Destruction program, to jointly prepare a strategic 
     plan for the future activities of the Chemical 
     Demilitarization program. The plan shall include, at a 
     minimum, consideration of realistic budgeting for stockpile 
     destruction and related support programs; contingency 
     planning for foreseeable or anticipated problems; and a 
     management approach and associated actions that are designed 
     to ensure full compliance with U.S. obligations under the 
     Chemical Weapons Convention, and that take full advantage of 
     opportunities to accelerate destruction of the chemical 
     stockpile. The plan shall be updated yearly, and submitted 
     each year by the Secretary of Defense to the Committees on 
     Armed Services of the Senate and the House of Representatives 
     with the President's budget submission for the next fiscal 
     year.
     Secretary of Defense criteria for and guidance on 
         identification and internal transmission of critical 
         information (sec. 932)
       The House bill contained a provision (sec. 908) that would 
     require the Secretary of Defense to establish criteria for 
     determining the types of critical information required to be 
     made known expeditiously to senior decision makers in the 
     Department of Defense. The Secretary should provide guidance 
     for the purpose of identifying such information to the 
     secretaries of the military departments, the commanders of 
     deployed forces, and other elements of the Department. The 
     provision would also establish minimum criteria for such 
     information, and would require the Secretary to establish a 
     policy for the expeditious transmission of any report or 
     evaluation at any level of the Department that results in the 
     identification of any such information to the Secretary and 
     the Joint Chiefs of Staff. The guidance is to be issued by 
     the Secretary not later than 90 days after enactment.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.

                   Legislative Provisions Not Adopted

     Change in title of Secretary of the Navy to Secretary of the 
         Navy and Marine Corps
       The House bill contained a provision (sec. 901) that would 
     change the title of the Secretary of the Navy to the 
     Secretary of the Navy and Marine Corps.
       The Senate amendment contained no similar provision.
       The House recedes.
     Transfer of Center for the Study of Chinese Military Affairs 
         from the National Defense University to United States-
         China Economic and Security Review Commission
       The House bill contained a provision (sec. 902) that would 
     transfer the Center for the Study of Chinese Military Affairs 
     at the National Defense University, established in the 
     National Defense Authorization Act for Fiscal Year 2000 
     (Public Law 106-65) to the United States-China Economic and 
     Security Review Commission, established in the Floyd D. 
     Spence National Defense Authorization Act for Fiscal Year 
     2001 (Public Law 106-398).
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note their strong support for having a Center 
     for the Study of Chinese Military Affairs at the National 
     Defense University, and urge the Secretary of Defense to 
     provide the Institute for National Strategic Studies at the 
     National Defense University with sufficient resources to 
     support a fully operational China Center.
     Transfer to Secretary of the Army responsibility for 
         Assembled Chemical Weapons Alternatives program.
       The House bill contained a provision (sec. 903) that would 
     transfer oversight of the Assembled Chemical Weapons 
     Alternatives program from the Under Secretary of Defense for 
     Acquisition, Technology and Logistics to the Secretary of the 
     Army, and would require the Army to fully implement the 
     alternative technologies previously selected for destruction 
     of lethal chemical munitions at Pueblo Chemical Depot, 
     Colorado, and Blue Grass Army Depot, Kentucky.
       The Senate amendment contained no similar provision.
       The House recedes.
     Modification of obligated service requirements under National 
         Security Education Program
       The House bill contained a provision (sec. 904) that would 
     amend section 802 of the David L. Boren National Security 
     Education Act of 1991 (50 U.S.C. 1902) to modify service 
     requirements, allow service to be conducted in additional 
     agencies of government, establish time frames for 
     commencement of service, and clarify minimum length of 
     service.
       The Senate Amendment contained no similar provision.

[[Page H9555]]

       The House recedes.
     Responses to congressional inquiries
       The House bill contained a provision (sec. 907) that would 
     require the Secretary of Defense and other Department of 
     Defense officials to respond to questions for the record from 
     hearings of the Committees on Armed Services of the Senate 
     and the House of Representatives within 21 days of receiving 
     such questions.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that Department officials frequently 
     take months to respond to questions for the record.
       The two committees conduct hearings to inform Congress and 
     the public on significant issues regarding the operations of 
     the Department. These hearings often serve as the basis for 
     legislative, budget, and policy positions of the two 
     committees. Because officials of the Department are not 
     always prepared to respond to the full range of questions at 
     such hearings, questions for the record form an important 
     part of the record of such hearings.
       Lengthy delays in responding to questions for the record 
     are contrary to the public interest because they delay the 
     availability of critical information to Congress and the 
     public. In many cases, responses are not made available until 
     after the committees have made decisions on legislative, 
     budget, and policy matters to which the information relates. 
     This is not in the interest of either the Congress or the 
     Department.
       The conferees recognize that questions for the record for 
     some hearings are extensive and that, in some instances, the 
     compilation of answers and responses can and does require 
     detailed research and discussion prior to their transmission 
     to the Congress. For this reason, the conferees have 
     determined that it would not be practical to establish a 
     single, uniform deadline for all responses to questions for 
     the record.
       Overall, however, the Department must do a far better job 
     of responding to questions for the record than it has in the 
     recent past. Accordingly, the conferees direct the Secretary 
     of Defense and other officials of the Department to respond 
     to questions for the record within 21 days of receiving such 
     questions, unless the Secretary or other official has 
     informed the committee concerned in writing that he or she 
     will be unable to meet the 21-day deadline and stated the 
     date by which the questions will be answered.
       The conferees note that the Members of the congressional 
     defense committees frequently request information from the 
     Department through letters, meetings, and other mechanisms. 
     The conferees expect that officials of the Department will 
     respond promptly to such inquiries as well.
     Directors of Small Business Programs
       The Senate amendment contained a provision (sec. 912) that 
     would change the title of the Department of Defense's Office 
     of Small and Disadvantaged Business Utilization to the Office 
     of Small Business Programs.
       The House bill contained no similar provision.
       The Senate recedes.

                      TITLE X--GENERAL PROVISIONS

                       Items of Special Interest

     Coordination of Department of Defense Homeland Defense/
         Homeland Security Initiative in Support of First 
         Responders
       The conferees remain concerned about the level of planning 
     and coordination between the Department of Defense and other 
     federal departments and agencies that the Department might be 
     called upon to assist in cases of natural or man-made 
     disasters.
       Therefore, the conferees direct the Secretary of Defense to 
     provide the Committees on Armed Services of the Senate and 
     the House of Representatives a report by March 5, 2005, 
     detailing the Department's strategy and plans to coordinate 
     with the Department of Homeland Security (DHS), the 
     Department of Justice (DoJ), and state, local and tribal 
     governments on command, control and communication problems 
     encountered during man-made and natural disasters. 
     Additionally, the report shall address technology 
     developments and interoperability issues that exist or may 
     exist between the Department and other federal departments, 
     and state, local and tribal first responders, as well as 
     possible solutions to resolve such issues. The conferees 
     encourage the Department to continue its efforts to identify 
     technologies that may serve homeland security purposes, and 
     to make such technologies available to DHS, DoJ and the first 
     responder community.

                     Legislative Provisions Adopted

                     Subtitle A--Financial Matters

     Transfer Authority (sec. 1001)
       The House bill contained a provision (sec. 1001) that would 
     provide $3.0 billion in transfer authority among accounts in 
     division A of this Act for fiscal year 2005.
       The Senate amendment contained a similar provision (sec. 
     1001).
       The conferees agree to a provision that provides $3.5 
     billion in transfer authority.
     United States contribution to NATO common-funded budgets in 
         fiscal year 2005 (sec. 1002)
       The Senate amendment contained a provision (sec. 1002) that 
     would authorize the U.S. contribution to North Atlantic 
     Treaty Organization (NATO) common-funded budgets for fiscal 
     year 2005, including the use of unexpended balances. The 
     resolution of ratification for the Protocol to the North 
     Atlantic Treaty of 1949 on the Accession of Poland, Hungary, 
     and the Czech Republic contained a provision (section 
     3(2)(c)(ii))requiring a specific authorization for U.S. 
     payments to the common-funded budgets of NATO for each fiscal 
     year, beginning in fiscal year 1999, that payments exceed the 
     fiscal year 1998 total.
       The House bill contained no similar provision.
       The House recedes.
     Budget justification documents for operation and maintenance 
         (sec. 1003)
       The House bill contained a provision (sec. 1002) that would 
     amend section 232 of title 10, United States Code, to require 
     additional information be provided with the annual Department 
     of Defense operation and maintenance (O&M) budget 
     presentation, including: the baseline costs for programs in 
     which there is an identified program increase or decrease; 
     the amount of funds requested for personal service contracts 
     and the number of personal service contractors expected to be 
     compensated at an annual rate in excess of the annual rate of 
     pay for the Vice President; identification by the Department 
     of the Navy of funding requested for ship depot maintenance 
     and funding requested for intermediate depot maintenance; and 
     the average civilian salary cost by sub-activity group as a 
     component of the personnel summary. The provision would also 
     require the Secretary of Defense to submit a report to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives by March 1, 2005 that catalogues the elements 
     of ``other costs'' and ``other contracts'' which are 
     currently used in the O&M justification materials of the 
     budget request.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would amend 
     section 232 of title 10, United States Code, to require 
     additional information be provided with the Department of 
     Defense annual O&M budget presentation, including: the 
     baseline costs for programs in which there is an identified 
     program increase or decrease; and identification by the 
     Department of the Navy of funding requested for ship depot 
     maintenance and funding requested for intermediate depot 
     maintenance. The amendment would also require the Secretary 
     of Defense to submit a report to the Committees on Armed 
     Services of the Senate and the House of Representatives by 
     March 1, 2005 that catalogues the elements of other costs and 
     other contracts which are currently used in justification 
     materials of the budget request.
       The conferees note that the Committees on Armed Services of 
     the Senate and the House of Representatives will continue to 
     work with the Department and the services to improve the 
     information included in the annual O&B budget submissions.
     Licensing of intellectual property (sec. 1004)
       The House bill contained a provision (sec. 1003) that would 
     authorize the Secretary concerned, under regulations 
     prescribed by the Secretary of Defense, to license 
     trademarks, service marks, certification marks, and 
     collective marks owned by a military department, and to 
     retain and expend fees received from such licensing. Fees 
     received in excess of the costs of registration and licensing 
     could be expended for recruiting and retention and morale, 
     welfare, and recreation activities of the military 
     department.
       The Senate amendment contained a provision (sec. 1064) that 
     would provide similar authority, but would limit the use of 
     excess fees to morale, welfare, and recreation activities of 
     the military department.
       The House recedes with a technical amendment.
     Repeal of funding restrictions concerning development of 
         medical countermeasures against biological warfare 
         threats (sec. 1005)
       The House bill contained a provision (sec. 1005) which 
     would repeal Section 2370a of title 10, United States Code 
     that set statutory limits on funding concerning the 
     development of medical countermeasures against biological 
     warfare threats.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees intend to monitor the expenditure of funds in 
     this account and expect the Department of Defense to provide 
     briefings to the congressional defense committees on this 
     issue. Although the statutory limits are being lifted, the 
     conferees remain concerned that sufficient funding is not 
     being requested or expended in the various categories for 
     medical countermeasures against biological warfare threats. 
     The conferees urge the Department to program more robust 
     funding for biological defense programs consistent with the 
     needs and objectives of these programs, and expect the 
     Department to use the money authorized to develop medical 
     countermeasures against biological warfare threats.
     Report on budgeting for exchange rates for foreign currency 
         fluctuations (sec. 1006)
       The House bill contained a provision (sec. 1006) that would 
     require the Secretary of Defense to submit to the Committees 
     on Armed Services of the Senate and House of Representatives 
     a report on the foreign currency exchange rate projection 
     used in annual Department of Defense budget presentations.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.

[[Page H9556]]

     Fiscal year 2004 transfer authority (sec. 1007)
       The House bill contained a provision (sec. 1007) that would 
     provide $3.0 billion in transfer authority among accounts in 
     division A of this Act for fiscal year 2004.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would provide 
     $2.8 billion in transfer authority.
     Clarification of fiscal year 2004 funding level for a 
         National Institute of Standards and Technology account 
         (sec. 1008)
       The Senate amendment contained a provision (sec. 1092) that 
     would clarify fiscal year 2004 funding for programs under the 
     National Institute of Standards and Technology Industrial 
     Technology Services account.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Notification of fund transfers from working capital funds 
         (sec. 1009)
       The Senate amendment contained a provision (sec. 312) that 
     would limit the transfer of funds out of, or among, working 
     capital funds. The provision requires the Secretary of 
     Defense to notify the Congress when such transfers are made. 
     The Department of Defense should submit prior approval 
     reprogramming requests, DD Forms 1415-1, to the congressional 
     defense committees in accordance with established procedures.
       The House bill contained no similar provision.
       The House recedes.
     Charges for Defense Logistics Information Services materials 
         (sec. 1010)
       The Senate amendment contained a provision (sec. 361) that 
     would permit the Defense Logistics Information Services, a 
     division of the Defense Logistics Agency, to develop a fee 
     schedule for charging public and private entities for copies 
     of materials from the Federal Logistics Information System 
     (FLIS). The FLIS is a management system designed to collect, 
     store, process, and provide item-related logistics 
     information. This information often is used by private 
     entities doing or seeking business with the Department of 
     Defense.
       The House bill contained no similar provision.
       The House recedes.

                Subtitle B--Naval Vessels and Shipyards

     Authority for award of contracts for ship dismantling on net-
         cost basis (sec. 1011)
       The House bill contained a provision (sec. 1011) that would 
     allow the Secretary of the Navy to award contracts for the 
     dismantling of vessels stricken from the Naval Vessel 
     Register on a net-cost basis.
       The Senate amendment contained a similar provision (sec. 
     1013).
       The Senate recedes.
     Use of proceeds from exchange and sale of obsolete Navy 
         service craft and boats (sec. 1012)
       The Senate amendment contained a provision (sec. 1011) that 
     would allow the Secretary of the Navy to retain the proceeds 
     of the sale, or exchange allowance from the exchange, of 
     obsolete service craft and obsolete boats. The Secretary 
     would be allowed to use these proceeds or exchange allowances 
     for specified purposes.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that 
     restructures the items within the provision.
     Transfer of Naval vessels to certain foreign recipients (sec. 
         1013)
       The House bill contained a provision (sec. 1013) that would 
     authorize the President: (1) to transfer on a grant basis to 
     the government of Chile, the Spruance-class destroyer 
     O'Bannon (DD 987) and (b) to the government of Portugal, the 
     Oliver Hazard Perry-class frigate George Phillip (FFG 12); 
     and (2) to transfer on a sale basis to the Taipei Economic 
     and Cultural Office of the United States, the Anchorage-class 
     dock landing ship Anchorage (LSD-36). The provision would 
     also direct that: (1) any expense incurred by the United 
     States in connection with a transfer on a grant basis shall 
     be charged to the recipient; and (2) to the maximum extent 
     possible, the President shall require, as a condition of 
     transfer, the repair and refurbishment associated with the 
     transfer be accomplished in a shipyard located in the United 
     States.
       The Senate amendment contained a similar provision (sec. 
     1014) that would authorize the Secretary of the Navy: (1) to 
     transfer on a grant basis to the government of Chile, the 
     Spruance-class destroyer O'Bannon (DD 987) and to the 
     government of Portugal, the Oliver Hazard Perry-class 
     frigates George Phillip (FFG 12) and Sides (FFG 14); and (2) 
     to transfer on a sale basis to the Taipei Economic and 
     Cultural Office of the United States, the Anchorage-class 
     dock landing ship Anchorage (LSD-36) and (b) to the 
     government of Chile, the Spruance-class destroyer Fletcher 
     (DD 992). The provision would also direct that any expense 
     incurred by the United States in connection with a transfer 
     authorized by this provision be charged to the recipient.
       The House recedes with an amendment that would authorize 
     the President: (1) to transfer on a grant basis to the 
     government of Chile, the Spruance-class destroyer O'Bannon 
     (DD 987) and to the government of Portugal, the Oliver Hazard 
     Perry-class frigates George Phillip (FFG 12) and Sides (FFG 
     14); and (2) to transfer on a sale basis to the Taipei 
     Economic and Cultural Office of the United States, the 
     Anchorage-class dock landing ship Anchorage (LSD-36) and to 
     the government of Chile, the Spruance-class destroyer 
     Fletcher (DD 992). The amendment would also direct that any 
     expense incurred by the United States in connection with a 
     transfer authorized by this provision be charged to the 
     recipient.
     Independent study to assess cost-effectiveness of the Navy 
         ship construction program (sec. 1014)
       The House bill contained a provision (sec. 1012) that would 
     require the Secretary of Defense to have a study conducted by 
     an entity independent of the Department of Defense on the 
     cost-effectiveness of the ship construction program of the 
     Navy. The study would examine various approaches for how the 
     Navy ship construction program could be made more cost-
     effective in the near-term, and how the United States 
     shipbuilding industry might be made globally competitive 
     through a nationally integrated effort over the next decade.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to provide for a group of industrial 
     experts to assess priorities for potential implementation of 
     the various approaches in the near-term study, with an 
     assessment of the return on investment. It would also require 
     an assessment of priorities for potential implementation of 
     the various approaches for the nationally, integrated effort, 
     with the objective being to create a healthier and more 
     viable U.S. shipbuilding industrial base.
       The conferees believe the group chosen for this study 
     should be five to ten industrial experts who represent an 
     array of industrial sectors, not just the shipbuilding 
     industry. Many sectors of the U.S. industrial base have had 
     to retool processes and equipment to become more competitive. 
     Since the rate of shipbuilding is much lower, competitiveness 
     has not provided the same incentive for this sector. The 
     conferees are aware of and support the work of the National 
     Shipbuilding Research Program-Advanced Shipbuilding 
     Enterprise (NSRP-ASE), including its lean shipbuilding 
     initiative. The conferees would expect the group of 
     industrial experts chosen for this study to become familiar 
     with this work, and to consider the potential for using the 
     NSRP-ASE to implement some of the various approaches.
     Limitation on disposal of obsolete naval vessel (sec. 1015)
       The Senate amendment contained a provision (sec. 1012) that 
     would not allow the Secretary of the Navy to dispose of the 
     decommissioned destroyer ex-Edson (DD-946) to a nonprofit 
     organization before October 1, 2007, unless the Secretary 
     first determines that there is no nonprofit organization that 
     meets the criteria for donation of that vessel under section 
     7306(a)(3) of title 10, United States Code.
       The House bill contained no similar provision.
       The House recedes.

                     Subtitle C-Counterdrug Matters

     Use of funds for unified counterdrug and counterterrorism 
         campaign in Colombia (sec. 1021)
       The Senate amendment contained a provision (sec. 1052) that 
     would extend through fiscal year 2006, the expanded authority 
     for the Department of Defense to use counterdrug funds to 
     support the Government of Colombia's unified campaign against 
     narcotics cultivation and trafficking, and against the 
     terrorist organizations involved in such drug trafficking 
     activities. The provision would also change the limitation on 
     the number of U.S. military personnel assigned to Colombia in 
     support of Plan Colombia to 800 personnel, and the number of 
     federally funded contractor personnel employed in support of 
     Plan Colombia to 600 personnel.
       The House bill contained similar provisions (sec. 1031 and 
     1032) that would extend the expanded authority through fiscal 
     year 2006 and would increase the number of U.S. military 
     personnel in Colombia to 500.
       The House recedes.
     Sense of Congress and report regarding counter-drug efforts 
         in Afghanistan (Sec. 1022)
       The Senate amendment contained a provision (sec. 1056) that 
     would express the sense of the Senate that: (1) the President 
     should make the substantial reduction of drug trafficking in 
     Afghanistan a priority in the war on terror; (2) the 
     Secretary of Defense should, in coordination with the 
     Secretary of State, work to a greater extent with the 
     Government of Afghanistan and international organizations 
     involved in counter-drug activities to provide a secure 
     environment for counter-drug personnel in Afghanistan; and 
     (3) additional efforts should be made by the Armed Forces of 
     the United States, with coalition forces, to significantly 
     reduce narcotics trafficking in Afghanistan, with particular 
     focus on those traffickers with the closest links to known 
     terrorist organizations. The provision also directed the 
     Secretary of Defense to submit a report to Congress on 
     progress made towards substantially reducing the poppy 
     cultivation and heroin production capabilities in 
     Afghanistan, and the extent to which profits from illegal 
     drug activity in Afghanistan fund terrorist organizations and 
     support groups that seek to undermine the Government of 
     Afghanistan.
       The House bill contained no similar provision.

[[Page H9557]]

       The House recedes with an amendment that would express the 
     sense of the Congress that: (1) the President should make the 
     substantial reduction of illegal drug trafficking in 
     Afghanistan a priority in the global war on terrorism; (2) 
     the Secretary of Defense, in coordination with the Secretary 
     of State and the heads of other appropriate federal agencies, 
     should expand cooperation with the Government of Afghanistan 
     and international organizations involved in the counter-drug 
     activities to assist in providing a secure environment for 
     counter-drug personnel in Afghanistan; and (3) the United 
     States, in conjunction with the Government of Afghanistan and 
     coalition partners, should undertake additional efforts to 
     reduce illegal drug trafficking and related activities that 
     provide financial support for terrorist organizations in 
     Afghanistan and neighboring countries. The conferees further 
     agree that the Secretary of Defense and the Secretary of 
     State will jointly submit the aforementioned report.
       The conferees note that there are strong, direct 
     connections between terrorism and drug trafficking, and that 
     the elimination of this funding source is critical to making 
     significant progress in the global war on terror. It is clear 
     that the military action against the Taliban in Afghanistan 
     was designed, in part, to disrupt the activities of and 
     financial support for terrorists. While progress in 
     disrupting the financial links has been made, it is clear 
     that some of the profits associated with opium harvested in 
     Afghanistan continue to fund terrorists and terrorist 
     organizations, including Al Qaeda, that seek to attack the 
     United States and its interests. Additionally, the President 
     of Afghanistan, Hamad Karzai, has stated that opium 
     production poses a significant threat to the future of 
     Afghanistan, and has established a plan of action to deal 
     with this threat. It is for these and other reasons that the 
     conferees believe that the United States, in conjunction with 
     the Government of Afghanistan and coalition partners, should 
     undertake additional efforts to reduce illegal drug 
     trafficking and related activities that provide financial 
     support for terrorist organizations in Afghanistan and 
     neighboring countries. The conferees believe that the 
     Department of Defense, in conjunction with other U.S. 
     agencies and coalition partners, must have a comprehensive 
     strategy that provides consistent funding from year to year 
     to achieve significant progress in reducing drug cultivation, 
     trafficking, and related activities in Afghanistan.

       Subtitle D--Matters Relating to Museums and Commemorations

     Recognition of the Liberty Memorial Museum, Kansas City, 
         Missouri, as America's National World War I Museum (sec. 
         1031)
       The House bill contained a provision (sec. 354) that would 
     express the sense of Congress that the Liberty Memorial 
     Museum in Kansas City, Missouri, is recognized as ``America's 
     National World War I Museum.''
       The Senate amendment contained a similar provision (sec. 
     1078).
       The Senate recedes with technical amendments.
     Program to Commemorate 60th Anniversary of World War II (sec. 
         1032)
       The Senate amendment contained a provision (sec. 365) that 
     would authorize the Secretary of Defense to conduct a program 
     to commemorate the 60th anniversary of World War II and to 
     coordinate, support, and facilitate other such commemoration 
     programs and activities of the Federal, State, and local 
     governments, and other persons.
       The House bill contained no similar amendment.
       The House recedes.
     Annual report on Department of Defense operation and 
         financial support for military museums (sec. 1033)
       The House bill contained a provision (sec. 341) that would 
     amend chapter 23 of title 10, United States Code, to require 
     the Secretary of Defense to include in the annual budget 
     justification materials a complete inventory of military 
     museums operated with funds appropriated to the Department of 
     Defense or the military services.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would add a 
     reporting requirement for the Secretary to describe the 
     management structure of each museum. The amendment would also 
     add a reporting requirement for the Secretary to provide 
     information on the prioritization process within the 
     Department and within each military department for funds 
     allocation and personnel support for museums.
       While the conferees agree that military museums serve an 
     important role in the preservation of the history and 
     heritage of the U.S. military, the conferees are concerned 
     that the proliferation of military museums nationwide may be 
     draining fiscal resources needed for other requirements. The 
     conferees expect that the information to be provided by the 
     Secretary will be used as a database for future discussions 
     with the Department about the effective management of 
     military museums.

            Subtitle E--Reports [Not Provided for Elsewhere]

     Quarterly detailed accounting for operations conducted as 
         part of the global war on terrorism (sec. 1041)
       The Senate amendment contained a provision (sec. 1029D) 
     that would require the Secretary of Defense to provide to the 
     congressional defense committees quarterly reports on the 
     costs incurred by the Department of Defense for all 
     operations in the global war on terrorism. In addition to the 
     reports required by this provision, the conferees expect the 
     Department to continue to provide to the legislative branch 
     timely access to monthly contingency cost reports.
       The House bill amendment contained no similar provision.
       The House recedes with a technical amendment.
     Report on post-major combat operations phase of Operation 
         Iraqi Freedom (sec. 1042)
       The Senate amendment contained a provision (sec. 1028) that 
     would require a report on aspects of the post-major combat 
     operations phase of Operation Iraqi Freedom.
       The House bill contained no similar provision.
       The House recedes with an amendment that would change the 
     due date of the report to June 1, 2005, and would include an 
     assessment of the organization of U.S Central Command to 
     conduct post-conflict operations and related lessons learned.
     Report on training provided to members of the Armed Forces to 
         prepare for post-conflict operations (sec. 1043)
       The Senate amendment contained a provision (sec. 1024) that 
     would direct the Secretary of Defense to conduct a study to 
     determine the extent to which members of the Armed Forces 
     assigned to duty in support of contingency operations receive 
     training in preparation for post-conflict operations and to 
     evaluate the quality of such training. The provision would 
     direct the Secretary to submit a report to Congress on the 
     assessment not later than May 1, 2005.
       The House bill contained a similar provision (sec. 1043).
       The House recedes with a clarifying amendment.
     Report on establishing national centers of excellence for 
         unmanned aerial and ground vehicles (sec. 1044)
       The Senate amendment contained a provision (sec. 1027) that 
     would require the Secretary of Defense to submit a report to 
     the congressional defense committees on the need for one or 
     more national centers of excellence for unmanned aerial and 
     ground vehicles. The provision also defines the goals of the 
     centers and other considerations to be included in the 
     preparation of this report.
       The House bill contained no similar provision.
       The House recedes with a technical amendment to clarify 
     certain elements of the provision.
     Study of continued requirement for two-crew manning for 
         ballistic missile submarines (sec. 1045)
       The House bill contained a provision (sec. 1041) that would 
     require the Secretary of Defense to submit to the 
     congressional defense committees a report on whether the 
     requirement for two-crew manning of fleet ballistic missile 
     submarines should be continued, modified, or terminated.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Report on Department of Defense programs for prepositioning 
         of materiel and equipment (sec. 1046)
       The House bill contained a provision (sec. 342) that would 
     direct the Secretary of Defense to conduct an assessment of 
     the programs of the Department of Defense for the 
     prepositioning of materiel and equipment. The provision would 
     direct the Secretary to submit a report to Congress on the 
     assessment not later than October 1, 2005.
       The Senate amendment contained no similar amendment.
       The Senate recedes with a clarifying amendment.
     Report on al Qaeda activity in the Western Hemisphere (sec. 
         1047)
       The conferees agree to include a provision that would 
     direct the Secretary of State, in consultation with the 
     Secretary of Defense and the Director of Central 
     Intelligence, to submit to the appropriate committees of 
     Congress a report on any al Qaeda activity in the Western 
     Hemisphere, including fundraising, affiliations with other 
     groups in the region, and possible targets for attack; and on 
     United States policies that are designed to address such 
     activities. The provision would require that an unclassified 
     report, with a classified annex as necessary, be submitted no 
     later that 180 days after the date of the enactment of this 
     Act. The conferees note their concern about potential al 
     Qaeda activity in the Western Hemisphere, and the indirect 
     and direct threat to United States national security that 
     such activity represents.

  Subtitle F--Defense Against Terrorism [and Other Domestic Security 
                                Matters]

     Acceptance of communications equipment provided by local 
         public safety agencies (sec. 1051)
       The Senate amendment contained a provision (sec. 1041) that 
     would allow military installations that have Memoranda of 
     Understanding or Memoranda of Agreement with state and local 
     first responders to accept ham radios or communication 
     equipment on an interim basis until interoperability of 
     communications has been established.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

[[Page H9558]]

     Determination and report on full-time airlift support for 
         homeland defense operations (sec. 1052)
       The Senate amendment contained a provision (sec. 1042) that 
     would instruct the Secretary of Defense to determine the 
     feasibility and advisability of dedicating a full-time 
     airlift capability to support homeland defense operations.
       The House bill contained no similar provision.
       The House recedes with an amendment that would instruct the 
     Secretary to also consider the transportation requirements of 
     the newly established National Guard Chemical, Biological, 
     Radiological, Nuclear and High Explosive Enhanced Response 
     Force Packages.
     Survivability of critical systems exposed to chemical or 
         biological contamination (sec. 1053)
       The Senate amendment contained a provision (sec. 1043) that 
     would direct the Secretary of Defense to submit a plan to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives that describes the Department of Defense's 
     systematic approach for ensuring the survivability of defense 
     critical systems exposed to chemical or biological 
     contamination.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

                 Subtitle G--Personnel Security Matters

     Use of National Driver Register for personnel security 
         investigations and determinations (sec. 1061)
       The House bill contained a provision (sec. 1051) that would 
     amend title 49, United States Code, to authorize access to 
     the National Driver Register by federal departments and 
     agencies for use in personnel security investigations and for 
     use in personnel investigations with regard to federal 
     employment.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would clarify 
     that the federal employment contemplated in the provision is 
     employment requiring access to national security information, 
     and that the department or agency receiving such information 
     may use that information only for the purpose of the 
     authorized investigation, in accordance with applicable law.

   Standards for disqualification from eligibility for Department of 
                 Defense security clearance (sec. 1062)

       The House bill contained a provision (sec. 1052) that would 
     amend section 986 of title 10, United States Code, to clarify 
     a standard for disqualification and would allow delegation of 
     waiver authority, in accordance with standards and procedures 
     establish by Executive order or other Presidential guidance.
       The Senate amendment contained no similar provision.
       The Senate recedes.

               Subtitle H--Transportation-Related Matters

     Use of military aircraft to transport mail to and from 
         overseas locations (sec. 1071)
       The House bill contained a provision (sec. 1061) that would 
     provide the Secretary of Defense the authority to use 
     military aircraft to transport mail and parcels to, from, and 
     between overseas locations. This authority, however, would be 
     limited to the following circumstances:
       (1) There is excess space on a scheduled military flight;
       (2) There is no overall cost increase to the Department of 
     Defense or the U.S. Postal Service;
       (3) The U.S. Transportation Command would pay the cost of 
     transporting mail from U.S. Postal Service to customs 
     clearance facilities and military debarkation locations at 
     rates not to exceed Department of Transportation rates for 
     commercial airlines;
       (4) There is no degradation of mail service; and
       (5) There is no diversion of such military aircraft during 
     contingencies or other events.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Reorganization and clarification of certain provisions 
         relating to control and supervision of transportation 
         within the Department of Defense (sec. 1072)
       The House bill contained a provision (sec. 1062) that would 
     amend sections 4744 through 4747 of title 10, United States 
     Code, by moving these sections from chapter 47 to chapter 26. 
     This section would also repeal sections 9741, 9743, and 9746 
     of title 10, United States Code. These changes reflect the 
     Secretary of Defense's role in transportation versus the 
     individual role of the service secretaries.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Evaluation of procurement practices relating to 
         transportation of security-sensitive cargo (sec. 1073)
       The House bill contained a provision (sec. 1064) that would 
     require the Secretary of Defense to evaluate whether, and 
     under what conditions, in the award of service contracts for 
     domestic freight transportation for security-sensitive cargo, 
     the Secretary should not consider an offer or tender from 
     more than one motor carrier that is a part of a group of 
     motor carriers under common financial or administrative 
     control. The provision would also direct the Secretary to 
     submit a report to the Committees on Armed Services of the 
     Senate and the House of Representatives with the results of 
     the evaluation not later than January 1, 2005.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would direct the 
     Secretary to evaluate the award of service contracts for 
     domestic freight transportation for security-sensitive cargo 
     (such as arms, ammunition, explosive, and classified 
     material) to determine whether such practices are in the 
     best interest of the Department of Defense, and would 
     direct the Secretary to submit a report to the Committees 
     on Armed Services of the Senate and the House of 
     Representatives with the results of the evaluation not 
     later than January 1, 2005.

                       Subtitle I--Other Matters

     Liability protection for Department of Defense volunteers 
         working in maritime environment (sec. 1081)
       The House bill contained a provision (sec. 1075) that would 
     modify section 1588 of title 10, United States Code, to add 
     the training of cadets and midshipmen at the service 
     academies to the voluntary services that may be accepted, and 
     include chapters 20 and 22 of title 46 to the laws covered by 
     this provision.
       The Senate amendment contained a provision (sec. 1063) that 
     would extend to volunteers working in the maritime training 
     environment the same status and legal protections, for 
     purposes of claims and loss, presently available to 
     volunteers working in support of land-based programs.
       The House recedes with an amendment that would modify 
     section 1588 of title 10, United States Code, to add chapters 
     20 and 22 of title 46 Appendix to the provisions of law 
     listed in subparagraph (d) with the intent of not limiting 
     the liability protection afforded volunteers in the maritime 
     environment only to the service academies.
       The conferees appreciate the importance of voluntary 
     services provided by individuals for the benefit of soldiers, 
     sailors, airmen, and marines and their families. As reflected 
     in section 1588 of title 10, United States Code, voluntary 
     services are received in connection with a wide variety of 
     programs and activities. Under many circumstances, the 
     ability of the services to offer protection from personal 
     liability is a necessary condition for the acceptance of 
     voluntary services. This is not always the case; however, and 
     the criteria for identifying those functions and voluntary 
     services appropriate for inclusion in section 1588 are not 
     evident.
       The conferees direct the Secretary of Defense to submit a 
     report by June 1, 2005, to the Committees on Armed Services 
     of the Senate and the House of Representatives describing the 
     manner in which the Department of Defense currently 
     determines what voluntary services to accept, which of the 
     accepted services warrant liability protection, and how the 
     Department oversees their delivery under section 1588. The 
     Secretary should prescribe the policy of the Department of 
     Defense regarding the acceptance of voluntary services and, 
     in consultation with the Department of Justice, submit 
     proposals for legislative changes, if needed. The conferees 
     urge the Department of Defense to develop policies and 
     procedures that will enable commands and activities to 
     appropriately accept and supervise voluntary services and, 
     when called for, afford immunity from personal liability.
     Sense of the Congress concerning media coverage of the return 
         to the United States of the remains of deceased members 
         of the Armed Forces from overseas (sec. 1082)
       The Senate amendment contained a provision (sec. 366) that 
     would state the sense of the Congress that the Department of 
     Defense policy regarding no media coverage of the transfer of 
     the remains of deceased members of the Armed Forces 
     appropriately protects the privacy of the families and 
     friends of the deceased, and is consistent with 
     constitutional guarantees of freedom of speech and freedom of 
     the press.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Transfer of historic F3A-1 Brewster Corsair aircraft (sec. 
         1083)
       The House bill contained a provision (sec. 1076) that would 
     authorize the Secretary of the Navy to convey by means of a 
     gift, without consideration, to Mr. Lex Cralley, of 
     Princeton, Minnesota, all right, title, and interest of the 
     United States in and to a F3A-1 Brewster Corsair aircraft.
       The Senate amendment contained no similar amendment.
       The Senate recedes.
       The conferees note that this transfer should not be 
     considered as a precedent for future transfers of aircraft or 
     other property of the U.S. government to individuals.
     Technical and clerical amendments (sec. 1084)
       The House bill contained a provision (sec. 1073) that would 
     make technical and clerical amendments to various provisions 
     of law. The Senate amendment contained similar provisions 
     (sec. 1022 and 1061).
       The Senate recedes with an amendment that would incorporate 
     the provisions of sections 1022 and 1061 of the Senate 
     amendment, strike certain portions of section 1073 of the 
     House bill, and make certain additional technical and 
     clerical amendments.

[[Page H9559]]

     Preservation of search and rescue capabilities of the Federal 
         Government (sec. 1085)
       The Senate amendment contained a provision (sec. 1073) that 
     would prevent the Secretary of Defense for reducing or 
     eliminating the search and rescue capabilities at any 
     military installation in the United States until the 
     Secretary certifies that equivalent services will be provided 
     without interruption and consistent with the policies and 
     objectives established in the United States National Search 
     and Rescue Plan of January 1, 1999.
       The House bill contained no similar provision.
       The House recedes.
     Acquisition of aerial firefighting equipment for National 
         Interagency Fire Center (sec. 1086)
       The Senate amendment contained a provision (sec. 1076) that 
     would authorize the Secretary of Agriculture to purchase 10 
     aerial firefighting aircraft to be used by the National 
     Interagency Fire Center.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require that 
     the aircraft be certified by the Chief of the Forest Service 
     as suited for conditions commonly carried out in the United 
     States, including Alaska.
     Revision to requirements for recognition of institutions of 
         higher education as Hispanic-serving institutions for 
         purposes of certain grants and contracts (sec. 1087)
       The Senate amendment contained a provision (sec. 1079) that 
     would allow universities to qualify as Hispanic-serving 
     institutions, as defined by the Higher Education Act (Public 
     Law 89-329, as amended), by providing assurances that 50 
     percent of the Hispanic student population is low-income by 
     employing statistical extrapolation from Census Bureau data.
       The House bill contained no similar provision.
       The House recedes.
     Military extraterritorial jurisdiction over contractors 
         supporting defense missions overseas (sec. 1088)
       The Senate amendment contained a provision (sec. 1081) that 
     would amend the definitional section of the Military 
     Extraterritorial Jurisdiction Act of 2000, section 3267 of 
     title 18, United States Code (Public Law 106-523), to expand 
     jurisdiction over civilian employees and contractor personnel 
     of the United States to include personnel not employed by or 
     contracting with the Department of Defense whose employment 
     relates to supporting the mission of the Department of 
     Defense overseas.
       The House bill contained no similar provision.
       The House recedes.
     Definition of United States for purposes of Federal crime of 
         torture (sec. 1089)
       The Senate amendment contained a provision (sec. 1082) that 
     would amend section 2340 of title 18, United States Code, to 
     define ``United States'' for the purposes of chapter 113C of 
     that title as the States, the District of Columbia, and the 
     commonwealths, territories, and possessions of the United 
     States.
       The House bill contained no similar provision.
       The House recedes.
     Energy savings performance contracts (sec. 1090)
       The Senate amendment contained a provision (sec. 1091) that 
     would reauthorize energy savings performance contract 
     authority under section 802 of the National Energy Policy Act 
     (42 U.S.C. 8287a) for the Department of Defense and other 
     federal agencies until October 1, 2006. The provision would 
     also authorize water or wastewater treatment projects to be 
     conducted under an energy savings performance contract.
       The House bill contained no similar provision.
       The House recedes with an amendment to reauthorize this 
     authority until October 1, 2006.
     Sense of Congress and policy concerning persons detained by 
         the United States (sec. 1091-1093)
       The House bill contained a provision (sec. 906) that would 
     require the Secretary of Defense to prescribe policies to 
     prevent the abuse of detainees held by the United States as 
     part of the Global War on Terrorism, and would require that 
     the policies be transmitted, and a report on implementation 
     be submitted, to the Committees on Armed Services of the 
     Senate and the House of Representatives. It also contained a 
     provision (sec. 1207) expressing the sense of Congress 
     concerning the abuse of persons in United States custody in 
     Iraq.
       The Senate amendment contained a provision (sec. 1029F) 
     that would require detailed reports on foreign national 
     detainees in the custody of the Department of Defense, and 
     the detention facilities and practices of the Department. It 
     also contained a provision (sec. 1057) that would make 
     findings on United States adherence to international 
     conventions on torture and cruel or inhuman treatment or 
     punishment; prohibit torture or cruel, inhuman, or degrading 
     treatment or punishment that is prohibited by the 
     Constitution, laws, or treaties of the United States; require 
     the Secretary of Defense to prescribe regulations to ensure 
     compliance with the prohibition; and report twice a year on 
     investigations of possible violations of the prohibition. 
     The Senate amendment also contained a provision (sec. 
     1059C) that would set out the policy of the United States 
     concerning torture and inhumane treatment; require reports 
     on detainees, military commissions, and interrogation 
     techniques; require the submission of certain reports 
     prepared by the International Committee of the Red Cross; 
     and require the Secretary to certify that federal and 
     contractor personnel engaged in the handling of detainees 
     have been trained in U.S. international obligations and 
     the law of war.
       The House recedes with an amendment that would state the 
     sense of Congress with regard to misconduct by certain U.S. 
     personnel at the Abu Ghraib prison in Iraq; the 
     professionalism and morality of the vast majority of American 
     servicemembers serving there; the law governing the treatment 
     of detainees; and the prohibition of torture or cruel and 
     inhumane treatment contained in applicable domestic and 
     international law. The amendment further sets out the policy 
     of the United States with respect to the proper treatment of 
     detainees; the need for thorough investigation and 
     prosecution, as appropriate, of unlawful treatment of 
     detainees; the need to ensure that all personnel of the 
     United States Government understand their obligations to 
     comply with the prohibitions against torture and inhumane 
     treatment; the need to ensure the proper status of detained 
     persons while a determination is made as to their prisoner of 
     war status under the applicable Geneva Convention; and the 
     need for expeditious prosecution of detainees in U.S. custody 
     who are alleged to have committed terrorist acts or other 
     crimes.
       The amendment would further require the Secretary of 
     Defense to ensure that policies are prescribed, within 150 
     days of enactment, to ensure that detainees are treated in a 
     humane manner consistent with the international obligations 
     of the United States and the aforementioned policies on the 
     treatment of detainees; would set out minimum criteria for 
     these policies; and would require that the Secretary certify 
     that federal employees and contractor personnel involved with 
     handling or interrogation of detainees have fulfilled annual 
     training requirements on the law of war and U.S. obligations 
     under international law.
       Finally, the amendment contains several reporting 
     requirements, including a requirement that the policies 
     prescribed be forwarded by the Secretary to the Committees on 
     Armed Services of the Senate and the House of Representatives 
     within 30 days. The Secretary is to report to the committees 
     within one year after prescribing the policies on further 
     steps taken to implement them. Nine months after enactment 
     and annually thereafter, the Secretary would be required to 
     submit to the committees a report giving notice of any 
     investigations into violations of international or U.S. law 
     regarding the treatment of detainees; and aggregate data on 
     foreign national detainees in the custody of the Department 
     of Defense during the prior year. The reporting provisions of 
     this provision expire on December 31, 2007.
     Findings and sense of Congress concerning Army Specialist 
         Joseph Darby (sec. 1094)
       The House bill contained a provision (sec. 1206) that would 
     recognize and thank U.S. Army Specialist Joseph Darby for his 
     courageous actions in alerting his superiors to misconduct by 
     American soldiers at Abu Ghraib prison in Iraq, and express 
     the sense of Congress that Specialist Darby should be 
     afforded appropriate protection and recognition by the 
     Department of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                   Legislative Provisions Not Adopted

     Reduction in overall authorization due to inflation savings
       The Senate amendment contained a provision (sec. 1003) that 
     would reduce the amount authorized to be appropriated to the 
     Department of Defense by $1.7 billion to reflect the reduced 
     inflation estimates in the Congressional Budget Office's 
     annual review of the budget.
       The House bill contained no similar provision.
       The Senate recedes.
     Authority to waive claims of the United States when amounts 
         recoverable are less than costs of collection
       The House bill contained a provision (sec. 1004) that would 
     authorize the Secretary of Defense or his designee to waive 
     indebtedness when the cost of processing the transaction 
     exceeds the amounts recoverable. The maximum amount that may 
     be waived under this statue would be the micro-purchase 
     threshold, currently $2,500.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees request that the Department of Defense 
     provide the following information: (1) proposed regulations 
     for the purposes of this section; (2) how this authority will 
     be used with the existing law related to claims or debt 
     collection, including the Debt Collection Improvement Act; 
     (3) the number of estimated transactions that will be used 
     with this authority regarding amounts owed by members of the 
     Armed Forces and Department civilian personnel; (4) the 
     number of estimated transactions that will be used with this 
     authority regarding amounts owed by contractors; and (5) the 
     procedures that will be implemented to track debts waived 
     for members of the Armed Forces and Department civilian 
     personnel for tax implications.

[[Page H9560]]

     Report on amounts remitted and reimbursed during fiscal year 
         2004 under section 1007 of Public Law 108-136
       The House bill contained a provision (sec. 1008) that would 
     require the Secretary of Defense to submit a report not later 
     than 30 days after the end of fiscal year 2004 on amounts 
     remitted and reimbursed during fiscal year 2004 under section 
     1007 of the National Defense Authorization Act for Fiscal 
     Year 2004 (Public Law 108-136; 117 Stat. 1585; 10 U.S.C. 2241 
     note).
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that section 1007 of the National 
     Defense Authorization Act for Fiscal Year 2004 permits funds 
     appropriated to the Department of Defense to be transferred 
     to the Department of State as payment for a fee charged by 
     the Department of State for maintenance, upgrade, or 
     construction of U.S. diplomatic facilities only to the extent 
     that the amount charged in any given year exceeds the total 
     amount of unreimbursed costs incurred by the Department of 
     Defense during that year in providing goods and services to 
     the Department of State. Section 8067 of the Defense 
     Appropriations Act for Fiscal Year 2005 permits funds 
     appropriated to the Department of Defense to be transferred 
     to the Department of State as remittance for a fee charged by 
     the Department of State for fiscal year 2005 for maintenance, 
     upgrade, or construction of U.S. diplomatic facilities only 
     to the extent that the amount of the fee so charged exceeds 
     the total amount of the unreimbursed costs incurred by the 
     Department of Defense during that fiscal year in providing 
     goods and services to the Department of State.
       The conferees further note that the capital security cost 
     sharing program has not been authorized by the Congress. 
     While the conferees recognize the need to upgrade and 
     construct new U.S. diplomatic facilities, the conferees 
     oppose the use of a capital cost sharing program as a means 
     of accomplishing this goal. As currently described by the 
     administration, the capital cost sharing program does not 
     take into account the goods and services that other 
     departments and agencies provide to the Department of State 
     at no cost. The conferees urge the administration to request 
     sufficient funds for the Department of State in future year 
     budget requests to provide for the costs of upgrading or 
     constructing U.S. diplomatic facilities.
     Limitation on leasing of foreign-built vessels
       The House bill contained a provision (sec. 1014) that would 
     restrict the secretary of a military department from entering 
     into a contract for a lease or charter of a vessel for a term 
     of more than 12 months, including all options to renew or 
     extend the contract, if the hull, a major component of the 
     hull, or superstructure of the vessel is constructed in a 
     foreign shipyard. This provision includes a clause by which 
     the President could make an exception to this limitation if 
     the President determines it is in the national security 
     interest of the United States to do so.
       The Senate amendment contained no similar provision.
       The House recedes.
     Report on availability of potential overland ballistic 
         missile defense test ranges
       The Senate amendment contained a provision (sec. 1025) that 
     would require the Secretary of Defense to submit a report to 
     Congress assessing the availability of potential ballistic 
     missile defense test ranges for overland intercept flight 
     tests of defenses against ballistic missiles with a range of 
     750-1500 kilometers.
       The House bill amendment contained no similar provision.
       The Senate recedes.
       The conferees direct the Secretary of Defense to submit a 
     report to the congressional defense committees by February 1, 
     2005, that assesses the availability of potential ballistic 
     missile defense test ranges for overland intercept flight 
     tests of defenses against ballistic missiles with a range of 
     750-1500 kilometers.
     Sense of Congress on space launch ranges
       The Senate amendment contained a provision (sec. 1035) that 
     would express the sense of Congress that the Secretary of 
     Defense should provide support for and continue the 
     development of range safety systems to reduce costs and 
     enhance technical capabilities and operational safety at U.S. 
     space launch ranges.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees continue to believe that safe, effective, and 
     efficient space launch ranges are key to assured access to 
     space. The conferees are aware of ongoing efforts to develop, 
     test, and certify launch range technology based on Global 
     Positioning System signals and inertial navigation that holds 
     promise to improve down-range reentry support, increase 
     launch support capability, lower range support costs, and 
     improve range safety. The conferees encourage the 
     Department of Air Force to support these efforts.
     Compensation for former prisoners of war
       The Senate amendment contained a provision (sec. 1055) that 
     would require that any plan of the Secretary of Defense to 
     provide compensation to an individual who was injured in a 
     military prison under the control of the United States in 
     Iraq shall include a provision to address the injuries 
     suffered by the citizens of the United States who were held 
     as prisoners of war by the regime of Saddam Hussein during 
     the First Gulf War.
       The House bill contained no similar provision.
       The Senate recedes.
     Phased implementation of new program for transporting 
         household goods of members of the Armed Forces
       The House bill contained a provision (sec. 1065) that would 
     prohibit the Secretary of Defense from implementing the new 
     program, ``Families First'' for the transportation of 
     household goods of members of the Armed Forces and their 
     dependents beyond phase I of the program until the Secretary 
     submits to Congress a report evaluating whether phase I met 
     its objectives and whether it is in the best interest of the 
     Department of Defense and members of the Armed Forces to move 
     forward to phase II of the program.
       The Senate amendment contained no similar provision.
       The House recedes.
     Repeal of quarterly reporting requirement concerning payments 
         for District of Columbia water and sewer services and 
         establishment of annual report by Treasury
       The Senate amendment contained a provision (sec. 1067) that 
     would amend the District of Columbia Public Works Act of 
     1954, as amended, to repeal the requirement that the 
     Inspector General of each federal department or agency 
     receiving water or sewer services from the District of 
     Columbia submit quarterly reports, analyzing the promptness 
     of payments for such services. These reports would be 
     replaced by an annual report on payments for these services 
     submitted by the Secretary of the Treasury to the Committees 
     on Appropriations of the Senate and the House and 
     Representatives, the Committee on Governmental Affairs of the 
     Senate, and the Committee on Government Reform of the House 
     of Representatives.
       The House bill contained no similar provision.
       The Senate recedes. The conferees anticipate that this 
     issue will be addressed in other legislation.
     Assistance for study of feasibility of biennial international 
         air trade show in the United States and for initial 
         implementation
       The House bill contained a provision (sec. 1072) that would 
     require the Secretary of Defense to select and provide 
     assistance to a community in conducting a joint study to 
     determine the feasibility of establishing an international 
     air trade show in that community.
       The Senate amendment contained no similar provision.
       The House recedes.
     Commission on the long-term implementation of the new 
         strategic posture of the United States
       The House bill contained a provision (sec. 1074) that would 
     establish a new commission to review the long-term 
     implementation of Nuclear Posture Review recommendations.
       The Senate amendment contained no similar provision.
       The House recedes.
     Grant of federal charter to Korean War Veterans Association, 
         Incorporated
       The Senate amendment contained a provision (sec. 1074) that 
     would modify title 36, United States Code, to grant a federal 
     charter to the Korean War Veterans Association, Incorporated.
       The House bill contained no similar provision.
       The Senate recedes.
     Assignment of members to assist Bureau of Border Security and 
         Bureau of Citizenship and Immigration Services of the 
         Department of Homeland Security
       The House bill contained a provision (sec. 1077) that would 
     authorize the Secretary of Defense to assign members of the 
     Army, Navy, Air Force, and Marine Corps to assist the Bureau 
     of Border Security and the U.S. Customs Service of the 
     Department of Homeland Security in preventing the entry of 
     terrorists, drug traffickers, and illegal aliens into the 
     United States; and to aid in the inspection of cargo, 
     vehicles, and aircraft at points of entry into the United 
     States to prevent the entry of weapons of mass destruction, 
     prohibited narcotics or drugs, or other terrorist or drug 
     trafficking items.
       The Senate amendment contained no similar provision.
       The House recedes.
     Sense of the Senate on American Forces Radio and Television 
         Service
       The Senate amendment contained a provision (sec. 1077) that 
     would express the sense of the Senate that the mission 
     statement and policies of the American Forces Radio and 
     Television Service appropriately state the goal of 
     maintaining equal opportunity balance with respect to 
     political programming and that the Secretary of Defense 
     should ensure that these policies are fully being 
     implemented.
       The House bill contained no similar provision.
       The Senate recedes.
     Extension of scope and jurisdiction for current fraud 
         offenses
       The Senate amendment contained a provision (sec. 1080) that 
     would provide for extraterritorial jurisdiction under the 
     provisions of section 1001 of title 18, United States Code, 
     dealing with false statements or entries and section 1031 of 
     that title, dealing with major fraud against the United 
     States.

[[Page H9561]]

       The House bill contained no similar provision.
       The Senate recedes.
       The conferees believe that existing law adequately 
     addresses the situation.
     Broadcast Decency Enforcement Act of 2004
       The Senate amendment contained several provisions (sec. 
     1084-1089) that would (1) amend the Communications Act of 
     1934 (47 U.S.C. 151 et seq.) to increase the penalties for 
     broadcasting obscene, indecent, or profane language; (2) 
     provide mitigating factors for such penalties; (3) make 
     findings on media concentration and suspend the media 
     concentration rules adopted by the Federal Communications 
     Commission in June, 2003; and (4) prohibit the distribution 
     of violent video programming not blockable by electronic 
     means.
       The House bill contained no similar provision.
       The Senate recedes.
     Local Law Enforcement Enhancement Act of 2004
       The Senate amendment contained several provisions (sec. 
     3401-3410) that would constitute the ``Local Law Enforcement 
     Enhancement Act of 2004.'' The Attorney General, at the 
     request of a State or tribal law enforcement official, could 
     provide assistance in the investigation or prosecution of 
     certain hate crimes. The Attorney General could also award 
     grants to State, local, and tribal law enforcement officials 
     to assist with the investigation and prosecution of such 
     crimes. Chapter 13 of title 18, United States Code, would be 
     amended to establish a substantive federal prohibition of 
     certain specific hate crime acts. No prosecution could be 
     undertaken under this section without certification from the 
     Attorney General or certain other officials of the Department 
     of Justice.
       The House bill contained no similar provision.
       The Senate recedes.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

                       Items of Special Interest

     Fort Meade--work related illnesses
       The conferees are concerned with continued reports of work 
     related illnesses among the National Security Agency (NSA) 
     employees at Fort Meade, Maryland. The conferees direct the 
     Secretary of Defense to undertake an epidemiological study 
     and health hazard evaluation related to NSA buildings at Fort 
     Meade. The conferees believe the National Institute for 
     Occupational Safety and Health of the Department of Health 
     and Human Services is an appropriate federal government 
     organization to perform such a study. The conferees expect 
     the study to be completed by March 2006.

                     Legislative Provisions Adopted

     Payment of Federal employee health benefit premiums for 
         mobilized Federal employees (sec. 1101)
       The House bill contained a provision (sec. 1101) that would 
     authorize a federal government employee, who is a member of a 
     Reserve component ordered to active-duty in support of a 
     contingency operation and placed on leave without pay, to 
     continue to receive coverage under the Federal Employee 
     Health Benefit Program for 24 months. The provision would 
     also authorize the agency to pay both the employee's share 
     and the agency's share of the premiums for continued coverage 
     up to 24 months.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Foreign language proficiency pay (sec. 1102)
       The House bill contained a provision (sec. 1102) that would 
     eliminate the restriction in current law that foreign 
     language proficiency pay may be paid only to those civilian 
     employees working in support of contingency operations.
       The Senate amendment contained a similar provision (sec. 
     1102).
       The House recedes with an amendment to require that the 
     authority for foreign language proficiency pay will take 
     effect on the first day of the first month that begins after 
     the date of enactment of this Act.
     Pay and performance appraisal parity for civilian 
         intelligence personnel (sec. 1103)
       The House bill contained a provision (sec. 1103) that would 
     require the Secretary of Defense to fix the rates of basic 
     pay for employees within the Department's Civilian 
     Intelligence Personnel System in relation to rates of pay 
     provided for their counterparts elsewhere within the 
     Department of Defense. The provision would repeal maximum 
     rates of pay and outline the performance appraisal system for 
     senior executive service personnel.
       The Senate amendment contained a similar provision (sec. 
     1103) that would also require the implementation of an 
     appraisal system for Defense Intelligence Senior Executive 
     Service personnel comparable to that provided for other 
     senior executive service personnel in the Department of 
     Defense that would make meaningful distinctions based on 
     performance.
       The House recedes with an amendment to clarify that pay 
     rates for defense civilian intelligence personnel would be 
     established in relation to the rates of pay provided for 
     comparable positions in the Department of Defense, and 
     subject to the same limitations on maximum rates of pay 
     established for employees of Defense by law or regulation. 
     The amendment would recede to the Senate's version of the 
     performance appraisal system for senior executive service 
     personnel in the Defense Intelligence Personnel System.
     Pay parity for senior executives in defense nonappropriated 
         fund instrumentalities (sec. 1104)
       The House bill contained a provision (sec. 1104) that would 
     authorize the Secretary of Defense to adjust the pay cap for 
     Department of Defense nonappropriated fund executives to 
     ensure that the compensation paid to such employees remains 
     consistent with the Senior Executive Service employees.
       The Senate amendment contained a similar provision (sec. 
     1105).
       The House recedes with a technical amendment.
       The conferees intend that in order to qualify for higher 
     pay, the nonappropriated fund executives would meet 
     performance standards established in a rigorous performance 
     management system as required for federal civil service 
     employees under section 5382 of title 5, United States Code.
     Science, mathematics and research for transformation (SMART) 
         defense scholarship pilot program (sec. 1105)
       The Senate amendment contained a provision (sec. 1101) that 
     would establish a pilot program within the Department of 
     Defense to provide targeted educational assistance to 
     individuals seeking a baccalaureate or an advanced degree in 
     science and engineering disciplines that are critical to 
     national security. This provision would allow individuals to 
     acquire such education in exchange for a period of employment 
     with the Department in the areas specified.
       The House bill contained no similar provision.
       The House recedes.
     Report on how to recruit and retain individuals with foreign 
         language skills (sec. 1106)
       The Senate amendment contained a provision (sec. 1108) that 
     would require the Secretary of Defense to submit a plan to 
     the congressional defense and intelligence committees with 
     the fiscal year 2006 budget request for expanding and 
     improving the national security foreign language workforce of 
     the Department of Defense, on both a near-term and a long-
     term basis.
       The House bill contained no similar provision.
       The House recedes with a technical amendment that would 
     require the Secretary to submit the required plan to the 
     congressional defense and intelligence committees no later 
     than March 31, 2005, and incorporate the findings of the 
     Senate's provision into this statement of managers.
       The conferees agree that strengthening the foreign language 
     workforce of the Department is a critical step in winning the 
     global war on terrorism and improving the national security 
     of the United States. The conferees find that: (1) The 
     Federal Government has a requirement to ensure that the 
     employees of its departments and agencies with national 
     security responsibilities are prepared to meet the challenges 
     of the current and future international environment; (2) 
     According to a 2002 General Accounting Office report, federal 
     agencies have shortages in translators and interpreters and 
     an overall shortfall in the language proficiency levels 
     needed to carry our their missions, which has adversely 
     affected agency operations and hindered U.S. military, law 
     enforcement, intelligence, counterterrorism, and diplomatic 
     efforts; (3) Foreign language skills and area expertise are 
     integral to, or directly support, every foreign intelligence 
     discipline and are essential factors in national security 
     readiness, information superiority, and coalition 
     peacekeeping or warfighting missions; (4) Communicating in 
     languages other than English and understanding and accepting 
     cultural and societal differences are vital to the success of 
     peacetime and wartime military and intelligence activities; 
     (5) Proficiency levels required for foreign language support 
     to national security functions have been raised, and what was 
     once considered proficiency is no longer the case; (6) 
     According to the Joint Intelligence Committee Inquiry into 
     the 9/11 Terrorist Attacks, the U.S. intelligence community 
     had insufficient linguists prior to September 11, 2001, to 
     handle the challenge it faced in translating the volumes of 
     foreign language counterterrorism intelligence it collected, 
     including a readiness level of only 30 percent in the most 
     critical languages that are used by terrorists; and (7) 
     Because of this shortage, the Federal Government has had to 
     enter into private contracts to procure linguist and 
     translator services, including some positions that would be 
     more appropriately filled by permanent federal employees or 
     members of the U.S. Armed Forces.
       The conferees expect the Secretary to formulate a 
     comprehensive, achievable plan for improving the foreign 
     language workforce of the Department, both military and 
     civilian, and to work closely with other agencies of the 
     Federal Government to ensure that the foreign language 
     requirements of the United States are met.
     Plan on implementation and utilization of flexible personnel 
         management authorities in Department of Defense 
         laboratories (sec. 1107)
       The Senate amendment contained a provision (sec. 1109) that 
     would require the Under Secretary of Defense for Acquisition, 
     Technology and Logistics and the Under Secretary of Defense 
     for Personnel and Readiness to jointly develop and submit to 
     the Committees on Armed Services in the Senate and the House 
     of Representatives a plan for the effective utilization of 
     specific personnel management authorities designed to

[[Page H9562]]

     increase the mission responsiveness, efficiency, and 
     effectiveness of Department of Defense laboratories.
       The House bill contained no similar provision.
       The House recedes with an amendment that would change the 
     reporting requirements associated with the plan.
       The conferees note that Secretary of the Navy Gordon 
     England's letter to the Committee on Government Reform of the 
     House of Representatives, dated April 26, 2004, stated that 
     the Department ``will not impose Best Practices in those 
     laboratories that are temporarily exempt'' from the National 
     Security Personnel System. The Secretary further stated that 
     the Department's laboratories ``should be able to continue 
     individually to refine and evolve their `successfully 
     tailored systems' over the next several years if they 
     determine that such adjustments are beneficial and not 
     disruptive to their workforce.''

                   Legislative Provisions Not Adopted

     Accumulation of annual leave by intelligence senior-level 
         employees
       The Senate amendment contained a provision (sec. 1104) that 
     would permit intelligence senior-level employees of the 
     Department of Defense to accumulate annual leave in a manner 
     identical to the Department's Senior Executive Service.
       The House bill contained no similar provision.
       The Senate recedes.
     Prohibition of unauthorized wearing or use of civilian medals 
         or decorations
       The House bill contained a provision (sec. 1105) that would 
     prohibit any person from merchandising or wearing a 
     Department of Defense civilian medal or decoration without 
     the written permission of the Secretary of Defense. The 
     provision would also authorize the Attorney General to 
     initiate a civil proceeding in a U.S. district court to 
     enjoin the prohibited practice.
       The Senate amendment contained no similar provision.
       The House recedes.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

                     Legislative Provisions Adopted

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

     Commanders' Emergency Response Program (sec. 1201)
       The House bill contained a provision (sec. 1203) that would 
     authorize the Secretary of Defense to use, notwithstanding 
     any other provision of law, up to $300.0 million in 
     operations and maintenance funding for additional costs due 
     to Operation Iraqi Freedom and Operation Enduring Freedom for 
     the Commanders' Emergency Response Program (CERP), under 
     which commanders in Iraq and Afghanistan receive funds for 
     use in small humanitarian and reconstruction projects in 
     their areas of responsibility. The provision would require 
     quarterly reports on the source and use of funds pursuant to 
     this program.
       The Senate amendment contained a similar provision (sec. 
     311), but did not include the phrase ``notwithstanding any 
     other provision of law.''
       The Senate recedes with an amendment that would provide the 
     Secretary authority to waive any provision of law that would 
     prohibit, restrict, limit or otherwise constrain 
     implementation of the CERP program in Iraq and Afghanistan. 
     The provision would also require the Secretary to submit a 
     report within 120 days to the Committees on Armed Services of 
     the Senate and the House of Representatives identifying all 
     provisions of law that, if not waived, would prohibit, 
     restrict, limit or otherwise constrain implementation of the 
     CERP program in Iraq and Afghanistan. In the event that the 
     Secretary identifies additional such provisions of law after 
     the report is submitted to the Committees on Armed Services 
     of the Senate and the House of Representatives, the conferees 
     expect the Secretary to send supplemental reports with the 
     requested information to those committees.
     Assistance to Iraq and Afghanistan military and security 
         forces (sec. 1202)
       The Senate amendment contained a provision (sec. 1053) 
     that would authorize the Secretary of Defense, with the 
     concurrence of the Secretary of State, to use up to $250.0 
     million in operations and maintenance funding to provide 
     assistance in fiscal year 2005 to Iraq and Afghanistan 
     military or security forces solely to enhance their 
     ability to combat terrorism and support United States or 
     coalition military operations in Iraq and Afghanistan, 
     respectively.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of Defense to use up to $500.0 million in 
     operations and maintenance funding for additional costs due 
     to Operation Iraqi Freedom and Operation Enduring Freedom to 
     provide assistance in fiscal year 2005 to Iraq and 
     Afghanistan military or security forces solely to enhance 
     their ability to combat terrorism and support United States 
     or coalition military operations in Iraq and Afghanistan, 
     respectively. The provision defines ``military and security 
     forces'' to mean national armies, national guard forces, 
     border security forces, civil defense forces, infrastructure 
     protection forces, and police.
       The conferees note that the authority provided by this 
     provision would not permit the provision of assistance to 
     nongovernmental or irregular forces such as private militias. 
     The conferees expect the prior notifications to the 
     congressional defense committees to include detailed 
     information regarding the proposed amounts of funds to be 
     spent, recipients of the funds, and the specific purposes for 
     which the funds would be used.
     Redesignation and modification of authorities relating to 
         Inspector General of the Coalition Provisional Authority 
         (sec. 1203)
       The Senate amendment contained a provision (sec. 1059B) 
     that would amend the Emergency Supplemental Appropriations 
     Act for Defense and Reconstruction of Iraq and Afghanistan, 
     2004 (Public Law 108-106), to establish the Office of Special 
     Inspector General for Iraq Reconstruction; to provide for the 
     continuation in office of the individual presently serving as 
     Inspector General of the Coalition Provisional Authority; to 
     provide that the Inspector General shall be responsible to 
     the Secretaries of State and Defense; to provide for support 
     of the Inspector General at appropriate locations of the 
     Department of State in Iraq; to provide for reporting by the 
     Inspector General to the Secretaries of State and Defense; to 
     provide for jurisdiction of the Inspector General over sums 
     appropriated to the Iraq Relief and Reconstruction Fund; to 
     provide for coordination by the Inspector General with the 
     Inspectors General of the Departments of State and Defense 
     and the Agency for International Development; to allow 
     personnel of the Inspector General to carry firearms and make 
     arrests in the line of duty with the permission of the 
     Attorney General; and to provide for the termination of the 
     Office of the Special Inspector General.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Presidential report on strategy for the stabilization of Iraq 
         (sec. 1204)
       The House bill contained a provision (sec. 1204) that would 
     require the Secretary of Defense to submit a strategic plan 
     on how the United States will achieve the goal of 
     establishing capable Iraqi security forces to provide for the 
     long-term security of the Iraqi people.
       The Senate amendment contained a similar provision (sec. 
     1029E) that would require the President to submit a report on 
     the strategy of the United States and coalition partners to 
     stabilize Iraq, including the training and deployment of 
     Iraqi security forces, as well as the participation of other 
     international police and military forces.
       The House recedes with an amendment that would incorporate 
     the House provision into the Senate provision and require a 
     single Presidential report, followed by quarterly updates 
     from the Secretary of Defense, in conjunction with the 
     Secretary of State, during calendar year 2005. Each quarterly 
     report shall address the following: the number of forces 
     recruited, currently serving, and that have left (along with 
     a breakdown of the reasons for leaving) by service over the 
     period in question; progress in meeting training goals; 
     progress in achieving other metrics as identified in the 
     strategic plan; and a description and analysis of any 
     training incidents and deployment successes and failures, 
     with a discussion of how those incidents and successes will 
     affect future efforts to achieve the goals of the strategic 
     plan.
     Guidance on contractors supporting deployed forces in Iraq 
         (sec. 1205)
       The House bill contained a provision (sec. 1205) that would 
     require the Secretary of Defense to issue guidance and a 
     report on contractors supporting deployed forces in Iraq.
       The Senate amendment contained a similar provision 
     (sec. 864). In addition, the Senate amendment contained a 
     provision (sec. 865) that would require a report on 
     contractor performance of security, intelligence, law 
     enforcement, and criminal justice functions in Iraq.
       The Senate recedes with an amendment that would provide 
     additional detail on the guidance to be issued. The amendment 
     would require that the Secretary's guidance address the issue 
     of contractor performance of security, intelligence, law 
     enforcement, and criminal justice functions. The conferees 
     expect the guidance to address the full range of security, 
     intelligence, law enforcement, and criminal justice functions 
     that are being performed by contractors in support of current 
     military operations or are anticipated to be performed by 
     contractors in support of future military operations.
       The amendment would also require that the guidance address: 
     (1) investigating background and qualifications of contractor 
     security personnel and organizations; and (2) ensuring proper 
     training and compliance with rules of engagement by armed 
     contractor security personnel. The conferees take no position 
     as to whether such investigations and training should be 
     conducted by Department of Defense personnel or by contractor 
     personnel subject to Department oversight.
       The conferees expect the Secretary to coordinate, as 
     appropriate, with the heads of other departments and agencies 
     of the Federal Government that would be affected by the 
     implementation of the guidance.
       In addition, the conferees expect the Secretary, in 
     preparing the guidance required by this section, to address 
     options for enhancing contractor security and reducing 
     contractor security costs in current and future armed 
     conflicts. The options considered

[[Page H9563]]

     should include: (1) temporary commissioning of contractor 
     security personnel as Reserve component officers in order to 
     subject such personnel to the military chain of command; (2) 
     requiring contractor security personnel to obtain security 
     clearances to facilitate the communication of critical threat 
     information; (3) establishing a contract schedule for 
     companies furnishing contractor security personnel to provide 
     a more orderly process for the selection, training, and 
     compensation of such personnel; (4) establishing a contract 
     schedule for companies to provide more cost-effective 
     insurance for contractor security personnel; and (5) 
     providing for U.S. indemnification of contractors to reduce 
     the costs of insuring contractor security personnel. The 
     report required by subsection (c) should explain the 
     rationale for the Secretary's decision to implement or not to 
     implement these options.
     Report on contractors supporting deployed forces and 
         reconstruction efforts in Iraq (sec. 1206)
       The Senate amendment contained a provision (sec. 1021) that 
     would require a report on contractor security in Iraq.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     reporting requirements.
       With regard to contractor casualties and fatalities, the 
     report would include: (1) a plan for establishing and 
     implementing a process for collecting data on casualties and 
     fatalities; and (2) a requirement for data on casualties and 
     fatalities that have occurred since the conclusion of major 
     combat operations in Iraq. The conferees understand that the 
     Department of Defense has not yet established a comprehensive 
     system for collecting data on contractor casualties and 
     fatalities and do not believe that the requirement to provide 
     retrospective data should be, or needs to be, implemented in 
     a manner that would become burdensome on the combatant 
     command or on combat units, but should be done in a manner 
     and to an extent that does not undermine military operations. 
     The conferees believe that the Department should be able to 
     collect this information accurately and comprehensively from 
     the contractors themselves. The requirement to establish a 
     plan for collecting contractor casualty and fatality data in 
     the future should ensure that such data is collected 
     routinely and uniformly.
       With regard to the requirement to establish a plan for 
     establishing and implementing a process for collecting data 
     on contractors performing security functions in Iraq, the 
     conferees understand that the categories of security 
     functions performed by contractors are not mutually exclusive 
     and expect the Department to indicate any overlap to the best 
     of its ability.
     United Nations Oil-for-Food Program (sec. 1207)
       The Senate amendment contained a provision (sec. 1058) that 
     would: (1) require the Inspector General of the Department of 
     Defense to ensure, not later than June 30, 2004, the security 
     of all documents relevant to the United Nations Oil-for-Food 
     Program that are in the possession or control of the 
     Coalition Provisional Authority; (2) require executive 
     agencies to provide to the Senate committees of jurisdiction 
     access to documents and information relevant to the Oil-for-
     Food Program; (3) call on the Secretary of State to urge the 
     Secretary General of the United Nations to provide the United 
     States copies of all audits and core documents related to the 
     Oil-for-Food Program; and (4) require the Comptroller General 
     to conduct a review of United States oversight of the Oil-
     for-Food Program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would: (1) express 
     the sense of Congress that the Secretary of State should seek 
     to conclude a Memorandum of Understanding with the Iraq 
     Interim Government to ensure that the United States will have 
     access to all documents in the possession of the Iraq Interim 
     Government related to the United Nations Oil-for-Food 
     Program; (2) require executive agencies to provide to 
     congressional committees of jurisdiction access to documents 
     and information relevant to the Oil-for-Food Program; (3) 
     call on the Secretary of State to urge the Secretary General 
     of the United Nations to provide the United States copies of 
     all audits and core documents related to the Oil-for-Food 
     Program; and (4) require the Comptroller General to conduct a 
     review of the Oil-for-Food Program, including the role of the 
     United States.
       The conferees note their understanding that the phrase 
     ``committee of jurisdiction'' includes, but is not limited 
     to, the Committees on Armed Services of the Senate and House 
     of Representatives, and the Permanent Subcommittee on 
     Investigations of the Committee on Governmental Affairs of 
     the Senate.
     Support of military operations to combat terrorism (sec. 
         1208)
       The House bill contained a provision (sec. 1202) that would 
     authorize the Secretary of Defense to expend up to $25.0 
     million during fiscal years 2005 to 2007 to provide support 
     to foreign forces, irregular forces, groups, or individuals 
     engaged in supporting or facilitating ongoing military 
     operations by the U.S. Special Operations Forces to combat 
     terrorism. The provision would not, however, constitute 
     authority to conduct a covert action. The Secretary would be 
     required to submit a report on the support provided under 
     this section within 30 days of the close of each fiscal year.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to establish procedures for the exercise of such 
     authority and to notify the congressional defense committees 
     of these procedures prior to the exercise of authority 
     contained in the provision. Additionally, the amendment would 
     require the Secretary to notify the congressional defense 
     committees expeditiously, and in any event, within 48 hours, 
     of the use of such authority as part of an approved military 
     operation, and would prohibit the Secretary from delegating 
     this authority.
       The conferees intend that nothing in this provision shall 
     constitute specific statutory authorization within the 
     meaning of section 5(b) of the War Powers Resolution (Public 
     Law 93-148) or to supersede any requirement of the War Powers 
     Resolution.
     Report on al Qaeda activity in the Western Hemisphere (sec. 
         1209)
       The conferees agree to include a provision that would 
     direct the Secretary of Defense, in consultation with the 
     Secretary of State to submit to the committees on Armed 
     Services of the Senate and House of Representatives of 
     Congress a report on the activities of al Qaeda and 
     associated groups in Latin America and Caribbean, including 
     (1) an assessment of the extent to which such groups have 
     established a presence in the area; (2) a description of 
     activities of such groups in the area, including fund-
     raising, money laundering, narcotrafficking, and association 
     with criminal groups; (3) an assessment of the threat posed 
     by such groups to the peace and stability of nations in the 
     area and to United States interests; and (4) a description of 
     the United States policies intended to deal with such a 
     threat. The provision would require that an unclassified 
     report, with a classified annex as necessary, be submitted no 
     later that 180 days after the date of enactment of this Act. 
     The conferees note their concern about potential al Qaeda 
     activity in the Western Hemisphere, and the indirect and 
     direct threat to United States national security that such 
     activity represents.

                Subtitle B--Counterproliferation Matters

     Defense international counterproliferation programs (sec. 
         1211)
       The House bill contained a provision (sec. 1411) that would 
     authorize the Secretary of Defense to expand existing 
     programs to train foreign border and law enforcement 
     officials in preventing the illicit transfer of weapons of 
     mass destruction in the states of the former Soviet Union, 
     Eastern Europe, and the Baltic States, by granting the 
     Secretary authority to conduct those programs in any other 
     country in which the Secretary determines a significant 
     threat exists.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Policy and sense of Congress on nonproliferation of ballistic 
         missiles (sec. 1212)
       The Senate amendment contained a provision (sec. 1071) that 
     would establish the policy of the United States to develop, 
     support, and strengthen efforts to curtail the proliferation 
     of ballistic missiles and related technology. The provision 
     would also express the sense of Congress that ballistic 
     missile proliferation represents a threat to the United 
     States and its allies and friends which has been slowed by 
     variety of means, and that steps to prevent such 
     proliferation should be vigorously pursued.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Sense of Congress on the Global Partnership against the 
         Spread of Weapons of Mass Destruction (sec. 1213)
       The Senate amendment contained a provision (sec. 1059) that 
     would express the sense of Congress that the President should 
     be commended for the steps taken at the G-8 summit at Sea 
     Island, Georgia, on June 8-10, 2004, to demonstrate continued 
     support for the Global Partnership against the Spread of 
     Nuclear Weapons and Materials of Mass Destruction, and to 
     expand the Global Partnership by welcoming new members and 
     using the partnership to coordinate nonproliferation projects 
     in Libya, Iraq, and other countries. The provision would also 
     call on the President to take a number of specific steps to 
     strengthen the partnership.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Report on collaboration to reduce the risks of a launch of 
         Russian nuclear weapons (sec. 1214)
       The House bill contained a provision (sec. 1423) that makes 
     certain findings and would require the Secretary of Defense 
     to submit a report to Congress by November 1, 2005 on steps 
     that might be taken to reduce the danger of unauthorized or 
     accidental ballistic missile launches.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to submit a report to Congress by November 1, 2005 
     on current and future collaborative efforts to reduce the 
     risk of unauthorized or accidental launches of nuclear armed 
     ballistic missiles.

[[Page H9564]]

       The conferees recognize that a number of factors related to 
     Russian Federation nuclear forces contribute to the risk of 
     unauthorized or accidental launch of Russian ballistic 
     missiles. These factors include: the high state of readiness 
     of the Russian Federation intercontinental ballistic missile 
     force; the remote location of many of these forces; 
     shortcomings in the Russian Federation's early warning 
     system; the short decision time available to the Russian 
     Federation President after being informed of a possible 
     nuclear attack; the possibility that the Russian Federation, 
     because of concerns that its nuclear forces would not survive 
     a nuclear attack, may have a nuclear deterrence posture that 
     relies on launching a retaliatory strike on warning of 
     nuclear attack; deficiencies in the security and control of 
     Russian Federation nuclear forces; and the susceptibility of 
     nuclear strategic command and control systems and early 
     warning systems to an intrusion or accident that could create 
     the false impression that a nuclear ballistic missile attack 
     is underway. The conferees believe that collaborative 
     measures between the United States and the Russian Federation 
     and continued high-level discussions between U.S. and Russian 
     Federation military leaders could be useful in reducing these 
     risks.

                       Subtitle C--Other Matters

     Authority for humanitarian assistance for the detection and 
         clearance of landmines extended to include other 
         explosive remnants of war (sec. 1221)
       The Senate amendment contained a provision (sec. 1051) that 
     would add a new section to chapter 20 of title 10, United 
     States Code, to authorize the Secretary of Defense to provide 
     military training, education, and technical assistance to 
     foreign nations for the purpose of detecting and clearing 
     landmines or other explosive remnants of war. The provision 
     would clarify existing law by separating authority to conduct 
     humanitarian mine clearing actions from the authority to 
     conduct humanitarian and civic assistance, and recognize the 
     requirement to detect and clear other explosive remnants of 
     war, in addition to landmines.
       The House bill contained no similar provision.
       The House recedes with an amendment that would amend 
     section 401 of title 10, United States Code, to include 
     explosive remnants of war, but would not establish a new 
     category for humanitarian activity.
     Expansion of entities of the People's Republic of China 
         subject to certain Presidential authorities when 
         operating in the United States (sec. 1222)
       The House bill contained a provision (sec. 1212) that would 
     expand the definition of a ``Communist Chinese military 
     company'' as defined in the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261) 
     to include Chinese firms owned or operated by a ministry 
     of the People's Republic of China or an entity affiliated 
     with the defense industrial base of the People's Republic 
     of China.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Assignment of NATO naval personnel to submarine safety 
         programs (sec. 1223)
       The House bill contained a provision (sec. 1211) that would 
     authorize the Secretary of Defense to assign military 
     personnel from NATO countries and specified other countries 
     to U.S. commands for the purpose of working on the 
     standardization, development, and interoperability of 
     submarine safety and rescue systems and procedures.
       The Senate amendment contained a similar provision (sec. 
     1054).
       The Senate recedes with an amendment that would: (1) limit 
     the authority of the Secretary of the Navy to the assignment 
     of members of the naval services of NATO nations in 
     connection with this program; and (2) terminate this 
     authority after September 30, 2008.
     Availability of Warsaw Initiative Funds for new NATO Members 
         (sec. 1224)
       The conferees agree to include a provision that would make 
     available up to $4.0 million of Warsaw Initiative Funds in 
     fiscal year 2005 for the participation of new North Atlantic 
     Treaty Organization (NATO) Members (Bulgaria, Estonia, 
     Latvia, Lithuania, Romania, Slovakia, and Slovenia) in the 
     exercises and programs of the Partnership for Peace program. 
     This authority would be available only in fiscal year 2005.
       The conferees note that Warsaw Initiative Funds are 
     authorized for the participation of Partnership for Peace 
     nations in the exercises and programs of NATO's Partnership 
     for Peace program.
       In a letter to the Committees on Armed Services of the 
     Senate and the House of Representatives, the Deputy Secretary 
     of Defense requested that $4.0 million of these funds be 
     available in fiscal year 2005 to new NATO members, 
     specifically to work with remaining Partnership for Peace 
     nations as they seek closer cooperation with NATO. The Deputy 
     Secretary noted in his letter that in 1999, when Poland, 
     Hungary, and the Czech Republic became NATO Members, a 
     limited amount of Warsaw Initiative Funds continued into 
     fiscal year 2000 for exercises and programs that had begun in 
     fiscal year 1999, as well as for funding completion of 
     program audits by local-hire administrative personnel in each 
     of these countries.
       The conferees expect that the use of Warsaw Initiative 
     Funds in fiscal year 2005 for new NATO Members will similarly 
     be used for the purposes of completing exercises and programs 
     that began in fiscal year 2004 and, as necessary, completing 
     program audits in those countries.
     Bilateral exchanges and trade in defense articles and defense 
         services between the United States and the United Kingdom 
         and Australia (sec. 1225)
       The Senate amendment contained a provision (sec. 1059A) 
     that would provide an exception from the certain requirements 
     of subsection (j) of section 38 of the Arms Export Control 
     Act related to bilateral agreement requirements for the 
     transfers of defense items for the Governments of Australia 
     and the United Kingdom.
       The House contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of State, in consultation with the Secretary of 
     Defense, to expeditiously process any application for the 
     export of defense items to the Governments of Australia and 
     the United Kingdom without referral to any other Federal 
     department of agency, except where the item is classified or 
     exceptional circumstances apply.
     Study on Missile Defense Cooperation (sec. 1226)
       The Senate amendment contained a provision (sec. 1070) that 
     would require the Secretary of State and the Secretary of 
     Defense to establish procedures for streamlining the export 
     licensing review process for missile defense items and 
     examine the feasibility of providing major project 
     authorizations for programs related to missile defense 
     similar to those established under section 126.14 of the 
     International Traffic in Arms Regulations.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense, in consultation with the Secretary of 
     State, to study the advisability and feasibility of 
     establishing procedures for streamlining the export licensing 
     review process for missile defense items and providing 
     major project authorizations for programs related to 
     missile defense.

                   Legislative Provisions Not Adopted

     Documentation of conditions in Iraq under former dictatorial 
         government as part of transition to post-dictatorial 
         government
       The House bill contained a provision (sec. 1201) that would 
     require the Secretary of Defense to establish a process for 
     transferring to Iraqi entities documentation on the nature of 
     the Saddam Hussein regime, including any documents or records 
     that have been captured by U.S. military forces in Iraq 
     regarding the activities of the Saddam Hussein government and 
     individuals within that government.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that the Secretary has already 
     transferred most of the noteworthy documentation and is 
     sharing relevant information with the Iraqi government.
     Sense of Congress regarding limitation on use of funds for 
         the reconstruction of Iraq
       The House bill contained a provision (sec. 1208) that would 
     express the sense of Congress that no U.S. funds may be used 
     for reconstruction activities in Iraq until the President 
     certifies that the Government of Iraq has agreed to expend a 
     significant portion of its oil production revenues on 
     reconstruction activities.
       The Senate amendment contained no similar provision.
       The House recedes.
     Sense of Congress on destruction of Abu Ghraib prison in Iraq
       The House bill contained a provision (sec. 1209) that would 
     express the sense of Congress that the Secretary of Defense 
     should assist the Government of Iraq in destroying the Abu 
     Ghraib prison and replacing it with a modern detention 
     facility.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that Abu Ghraib prison was one of the 
     world's most notorious prisons during the rule of Saddam 
     Hussein, and that recent misconduct at that prison by members 
     of the U.S. Armed Forces have further highlighted the 
     horrible memories associated with Abu Ghraib. The conferees 
     further note the progress made in improving conditions at Abu 
     Ghraib prison in recent months, combined with the limited 
     options available to the Government of Iraq for adequate 
     detention facilities, suggest that continued operation of the 
     prison may be a necessity in the near-term. The conferees 
     believe that the fate of Abu Ghraib prison is a decision for 
     the sovereign Government of Iraq.
     Report on Global Peace Operations Initiative
       The House bill contained a provision (sec. 1213) that would 
     require the President to report to Congress on the Global 
     Peace Operations Initiative (GPOI), a new program announced 
     by the administration after the submission of the budget 
     request.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that, traditionally, the training of 
     foreign peacekeeping forces has been conducted by the 
     Department of State under title 22 of the United States Code. 
     The

[[Page H9565]]

     conferees further note that the administration has the 
     necessary authority under title 22 to conduct GPOI as a 
     foreign assistance program.
     Procurement sanctions against certain foreign persons that 
         transfer certain defense articles and services to the 
         People's Republic of China
       The House bill contained a provision (sec. 1214) that would 
     make it the policy of the United States to prevent 
     destabilizing arms transfers to the People's Republic of 
     China by denying Department of Defense procurement contracts 
     to foreign companies that sell to China items similar to 
     those found on the U.S. Munitions List. The provision would 
     also require the Secretary of Defense to publish a list of 
     such companies in the Federal Register.
       The Senate amendment contained no similar provision.
       The House recedes.
     Military educational exchanges between senior officers and 
         officials of the United States and Taiwan
       The House bill contained a provision (sec. 1215) that would 
     require the Secretary of Defense to undertake a program of 
     senior military officer and senior official exchanges with 
     Taiwan designed to improve Taiwan's defenses against the 
     People's Liberation Army of the People's Republic of China.
       The Senate amendment contained no similar provision.
       The House recedes.
     Definitions under Arms Export Control Act
       The House bill contained a provision (sec. 1401) that would 
     amend the Arms Export Control Act (22 U.S.C. 2794) to clarify 
     the definitions of ``license,'' ``agent,'' and ``exporting 
     agent.''
       The Senate amendment contained no similar provision.
       The House recedes.
     Exemption from licensing requirements for export of 
         significant military equipment
       The House bill contained a provision (sec. 1402) that would 
     amend the Arms Export Control Act (22 U.S.C. 2778(b)(2)) to 
     prohibit the President from creating regulatory exemptions 
     for significant military equipment that would otherwise 
     require an export license.
       The Senate amendment contained no similar provision.
       The House recedes.
     Cooperative projects with friendly foreign countries
       The House bill contained a provision (sec. 1403) that would 
     amend the Arms Export Control Act (22 U.S.C. 2767) to: (1) 
     permit the Congress to block a cooperative project agreement 
     with a friendly foreign country; and (2) require a license 
     for the export of defense articles or defense services 
     relating to a cooperative project.
       The Senate amendment contained no similar provision.
       The House recedes.
     Control of exports of United States weapons technology to the 
         People's Republic of China
       The House bill contained a provision (sec. 1404) that would 
     require the President to require exporters of militarily 
     critical technologies to obtain an export license for the 
     export or re-export of any item on the Militarily Critical 
     Technologies List published by the Department of Defense.
       The Senate amendment contained no similar provision.
       The House recedes.
     Licensing requirement for export of militarily critical 
         technologies
       The House bill contained a provision (sec. 1405) that would 
     prohibit the export of certain technologies to individuals or 
     countries engaged in the sale of such items to the security 
     services of the People's Republic of China unless certain 
     conditions are met. Such conditions would require that: a 
     license be approved for that export; the Secretary of Defense 
     concurs in the export; and the foreign person or country 
     agrees in writing not to transfer title, possession of, or 
     otherwise provide access to that item without prior written 
     consent by the President.
       The Senate amendment contained no similar provision.
       The House recedes.
     Strengthening international export controls
       The House bill contained a provision (sec. 1406) that would 
     make it the policy of the United States to seek continued 
     negotiations to strengthen the international export control 
     system for sales of arms and militarily-sensitive goods and 
     technologies to countries of concern. The provision would 
     require a Presidential report on progress made in 
     strengthening international controls 180 days after enactment 
     of this Act and every six months thereafter.
       The Senate amendment contained no similar provision.
       The House recedes.
     Defense counterproliferation fellowship program
       The House bill contained a provision (sec. 1412) that would 
     direct the Secretary of Defense to establish a fellowship 
     program to train and educate foreign defense policymakers and 
     military officers in identifying and using 
     counterproliferation tools to combat the spread of weapons of 
     mass destruction.
       The Senate amendment contained no similar provision.
       The House recedes.

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

                     Legislative Provisions Adopted

     Specification of Cooperative Threat Reduction programs and 
         funds (sec. 1301)
       The House bill contained a provision (sec. 1301) that would 
     define the programs and funds that are Cooperative Threat 
     Reduction (CTR) programs and funds, define the funds as those 
     authorized to be appropriated in section 301 of this Act, and 
     specify that CTR funds shall remain available for obligation 
     for three fiscal years.
       The Senate amendment contained an identical provision (sec. 
     1201).
       The conferees agree to include this provision.
     Funding allocations (sec. 1302)
       The House bill contained a provision (sec. 1302) that would 
     authorize $409.2 million for the Cooperative Threat Reduction 
     (CTR) program. The provision would also authorize specific 
     amounts for each CTR program element, require notification to 
     Congress 30 days before the Secretary of Defense obligates 
     and expends fiscal year 2005 funds for purposes other than 
     those specifically authorized, and provide limited authority 
     to obligate amounts for a CTR program element in excess of 
     the amount specifically authorized for that purpose.
       The Senate amendment contained a similar provision (sec. 
     1202).
       The House recedes.
     Temporary authority to waive limitation on funding for 
         chemical weapons destruction facility in Russia (sec. 
         1303)
       The House bill contained a provision (sec. 1303) that would 
     provide the President authority for fiscal year 2005 to waive 
     existing certification requirements before obligating funds 
     for the construction of the Shchuch'ye chemical weapons 
     destruction facility in Russia.
       The Senate amendment contained a provision (sec. 1203) that 
     would provide the President permanent authority to waive, on 
     an annual basis for each fiscal year, existing certification 
     requirements before obligating funds for the construction of 
     the Shchuch'ye chemical weapons destruction facility in 
     Russia. The Senate amendment would also clarify that funds 
     obligated, but not expended, prior to lapse of a previously 
     executed waiver could be expended.
       The Senate recedes with an amendment that would provide the 
     President authority through December 31, 2006, to waive, on 
     an annual basis for each calendar year, existing 
     certification requirements before obligating or expending 
     funds for the construction of the Shchuch'ye chemical weapons 
     destruction facility in Russia. This authority would expire 
     on December 31, 2006, and no waiver would remain in effect 
     after that date.
       The conferees agree that providing waiver authority on a 
     calendar year basis, rather than on a fiscal year basis, will 
     minimize the risk of unintended interruptions in the program 
     that could occur when fiscal year waiver authority is not 
     renewed before the end of a fiscal year.
     Inclusion of descriptive summaries in annual Cooperative 
         Threat Reduction reports and budget justification 
         materials (sec. 1304)
       The Senate amendment contained a provision (sec. 1204) that 
     would clarify that the Secretary of Defense should provide 
     the specified Cooperative Threat Reduction (CTR) budgetary 
     and programmatic information both in the CTR annual report, 
     and in the budget justification materials that the Department 
     of Defense provides each year as part of the President's 
     annual budget request to Congress.
       The House bill contained no similar provision.
       The House recedes.

                    TITLE XIV--SUNKEN MILITARY CRAFT

                     Legislative Provisions Adopted

     Sunken military craft (sec. 1401-1408)
       The House bill contained several provisions (sec. 1021-
     1028) that would protect sunken U.S. military vessels, 
     aircraft, and spacecraft, as well as the remains and personal 
     effects of their crews from salvage, recovery, or other 
     disturbance without authorization from the secretary of the 
     military department concerned.
       These provisions would clarify the circumstances under 
     which such sunken craft, entitled to sovereign immunity when 
     they sank, remain the property of the flag state until 
     officially abandoned. They would also encourage the 
     negotiation of international agreements to protect sunken 
     military craft.
       Finally, the provisions would authorize the secretary of 
     the military department concerned to issue and enforce 
     permits for activities directed at sunken U.S. military 
     craft, including contract salvage. This system would not 
     invalidate any permitting system currently in place nor 
     affect any prior lawful transfer or express abandonment of 
     title to any sunken military craft.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the Secretary of the Navy, in consultation with the Secretary 
     of State, to apply the permitting system established by these 
     provisions to any foreign sunken military craft located in 
     United States waters, if requested by the flag state of that 
     craft. It would also authorize in rem liability against a 
     vessel involved in a violation of these provisions, and would 
     authorize the Secretary concerned to request the Attorney 
     General to seek other relief in certain cases. It would 
     establish an eight-year statute of limitations for actions to 
     enforce violations of these provisions or any permit

[[Page H9566]]

     issued thereunder. It would also extend the prohibition on 
     applying the law of finds to sunken military craft to foreign 
     craft located in U.S. waters. Finally, it makes technical 
     changes to the definitional section.

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

     Overview
       The House bill contained a title (title XV) that would 
     provide new authorizations of appropriations of $25.0 billion 
     for ongoing operations in Iraq and Afghanistan. The title 
     also contains reporting requirements and general provisions.
       The Senate amendment contained a provision (sec. 1006) that 
     would authorize $25.0 billion for ongoing operations in Iraq 
     and Afghanistan. The provision also contained reporting 
     requirements.
       The Senate recedes with an amendment that would create a 
     title that provides new authorization of appropriations of 
     $25.0 billion for ongoing operations in Iraq and Afghanistan. 
     The title also contains reporting requirements and general 
     provisions.
     Summary table of authorizations
       The following table summarizes authorizations included in 
     the bill for ongoing operations in Iraq and Afghanistan for 
     fiscal year 2005.

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                     Legislative Provisions Adopted

     Purpose (sec. 1501)
       The House bill contained a provision (sec. 1501) that would 
     establish a title as an authorization of appropriations for 
     the Department of Defense for fiscal year 2005, in addition 
     to amounts otherwise authorized in this Act, to provide funds 
     for additional costs due to Operation Iraqi Freedom and 
     Operation Enduring Freedom.
       The Senate amendment contained a similar provision (sec. 
     1006) that would authorize a contingent emergency reserve 
     fund for ongoing operations in Iraq and Afghanistan.
       The Senate recedes with an amendment that would establish 
     this title to provide additional funds for ongoing operations 
     in Iraq and Afghanistan.
     Army Procurement (sec. 1502)
       The House bill contained a provision (sec. 1511) that would 
     authorize an additional $2,439.2 million for fiscal year 2005 
     in Procurement, Army.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     $965.0 million for fiscal year 2005 in Procurement, Army. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.
     Navy and Marine Corps Procurement (sec. 1503)
       The House bill contained a provision (sec. 1512) that would 
     authorize an additional $136.6 million for fiscal year 2005 
     in Procurement, Navy and Marine Corps.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     $180.0 million for fiscal year 2005 in Procurement, Navy and 
     Marine Corps. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.
     Defense-wide activities procurement (sec. 1504)
       The House bill contained a provision (sec. 1514) that would 
     authorize an additional $720.0 million for fiscal year 2005 
     in Procurement, Defense-wide.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     $50.0 million for fiscal year 2005 in Procurement, Defense-
     wide. Unless noted explicitly in the statement of managers, 
     all changes are made without prejudice.
     Operation and maintenance (sec. 1505)
       The House bill contained a provision (sec. 1515) that would 
     authorize an additional $16,225.2 million for fiscal year 
     2005 operation and maintenance programs.
       The Senate amendment contained a similar provision (sec. 
     1006) that would authorize an additional $20,500.0 million 
     for operation and maintenance programs within a contingent 
     emergency response fund.
       The Senate recedes with an amendment that would authorize 
     $16,405.0 million for fiscal year 2005 for operation and 
     maintenance programs. Unless noted explicitly in the 
     statement of managers, all changes are made without 
     prejudice.
     Defense working capital funds (sec. 1506)
       The Senate amendment contained a provision (sec. 1006) that 
     would authorize $2,500.0 million within a contingent 
     emergency response fund transfer account to be available for 
     the costs of ongoing military operations in Iraq and 
     Afghanistan.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     $1,478.0 million for the Defense Working Capital Fund 
     Program.
     Iraq Freedom Fund (sec. 1507)
       The Senate amendment contained a provision (sec. 1006) that 
     would authorize $2,500.0 million within a contingent 
     emergency response fund transfer account to be available for 
     the costs of ongoing military operations in Iraq and 
     Afghanistan.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize a 
     $3,892.0 million for the Iraq Freedom Fund to remain 
     available for transfer until September 30, 2006, of which 
     $1,800.0 million shall be available for classified programs.
     Defense health program (sec. 1508)
       The House bill contained a provision (sec. 1516) that would 
     authorize an additional $75.0 million for fiscal year 2005 
     Defense Health Program activities.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     $780.0 million for fiscal year 2005 for Defense Health 
     Program activities. Unless noted explicitly in the statement 
     of managers, all changes are made without prejudice.
     Military personnel (sec. 1509)
       The House bill contained a provision (sec. 1517) that would 
     authorize an additional $5,305.0 million for fiscal year 2005 
     military personnel accounts.
       The Senate amendment contained a similar provision (sec. 
     1006) that would authorize an additional $2,000.0 million for 
     fiscal year 2005 military personnel accounts within a 
     contingent emergency response fund.
       The Senate recedes with an amendment that would authorize 
     $1,250.0 million for fiscal year 2005 military personnel 
     accounts. Unless noted explicitly in statement of managers, 
     all changes are made without prejudice.
     Treatment as additional authorizations (sec. 1510)
       The House bill contained a provision (sec. 1518) that would 
     provide that the $25.0 billion authorized for emergency 
     contingency operations related to Operation Iraqi Freedom and 
     Operation Enduring Freedom are in addition to the amounts 
     otherwise authorized in this Act.
       The Senate amendment contained a similar provision (sec. 
     1006).
       The Senate recedes.
     Transfer authority (sec. 1511)
       The House bill contained a provision (sec. 1519) that would 
     provide fiscal year 2005 transfer authority of $2.5 billion 
     to the Department of Defense for the authorizations contained 
     in title XV of their bill.
       The Senate amendment contained a similar provision (sec. 
     1006).
       The Senate recedes with an amendment that would provide 
     fiscal year 2005 transfer authority of $1.5 billion to the 
     Department for the authorizations contained in this title.

                   Legislative Provisions Not Adopted

     Procurement, Air Force
       The House bill contained a provision (sec. 1513) that would 
     authorize an additional $99.0 million for fiscal year 2005 in 
     Procurement, Air Force.
       The Senate amendment contained no similar provision.
       The House recedes.
     Designation of Emergency Authorization
       The House bill contained a provision (sec. 1520) that would 
     authorize $25.0 billion for fiscal year 2005 to support 
     emergency contingency operations related to the global war on 
     terrorism.
       The Senate amendment contained no similar provision.
       The House recedes.
     Three-year increase in active Army strength levels
       The House bill contained provisions (sec. 1531 and 1532) 
     that would increase the active Army and Marine Corps end 
     strength authorized for fiscal year 2005 by 10,000 and 3,000 
     respectively above the authorization in section 401 of the 
     National Defense Authorization Act for Fiscal Year 2004. 
     These provisions would also authorize corresponding active-
     duty Army and Marine Corps end strengths for fiscal years 
     2006 and 2007 and prescribe corresponding minimum end 
     strengths under section 691(b) of title 10, United States 
     Code.
       The Senate amendment contained a provision (sec. 402) that 
     would authorize a temporary increase in the Army's active-
     duty end strength of up to 30,000 during fiscal years 2005 
     through 2009. The provision would require that if the 
     Secretary of Defense plans to increase the Army active-duty 
     end strength above the levels authorized for fiscal year 
     2004, then the budget for the Department for such fiscal 
     years as submitted to Congress shall specify the amounts 
     necessary for funding the active duty end strength of the 
     Army in excess of 482,400.
       The House recedes with an amendment that would authorize a 
     temporary increase in the Marine Corps' active-duty end 
     strength of up to 9,000 over 175,000, the level set forth in 
     section 401 of the National Defense Authorization Act for 
     Fiscal Year 2004 during fiscal years 2005 through 2009. The 
     amendment would also require that if the Secretary of Defense 
     plans to increase the Army or Marine Corps active-duty end 
     strength for a fiscal year, then the budget for the 
     Department for such fiscal years as submitted to Congress 
     shall specify the amounts necessary for funding the active 
     duty end strength of the Army or Marine Corps in excess of 
     482,400 and 175,000 respectively.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

     Overview
       The administration originally requested authorization of 
     appropriations in fiscal year 2005 for military construction 
     and housing programs totaling $9,450,475,000. The 
     administration's amended budget for authorization of 
     appropriations totaled $9,480,475,000, after adding certain 
     military construction projects for the Army National Guard 
     totaling $30.0 million.
       The House bill would authorize appropriations totaling 
     $9,930.5 million for military construction and family housing 
     programs.
       The Senate amendment would authorize appropriations 
     totaling $9,822.9 million for military construction and 
     family housing programs.
       The conferees recommend authorization of appropriations of 
     $9,930.1 million for the military construction and family 
     housing accounts of the Department of Defense for fiscal year 
     2005. The authorization of appropriations includes the use of 
     $130.0 million from prior-year rescissions. The conference 
     agreement is consistent with a budget authority level of 
     $10,003.0 million for military construction and family 
     housing programs.
       The following tables provide the project-level 
     authorizations for the military construction funding 
     authorized in Division B of this Act and summarize that 
     funding by account. The tables also note as ``Budget Amend'' 
     the projects contained in a fiscal year 2005 amended budget 
     request submitted by the administration on March 5, 2004.

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     Short title (sec. 2001)
       The House bill contained a provision (sec. 2001) that would 
     cite Division B of this Act as the Military Construction 
     Authorization Act for Fiscal Year 2005.
       The Senate amendment contained an identical provision (sec. 
     2001).
       The conference agreement includes this provision.

                            TITLE XXI--ARMY

     Overview
       The House bill would authorize appropriations for the Army 
     of $1,866.2 million for military construction and $1,562.6 
     million for family housing for fiscal year 2005.
       The Senate amendment would authorize appropriations for the 
     Army of $1,942.9 million for military construction and 
     $1,565.0 million for family housing for fiscal year 2005.
       The conferees recommend authorization of appropriation for 
     the Army of $1,969.0 million for military construction and 
     $1,562.6 million for family housing for fiscal year 2005.

                     Legislative Provisions Adopted

     Authorized Army construction and land acquisition projects 
         (sec. 2101)
       The House bill contained a provision (sec. 2101) that would 
     authorize Army military construction projects in fiscal year 
     2005.
       The Senate amendment contained a similar provision (sec. 
     2101).
       The conference agreement includes this provision.
       The amounts authorized are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of division B of this 
     conference report entitled ``Military Construction 
     Authorization for FY2005'' provides the binding list of 
     specific construction projects authorized at each location.
     Family housing (sec. 2102)
       The House bill contained a provision (sec. 2102) that would 
     authorize new construction and planning and design of family 
     housing units for the Army in fiscal year 2005.
       The Senate amendment contained an identical provision (sec. 
     2102).
       The conference agreement includes this provision.
       The amounts authorized are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of division B of this 
     conference report entitled ``Military Construction 
     Authorization for FY2005'' provides the binding list of 
     specific construction projects authorized at each location.
     Improvements to military family housing units (sec. 2103)
       The House bill contained a provision (sec. 2103) that would 
     authorize improvements to existing units of Army family 
     housing in fiscal year 2005.
       The Senate amendment contained an identical provision (sec. 
     2103).
       The conference agreement includes this provision.
     Authorization of appropriations, Army (sec. 2104)
       The House bill contained a provision (sec. 2104) that would 
     authorize specific appropriations for each line item 
     contained in the Army's military construction budget in 
     fiscal year 2005. This provision would also provide an 
     overall limit on the amount the Army is authorized to spend 
     on military construction projects in fiscal year 2005.
       The Senate amendment contained a similar provision (sec. 
     2104).
       The conference agreement includes this provision.
     Modification of authority to carry out certain fiscal year 
         2004 project (sec. 2105)
       The House bill contained a provision (sec. 2105) that would 
     amend section 2101 of the Military Construction Authorization 
     Act for Fiscal Year 2004 (division B of Public Law 108-136) 
     to increase project authorizations for Fort Stewart, Georgia 
     and Fort Drum, New York.
       The Senate amendment contained a similar provision (sec. 
     2105).
       The Senate recedes.
     Modification of authority to carry out certain fiscal year 
         2003 projects (sec. 2106)
       The House bill contained a provision (sec. 2106) that would 
     amend section 2101 of the Military Construction Authorization 
     Act for Fiscal Year 2003 (division B of Public Law 107-314) 
     as further amended by section 2105(a)(2) of the Military 
     Construction Authorization Act for Fiscal Year 2004 (division 
     B of Public Law 108-136) to adjust a project authorization 
     for Fort Sill, Oklahoma.
       The Senate amendment contained a similar provision (sec. 
     2106).
       The Senate recedes.

                            TITLE XXII--NAVY

     Overview
       The House bill would authorize appropriations for the Navy 
     of $1,077.9 million for military construction and $835.4 
     million for family housing for fiscal year 2005.
       The Senate amendment would authorize appropriations for the 
     Navy of $100.1 million for military construction and $843.6 
     million for family housing for fiscal year 2005.
       The conferees recommend authorization of appropriations for 
     the Navy of $1,056.3 million for military construction and 
     $835.4 million for family housing for fiscal year 2005.

                     Legislative Provisions Adopted

     Authorized Navy construction and land acquisition projects 
         (sec. 2201)
       The House bill contained a provision (sec. 2201) that would 
     authorize Navy military construction projects in fiscal year 
     2005.
       The Senate amendment contained a similar provision (sec. 
     2201).
       The conference agreement includes this provision.
       The amounts authorized are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of division B of this 
     conference report entitled ``Military Construction 
     Authorization for FY2005'' provides the binding list of 
     specific construction projects authorized at each location.
     Family housing (sec. 2202)
       The House bill contained a provision (sec. 2202) that would 
     authorize new construction and planning and design of family 
     housing units for the Navy in fiscal year 2005.
       The Senate amendment contained an identical provision (sec. 
     2202).
       The conference agreement includes this provision.
       The amounts authorized are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of division B of this 
     conference report entitled ``Military Construction 
     Authorizations for FY2005'' provides the binding list of 
     specific construction projects authorized at each location.
     Improvements to military family housing units (sec. 2203)
       The House bill contained a provision (sec. 2203) that would 
     authorize improvements to existing units of Navy family 
     housing in fiscal year 2005.
       The Senate amendment contained an identical provision (sec. 
     2203).
       The conference agreement includes this provision.
     Authorization of appropriations, Navy (sec. 2204)
       The House bill contained a provision (sec. 2204) that would 
     authorize specific appropriations for each line item 
     contained in the Navy's military construction budget in 
     fiscal year 2005. This provision would also provide an 
     overall limit on the amount the Navy is authorized to spend 
     on military construction projects in fiscal year 2005.
       The Senate amendment contained a similar provision (sec. 
     2204).
       The conference agreement includes this provision.

                   Legislative Provisions Not Adopted

     Modification of authority to carry out a certain fiscal year 
         2004 project
       The Senate amendment contained a provision (sec. 2205) that 
     would amend section 2201 of the Military Construction 
     Authorization Act for Fiscal Year 2004 (division B of Public 
     Law 108-136) to increase a project authorization amount at 
     Various Locations, CONUS.
       The House bill contained no similar provision.
       The Senate recedes.

                         TITLE XXIII--AIR FORCE

     Overview
       The House bill would authorize appropriations for the Air 
     Force of $789.6 million for military construction and 
     $1,701.9 million for family housing for fiscal year 2005.
       The Senate amendment would authorize appropriations for the 
     Air Force of $782.5 million for military construction and 
     $1,703.1 million for family housing for fiscal year 2005.
       The conferees recommend authorization of appropriation for 
     the Air Force of $853.9 million for military construction and 
     $1,700.3 million for family housing for fiscal year 2005.

                     Legislative Provisions Adopted

     Authorized Air Force construction and land acquisition 
         projects (sec. 2301)
       The House bill contained a provision (sec. 2301) that would 
     authorize Air Force military construction projects in fiscal 
     year 2005.
       The Senate amendment contained a similar provision (sec. 
     2301).
       The conference agreement includes this provision.
       The amounts authorized are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of Division B of this 
     conference report entitled ``Military Construction 
     Authorization for FY2005'' provides the binding list of 
     specific construction projects authorized at each location.
     Family housing (sec. 2302)
       The House bill contained a provision (sec. 2302) that would 
     authorize new construction and planning and design of family 
     housing units for the Air Force in fiscal year 2005.
       The Senate amendment contained a similar provision (sec. 
     2302).
       The conference agreement includes this provision.
       The amounts authorized are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of division B of this 
     conference report entitled ``Military Construction 
     Authorization for FY2005'' provides the binding list of 
     specific construction projects authorized at each location.
     Improvements to military family housing units (sec. 2303)
       The House bill contained a provision (sec. 2303) that would 
     authorize improvements to existing units of Air Force family 
     housing in fiscal year 2005.
       The Senate amendment contained an identical provision (sec. 
     2303).

[[Page H9595]]

       The conference agreement includes this provision.
     Authorization of appropriations, Air Force (sec. 2304)
       The House bill contained a provision (sec. 2304) that would 
     authorize specific appropriations for each line item 
     contained in the Air Force's military construction budget in 
     fiscal year 2005. This provision would also provide an 
     overall limit on the amount the Air Force is authorized to 
     spend on military construction projects in fiscal year 2005.
       The Senate amendment contained a similar provision (sec. 
     2304).
       The conference agreement includes this provision.

                      TITLE XXIV--DEFENSE AGENCIES

     Overview
       The House bill would authorize appropriations for the 
     defense agencies of $790.8 million for military construction 
     and $49.6 million for family housing for fiscal year 2005.
       The Senate amendment would authorize appropriations for the 
     defense family housing for fiscal year 2005.
       The conferees recommend authorization of appropriations for 
     the defense agencies of $675.5 million for military 
     construction and $49.6 million for family housing for fiscal 
     year 2005.

                     Legislative Provisions Adopted

     Authorized defense agencies construction and land acquisition 
         projects (sec. 2401)
       The House bill contained a provision (sec. 2401) that would 
     authorize defense agencies military construction projects in 
     fiscal year 2005.
       The Senate amendment contained a similar provision (sec. 
     2401).
       The conference agreement includes this provision.
       The amounts authorized are listed in this provision on an 
     installation-by-installation basis. A State list of projects 
     contained in the table at the beginning of division B of this 
     conference report entitled ``Military Construction 
     Authorization for FY2005'' provides the binding list of 
     specific construction projects authorized at each location.
     Improvements to military family housing units (sec. 2402)
       The House bill contained a provision (sec. 2402) that would 
     authorize improvements to existing units of the defense 
     agencies' family housing in fiscal year 2005.
       The Senate amendment contained an identical provision (sec. 
     2402).
       The conference agreement includes this provision.
     Energy conservation projects (sec. 2403)
       The House bill contained a provision (sec. 2403) that would 
     authorize the Secretary of Defense to carry out energy 
     conservation projects.
       The Senate amendment contained a similar provision (sec. 
     2403).
       The conference agreement includes this provision.
     Authorization of appropriations, defense agencies (sec. 2404)
       The House bill contained a provision (sec. 2404) that would 
     authorize specific appropriations for each line item 
     contained in the defense agencies' military construction 
     budget in fiscal year 2005. This provision would also provide 
     an overall limit on the amount the defense agencies are 
     authorized to spend on military construction projects in 
     fiscal year 2005.
       The Senate amendment contained a similar provision (sec. 
     2404).
       The conference agreement includes this provision.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

                     Legislative Provisions Adopted

     Authorized NATO construction and land acquisition projects 
         (sec. 2501)
       The House bill contained a provision (sec. 2501) that would 
     authorize the Secretary of Defense to make contributions to 
     the North Atlantic Treaty Organization Security Investment 
     program in an amount equal to the sum of the amount 
     specifically authorized elsewhere in this conference report, 
     and the amount of recoupment due to the United States for 
     construction previously financed by the United States.
       The Senate amendment contained an identical provision (sec. 
     2501).
       The conference agreement includes this provision.
     Authorization of appropriations, NATO (sec. 2502)
       The House bill contained a provision (sec. 2502) that would 
     authorize appropriations of $165.8 million for the U.S. 
     contribution to the North Atlantic Treaty Organization 
     Security Investment program.
       The Senate amendment contained an identical provision (sec. 
     2502).
       The conference agreement reduces the authorization of 
     appropriations by $5.0 million.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

     Overview
       The House bill would authorize appropriations of $839.8 
     million for military construction and land acquisition for 
     fiscal year 2005 for the Guard and Reserve components.
       The Senate amendment would authorize appropriations of 
     $768.7 million for military construction and land acquisition 
     for fiscal year 2005 for the Guard and Reserve components.
       The conferees recommend authorization of appropriations of 
     $929.2 million for military construction and land acquisition 
     for fiscal year 2005 for the Guard and Reserve components. 
     This authorization would be distributed as follows:

Army National Guard..............................................$434.4
Air National Guard................................................233.5
Army Reserve.......................................................90.3
Naval and Marine Corps Reserve.....................................48.2
Air Force Reserve.................................................122.8
                                                             __________
                                                             
    Total.........................................................929.2

                     Legislative Provisions Adopted

     Authorized Guard and Reserve construction and land 
         acquisition projects (sec. 2601)
       The House bill contained a provision (sec. 2601) that would 
     authorize appropriations for military construction for the 
     Guard and Reserve by service component in fiscal year 2005.
       The Senate amendment contained a similar provision (sec. 
     2601).
       The conference agreement includes this provision.
       A State list of projects contained in the table at the 
     beginning of division B of this conference report entitled 
     ``Military Construction Authorization for FY2005'' provides 
     the binding list of specific construction projects authorized 
     at each location.

                        Item of Special Interest

     Change in title of military construction project previously 
         authorized
       The conferees agree to make a technical clarification to 
     the table, entitled ``Military Construction Authorization for 
     FY2004,'' contained within division B of the statement of 
     managers accompanying the National Defense Authorization Act 
     for Fiscal Year 2004 (Conf. Rept. 108-354) by changing the 
     title for a project authorized for the Air National Guard at 
     the Memphis International Airport, Tennessee from ``C-5 
     Upgrade Shops'' to ``C-5 Site Improvements and Utilities''.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

                     Legislative Provisions Adopted

     Expiration of authorizations and amounts required to be 
         specified by law (sec. 2701)
       The House bill contained a provision (sec. 2701) that would 
     provide that authorizations for military construction 
     projects, repair of real property, land acquisition, family 
     housing projects and facilities, contributions to the North 
     Atlantic Treaty Organization investment program, and Guard 
     and Reserve projects will expire on October 1, 2007, or the 
     date of enactment of an act authorizing funds for military 
     construction for fiscal year 2008, whichever is later. This 
     requirement would not apply to funds obligated prior to the 
     expiration date.
       The Senate amendment contained an identical provision (sec. 
     2701).
       The conference agreement includes this provision.
     Extension of authorizations of certain fiscal year 2002 
         projects (sec. 2702)
       The House bill contained a provision (sec. 2702) that would 
     provide for the extension of certain fiscal year 2002 
     military construction project authorizations until October 1, 
     2005, or the date of enactment of an act authorizing funds 
     for military construction for fiscal year 2006, whichever is 
     later.
       The Senate amendment contained a similar provision (sec. 
     2702).
       The Senate recedes with an amendment that would amend the 
     list of fiscal year 2002 military construction project 
     authorizations to be extended.
     Extension and renewal of authorizations of certain fiscal 
         year 2001 projects (sec. 2703)
       The House bill contained a provision (sec. 2703) that would 
     provide for the extension of certain fiscal year 2001 
     military construction project authorizations until October 1, 
     2005 or the date of enactment of an act authorizing funds for 
     military construction for fiscal year 2006, whichever is 
     later.
       The Senate amendment contained a similar provision (sec. 
     2703).
       The conference agreement includes this provision.

                   Legislative Provisions Not Adopted

     Effective date
       The House bill contained a provision (sec. 2704) that would 
     provide that titles XXI, XXII, XXIII, XXIV, XXV, and XXVI of 
     this Act shall take effect on October 1, 2004, or the date of 
     enactment of this Act, whichever is later.
       The Senate amendment contained an identical provision (sec. 
     2704).
       Because the conference report was not adopted prior to 
     October 1, 2004, this provision is no longer required and was 
     not included in the conference agreement.

                    TITLE XXVIII--GENERAL PROVISIONS

                       Items of Special Interest

     Acceleration of environmental clean-up activities related to 
         public lands, West Wendover, Nevada
       Section 2843 of the Military Construction Authorization Act 
     for Fiscal Year 2003 (division B of Public Law 107-314) 
     authorized the Secretary of the Interior and the Secretary of 
     the Air Force to convey certain parcels of real property 
     totaling 14,000 acres at Wendover Air Force Base Auxiliary 
     Field, Nevada to the City of West Wendover, Nevada and Tooele 
     County, Utah. The purpose of the conveyance is to protect and 
     benefit the local community by establishing aircraft accident 
     prevention zones and developing 3,000 acres for an industrial 
     park.

[[Page H9596]]

       In order for the Secretary of the Interior to carry out the 
     conveyance, the Secretary of the Air Force must identify the 
     extent of environmental contamination on the lands and the 
     measures to ensure the protection of the public. Currently, 
     the Air Force has planned, based on a risk assessment and 
     available funding, for a preliminary environmental assessment 
     in 2006 and, if needed, subsequent environmental actions for 
     these lands in 2011.
       Establishing aircraft accident prevention zones are 
     critical to mitigating the risk of loss of life for local 
     residents in the vicinity of airports. The industrial park 
     planned by the local community is vital to the economic 
     development and the growth of commercial investment in the 
     areas surrounding Wendover airport. Delays in the conveyance 
     of the lands are having a detrimental impact on the safety of 
     residents and the vitality of the local economy.
       Therefore, the conferees direct the Secretary of the Air 
     Force to give appropriate consideration to the completion of 
     environmental remediation activities for lands at Wendover 
     Air Force Base Auxiliary Field, Nevada so that the lands may 
     be transferred to the Bureau of Land Management as quickly as 
     possible.
     Consideration of proposal for leased facilities supporting 
         Headquarters, United States Southern Command, Miami, 
         Florida
       The conferees are aware of a proposal from the State of 
     Florida to construct a building for Southern Command 
     occupancy once the current lease expires in 2008. The 
     conferees urge the Secretary of Defense to consider the 
     State's proposal and update the congressional defense 
     committees on the status of this proposal by February 1, 
     2005.

                     Legislative Provisions Adopted

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

     Modification of approval and notice requirements for facility 
         repair projects (sec. 2801)
       The Senate amendment contained a provision (sec. 2802) that 
     would amend section 2811(b) of title 10, United States Code, 
     by raising the threshold of the cost of a construction 
     project requiring approval in advance by a service secretary 
     from $5.0 million to $7.5 million.
       The House bill contained a provision (sec. 2803) that would 
     amend section 2811(d) of title 10, United States Code, to 
     lower the threshold at which congressional notification is 
     required for facility repairs using operation and maintenance 
     funds from $10.0 million to $7.5 million.
       The House recedes with an amendment that would include in 
     the conference agreement both amendments to section 2811 of 
     title 10, United States Code.
     Reporting requirements regarding military family housing 
         requirements for general officers and flag officers (sec. 
         2802)
       The House bill contained a provision (sec. 2804) that would 
     require the Department of Defense to conduct an analysis of 
     general and flag officer housing requirements in the national 
     capital region by March 30, 2005. This section would also 
     require the Department to report to Congress, by March 30, 
     2005, on its inventory of general and flag officer housing, 
     including annual expenditures of each house for operations, 
     utilities, and maintenance and repair over the past five 
     years. Finally, this section would require the Department to 
     provide, as part of its annual budget justification 
     documents, by March 30 of each year a detailed list of each 
     general and flag officer quarters for which operations, 
     utilities, and maintenance and repair costs, in sum, are 
     anticipated to exceed $20,000 in the coming year.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Department to provide, as part of its annual budget 
     justification documents, a list of general and flag officer 
     quarters for which operations, maintenance and repair costs 
     are anticipated to exceed $35,000 in the budget year. The 
     amendment would also add a reporting requirement for each 
     dwelling unit where operations, maintenance and repair 
     actions would exceed an annual cost of $35,000, not included 
     in the annual President's budget request, but required for 
     environmental remediation or to protect the safety or 
     security of the occupants.
       In annual cost calculations, the conferees define 
     ``operations activities'' to include the prorated share of 
     costs for management of family housing, services, and 
     furnishings. Utilities, leases, and costs related to 
     historical preservation should not be included in the 
     analysis of the $35,000 threshold, but should be included in 
     all reports.
     Congressional notification of deviations from authorized cost 
         variations for military construction projects and 
         military family housing projects (sec. 2803)
       The House bill contained a provision (sec. 2805) that would 
     amend section 2853(c)(3) of title 10, United States Code, to 
     shorten the notice and wait period for significant project 
     cost increases or scope decreases from 21 days to 14 days, if 
     notification is provided in an electronic format to Congress.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Assessment of vulnerability of military installations to 
         terrorist attack and annual report on military 
         construction requirements related to antiterrorism and 
         force protection (sec. 2804)
       The House bill contained a provision (sec. 2802) that would 
     require the Secretary of Defense to establish guidance on 
     appropriate levels of antiterrorism and force protection 
     requirements for facilities construction and perimeter 
     defenses, and to certify that all major Department of Defense 
     installations have been assessed for vulnerabilities to 
     terrorist attack since September 11, 2001. This section also 
     would require the Department to provide an annual list of 
     unfunded antiterrorism and force-protection military 
     construction requirements.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Repeal of limitations on use of alternative authority for 
         acquisition and improvement of military housing (sec. 
         2805)
       The House bill contained a provision (sec. 2806) that would 
     amend section 2883 of title 10, United States Code, to repeal 
     the limitation on budget authority for contracts and 
     investments in military housing privatization projects, 
     effective October 1, 2005.
       The Senate amendment contained a provision (sec. 2804) that 
     would amend section 2874 of title 10, United States Code, and 
     would repeal sections 2876, 2877, and 2882 of title 10, 
     United States Code.
       The Senate recedes with an amendment that would repeal the 
     limitation on budgetary authority for contracts and 
     investments for the acquisition or construction of military 
     family housing and military unaccompanied housing. These 
     limitations would be repealed as of the date of enactment of 
     this Act. The amendment would also repeal section 2885 of 
     title 10, United State Code.
     Additional reporting requirements relating to alternative 
         authority for acquisition and improvement of military 
         housing (sec. 2806)
       The Senate amendment contained a provision (sec. 2803) that 
     would amend section 2884 of title 10, United States Code, to 
     add additional requirements for reports provided by the 
     Secretary of Defense to congressional defense committees.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Temporary authority to accelerate design efforts for military 
         construction projects carried out using design-build 
         selection procedures (sec. 2807)
       The House bill contained a provision (sec. 2807) that would 
     establish a demonstration program to allow the Department of 
     Defense to enter into a design-build construction contract 
     using design funds made available under sections 2807 and 
     18233 of title 10, United States Code, prior to the 
     authorization of the project. This section would permit 
     the Department to enter into 36 contracts through 
     September 30, 2008, and would require a report to Congress 
     on the value of the program by March 1, 2007.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit the 
     demonstration program to 18 projects that are included in the 
     annual President's budget request to Congress.
       The conferees intend that in the case of a design-build 
     project carried out under this authority for which 
     construction funds are not subsequently authorized and 
     appropriated by Congress, the design completed at the time of 
     the government's termination for convenience would become the 
     property of the United States Government.
     Notification thresholds and requirements for expenditures or 
         contributions for acquisition of facilities for Reserve 
         components (sec. 2808)
       The Senate amendment contained a provision (sec. 2812) that 
     would amend sections 18231, 18232, 18233, and 18233a of title 
     10, United States Code, to modify and enhance definitions and 
     authorities available to the Secretary of Defense, and to 
     provide for the acquisition of facilities and land interests 
     necessary for the proper development, training, operation, 
     and maintenance of the Reserve components of the Armed 
     Forces.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     modifications to notification thresholds and requirements 
     contained in section 18233a of title 10, United States Code. 
     The conferees note that additional modifications to section 
     18233 of title 10, United States Code, contained in the 
     Senate amendment have been addressed in another conference 
     provision (sec. 2809).
     Authority to exchange Reserve component facilities to acquire 
         replacement facilities (sec. 2809)
       The House bill contained a provision (sec. 2808) that would 
     amend section 18233 of title 10, United States Code, to 
     provide the Secretary of Defense the authority to receive 
     facilities, cash, or a combination of facilities and cash for 
     existing Reserve component facilities.
       The Senate amendment contained a provision (sec. 2813) that 
     would authorize the Secretary of Defense to carry out 
     projects to assess the feasibility and advisability of 
     obtaining new facilities for the Reserve components through 
     the exchange or sale of existing facilities of such 
     components.
       The Senate recedes with an amendment that would amend 
     chapter 1803 of title 10,

[[Page H9597]]

     United States Code, to clarify the authority of the secretary 
     of a military department to acquire facilities through 
     exchanges of equal value facilities with a State, local 
     government, local authority, or private entity, and would 
     provide temporary authority to the secretary concerned to 
     include cash equalization payments in the terms of the 
     exchange.
       The amendment would establish requirements for the terms of 
     the agreement and would require the secretary of a military 
     department to certify to the congressional defense 
     committees, prior to carrying out an agreement, that certain 
     conditions have been satisfied before an agreement is signed.
       The amendment would also provide temporary authority to the 
     secretary of a military department to make or accept cash 
     payments as a part of an exchange agreement for facilities. 
     The cash payments would be deposited in a special account and 
     available to the Secretary concerned to be used in agreements 
     to equalize the equitable exchange of facilities, or to cover 
     costs related to operations, maintenance, and improvements to 
     facilities acquired using an exchange agreement. The 
     amendment would limit the use of the temporary authority, 
     establish an expiration date, and require the Secretary of 
     Defense to submit a report to the congressional defense 
     committees on the usefulness of the temporary authority.
       The conferees acknowledge that ambiguous definitions in 
     chapter 1803, United States Code, have been interpreted by 
     the military departments to authorize these exchange 
     agreements. While the conferees recognize the benefit to the 
     Department of Defense of certain transactions that would 
     exchange sub-optimized land or deteriorated facilities for 
     new facilities for the Reserve components, these unique 
     agreements must be carried out with oversight from Congress.
       It is the intent of the conferees that the use of this 
     authority will satisfy, to the maximum extent possible, 
     military construction requirements included in the Future 
     Years Defense Plan for each Reserve component. The conferees 
     expect that the exchange agreements will not result in 
     additional military construction or operations and 
     maintenance requirements imposed upon the Reserve component 
     and that impact on current readiness and missions will be 
     minimized during the exchange. The conferees expect that the 
     Reserve components will consider the feasibility of 
     addressing joint facility and land requirements within the 
     land exchange agreements. The conferees expect the interests 
     of the government will be protected by the use of competitive 
     procedures, to the maximum extent practicable, in order to 
     obtain a realistic value for the facilities to be 
     exchanged.
       The conferees expect that the military departments will use 
     the temporary authority to use equalizing cash payments as a 
     condition to facilitate the exchange of facilities in order 
     to expedite agreements to replace or improve deficient 
     Reserve facilities, and not as an opportunity to maximize the 
     accumulation of cash proceeds. The conferees expect the 
     military departments to be able to provide Congress with 
     audit information to account for cash receipts and 
     expenditures in order to retain oversight on the use of 
     funds.
     One-year extension of temporary, limited authority to use 
         operation and maintenance funds for construction projects 
         outside the United States (sec. 2810)
       The House bill contained a provision (sec. 2809) that would 
     extend for one year the authority provided by section 2808 of 
     the National Defense Authorization Act for Fiscal Year 2004 
     (Public Law 108-136), to permit the Secretary of Defense to 
     utilize operation and maintenance funds to construct 
     facilities necessary for temporary operational requirements 
     related to a declaration of war, national emergency, or 
     contingency.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would make the 
     extension of the authority contingent upon receipt by 
     Congress of all required reports contained in the original 
     provision.
       The conferees direct the Department of Defense to determine 
     whether they require permanent authority to utilize operation 
     and maintenance funds to construct facilities in lieu of 
     continuing a temporary extension.
     Consideration of combination of military medical treatment 
         facilities and health care facilities of Department of 
         Veterans Affairs (sec. 2811)
       The House bill contained a provision (sec. 2810) that would 
     direct the Secretary of Defense and the Secretary of Veterans 
     Affairs to certify that each project to construct medical 
     treatment facilities, included in the annual President's 
     budget request to Congress, had been evaluated for the 
     feasibility of carrying out a project for a combined medical 
     facility.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would eliminate 
     the certification requirement, but continue to require the 
     Secretary of Defense and the Secretary of Veterans Affairs, 
     when proposing construction of a medical facility, to consult 
     on the feasibility of accomplishing a joint project.

        Subtitle B--Real Property and Facilities Administration

     Reorganization of existing administrative provisions relating 
         to real property transactions (sec. 2821)
       The Senate amendment contained a provision (sec. 2811) that 
     would amend sections 2661 and 2679 of title 10, United States 
     Code, to consolidate and clarify authorities available for 
     real property administration. This provision would also 
     repeal sections 2666, 2670, and 2673 of title 10, United 
     States Code, that would be superceded as a result of the 
     consolidations.
       The House bill contained a similar provision (sec. 2812).
       The House recedes with an amendment that would also repeal 
     section 2664 of title 10, United States Code.
     Development of Heritage Center for the National Museum of the 
         United States Army (sec. 2822)
       The Senate amendment contained a provision (sec. 2843) that 
     would authorize the Secretary of the Army to enter into an 
     agreement with the Army Historical Foundation for the design, 
     construction, and operation of a facility, or group of 
     facilities, at Fort Belvoir, Virginia for the National Museum 
     of the United States Army.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     extent of lease payments to be received by the Secretary.
     Elimination of reversionary interests clouding United States 
         title to property used as Navy homeports (sec. 2823)
       The House bill contained a provision (sec. 2817) that would 
     authorize the Secretary of the Navy to enter into agreements 
     with holders of reversionary interests at Navy homeports to 
     secure permanent title to the properties for the Navy. In 
     exchange, the Navy may provide in-kind consideration, 
     including modification of existing agreements that require 
     payment to the Navy for real property improvements.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                Subtitle C--Base Closure and Realignment

     Establishment of specific deadline for submission of 
         revisions to force-structure plan and infrastructure 
         inventory (sec. 2831)
       The House bill contained a provision (sec. 2822) that would 
     amend section 2912(a)(4) of the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510, as amended) to establish March 15 of the base 
     closure round year as the final deadline for revision of the 
     force structure plan or infrastructure inventory.
       The Senate amendment contained no similar amendment.
       The Senate recedes.
     Specification of final selection criteria for 2005 base 
         closure round (sec. 2832)
       The House bill contained a provision (sec. 2823) that would 
     amend and codify the criteria that will be used by the 
     Secretary of Defense in making recommendations for the 
     closure or realignment of military installations inside the 
     United States during the next base closure round.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would codify, 
     with an amendment, the final selection criteria published by 
     the Secretary in the Federal Register (Volume 69, Number 29) 
     on February 12, 2004. The conferees expect that the Secretary 
     shall adhere, to the maximum extent possible, to responses in 
     the analysis of comments to the draft selection criteria, as 
     published in the Federal Register on February 12, 2004, 
     including the incorporation of elements of military value, 
     such as research, development, test, evaluation, maintenance, 
     and repair facilities for weapon systems; and the interaction 
     with a highly skilled local work force and local industrial 
     and academic institutions.
     Repeal of authority of Secretary of Defense to recommend that 
         installations be placed in inactive status (sec. 2833)
       The Senate amendment contained a provision (sec. 2814) that 
     would repeal subsection (c) of section 2914 of the Defense 
     Base Closure and Realignment Act of 1990 (part A of title 
     XXIX of Public Law 101-510, as amended).
       The House bill contained no similar amendment.
       The House recedes.
     Voting requirements for Defense Base Closure and Realignment 
         Commission to add to or otherwise expand closure and 
         realignment recommendations made by Secretary of Defense 
         (sec. 2834)
       The House bill contained a provision (sec. 2824) that would 
     amend section 2914(d) of the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510, as amended) to require a unanimous vote of the base 
     closure commission to recommend closure, realignment, or 
     expanded realignment of an installation not recommended for 
     closure or realignment by the Secretary of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would amend 
     section 2914(d) of the Defense Base Closure and Realignment 
     Act of 1990 (part A of title XXIX of Public Law 101-510, as 
     amended) to require the consent of at least seven 
     commissioners to recommend closure, realignment, or expanded 
     realignment of an installation not recommended for closure or 
     realignment by the Secretary.

[[Page H9598]]

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

     Land conveyance, Sunflower Army Ammunition Plant, Kansas 
         (sec. 2841)
       The Senate amendment contained a provision (sec. 2833) that 
     would authorize the Secretary of the Army, in consultation 
     with the Administrator of General Services, to convey, with 
     consideration, to an entity selected by the Board 
     of Commissioners of Johnson County, Kansas a parcel of 
     property consisting of approximately 9,065 acres for the 
     purpose of facilitating economic development and 
     revitalization of the property.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     authorization for consideration to be received by the 
     Secretary.
       The conferees expect the Secretary of the Army to work with 
     local, state, and federal environmental agencies to develop 
     an agreement in accordance with the Comprehensive 
     Environmental Response, Compensation, and Liability Act 
     (CERCLA) of 1980 (42 U.S.C. 9601 et seq.), that will lead to 
     an accelerated cleanup and enhanced early transfer of the 
     property. Nothing in this section shall waive any obligation 
     of the Secretary under section 120(h) of CERCLA.
     Land exchange, Fort Campbell, Kentucky and Tennessee (sec. 
         2842)
       The conferees agree to a provision that would authorize the 
     Secretary of the Army to convey to Bi-County Solid Waste 
     Management System, a local government agency, a parcel of 
     real property consisting of approximately 358 acres located 
     at Fort Campbell in Montgomery County, Tennessee for the 
     purpose of permitting Bi-County to expand a landfill. In 
     exchange, the Secretary would receive a parcel of property 
     consisting of approximately 670 acres located adjacent to 
     Fort Campbell in Trigg County, Kentucky and Stewart County, 
     Tennessee.
     Land conveyance, Louisiana Army Ammunition Plant, Doyline, 
         Louisiana (sec. 2843)
       The Senate amendment contained a provision (sec. 2835) that 
     would authorize the Secretary of the Army to convey, with 
     consideration, to the State of Louisiana a parcel of property 
     including any improvements thereon, consisting of 
     approximately 14,949 acres located at the Louisiana Army 
     Ammunition Plant, Doyline, Louisiana.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       The conferees encourage the Secretary to work with local, 
     state, and federal environmental agencies to develop a 
     condition of the land conveyance agreement that eventually 
     transfers to the State the responsibility for monitoring, 
     sampling, or reporting requirements that are associated with 
     the environmental restoration activities of the Louisiana 
     Army Ammunition Plant, while maintaining the government's 
     compliance with the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
     seq.).
     Land conveyance, Fort Leonard Wood, Missouri (sec. 2844)
       The conferees agree to a provision that would authorize the 
     Secretary of the Army to convey, without consideration, to 
     the State of Missouri a parcel of real property consisting of 
     approximately 227.7 acres located at Fort Leonard Wood, 
     Missouri for the purpose of permitting the State to establish 
     a cemetery for veterans of the Armed Forces.
     Transfer of administrative jurisdiction, Defense Supply 
         Center, Columbus, Ohio (sec. 2845)
       The Senate amendment contained a provision (sec. 2821) that 
     would authorize the Secretary of the Army to transfer, 
     without reimbursement, to the administrative jurisdiction of 
     the Secretary of Veterans Affairs a parcel of real property 
     consisting of approximately 20 acres at the Defense Supply 
     Center, Columbus, Ohio, for the sole purpose of constructing 
     a new outpatient clinic for veterans' medical services.
       The House bill contained a similar provision (sec. 2831)
       The House recedes with a technical amendment.
     Jurisdiction and utilization of former public domain lands, 
         Umatilla Chemical Depot, Oregon (sec. 2846)
       The Senate amendment contained a provision (sec. 2842) that 
     would transfer jurisdiction to the Secretary of the Army of 
     various parcels of property, consisting of approximately 
     8,300 acres located at Umatilla Army Depot, Oregon, that are 
     withdrawn from the public domain. The Secretary would combine 
     the transferred real property with other land interests at 
     the Depot for purposes of management and disposal under title 
     II of the Defense Authorization Amendment and Base Closure 
     and Realignment Act of 1988 (Public Law 100-526) and other 
     applicable law.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Modification of authority for land conveyance, equipment and 
         storage yard, Charleston, South Carolina (sec. 2847)
       The Senate amendment contained a provision (sec. 2836) that 
     would amend section 563(h) of the Water Resources Development 
     Act of 1999 (Public Law 106-53) to amend the authorized use 
     of proceeds received as consideration by the Secretary of the 
     Army for a parcel of property conveyed to the City of 
     Charleston, South Carolina.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Land conveyance, Fort Hood, Texas (sec.2848)
       The House bill contained a provision (sec. 2832) that would 
     authorize the Secretary of the Army to convey approximately 
     662 acres at Fort Hood, Texas, to the Texas A&M University 
     system of the State of Texas for the purpose of establishing 
     the Texas A&M University, Central Texas. In exchange, the 
     Army would receive fair market value in cash or in-kind 
     consideration for the property.
       The Senate amendment contained no similar amendment.
       The Senate recedes.
       The conferees anticipate that the terms and conditions for 
     any consideration other than cash provided by the Texas A&M 
     University system for the land received will directly enhance 
     the educational opportunities for military personnel and 
     their families at Fort Hood, Texas. The conferees encourage 
     the parties to explore the possibility of providing 
     consideration in the form of reduced tuition rates for 
     military personnel.
     Land conveyance, local training area for Browning Army 
         Reserve Center, Utah (sec. 2849)
       The Senate amendment contained a provision (sec. 2822) that 
     would authorize the Secretary of the Army to convey, without 
     consideration, to the State of Utah a parcel of real property 
     consisting of approximately 10 acres located at the Browning 
     Army Reserve Center, Utah for the purpose of constructing a 
     nursing care facility for veterans.
       The House bill contained no similar provision.
       The House recedes with an amendment that would add a 
     reversionary interest, if the Secretary of the Army 
     determines that the property is not being used for the 
     purpose expressed in the legislation.
     Land conveyance, Army Reserve Center, Hampton, Virginia (sec. 
         2850)
       The Senate amendment contained a provision (sec. 2824) that 
     would authorize the Secretary of the Army to convey, without 
     consideration, to the Hampton City School Board, Hampton, 
     Virginia, a parcel of real property consisting of 
     approximately 29.8 acres, known as the Butler Farm United 
     States Army Reserve Center, for public education purposes.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Land conveyance, Army National Guard Facility, Seattle, 
         Washington (sec. 2851)
       The Senate amendment contained a provision (sec. 2825) that 
     would authorize the Secretary of the Army to convey, without 
     consideration, to the State of Washington a parcel of real 
     property consisting of approximately 9.8 acres in Seattle, 
     Washington and comprising a portion of a National Guard 
     Facility, Pier 91, for the purpose of permitting the State to 
     convey the facility unencumbered for economic redevelopment 
     purposes.
       The House bill contained a similar provision (sec. 2833).
       The House recedes with a technical amendment.
     Modification of land exchange and consolidation, Fort Lewis, 
         Washington (sec. 2852)
       The House bill contained a provision (sec. 2834) that would 
     amend the section 2837 of the Military Construction 
     Authorization Act for Fiscal Year 2002 (division B of Public 
     Law 107-107) to increase the acreage authorized to be 
     conveyed and to clarify the treatment of easements.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                       Part II--Navy Conveyances

     Land exchange, former Richmond Naval Air Station, Florida 
         (sec. 2861)
       The conferees agree to a provision that would authorize the 
     Secretary of the Army to convey to the University of Miami, 
     Miami, Florida, a parcel of real property and easements 
     consisting of approximately 14 acres at the former Richmond 
     Naval Air Station, Miami, Florida for the purpose of 
     expansion of university facilities. In exchange, the 
     Secretary would be authorized to receive a parcel of real 
     property consisting of approximately 12 acres, and related 
     easements and construction to provide security and access to 
     the parcel.
     Land conveyance, Honolulu, Hawaii (sec. 2862)
       The Senate amendment included a provision (sec. 2827) that 
     would authorize the Secretary of the Navy to convey to the 
     City and County of Honolulu, Hawaii, a parcel of real 
     property consisting of approximately 5.16 acres for the 
     purpose of continuing fire protection and training for 
     civilian and military personnel.
       The House bill contained no similar provision.
       The House recedes.
     Land conveyance, Navy property, former Fort Sheridan, 
         Illinois (sec. 2863)
       The House bill contained a provision (sec. 2842) that would 
     authorize the Secretary of the Navy to convey, without 
     consideration, a parcel of environmentally-sensitive property 
     to a nonprofit land conservation organization, for the 
     purpose of ensuring permanent protection of the lands.

[[Page H9599]]

       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Land exchange, Naval Air Station, Patuxent River, Maryland 
         (sec. 2864)
       The House bill contained a provision (sec. 2843) that would 
     authorize the Secretary of the Navy to convey approximately 5 
     acres of real property at Naval Air Station, Patuxent River, 
     Maryland, to the state of Maryland. In exchange, the Navy 
     shall receive approximately 5 acres of property of an equal 
     value to the conveyance.
       The Senate amendment contained a similar provision (sec. 
     2831).
       The House recedes with a technical amendment.
     Modification of land acquisition authority, Perquimans 
         County, North Carolina (sec. 2865)
       The conferees agree to a provision that would amend section 
     2846 of the Military Construction Authorization Act for 
     Fiscal Year 2002 (division B of Public Law 107-107) to 
     increase the amount of acreage that the Secretary of the Navy 
     is authorized to acquire.
     Land conveyance, Naval Weapons Station, Charleston, South 
         Carolina (sec. 2866)
       The Senate amendment contained a provision (sec. 2834) that 
     would authorize the Secretary of the Navy to convey, with 
     fair market value consideration, to the Berkeley County 
     Sanitation Authority, South Carolina, a parcel of property 
     consisting of not more than 38 acres at the Naval Weapons 
     Station, Charleston, South Carolina, for the purpose of 
     allowing the Authority to expand an existing sewage treatment 
     plant.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Land conveyance, Navy YMCA building, Portsmouth, Virginia 
         (sec. 2867)
       The Senate amendment contained a provision (sec. 2828) that 
     would authorize the Secretary of the Navy to convey, without 
     consideration, to the City of Portsmouth, Virginia, a parcel 
     of real property consisting of approximately \1/2\ acre, 
     known as the Navy YMCA building, for economic revitalization 
     purposes.
       The House bill contained no similar provision.
       The House recedes with a technical amendment that would 
     require the city to provide consideration equal to the costs 
     related to the environmental remediation in exchange for the 
     property.

                    Part III--Air Force Conveyances

     Land exchange, Maxwell Air Force Base, Alabama (sec. 2871)
       The House bill contained a provision (sec. 2851) that would 
     authorize the Secretary of the Air Force to convey 
     approximately 28 acres comprising the Maxwell Heights Housing 
     site at Maxwell Air Force Base, Alabama, to the city of 
     Montgomery, Alabama. In exchange, the Air Force shall receive 
     approximately 35 acres of land contiguous to Maxwell Air 
     Force Base.
       The Senate amendment contained a similar provision (sec. 
     2830).
       The Senate recedes with an amendment that would state the 
     use of the land to be received by the Air Force, and would 
     permit the Air Force to seek reimbursement for the costs of 
     the exchange.
     Land conveyance, March Air Force Base, California (sec. 2872)
       The Senate amendment contained a provision (sec. 2832) that 
     would authorize the Secretary of the Air Force to convey, 
     with consideration, to the March Joint Powers Authority a 
     parcel of property consisting of approximately 15 acres 
     located in Riverside County, California and containing the 
     former Defense Reutilization and Marketing Office facility 
     for March Air Force Base. The purpose of the conveyance would 
     be for economic development and revitalization.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Land conveyance, former Griffiss Air Force Base, New York 
         (sec. 2873)
       The Senate amendment contained a provision (sec. 2829) that 
     would authorize the Secretary of the Air Force to convey, at 
     fair market value, to the Oneida County Industrial 
     Development Agency, New York, a parcel of property at the 
     former Griffiss Air Force Base, New York, consisting of 9.369 
     acres, including four buildings, for economic development 
     purposes.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

                       Part IV--Other Conveyances

     Land exchange, Arlington County, Virginia (sec. 2881)
       The Senate amendment contained provision (sec. 2823) that 
     would authorize the Secretary of Defense to exchange a parcel 
     of real property consisting of not more than 4.5 acres at the 
     Navy Annex property, Virginia to Arlington County, Virginia 
     for a parcel of approximately equal acreage known as the 
     Southgate Road right-of-way between Arlington National 
     Cemetery and the Navy Annex property.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     location of the land to be conveyed and would provide 
     conditions to the Secretary for the land conveyance.

                       Subtitle E--Other Matters

     One-year resumption of Department of Defense Laboratory 
         Revitalization Demonstration Program (sec. 2891)
       The Senate amendment contained a provision (sec. 2841) that 
     would authorize the Secretary of Defense to carry out a 
     follow-on program for the revitalization of laboratories 
     operated by the Department of Defense.
       The House bill contained no similar provision.
       The House recedes with an amendment that establishes an 
     authorization expiration date of September 30, 2005.
     Designation of Airmen Leadership School at Luke Air Force 
         Base, Arizona, in honor of John J. Rhodes, a former 
         minority leader of the House of Representatives (sec. 
         2892)
       The House bill contained a provision (sec. 2816) that would 
     designate the Airmen Leadership School at Luke Air Force 
     Base, Arizona, as the John J. Rhodes Airmen Leadership School 
     in honor of the former minority leader of the House of 
     Representatives, Congressman John J. Rhodes.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Settlement of claim of Oakland Base Reuse Authority and 
         Redevelopment Agency (sec. 2893)
       The Senate amendment contained a provision (sec. 2844) that 
     would authorize the Secretary of the Navy to pay $2.1 million 
     to the Oakland Base Reuse Authority and Redevelopment Agency 
     of the City of Oakland, California, as settlement from a 
     court case.
       The House bill contained no similar amendment.
       The House recedes with amendment that would clarify the 
     release of claims against the United States.
     Report on establishment of mobilization station at Camp 
         Ripley National Guard Training Center, Little Falls, 
         Minnesota (sec. 2894)
       The Senate amendment contained a provision (sec. 1023) that 
     would direct the Secretary of Defense to carry out a study on 
     the feasibility of the use of Camp Ripley National Guard 
     Training Center, Little Falls, Minnesota, as a mobilization 
     center for Reserve components ordered to active duty.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Report on feasibility of establishment of veterans memorial 
         at Marine Corps Air Station, El Toro, California (sec. 
         2895)
       The House bill contained a provision (sec. 2818) that would 
     require the Secretary of the Navy, within 30 days of 
     enactment of this Act, to report to Congress on whether the 
     anticipated future uses of the former Marine Corps Air 
     Station, El Toro, California, by the City of Irvine, 
     California, would permit the establishment of a veterans 
     memorial at the former installation.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Sense of Congress regarding effect of military housing 
         policies and force structure basing changes on local 
         education agencies (sec. 2896)
       The Senate amendment contained a provision (sec. 353) that 
     would express the sense of the Senate that the Department of 
     Defense should support the construction of schools in housing 
     privatization agreements that severely impact school 
     populations.
       The House bill contained no similar provision.
       The conferees agree to express the sense of Congress that 
     the Department of Defense should consider the effects that 
     the analyses used to determine military housing requirements, 
     changes in force structure due to transformation, and 
     overseas basing realignments will have on the number of 
     school-aged military dependents and the need for additional 
     educational facilities to serve such dependents. In many 
     cases, local school districts do not have the resources or 
     flexibility to respond quickly to changes in requirements, 
     resulting in budget shortfalls and the use of inadequate, 
     temporary facilities affecting the quality of education. The 
     Department should address such effects by closely 
     coordinating changes in requirements with local education 
     agencies. The Department should also consider using existing 
     authority under subchapter IV of chapter 169 of title 10, 
     United States Code, to include the construction of 
     educational facilities in military housing privatization 
     initiatives.
     Sense of Congress and study regarding memorial honoring non-
         United States citizens killed in the line of duty while 
         serving in the United States Armed Forces (sec. 2897)
       The House bill contained a provision (sec. 1081) that would 
     require the Secretary of the Army to place in Arlington 
     National Cemetery a memorial marker honoring the service and 
     sacrifice of noncitizens killed in the line of duty while 
     serving in the Armed Forces of the United States.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would express the 
     sense of the Congress that a memorial marker or monument 
     honoring the service and sacrifice of noncitizen

[[Page H9600]]

     service members killed in the line of duty should be designed 
     and placed in an appropriate location. The amendment would 
     require the Secretary of the Army, in consultation with the 
     Secretary of Veterans Affairs and the American Battle 
     Monuments Commission, to conduct a study examining the 
     feasibility of placing such a memorial marker in the 
     Arlington National Cemetery, or some other suitable location. 
     It would require the Secretary of the Army to submit a report 
     on this study and any recommendations by April 1, 2005.

                   Legislative Provisions Not Adopted

     Increase in thresholds for unspecified minor military 
         construction projects
       The Senate amendment contained a provision (sec. 2801) that 
     would amend section 2805(a)(1) of title 10, United States 
     Code, by raising the threshold of the cost of a construction 
     project authorized by this section from $1.5 million to $2.5 
     million. This provision would also raise the threshold of the 
     cost of a construction project intended solely to correct a 
     deficiency that is life-threatening, health-threatening, or 
     safety-threatening from $3.0 million to $4.0 million.
       The House bill contained no similar provision.
       The Senate recedes.
     Increase in certain thresholds for carrying out unspecified 
         minor military construction projects
       The House bill contained a provision (sec. 2801) that would 
     amend section 2805(b) of title 10, United States Code, to 
     increase from $750,000 to $1.0 million the threshold at which 
     service secretaries must approve the use of operation and 
     maintenance funds for unspecified minor construction 
     projects. This section would also amend section 2805(c) to 
     establish a single limit of $1.5 million at which operation 
     and maintenance funds may be used for unspecified minor 
     construction projects.
       The Senate amendment contained no similar amendment.
       The House recedes.
     Increase in certain thresholds for reporting real property 
         transactions
       The House bill contained a provision (sec. 2811) that would 
     amend section 2662 of title 10, United States Code, to 
     increase from $750,000 to $1.5 million the thresholds at 
     which the military services must report to Congress real 
     property transactions. This section would also change the 
     threshold amounts in annual reporting requirements for minor 
     real property transactions.
       The Senate amendment contained no similar provision.
       The House recedes.
     Treatment of money rentals from golf course at Rock Island 
         Arsenal, Illinois
       The House bill contained a provision (sec. 2813) that would 
     amend section 2667 of title 10, United States Code, to allow 
     50 percent of lease receipts from the Rock Island Arsenal 
     Golf Club, a community club that leases and operates the 
     arsenal's golf course for the general public and local 
     military personnel, to be placed into the Rock Island Arsenal 
     morale, welfare, and recreation fund.
       The Senate amendment contained no similar position.
       The House recedes.
     Number of contracts authorized department-wide under 
         demonstration program on reduction in long-term facility 
         maintenance costs
       The House bill contained a provision (sec. 2814) that would 
     amend section 2814 of the National Defense Authorization Act 
     for Fiscal Year 2002 (Public Law 107-107), to adjust the 
     number of contracts permitted under the building 
     commissioning program.
       The Senate amendment contained no similar provision.
       The House recedes.
     Repeal of Commission on Review of Overseas Military Facility 
         Structure of the United States
       The House bill contained a provision (sec. 2815) that would 
     repeal section 128 of the Military Construction 
     Appropriations Act, 2004 (Public Law 108-132), which 
     established the Commission on the Review of Overseas Military 
     Facility Structure of the United States.
       The Senate amendment contained no similar provision.
       The House recedes.
     Two-year postponement of 2005 base closure and realignment 
         round and submission of reports regarding future 
         infrastructure requirements for the Armed Forces
       The House bill contained a provision (sec. 2821) that would 
     amend current base realignment and closure law to postpone 
     the 2005 base closure and realignment round until 2007, 
     pending receipt of several reports on significant 
     infrastructure issues.
       The Senate amendment contained no similar amendment.
       The House recedes.
     Adherence to certain authorities on preservation of military 
         depot capabilities during any subsequent round of base 
         closures and realignments
       The House bill contained a provision (sec. 2825) that would 
     amend the Defense Base Closure and Realignment Act of 1990 
     (part A of title XXIX of Public Law 101-510, as amended) to 
     require that base closure and realignment actions comply with 
     provisions of title 10, United States Code, that address 
     government-owned, government-operated depot-level 
     maintenance, repair, and logistics capabilities within the 
     Department of Defense.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees acknowledge that section 2464 of title 10, 
     United States Code, requires the Department of Defense to 
     maintain government-owned and operated logistics capabilities 
     to include work force and facilities, to ensure a ready and 
     controlled source of technical competence and resources 
     necessary to support an effective and timely response to a 
     mobilization, a national defense contingency situation, and 
     other emergency requirements. Section 2466 of the same title 
     requires that no more than 50 percent of each military 
     department's annual funding for depot level maintenance and 
     repair activities be performed in the private sector. While 
     these sections are intended to preserve a certain level of 
     depot and logistics capabilities in the Department, these 
     sections also authorize the Secretary of Defense to waive 
     these provisions for reasons of national security.
       The conferees believe that military base realignment and 
     closure actions undertaken by the Department under authority 
     provided in the Defense Base Closure and Realignment Act of 
     1990 (Public Law 101-510), as amended by the National Defense 
     Authorization Act for 2002 (division B of Public Law 107-
     107), must be consistent with the provisions in title 10, 
     United States Code, pertaining to the preservation of depot 
     logistics capabilities.
       Therefore, the conferees direct the Secretary of Defense to 
     ensure that the recommendations submitted to the Commission, 
     pursuant to the Base Closure and Realignment Act, adhere to 
     sections 2464 and 2466 of title 10, United States Code. The 
     conferees further direct the Secretary to ensure that the 
     same recommendations will not result in the requirement to 
     perpetually waive the provisions of sections 2464 and 2466 of 
     title 10, United States Code.
     Transfer of jurisdiction, Nebraska Avenue Naval Complex, 
         District of Columbia
       The House bill contained a provision (sec. 2841) that would 
     transfer jurisdiction of the Nebraska Avenue Naval Complex in 
     Washington, D.C., from the Navy to the Administrator of 
     General Services for the purpose of accommodating the 
     Department of Homeland Security.
       The Senate amendment contained a similar provision (sec. 
     2826).
       The authority for the Secretary of the Navy to transfer 
     jurisdiction of the Nebraska Avenue Naval Complex to the 
     Administrator of General Services for use by the Department 
     of Homeland Security was provided by Congress in Public Law 
     108-268, signed on July 2, 2004. Therefore, this provision is 
     not adopted by the conferees.

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

     Overview
       Title XXXI authorizes appropriations for atomic energy 
     defense activities of the Department of Energy (DOE) for 
     fiscal year 2005, including: the purchase, construction, and 
     acquisition of plant and capital equipment; research and 
     development; nuclear weapons activities; defense nuclear 
     nonproliferation; naval nuclear propulsion; environmental 
     restoration and waste management; operating expenses; and 
     other expenses necessary to carry out the purposes of the 
     Department of Energy Organization Act (Public Law 95-91). The 
     title would authorize appropriations in four categories: 
     National Nuclear Security Administration (NNSA); defense 
     environmental management; other defense activities; and 
     defense nuclear waste disposal.
       The budget request for atomic energy defense activities at 
     DOE totaled $16.8 billion, a $483.2 million increase above 
     the fiscal year 2004 level. Of the total amount requested, 
     $9.0 billion would be for NNSA, of which $6.6 billion would 
     be for weapons activities; $1.3 billion would be for defense 
     nuclear nonproliferation activities; $797.9 million would be 
     for naval reactors; $333.7 million would be for the Office of 
     the Administrator; $7.0 billion would be for defense 
     environmental management, of which $6.0 billion would be for 
     defense site acceleration completion and $982.5 million would 
     be for defense environmental services; $663.6 million would 
     be for other defense activities; and $131.0 million would be 
     for defense nuclear waste disposal.
       The conferees agree to authorize $16.8 billion for atomic 
     energy defense activities at DOE, an increase of $483.2 
     million above the fiscal year 2004 level. The conferees agree 
     to authorize $9.1 billion for the NNSA, an increase of $33.6 
     million above the budget


[[Page H9601]]

     request. Of the amounts authorized for the NNSA, $6.6 billion 
     would be for weapons activities, an increase of $23.6 
     million; $1.3 billion would be for defense nuclear 
     nonproliferation activities; $797.9 million would be for 
     naval reactors; and $343.7 million would be for the Office of 
     the Administrator, an increase of $10.0 million above the 
     budget request. The conferees agree to authorize $7.0 billion 
     for defense environmental management, an increase of $4.0 
     million above the budget request. Of the amounts authorized 
     for defense environmental management, $6.0 billion would be 
     for defense site acceleration completion and $986.5 million 
     for defense environmental services. The conferees agree to 
     authorize $636.0 million for other defense activities, a 
     decrease of $27.6 million below the budget request. The 
     conferees agree to authorize $120.0 million for defense 
     nuclear waste disposal, a decrease of $11.0 million below the 
     budget request.
       The following table summarizes the budget request and the 
     authorizations:

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[[Page H9620]]

                     Legislative Provisions Adopted

         Subtitle A--National Security Programs Authorizations

     National Nuclear Security Administration (sec. 3101)
       The House bill contained a provision (sec. 3101) that would 
     authorize $9.0 billion for the National Nuclear Security 
     Administration (NNSA), including funds for weapons 
     activities, defense nuclear nonproliferation programs, naval 
     reactor programs, and the Office of the Administrator.
       The Senate amendment contained a similar provision that 
     would authorize $9.2 billion (sec. 3101).
       The conferees agree to include a provision that would 
     authorize $9.1 billion for NNSA.
       The budget request included $1.4 billion for directed 
     stockpile work. The conferees agree to authorize $1.4 billion 
     for directed stockpile work, a decrease of $21.5 million to 
     be taken out of individual warhead life extension programs. 
     The conferees note that this is a $44.6 million increase over 
     the amount appropriated for directed stockpile work in fiscal 
     year 2004.
       The budget request included $301.0 million in science 
     campaigns. The conferees agree to authorize $281.5 million 
     for science campaigns, a decrease of $19.5 million. The 
     conferees note that the reduction is without prejudice and 
     should be taken from carry over due to the shutdown at the 
     national laboratories in July and August.
       The budget request included $243.0 million for the 
     engineering campaign. The conferees agree to authorize $253.0 
     million for the engineering campaign, an increase of $10.0 
     million, to support the microsystems and engineering sciences 
     applications (MESA) construction project.
       The budget request included $741.3 million for the advanced 
     simulation and computing (ASC) campaign. The conferees agree 
     to authorize $731.3 million for the advanced simulation and 
     computing campaign, a decrease of $10.0 million. The 
     conferees note that the ASC campaign has experienced cost 
     growth and schedule slippage.
       The budget request included $1.5 billion for readiness in 
     technical base and facilities. The conferees agree to 
     authorize $1.5 billion, an increase of $55.6 million for 
     readiness in technical base and facilities for replacement 
     of aging equipment, correction of deferred maintenance, 
     and disposition of legacy materials consistent with the 
     National Nuclear Security Administration approved 10 year 
     comprehensive plan as follows: $12.6 million at the Kansas 
     City Plant in Missouri, $6.0 million for the Lawrence 
     Livermore National Laboratory in California, $19.0 million 
     for the Pantex Plant in Texas, $9.0 million for Sandia 
     National Laboratory in New Mexico, and $9.0 million for 
     the Y-12 National Security Complex in Tennessee.
       The budget request included $707.0 for safeguards and 
     security. The conferees agree to authorize $716.0 million for 
     safeguards and security, a $9.0 million increase for security 
     upgrades at the Y-12 National Security Complex in Tennessee.
       The budget request included $1.3 billion for defense 
     nuclear nonproliferation. The conferees agree to authorize 
     $1.3 billion for defense nuclear nonproliferation, the amount 
     of the budget request. The conferees further agree to a $25.0 
     million increase for nonproliferation and verification 
     research and development, and a $25.0 million reduction for 
     fissile materials disposition. The conferees note that 
     continued delays in the commencement of construction 
     activities under the fissile materials disposition program 
     make it unlikely that the Department will be able to fully 
     obligate the budget request for that program in fiscal year 
     2005. The conferees believe that the nonproliferation and 
     verification research and development program is doing 
     valuable work on proliferation detection and other 
     technologies that would benefit from additional resources.
       The budget request included $333.7 million for the Office 
     of the Administrator. The conferees agree to authorize $343.7 
     million, an increase of $10.0 million to settle claims of 
     Pajarito homesteaders. This account includes program 
     direction funding for all elements of NNSA, with the 
     exception of the Naval Reactors Program and the Secure 
     Transportation Asset.
       The conferees note that security lapses at the Los Alamos 
     National Laboratory (LANL) concerning classified removable 
     electronic media (CREM) this past year have been very 
     disruptive to the nuclear weapons program. The conferees 
     encourage the Administrator to become more involved in making 
     sure these types of incidents are avoided in the future. The 
     contractor has the primary day-to-day accountability for 
     maintaining security of the laboratory, including the 
     security of classified information. The contractor must 
     ensure that a culture exists across the laboratory which 
     maintains classified information in a very secure manner. 
     However, the National Nuclear Security Administration also 
     must be held accountable, and the Administrator must ensure 
     the federal workforce is applying an appropriate level of 
     oversight to avoid security lapses to the maximum extent 
     possible.
     Defense environmental management (sec. 3102)
       The House bill contained a provision (sec. 3102) that would 
     authorize $6.9 billion for the Department of Energy for 
     defense environmental management (EM) activities for fiscal 
     year 2005, including funds for defense site acceleration 
     completion and defense environmental services.
       The Senate amendment contained a similar provision (sec. 
     3102) that would authorize $7.0 billion for defense 
     environmental activities.
       The conferees agree to authorize $7.0 billion for defense 
     environmental management, the amounts of the budget request, 
     including $6.0 billion for defense site acceleration 
     completion and $986.5 million for defense environmental 
     services, an increase of $4.0 million. The conferees agree to 
     authorize this $4.0 million increase in defense environmental 
     services for newly generated waste requirements and ground 
     water cleanup activities at the Lawrence Livermore National 
     Laboratory in California (Project HQ-SW-0013Y).
       Of the amounts authorized to be appropriated in the defense 
     site acceleration completion program, $6.0 million may be 
     available for the Hazardous Materials Management and 
     Emergency Response (HAMMER) Training Center. While the 
     conferees recognize that HAMMER is an important facility for 
     the training of emergency response personnel, the conferees 
     note that HAMMER may be more appropriately funded and managed 
     by the Department of Homeland Security.
     Other defense activities (sec. 3103)
       The House bill contained a provision (sec. 3103) that would 
     authorize $657.6 million for the Department of Energy (DOE) 
     for other defense activities for fiscal year 2005.
       The Senate amendment contained a similar provision (sec. 
     3103) that would authorize $568.1 million for DOE for other 
     defense activities.
       The conferees agree to include a provision that would 
     authorize $636.0 million, a reduction of $27.6 million below 
     the budget request.
       The budget request included $10.6 million for energy 
     security and assurance. The conferees recommend no funds 
     for these activities. The operational component for this 
     office was transferred to the Department of Homeland 
     Security in fiscal year 2003. The conferees do not support 
     using Atomic Energy Act funds for nondefense activities.
       The budget request included $255.1 million for the Office 
     of Security. The conferees agree to authorize $256.6 million 
     for the Office of Security, an increase of $1.5 million above 
     the budget request for International Nuclear Analysis.
       The budget request included $34.9 million for the Office of 
     Legacy Management. The conferees agree to authorize $35.9 
     million for the Office of Legacy Management, an increase of 
     $1.0 million above the budget request. The conferees direct 
     $500,000 of this increase be added to the $2.5 million 
     provided for worker and community transition, for a total 
     authorization of $3.0 million. The remaining $500,000 shall 
     be used for Local Stakeholder Organizations.
       The budget request included $112.9 million for nuclear 
     energy. The conferees agree to authorize $114.3 million for 
     nuclear energy, an increase of $1.5 million over the budget 
     request for the Lynchburg Technology Center in Virginia to 
     inspect and repackage the spent nuclear fuel stored in 
     aluminum canisters. The Senate amendment would authorize $1.1 
     million for these activities within defense site acceleration 
     completion. The conferees note that these activities should 
     be addressed by the Office of Nuclear Energy, the office with 
     primary responsibility for these materials.
       The budget request included $92.4 million for defense 
     related administrative support (DRAS). The conferees 
     recommend $71.4 million for DRAS, a reduction of $21.0 
     million below the budget request. The conferees are concerned 
     that the activities conducted by DRAS are not defense 
     activities, but instead support the general administrative 
     responsibilities of the Department of Energy. There are many 
     activities conducted by the defense funded programs at DOE 
     which are paid for entirely by the defense programs that 
     support the Department of Energy broadly. The conferees 
     prefer not to use Atomic Energy Defense funds for nondefense 
     activities. The conferees encourage the Department of Energy 
     to restrict future budget requests for Atomic Energy Defense 
     funds to defense activities.
       The budget request included $5.0 million for the Office of 
     Future Liabilities (FL). The conferees recommend no funds for 
     these activities. The conferees are concerned that DOE is 
     creating this new office to conduct essentially the same type 
     of work being conducted by the Office of Environmental 
     Management (EM). The conferees strongly encourage DOE to 
     include this function in the EM program to avoid the cost and 
     inefficiency of creating a new office.
     Defense nuclear waste disposal (sec. 3104)
       The House bill contained a provision (sec. 3104) that would 
     authorize $131.0 million for defense nuclear waste disposal 
     (DNWD).
       The Senate amendment contained a similar provision (sec. 
     3104) that would authorize $108.0 million for DNWD.
       The conferees agree to include a provision that would 
     authorize $120.0 million, a reduction of $11.0 million below 
     the budget request.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

       Report on requirements for Modern Pit Facility (sec. 3111)
       The Senate amendment contained a provision (sec. 3111) that 
     would prohibit the Secretary of Energy from obligating or 
     expending more than half of the funds available for the 
     Modern Pit Facility (MPF) until 30 days

[[Page H9621]]

     after the Administrator of the National Nuclear Security 
     Administrator (NNSA) submits a report to congressional 
     defense committees setting forth the validated pit production 
     requirements for the MPF, and one additional report on the 
     stockpile required by the Energy and Water Development 
     Appropriations Act, 2004 (Public Law 108-137). The 
     requirement shall be developed in consultation with the 
     Department of Defense.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Administrator of the NNSA to submit a report to congressional 
     defense committees setting forth the validated pit production 
     requirements for the MPF not later than January 31, 2005 
     based on certain assumptions for pit lifetimes. In addition, 
     the provision does not restrict the Secretary's authority to 
     obligate and expend the funds available for the MPF pursuant 
     to section 3101.
     Two-year extension of authority for appointment of certain 
         scientific, engineering, and technical personnel (sec. 
         3112)
       The House bill contained a provision (sec. 3111) that would 
     extend the authority of the Secretary of Energy to appoint 
     certain scientific, engineering, and technical personnel 
     until September 30, 2006.
       The Senate amendment contained an identical provision (sec. 
     3142).
       The conference agreement includes this provision.
     Limited authority to carry out new projects under Facilities 
         and Infrastructure Recapitalization Program after project 
         selection deadline (sec. 3113)
       The House bill contained a provision (sec. 3112) that would 
     amend section 3114 of the National Defense Authorization Act 
     for Fiscal Year 2004 (Public Law 108-136) to give the 
     Administrator of the National Nuclear Security Administration 
     (NNSA) greater flexibility in adding projects or updating 
     priorities to projects within the Facilities and 
     Infrastructure Recapitalization Program (FIRP).
       The Senate amendment contained a similar provision (sec. 
     3113) that would amend section 3114 of the National Defense 
     Authorization Act for Fiscal Year 2004 (Public Law 108-136) 
     to permit the Administrator of the NNSA to make no more than 
     five modifications per fiscal year, and would limit each 
     modification to a specific building, facility, or other 
     improvement at an NNSA site. The provision would also 
     prohibit any modifications until 60 days after the 
     congressional defense committees receive both the report 
     required in section 3114(c), setting forth the guidelines on 
     the conduct of the readiness in technical base and facilities 
     (RTBF) program, and a list of projects selected for inclusion 
     in the FIRP program as required by section 3114(a). Nothing 
     should delay the completion of the section 3114(c) report or 
     the completion of the section 3114(a) project section 
     required by the Act.
       The House recedes.
     Modification of milestone and report requirements for 
         National Ignition Facility (sec. 3114)
       The Senate amendment contained a provision (sec. 3114) that 
     would modify and extend current reporting requirements for 
     the National Ignition Facility (NIF), section 3137 of the 
     National Defense Authorization Act for Fiscal Year 2002 
     (Public Law 107-107), to review all program elements 
     necessary for both achieving ignition and enabling NIF to be 
     a fully functioning facility.
       The House bill contained no similar provision.
       The House recedes.
       The conferees strongly support NIF and are encouraged by 
     the recent progress in constructing NIF, and the initiation 
     of experiments on NIF in support of the science-based 
     stockpile stewardship program. The purpose of this provision 
     is to ensure there is better internal and external oversight 
     of the project by requiring milestones on construction, 
     ignition, and the scientific experiments.
     Modification of submittal date of annual plan for 
         stewardship, management, and certification of warheads in 
         the nuclear weapons stockpile (sec. 3115)
       The Senate amendment contained a provision (sec. 3115) that 
     would change the due date of the annual reporting requirement 
     for the stockpile stewardship program from March 15 to May 1.
       The House bill contained no similar provision.
       The House recedes.
       The conferees believe that changing the due date for the 
     report will allow the Department of Energy to submit a 
     complete and timely report.
     Defense site acceleration completion (sec. 3116)
       The Senate amendment contained a provision (sec. 3116) that 
     would authorize the Secretary of Energy to determine that, 
     notwithstanding any other provision of law, high-level 
     radioactive waste does not include radioactive material 
     resulting from the reprocessing of spent nuclear fuel if (a) 
     the radioactive material does not require permanent isolation 
     in a deep geologic repository for spent fuel or highly 
     radioactive waste pursuant to criteria promulgated by the 
     Secretary in consultation with the Nuclear Regulatory 
     Commission (NRC); (b) to the maximum extent practical, 
     that the highly radioactive radionuclides were removed in 
     accordance with NRC approved criteria; and (c) that 
     materials from storage tanks are disposed of in a facility 
     pursuant to a State-approved closure plan, or a State 
     issued permit, authority for the approval or issuance of 
     which is conferred on the State outside of this Act. This 
     provision would apply to the material stored at the 
     Savannah River Site in South Carolina.
       The House bill contained no similar provision.
       The House recedes with an amendment that would authorize 
     the Secretary of Energy to determine, in consultation with 
     the Nuclear Regulatory Commission (NRC), that notwithstanding 
     the provisions of the Nuclear Waste Policy Act of 1982, the 
     requirements of section 202 of the Energy Reorganization Act 
     of 1974 and other laws that define classes of radioactive 
     waste, the term ``high-level radioactive waste'' does not 
     include radioactive waste resulting from the reprocessing of 
     spent nuclear fuel if: (1) the waste does not require 
     permanent isolation in a deep geologic repository for spent 
     fuel or high-level radioactive waste, (2) the waste has had 
     highly radioactive radionuclides removed to the maximum 
     extent practical and (3) the waste either does not exceed 
     concentration limits for Class C low-level waste as set out 
     in section 61.55 of title 10, Code of Federal Regulations 
     (CFR), and will be disposed of in compliance with the 
     performance objectives set out in subpart C of part 61 of 
     title 10, CFR, pursuant to a State-approved closure plan or 
     State-issued permit, authority for the approval or issuance 
     of which is conferred on the State outside of this section 
     or, if the waste does exceed concentration limits for Class C 
     low-level waste, the waste will be disposed of in compliance 
     with the performance objectives set out in subpart C of part 
     61 of title 10, CFR, pursuant to a State-approved closure 
     plan or State-issued permit, authority for the approval or 
     issuance of which is conferred on the State outside of this 
     section, and pursuant to plans developed by the Secretary in 
     consultation with the NRC. Any modification to the 
     performance objectives in subpart C of part 61 of title 10, 
     CFR, shall apply to actions under this section.
       Section 3116 applies to material stored at a Department of 
     Energy site at which activities are regulated by a covered 
     State pursuant to approved closure plans or permits issued by 
     the State. For purposes of this section, covered states are 
     the States of South Carolina and the State of Idaho.
       The NRC shall, in coordination with the covered State, 
     monitor the disposal actions taken by the Department of 
     Energy (DOE). If the NRC considers any disposal actions by 
     DOE to not be in compliance with the requirements set out in 
     this section, the NRC shall inform DOE, the covered State, 
     and the appropriate congressional committees. The Secretary 
     of Energy shall reimburse the NRC for all expenses that the 
     NRC incurs for performance under this section during fiscal 
     year 2005. In subsequent fiscal years, the NRC shall include 
     in the budget justification materials submitted to Congress 
     the amounts required, not offset by revenues, for performance 
     under subsections (a) and (b).
       Section 3116, as passed by the Senate, applied 
     ``notwithstanding any other provision of law.'' The conferees 
     substitute this broad application with specific laws that are 
     within the ambit of the ``notwithstanding'' clause; those 
     laws that define classes of radioactive waste, including, but 
     not limited to, the Nuclear Waste Policy Act, section 202 of 
     the Energy Reorganization Act of 1974, section 2(10) of the 
     Waste Isolation Pilot Plant Land Withdrawal Act and section 
     11dd. of the Atomic Energy Act of 1954, which cross-reference 
     section 2(12) of the NWPA's definition of ``high-level 
     waste,'' section 2(9) of the Low-Level Waste Policy Act which 
     defines low-level radioactive waste with reference to high-
     level radioactive waste, and the authorities stemming from 
     the Atomic Energy Act for establishing radiation protection 
     standards for disposal of radioactive waste that were 
     transferred to the EPA by Reorganization Plan No. 3 of 1970. 
     Laws like the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (Public Law 96-510) 
     and the Resource Conservation and Recover Act of 1976 (Public 
     Law 94-580) which do not specify or establish disposal 
     standards based on these kinds of classifications of 
     radioactive waste, would be unaffected, as would general 
     environmental laws such as National Environmental Policy Act, 
     and laws regulating radioactive waste for purposes other than 
     disposal.
       The conferees note that nothing in section 3116 shall 
     impair, alter, or modify the full implementation of any 
     Federal Facility Agreement and Consent Order or other 
     applicable consent decree for a Department of Energy site. In 
     that connection, the conferees understand that pursuant to 
     the settlement agreement entered into by the United States 
     with the State of Idaho in the actions captioned Public 
     Service Co. of Colorado v. Batt, Civil No. 91-0035-S-EJL, and 
     United States v. Batt, Civil No. 91-0054-S-EJL, in the United 
     States District Court for the District of Idaho, and the 
     consent order of the United States District Court for the 
     District of Idaho dated October 17, 1995 that effectuates 
     this settlement agreement, the Department of Energy has 
     committed to complete solidification of the sodium-bearing 
     waste retrieved from tanks in the Tank Farm Facility at the 
     Idaho Nuclear Engineering and Technology Center at the Idaho 
     National Engineering and Environmental Laboratory (INEEL) by 
     December 31, 2012 and to treat this material so that it is 
     ready to be moved

[[Page H9622]]

     out of Idaho for disposal by a target date of 2035, 
     regardless of any ultimate decision on the classification of 
     this waste. The conferees urge the Department to 
     accelerate the final out-of-state disposal of this waste. 
     Furthermore, the conferees direct the Secretary of Energy 
     to submit a report to the congressional defense committees 
     by March 1, 2005 describing the Department's plans for the 
     final disposal of the sodium bearing waste at INEEL. 
     Section 3116 does not establish any precedent for and is 
     not binding on the States of Washington, Oregon or any 
     other state that is not a covered state for the 
     management, storage, treatment, and disposition of 
     radioactive and hazardous material.
       The conferees note that the Defense Nuclear Facilities 
     Safety Board (DNFSB) has statutory responsibilities 
     associated with the Department's defense site acceleration 
     completion activities. Although this provision establishes 
     new responsibilities for the NRC, nothing in this section is 
     intended to alter the existing statutory authority of the 
     DNFSB in any area.
       The conferees note that subsection (c) of this provision 
     states that subsection (a) does not apply to any material 
     transported from the state and subsection (e)(3) states that 
     nothing in this section amends the definition of 
     ``transuranic waste''. The conferees' intent is that nothing 
     in this statute changes the disposal requirements for waste 
     that will ultimately be disposed of at the Waste Isolation 
     Pilot Plant. In addition, subsection (e)(5) states that 
     nothing in this provision amends the West Valley 
     Demonstration Project Act.
       The conferees note that subsection (f) provides for 
     judicial review of any determination or agency action by the 
     Secretary of Energy under this section consistent with the 
     Administrative Procedure Act's provisions for judicial review 
     as set out in chapter 7 of title 5 of the United States Code. 
     Failure by the Nuclear Regulatory Commission to perform its 
     monitoring responsibilities under subsection (b) is also 
     subject to judicial review in accordance with those 
     provisions. The conferees intend that the Secretary of 
     Energy's actions under section 3116 are fully subject to 
     judicial review notwithstanding any action by the Nuclear 
     Regulatory Commission.
       The conferees note that section 3155 of the National 
     Defense Authorization for Fiscal Year 2002 sets forth the 
     obligations of the Department to manage and dispose of 
     surplus plutonium shipped to the Savannah River Site. The 
     authority granted to the Department under section 3116 to 
     reclassify radioactive material does not extend to this 
     plutonium nor does it relieve the Department of its 
     obligations under Section 3155 of the 2002 Act. Subsection 
     (e)(4) was included to clarify this limitation.
     Treatment of waste material (sec. 3117)
       The Senate amendment contained a provision (sec. 3120) that 
     would authorize $350.0 million out of defense site 
     acceleration completion and defense environmental services to 
     be expended for activities at the Hanford Site in Washington, 
     the Idaho National Engineering and Environmental Laboratory 
     in Idaho, and the Savannah River Site in South Carolina for 
     the safe management, treatment, storage, consolidation, and 
     emptying and cleaning of tanks or tank farms used to store 
     waste from reprocessing activities.
       The House bill would authorize $300.0 million for defense 
     site acceleration completion to address waste incidental to 
     reprocessing.
       The House recedes with an amendment that would authorize 
     $350.0 million for defense site acceleration completion 
     activities at the Idaho National Engineering and 
     Environmental Laboratory in Idaho, the Savannah River Site in 
     South Carolina, and the Hanford Site in Washington.
     Local stakeholder organizations for 2006 closure sites (sec. 
         3118)
       The Senate amendment contained a provision (sec. 3121) that 
     would direct the Secretary of Energy to establish local 
     stakeholder organizations (LSOs) to operate in consultation 
     with local elected officials at Department of Energy 
     Environmental Management 2006 closure sites. This would 
     include the Rocky Flats Environmental Technology Site, the 
     Fernald Environmental Management Project, and the Miamisburg 
     Environmental Management Project Mound Site.
       The House bill contained no similar provision.
       The House recedes with an amendment that would strike the 
     portion of the provision which stated that the Federal 
     Advisory Committee Act (FACA) (5 U.S.C. App.) does not apply 
     to LSOs.
       The conferees note that as the community reuse 
     organizations comply with FACA, LSOs will also have to comply 
     with FACA. The conferees also encourage the LSOs to work with 
     other community organizations and groups to allow a broad 
     view to be considered.
     Report to Congress on Advanced Nuclear Weapons Concepts 
         Initiative (sec. 3119)
       The Senate amendment contained a provision (sec. 3112) that 
     would prohibit the Secretary of Energy from obligating or 
     expending the funds available for advanced nuclear 
     concepts initiative (ACI) until 30 days after the 
     Administrator of the National Nuclear Security 
     Administration submits a report on the planned activities 
     for fiscal year 2005 under this initiative.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Administrator of the NNSA to submit a report setting forth 
     the planned ACI activities in fiscal year 2005 by March 1, 
     2005. The Secretary may fully obligate or expend the funds 
     available for ACI.

                   Subtitle C--Proliferation Matters

     Modification of authority to use International Nuclear 
         Materials Protection and Cooperation Program funds 
         outside the former Soviet Union (sec. 3131)
       The Senate amendment contained a provision (sec. 3131) that 
     would amend section 3124 of the National Defense 
     Authorization Act for Fiscal Year 2004, to remove the $50.0 
     million limitation on the authority to use International 
     Nuclear Materials Protection and Cooperation Program funds 
     for projects and activities outside of the former Soviet 
     Union to meet emerging proliferation threats. The provision 
     would also clarify that this authority applies only to 
     projects or activities that have not previously been 
     authorized by Congress.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Acceleration of removal or security of fissile materials, 
         radiological materials, and related equipment at 
         vulnerable sites worldwide (sec. 3132)
       The Senate amendment contained a provision (sec. 3132) that 
     would express the sense of Congress that the security of 
     high-risk, proliferation-attractive fissile materials, 
     radiological materials, and related equipment at vulnerable 
     sites worldwide should be a top U.S. national security 
     priority. The provision would also express the sense of 
     Congress that the President may establish a Department of 
     Energy Task Force on Nuclear Materials to carry out a program 
     to undertake an accelerated, comprehensive worldwide effort 
     to mitigate threats posed by high-risk, proliferation-
     attractive fissile materials, radiological materials, and 
     related equipment located at sites potentially vulnerable to 
     theft or diversion. The provision would include a list of 
     specific activities that would be authorized under such a 
     program.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Silk Road Initiative (sec. 3133)
       The House bill contained a provision (sec. 1421) that would 
     authorize the Secretary of Energy to carry out a program 
     known as the Silk Road Initiative to promote non-weapons-
     related employment opportunities for scientists, engineers, 
     and technicians formerly engaged in activities to develop and 
     produce weapons of mass destruction in nations of the former 
     Soviet Union in the Caucasus and Central Asia. The provision 
     would encourage the Secretary to begin a pilot program in the 
     Republic of Georgia, and would authorize the Secretary to 
     spend up to $10.0 million on the program from funds available 
     for nonproliferation and international security for fiscal 
     year 2005.
       The Senate amendment contained no similar provision.
       The Senate recedes with technical amendments.
       The conferees note that a number of independent states of 
     the former Soviet Union have been helpful to the United 
     States in the war on terrorism. Such states are new and 
     struggling democracies and would benefit considerably from 
     assistance to create sustainable jobs for their underemployed 
     or unemployed scientists, engineers, and technicians who were 
     formerly engaged in activities to develop and produce weapons 
     of mass destruction. The conferees further note that it is 
     the policy of the United States to seek to establish and 
     promote programs to prevent the proliferation of scientific 
     and technical expertise to develop and produce weapons of 
     mass destruction from states of the former Soviet Union to 
     countries of proliferation concern; and to assist independent 
     states of the former Soviet Union that have been helpful to 
     the United States in the war on terrorism so as to promote 
     the creation of jobs that foster economic stability and 
     democracy.
     Nuclear Nonproliferation Fellowships for scientists employed 
         by United States and Russian Federation (sec. 3134)
       The House bill contained a provision (sec. 1422) that would 
     authorize the Administrator for Nuclear Security to carry out 
     a program under which the Administrator would award 
     international exchange fellowships in the nuclear 
     nonproliferation sciences to scientists employed at the 
     Kurchatov Institute of the Russian Federation and the 
     Lawrence Livermore National Laboratory of the United 
     States. The fellowships would be known as Teller-Kurchatov 
     Nonproliferation Fellowships. The provision would 
     authorize the Administrator to spend up to $10.0 million 
     on the program from funds available for nonproliferation 
     and international security in fiscal year 2005.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the Administrator for Nuclear Security to carry out a program 
     under which the Administrator would award international 
     exchange fellowships in the nuclear nonproliferation sciences 
     to scientists employed at nonproliferation research 
     laboratories of the Russian Federation and the United States. 
     The fellowships would be

[[Page H9623]]

     known as Nuclear Nonproliferation Fellowships. The provision 
     would authorize the Administrator to use funds available for 
     nonproliferation and international security in fiscal year 
     2005 for this fellowship program.
     Utilization of international contributions to the Elimination 
         of Weapons Grade Plutonium Production Program (sec. 3135)
       The conferees agree to include a provision that would 
     provide the Secretary of Energy authority to accept 
     international contributions to the Elimination of Weapons 
     Grade Plutonium Production Program. The provision would 
     permit the Secretary of Energy to: (1) enter into agreements, 
     in consultation with the Secretary of State, with a person, 
     foreign government, or international organization for this 
     purpose; and (2) use such contributions without further 
     authorization or appropriation. The provision would require 
     the Secretary to notify the congressional defense committees: 
     (1) of the receipt of any international contributions for 
     this program within 30 days of their receipt; and (2) of the 
     intended use of any funds received 30 days before they may be 
     utilized. The provision would also require the Secretary to 
     submit an annual report to the congressional defense 
     committees on the receipt and utilization of amounts received 
     pursuant to this authority for each fiscal year. The 
     provision would require that any funds not used within five 
     years be returned to the contributor. The authority provided 
     by this provision would expire on December 31, 2011.

                       Subtitle D--Other Matters

     Indemnification of Department of Energy contractors (sec. 
         3141)
       The Senate amendment contained a provision (sec. 3141) that 
     would amend section 170d(1)(A) of the Atomic Energy Act of 
     1954 to allow the Department of Energy to continue to enter 
     into contracts for indemnification for an additional two 
     years, through December 31, 2006.
       The House bill contained no similar provision.
       The House recedes.
     Report on maintenance of retirement benefits for certain 
         workers at 2006 closure sites after closure of sites 
         (sec. 3142)
       The Senate amendment contained a provision (sec. 3122) that 
     would require the Assistant Secretary of Energy for 
     Environmental Management to submit a report to the Secretary 
     of Energy on maintenance of retirement benefits for workers 
     at 2006 closure sites shortly before closure of those sites. 
     The report would include the number of workers at the closure 
     sites which would not receive retirement benefits if the site 
     where they work is closed early; the cost to provide benefits 
     to these workers; and the impact on collective bargaining 
     agreements due to the workers' loss of benefits. The 
     Secretary of Energy would be required to send the report to 
     the congressional defense committees.
       The House bill contained no similar provision.
       The House recedes with an amendment that would clarify the 
     scope of the report.
       The conferees direct the Department of Energy to use the 
     contracts that were in effect on September 30, 2003 as the 
     contracts for determining the target completion date.
     Report on efforts of National Nuclear Security Administration 
         to understand plutonium aging (sec. 3143)
       The Senate amendment contained a provision (sec. 3123) that 
     would require the Administrator of the National Nuclear 
     Security Administration (NNSA) to enter into a contract with 
     a Federally Funded Research and Development Center for a 
     study to assess the efforts of the NNSA to understand the 
     aging of plutonium used in nuclear weapons.
       The House bill contained no similar provision.
       The House recedes.
     Support for public education in the vicinity of Los Alamos 
         National Laboratory, New Mexico (sec. 3144)
       The Senate amendment contained a provision (sec. 3144) that 
     would require the Secretary of Energy (DOE) to include in all 
     the management and operating contracts for the Los Alamos 
     National Laboratory (LANL), entered into after September 30, 
     2005, a provision that would require the contractor to 
     provide $8.0 million per year for support for public 
     secondary and elementary education to the Los Alamos Public 
     School District. The House bill contained no similar 
     provision.
       The House recedes.
     Review of Waste Isolation Pilot Plant, New Mexico, pursuant 
         to competitive contract (sec. 3145)
       The House bill contains a provision (sec. 3133) that would 
     direct the Secretary of Energy to enter into a new contract 
     for independent reviews of the design, construction, and 
     operations of the Waste Isolation Pilot Plant in New Mexico 
     (WIPP).
       The Senate amendment contained a similar provision (sec. 
     3145) that would direct the Secretary of Energy to use 
     competitive procedures in future contracts for independent 
     reviews of the design, construction, and operations of WIPP.
       The House recedes.
     National Academy of Sciences study on management by 
         Department of Energy of certain radioactive waste streams 
         (sec. 3146)
       The House bill contains a provision (sec. 3132) that would 
     require the Secretary of Energy to enter into an agreement 
     with the National Research Council of the National Academy of 
     Sciences to complete a study of the plans of the Department 
     of Energy (DOE) to manage certain waste streams that are not 
     planned for disposal in a high-level repository. These 
     streams are located at the Savannah River site, South 
     Carolina, the Idaho National Engineering and Environmental 
     Laboratory, Idaho, and the Hanford Reservation, Washington.
       The provision would require the National Research Council 
     to submit an interim report no later than six months after 
     entering into the agreement with the Secretary and a final 
     report no later than one year after entering such agreement.
       The Senate amendment contained a similar provision (sec. 
     3117) that would authorize $750,000 for a similar study.
       The Senate recedes with an amendment which would require 
     the Secretary of Energy to enter into an arrangement with the 
     National Research Council of the National Academy of Sciences 
     (NAS) to carry out a study of the plans of the Department of 
     Energy to manage waste, from reprocessed spent nuclear fuel, 
     which exceeds the concentration limits for Class C low-level 
     waste set out in section 61.55 of title 10, Code of Federal 
     Regulations (CFR). The waste that is the subject of the study 
     is stored in tanks at the Savannah River Site, in South 
     Carolina, the Idaho National Engineering and Environmental 
     Laboratory (INEEL), in Idaho, and the Hanford Reservation, in 
     Washington, and it is waste which DOE does not plan to 
     dispose of in a repository for spent nuclear fuel and high-
     level waste.
       The conferees note that the study shall evaluate the state 
     of the Department's understanding of the physical, chemical, 
     and radiological characteristics of the waste. Additionally, 
     the study should evaluate any actions, in addition to those 
     contained in the Department's current plans, which should be 
     considered to ensure the plan's compliance with the 
     performance objectives of part 61 of title 10, Code of 
     Federal Regulations. In addition, the study shall evaluate 
     the adequacy of the Department's plans for monitoring 
     disposal sites to verify compliance with the performance 
     objectives in part 61 of title 10, Code of Federal 
     Regulations, any existing technology alternatives to these 
     plans, and any existing technology gaps.
       The National Research Council may develop recommendations 
     it considers appropriate and directly related to the subject 
     matter of the study. The National Research Council shall 
     submit the reports to the Secretary of Energy and the 
     appropriate congressional committees. Of the amounts 
     authorized for the Department of Energy, $1.5 million shall 
     be available for carrying out this study.
     Compensation of Pajarito Plateau, New Mexico, homesteaders 
         for acquisition of lands for Manhattan Project in World 
         War II (sec. 3147)
       The Senate amendment contained a provision (sec. 3146) that 
     would establish a fund to settle outstanding claims derived 
     from the acquisition of land used in the Manhattan Project. 
     The provision would authorize $10.0 million to settle claims 
     for compensation by Pajarito Plateau homesteaders.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     United States District Court for the District of New Mexico 
     to appoint a special master to identify class members, 
     receive claims, resolve contests, and address such other 
     matters the Court may order. The claims to be settled from 
     the fund are the claims pending before the court as Civil 
     Number 00-60. In addition, the provision would establish 
     guidelines for settling claims using the fund. Following all 
     determinations, the Special Master would be directed to award 
     the allocated amounts from the fund after approval by the 
     Court. The conferees intend this fund and the payments made 
     from it constitute full and complete settlement of these 
     claims.
     Modification of requirements relating to conveyances and 
         transfer of certain land at Los Alamos National 
         Laboratory, New Mexico (sec. 3148)
       The conferees agree to include a provision that would 
     authorize the Department of Energy to transfer certain 
     parcels of land at the Los Alamos National Laboratory in New 
     Mexico to the Los Alamos County Public Schools in New Mexico. 
     The conferees note the financial benefits realized through 
     this land transfer will be used to facilitate economic 
     development for the Los Alamos County Public Schools.

 Subtitle E--Energy Employees Occupational Illness Compensation Program

     Improvements to the Energy Employees Occupational Illness 
         Compensation Program Act (sec. 3161-3170)
       The Senate amendment contained a series of provisions (sec. 
     3151-3157) that would amend section 3621 of the Energy 
     Employees Occupational Illness Compensation Program Act 
     (EEOICPA) of 2000 (Public Law 106-398). The primary changes 
     that the provisions would make to the EEOICPA program would 
     transfer claims processing under Part D of EEOICPA from the 
     Department of Energy (DOE) to the Department of Labor (DOL), 
     direct DOL to compute compensation payments and require DOL 
     to make such compensation payments to the employees.
       The Senate amendment would allow covered DOE contractor 
     employees to elect to proceed under State workers' 
     compensation systems or choose to receive compensation under 
     EEOICPA Part D.

[[Page H9624]]

       The Senate amendment allowed covered DOE contractor 
     employees who have been determined to be entitled to 
     compensation and benefits for an occupational illness 
     contracted in the performance of duty at a DOE facility under 
     subtitle B of EEOICPA, to be treated as having contracted the 
     occupational illness through exposure at DOE facilities for 
     purposes of subtitle D. Employees not previously covered 
     under subtitle B of EEOICPA would be determined to have 
     contracted an illness through exposure at a DOE facility for 
     purposes of subtitle D if (1) it is at least as likely as not 
     that exposure to a toxic substance was a significant factor 
     in aggravating, contributing to, or causing the illnesses; 
     and (2) it is at least as likely as not that the exposure to 
     such toxic substance was related to employment at a DOE 
     facility. The Secretary of Labor would make such 
     determinations. In making these determinations, the Secretary 
     of Labor would be allowed to use physicians to assist in 
     making such determinations.
       The amount of workers' compensation to which covered DOE 
     contractor employees or eligible survivors would be entitled 
     would be determined under the appropriate State workers' 
     compensation system. Covered DOE contractor employees 
     determined to be eligible for compensation for an 
     occupational illness or covered illness under these 
     provisions would also be furnished medical benefits. Covered 
     DOE contractor employees would also be able to seek review by 
     the Secretary of Labor of determinations concerning 
     eligibility and levels of compensation decided against the 
     employees.
       Attorney fees for assistance on a claim under this subtitle 
     would be available for covered DOE contractor employees to 
     the same extent that they are currently available under 
     Subtitle B.
       The Senate amendment would transfer administration of 
     subtitle D of EEOICPA to the Secretary of Labor, and direct 
     the Secretary to work with the Secretary of Energy to 
     transfer all applicable records, files and other data from 
     DOE to DOL.
       The Senate amendment would also expand the coverage of 
     individuals employed by atomic weapons employers (AWE) who 
     were exposed to residual radiation after DOE related work at 
     the AWE facility stopped. Additionally, the Director of the 
     National Institute of Occupational Safety and Health (NIOSH) 
     would update the 2000 report on residual contamination of AWE 
     facilities.
       The Senate amendment would establish in DOL a new Office of 
     the Ombudsman to assist individuals in making claims under 
     subtitle D of EEOICPA and direct the Secretary of Labor to 
     prescribe regulations necessary to carry out these 
     provisions. The provisions would also set forth a Sense of 
     Congress that the Secretary of Energy should adopt a policy 
     not to oppose any final positive determinations with 
     respect to injured workers at DOE facilities and AWE 
     facilities under a State workers' compensation 
     adjudication system unless such determinations are 
     frivolous. The Senate amendment would also set forth 
     findings that DOL establish a resource center in western 
     New York to provide assistance to energy employees making 
     claims under Subtitle B of EEOICPA, and set forth the 
     sense of the Senate that the Ombudsman should evaluate 
     current assistance and recommend a site for a resource 
     center.
       The Senate amendment also included provisions that would 
     designate under specified circumstances certain former 
     nuclear weapons program workers as members of the Special 
     Exposure Cohort (SEC) under section 3621 of EEOICPA. Funding 
     for all programs created, modified or expanded under these 
     provisions would be subject to appropriations.
       The House bill contained no similar provision.
       The House recedes with an amendment.
       The conferees agree to repeal subtitle D of EEOICPA, 
     establish a new compensation scheme and direct the Department 
     of Labor (DOL) to administer the program. The new program 
     would be established as subtitle E of EEOICPA.
       Under the new subtitle E of EEOICPA, covered DOE contractor 
     employees would be compensated based on any impairment from a 
     covered illness resulting from exposure to a toxic substance 
     at a DOE facility. The employee would receive additional 
     compensation if the impairment resulted in significant wage 
     losses. The primary goal of the conferees was to create a 
     simple, fair and uniform workers compensation system and 
     avoid chronic delays and inefficiencies that workers 
     currently encounter.
       Specifically, employees would receive $2,500 for every 
     degree of impairment, resulting from a covered illness 
     contracted by that employee through exposure to a toxic 
     substance at a DOE facility. Additionally, the covered 
     employee would be compensated for annual wage loss, defined 
     as the average salary for the 36 months preceding the month 
     the wage loss began, as follows: (1) $10,000 for each 
     calendar year where the employee's annual wage exceeded 50 
     percent of the employee's average annual wage at the DOE 
     facility but did not exceed 75 percent of their average 
     annual wage; or $15,000 for each calendar year where the 
     employee's annual wage did not exceed 50 percent of the 
     employee's average annual wage at the DOE facility. The wage 
     losses must result from the covered illness as determined by 
     DOL.
       The American Medical Association's Guides to the Evaluation 
     of Permanent Impairment should be used in making these 
     determinations. On the other hand, as the Guides state 
     ``Impairment assessment is a necessary first step for 
     determining disability.'' [Emphasis in original] The new 
     compensation regime that would be established in subtitle E 
     of EEOICPA establishes a two part award--one for impairment 
     and one for work loss as a result of disability. As 
     structured in subtitle E the two part award is a unique way 
     to compensate employees for impairments as well as 
     compensation based upon past and present earnings losses from 
     disability. In some cases, particularly in cases involving 
     illnesses to long exposure to toxic substances, there may be 
     an illness for which the AMA Guides do not provide an 
     impairment rating. As a result, each individual employee 
     should be evaluated individually and the determination of 
     impairment and work disability should be through a 
     combination of the Guides and by physicians suitably trained 
     and qualified. Because of the unique nature of the 
     compensation under subtitle E, the conferees do not intend 
     the use of the Guides in this context to establish a 
     precedent for other federal compensation programs.
       The conferees also include a provision that would provide 
     three categories of compensation for survivors of a covered 
     DOE contractor employee. Under category one, the survivor 
     would receive $125,000, if the Secretary of Labor determines 
     that the employee would have been entitled to compensation 
     under part E of EEOICPA and it is at least as likely as not 
     that exposure to a toxic substance at a DOE facility was a 
     significant factor in aggravating, contributing to, or 
     causing death. Under category two, the survivor would receive 
     $150,000, if he or she meets the criteria under category one, 
     and the Secretary of Labor also determines that there was an 
     aggregate period of not less than 10 years, before the 
     employee attained normal retirement age, during which, as a 
     result of any covered illness contracted by the employee 
     through exposure of a toxic substance at a DOE facility, the 
     employee's annual wage did not exceed 50 percent of the 
     average annual wage of the employee. Under category three, 
     the survivor would receive $175,000, if he or she meets the 
     criteria under category one, plus the Secretary of Labor also 
     determines that there was an aggregate period of not less 
     than 20 years, before the employee attained normal retirement 
     age, during which, as a result of any covered illness 
     contracted by the employee through exposure of a toxic 
     substance at a DOE facility, the employee's annual wage did 
     not exceed 50 percent of the average annual wage of the 
     employee. The survivor would be entitled to receive the 
     highest category for which the survivor qualifies. The 
     maximum aggregate benefit available under subtitle E of 
     EEOICPA is $250,000.
       Radiation Exposure Compensation Act
       The conferees also agree to make compensation under 
     subtitle E applicable to certain uranium employees under 
     section 5 of the Radiation Exposure Compensation Act (RECA) 
     (42 U.S.C. 2210 note). Compensation for these employees would 
     be determined on the same basis as it applies to a DOE 
     contractor employee under section 3675 of subtitle E of 
     EEOICPA.
       Office of the Ombudsman
       The conferees agree to include a provision similar to the 
     Senate amendment to create an Office of the Ombudsman. The 
     authority for the Office of the Ombudsman would expire three 
     years after enactment. The conferees expect the Ombudsman to 
     work with the Secretary of Labor to ensure the Ombudsman is 
     technically proficient on subtitle E of EEOICPA to the 
     maximum extent practicable before they begin conducting 
     covered DOE contractor employee outreach. The conferees also 
     expect the Ombudsman to make recommendations the Ombudsman 
     considers appropriate for the improvement of the practices of 
     DOL in administering subtitle E of EEOICPA. The conferees 
     urge the Secretary to hire a director of the Office of the 
     Ombudsman within 120 days of enactment.
       Administrative Provisions
       The conferees have included a series of provisions that 
     deal with administrative and judicial review, physician 
     services, medical benefits, attorneys fees, offsets, 
     subrogation, exclusivity of remedy, treatment of payments, 
     and administrative matters between DOL and DOE concerning 
     records, files and other data.
       Compensation under subtitle E would be offset by any 
     benefits an individual receives for the same covered illness 
     through a State workers' compensation system. The aggregate 
     amount of compensation received on behalf of a covered 
     employee under subtitle E, other than medical benefits, shall 
     not exceed $250,000.
       The conferees believe the benefits available under subtitle 
     E of EEOICPA are a fair and equitable alternative to the 
     complexities and uncertainties that employees and their 
     survivors may face in State workers' compensation programs. 
     If an election is made to proceed under subtitle E of 
     EEOICPA, the covered DOE contractor employer and survivor 
     will not be able to bring additional actions against the 
     United States or the DOE contractor for covered illnesses. A 
     covered DOE contractor employee or their survivor may choose 
     to forego benefits under subtitle E of EEOICPA and instead 
     seek compensation through a state workers compensation 
     system, litigation or any other available compensation 
     mechanisms.
       The benefits paid under subtitle E and the administrative 
     costs of subtitle E will be

[[Page H9625]]

     treated for budget and accounting purposes as mandatory 
     spending.
       The Secretary is required to establish a process for 
     administrative appeals. In developing this process, the 
     conferees urge the Secretary to consider other administrative 
     appeals processes for similar programs. Determining whether 
     an illness was caused by exposure to toxic substances can be 
     complex. Therefore, the conferees urge the Secretary to 
     consider an appeal process whereby claimants have an 
     opportunity to have an adverse determination reviewed by an 
     independent physician or physician panel. The conferees note 
     that the Secretary has the authority to hire physician 
     panels, and urge the Secretary to hire physicians with 
     experience and competency in diagnosing illnesses caused by 
     exposure to toxic substances in exercising this authority.
       The conferees note that included in the administrative 
     provisions is a provision that would direct the Social 
     Security Administration to make available to the Secretary of 
     Labor earnings information necessary to carry out the 
     requirements of subtitle E. The conferees expect that 
     protections will be in place at DOL that will protect this 
     information from unauthorized disclosure to the same extent 
     the information was protected before being transferred to 
     DOL.
       The conferees urge the Secretary, in consultation and 
     coordination with the Secretary of Energy, to notify all 
     applicants of the changes in the management of this program. 
     The conferees recommend that the Secretary, through or in 
     coordination with the Office of the Ombudsman, explain 
     program changes, provide guidance on changes in the 
     processing of claims, and provide a toll free ``hotline'' 
     which claimants can call for assistance.
       Special Exposure Cohort
       The conferees are concerned that the administrative process 
     for designating additional special exposure cohorts (SEC) is 
     too slow and should be accelerated. Covered DOE contractor 
     employees from the 1940s, 50s, 60s, and 70s whose 
     occupational illness was caused through exposure to toxic 
     substances while working in DOE contractor facilities should 
     receive compensation under subtitle B of EEOICPA. 
     Unfortunately many of the records or other data has been lost 
     or destroyed. As a result of these delays, the conferees have 
     included several provisions that would make improvements to 
     subtitle B of EEOICPA in an effort to accelerate the process 
     for designating additional SECs. First, the Secretary of 
     Energy is directed to ensure that members and staff of the 
     NIOSH Advisory Board have an opportunity to apply for 
     necessary security clearances. The Secretary of Energy 
     should process these applications within 180 days after 
     receiving a completed application. In addition, the 
     Secretary of Energy is directed, in accordance with law, 
     to provide the Advisory Board access to any information 
     that the Board considers relevant to carry out its 
     responsibilities under EEOICPA, including Restricted Data.
       To ensure that applications to be a SEC member are 
     processed promptly, new timelines have been included. Within 
     180 days of receipt of a petition for designation as members 
     of a SEC, the Director of NIOSH must submit to the Advisory 
     Board a recommendation on that petition, including all 
     supporting documentation. During the 180 period when NIOSH is 
     preparing the petition for review by the Advisory Board, 
     NIOSH should identify all deficiencies in the petition within 
     the first 30 days. When the President receives an affirmative 
     recommendation from the Advisory Board to designate a class 
     to the SEC, the President shall have a period of 30 days in 
     which to accept or reject the recommendation and notify 
     Congress. If the President does not send a determination 
     notice within 30 days, and if there is an affirmative Board 
     recommendation, the class recommended to be a SEC will 
     automatically become a SEC, subject to a 30 day notification 
     period in Congress.
       In an effort to prevent further delays for petitions 
     already filed, the Board would be directed to convene an 
     emergency meeting if NIOSH completes the evaluation of a 
     petition more than ten days before a regularly scheduled 
     Board Meeting. This emergency authority shall expire on March 
     1, 2005. In addition, the President is directed to submit a 
     report to Congress by March 15, 2005 providing a status 
     update on all petitioners who filed by October 1, 2004. The 
     report should include, for each petition, the estimated time 
     to complete consideration of the petition and any anticipated 
     actions or circumstances that could preclude the Board from 
     acting upon that petition before the end of fiscal year 2005. 
     The conferees expect NIOSH to respond promptly throughout the 
     process to ensure the petition and all supporting 
     documentation is filed and processed correctly.
       The conferees are concerned that auditors hired to conduct 
     an audit of NIOSH and the Advisory Board are having a 
     difficult time getting information and maintaining an 
     appropriate degree of independence. The conferees expect 
     NIOSH to work to ensure these issues are addressed in future 
     audits.
       Pursuant to a recommendation of the Comptroller General, in 
     the September, 2004 Report (GAO-04958), to the extent the 
     Secretary of Labor determines it useful and practicable, the 
     Secretary of Labor shall direct the Director of NIOSH to 
     prepare site profiles for a DOE facility based on records, 
     files and other data provided by the Secretary of Energy.
       The conferees urge the Director of NIOSH to consult with 
     DOE contract workers and their representatives in developing 
     these site profiles, and to update site profiles as 
     information becomes available. The conferees have also 
     included a provision that would direct the Secretary of 
     Health and Human Services to submit to Congress a report 
     setting forth the time frames for completing the site 
     profiles.
       Residual Radiation Exposure
       The conferees include the provisions from the Senate 
     amendment that expand coverage under subtitle B to include 
     workers exposed to residual radiation contamination. In 
     addition, the provision would add a definition of the term 
     radiation dose applicable to employees exposed to residual 
     radiation.
       The conferees have also agreed to include a provision that 
     would direct the director of NIOSH to update the 2003 
     residual radiation report.

                   Legislative Provisions Not Adopted

     Annual report on expenditures for safeguards and security
       The Senate amendment contained a provision (sec. 3118) that 
     would require the Secretary of Energy to submit an annual 
     report describing the activities and costs of the safeguards 
     and security program at the defense nuclear facilities across 
     the Department of Energy (DOE). The Senate was concerned that 
     the DOE was considering a change in budgeting for safeguards 
     and security that would include these costs as part of the 
     cost of each DOE program. The Senate was concerned that such 
     an approach to budgeting, particularly during the two-year 
     effort to comply with the new design basis threat, would mask 
     the cost of these important requirements.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees are satisfied that the DOE will continue to 
     include sufficient transparency in their budget request for 
     safeguards and security in fiscal year 2006.
     Authority to consolidate counterintelligence offices of 
         Department of Energy and National Nuclear Security 
         Administration within the National Nuclear Security 
         Administration
       The Senate amendment contained a provision (sec. 3119) that 
     would authorize the Secretary of Energy to consolidate the 
     counterintelligence offices of the Department of Energy (DOE) 
     and the National Nuclear Security Administration (NNSA) 
     within NNSA.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the NNSA was originally set up as a 
     semi-autonomous agency, in large part, to ensure that there 
     would be adequate focus and priority placed on 
     counterintelligence activities. The conferees urge the 
     counterintelligence offices at DOE and NNSA to work together 
     to ensure security of both DOE and NNSA programs and 
     facilities.
     Transfers and reprogrammings of National Nuclear Security 
         Administration funds
       The House bill contains a provision (sec. 3131) that would 
     direct the Administrator of the National Nuclear Security 
     Administration (NNSA) to specifically submit notifications 
     and requests for reprogramming directly to the congressional 
     defense committees, with the only role of the Department of 
     Energy (DOE) being for the Chief Financial Officer (CFO) to 
     certify whether funds covered by the notice or request are 
     available.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees believe that there is a present need for 
     better coordination between the Administrator of the NNSA and 
     the CFO of DOE regarding budgetary actions.
       The National Defense Authorization Act for Fiscal Year 2000 
     established the National Nuclear Security Administration (50 
     U.S.C. 2401, otherwise known as the ``NNSA Act''). In passing 
     this Act, Congress created the National Nuclear Security 
     Administration as a semi-autonomous agency within the DOE. 
     The mission of the NNSA is to enhance the national security 
     through the military application of nuclear energy, to reduce 
     global danger from weapons of mass destruction, and to 
     promote international nuclear safety. The cornerstone of this 
     Act is to provide significant autonomy to the NNSA.
       Among the various functions assigned in the Act, the NNSA 
     Administrator has authority over, and is responsible for, all 
     programs and activities of the NNSA, including budget 
     formulation, guidance and execution, and other financial 
     matters (50 U.S.C. 2402). The NNSA Act also provides for 
     separate treatment of NNSA's budget request in the 
     President's budget (50 U.S.C. 2451) and for the Administrator 
     to establish procedures for planning, programming, budgeting, 
     and financial activities (50 U.S.C. 2452). Congress' intent 
     was to provide autonomy for the NNSA in numerous functions, 
     including all those functions associated with budget 
     formulation and execution.
       The conferees are deeply concerned that the overall 
     management of the NNSA budget process may not be carried out 
     in accordance with the full intent of the NNSA Act and that 
     current processes have caused unnecessary delays in budget 
     actions. Accordingly, the Secretary of Energy and the 
     Administrator are directed, within 60 days of enactment of 
     this Act, to develop a process that streamlines all NNSA-
     related budgetary actions including, but not limited to 
     reprogramming requests to Congress, and that

[[Page H9626]]

     is in full compliance with the NNSA Act. This process should 
     establish realistic deadlines for DOE and NNSA to complete 
     budget-related actions, such as reprogrammings. The Secretary 
     and the Administrator shall submit a report to the 
     congressional defense committees by March 1, 2005 outlining 
     the deadlines for budget-related actions that were 
     established. Commencing on March 1, 2006, and annually 
     thereafter on March 1, the Secretary and the Administrator 
     shall submit a report to the congressional defense committees 
     assessing the Department's and National Nuclear Security 
     Administration's performance in meeting these deadlines, and 
     if applicable, the reasons for failing to meet the 
     established deadlines.
     Additional amount for defense site acceleration completion
       The House bill contained a provision (sec. 3134) that would 
     authorize $50.0 million for defense site acceleration 
     completion.
       The Senate amendment contained no similar provision.
       The House recedes.
     Improvements to Energy Employees Occupational Illness 
         Compensation Program
       The House bill contained a provision (sec. 3135) that would 
     amend section 3661 of the Energy Employees Occupational 
     Illness Compensation Program Act of 2000 (42 U.S.C. 785) by 
     requiring the Secretary of Health and Human Services to 
     select individuals to serve as panel members based on 
     experience and competency in diagnosing occupational 
     illness.
       The Senate amendment contained a similar provision (sec. 
     3143) that would amend section 3661 of the National Defense 
     Authorization Act for Fiscal Year 2001 (Public Law 106-398), 
     part D of the Energy Employees Occupational Illness Program 
     Act (EEOICPA). The provision would eliminate the following 
     three restrictions: (1) the pay cap on physicians serving on 
     part D physicians panels; (2) the requirement that the part D 
     physicians work only on a temporary or intermittent basis; 
     and (3) the requirement for agreements between DOE and 
     States.
       The conferees agree not to adopt either provision.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

                     Legislative Provisions Adopted

     Defense Nuclear Facilities Safety Board (sec. 3201)
       The House bill contained a provision (sec. 3201) that would 
     authorize $21.3 million for the Defense Nuclear Facilities 
     Safety Board for fiscal year 2005, an increase of $1.0 
     million to fund cost-of-living pay increases for permanent 
     staff and to hire outside consultants as needed for technical 
     oversight of new Department of Energy projects.
       The Senate amendment contained an identical provision (sec. 
     3201).
       The conference agreement includes this provision.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

                     Legislative Provisions Adopted

     Authorized Uses of National Defense Stockpile Funds (sec. 
         3301)
       The House bill contained a provision (sec. 3301) that would 
     authorize $59.7 million from the National Defense Stockpile 
     Transaction Fund for the operation and maintenance of the 
     National Defense Stockpile for fiscal year 2005. The 
     provision would also permit the use of additional funds for 
     extraordinary or emergency conditions 45 days after a 
     notification to the Congress.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Revision of earlier authority to dispose of certain materials 
         in National Defense Stockpile (sec. 3302)
       The Senate amendment included a provision (sec. 3302) 
     relative to revenue requirements for certain previously 
     authorized disposals from the National Defense Stockpile to 
     establish a new requirement of $870.0 million by the end of 
     fiscal year 2014.
       The House bill included a similar provision (sec. 3303) 
     that would set revenue requirements for those same disposals 
     of at least $785.0 million by the end of fiscal year 2005 and 
     $870.0 million by the end of fiscal year 2009.
       The Senate recedes.
     Disposal of ferromanganese (sec. 3303)
       The House bill contained a provision (sec. 3302) that would 
     amend section 3306 of the National Defense Authorization Act 
     for Fiscal Year 2002 (Public Law 107-107), to authorize the 
     Secretary of Defense to dispose of 100,000 short tons of high 
     carbon ferromanganese of the highest grade during fiscal year 
     2005.
       The Senate amendment contained a similar provision (sec. 
     3301) that would authorize the Secretary to dispose of up to 
     50,000 tons of high carbon ferromanganese during fiscal year 
     2005. The provision would also authorize the disposal of an 
     additional 50,000 tons of high carbon ferromanganese during 
     fiscal year 2005, at 25,000 ton increments, subject to the 
     Secretary, in consultation with the Secretary of Commerce, 
     providing certifications to the congressional defense 
     committees 30 days before the release of each increment.
       The House recedes with an amendment that would authorize 
     the Secretary of Defense to dispose of up to 50,000 tons of 
     high carbon ferromanganese during fiscal year 2005. The 
     provision would also authorize the disposal of an additional 
     50,000 tons of high carbon ferromanganese during fiscal year 
     2005, at 25,000 ton increments, subject to the Secretary of 
     Defense certifying to the Committees on Armed Services of the 
     Senate and the House of Representatives not later than 30 
     days before commencement of disposal of a 25,000 ton 
     increment the following: the disposal of ferromanganese is in 
     the interest of national defense; the disposal of 
     ferromanganese under such paragraph will not cause undue 
     disruption to the usual markets of ferromanganese producers 
     or processors of the United States; and the disposal of 
     ferromanganese is consistent with the requirements of the 
     National Defense Stockpile under the Strategic and Critical 
     Material Stock Piling Act (50 U.S.C. et seq.).
     Prohibition on storage of mercury at certain facilities (sec. 
         3304)
       The Senate amendment contained a provision (sec. 3303) that 
     would prohibit the Secretary of Defense from storing mercury 
     from the National Defense Stockpile at any facility that is 
     not owned or leased by the United States.
       The House bill contained no similar provision.
       The House recedes with an amendment that would prohibit the 
     Secretary from storing mercury from the National Defense 
     Stockpile at any facility that is not owned or leased by the 
     United States in fiscal year 2005.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

                     Legislative Provisions Adopted

     Authorization of appropriations (sec. 3401)
       The House bill contained a provision (sec. 3401) that would 
     authorize $20.0 million for the operation and maintenance of 
     the Naval Petroleum and Oil Shale Reserves.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                  TITLE XXXV--MARITIME ADMINISTRATION

                     Legislative Provisions Adopted

     Authorization of appropriations for Maritime Administration 
         (sec. 3501)
       The House bill contained a provision (sec. 3501) that would 
     authorize funds to be appropriated for the Maritime 
     Administration for expenses necessary for operations and 
     training activities, for administrative activities under the 
     loan guarantee program, and for ship disposal.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Extension of authority to provide war risk insurance for 
         Merchant Marine vessels (sec. 3502)
       The House bill contained a provision (sec. 3502) that would 
     amend Section 1214 of the Merchant Marine Act, 1936 (46 
     U.S.C. App. 1294) to extend the authority to provide war risk 
     insurance for Merchant Marine vessels from June 30, 2005 to 
     December 31, 2010. The provision would also amend section 
     1208(a) of the same Act (46 U.S.C. App. 1288), allowing the 
     Secretary of Transportation to request the Secretary of the 
     Treasury to invest such portion of the fund that is not, in 
     the judgement of the Secretary of Transportation, required to 
     meet the current needs of the fund.
       The Senate amendment contained a similar provision (sec. 
     1066), which would have extended the authority to provide war 
     risk insurance to December 31, 2008, and would have allowed 
     similar investments of a portion of the fund.
       The Senate recedes.
     Modification of priority afforded applications for national 
         defense tank vessel construction assistance (sec. 3503)
       The Senate amendment contained a provision (sec. 2901) that 
     would amend section 3542(d)(2) of the Maritime Security Act 
     of 2003 (title XXXV of Public Law 108-136). The amendment 
     would require the Secretary of Transportation to give 
     priority consideration to a proposal for national defense 
     tank vessels if they had been accepted for participation in 
     the Shipboard Technology Evaluation Program (STEP) as 
     outlined in Navigation and Vessel Inspection Circular 01-04, 
     issued by the Commandant of the U.S. Coast Guard on January 
     2, 2004.
       The House bill contained no similar provision.
       The House recedes with an amendment that would allow the 
     Secretary of Transportation to give priority to subsidy 
     proposals received after fiscal year 2005 if the vessels, 
     which are to be constructed, have been selected to 
     participate in the STEP.

                TITLE XXXVI--ASSISTANCE TO FIREFIGHTERS

                     Legislative Provisions Adopted

     Assistance to Firefighters (secs. 3601-3603)
       The Senate amendment contained several provisions (sec. 
     3501-3513) that would reauthorize the Department of Homeland 
     Security's Assistance to Firefighters Grant Program for 
     fiscal years 2005 through 2010. The provision would also 
     authorize the Secretary of Homeland Security, in consultation 
     with the U.S. Fire Administrator, to administer the grant 
     program; expand eligibility for the Assistance to 
     Firefighters Grant Program to volunteer emergency medical 
     service (EMS) organizations; reduce the matching requirements 
     for jurisdictions with populations less than 20,000; set caps 
     on assistance to jurisdictions based on population; and 
     authorize $900.0 million for the program in fiscal year 2005; 
     $950.0 million for fiscal year 2006; and $1.0 billion for 
     each of fiscal years 2007 through 2010.

[[Page H9627]]

       The House bill contained no similar provision.
       The House recedes with an amendment that would place the 
     Director of the Federal Emergency Management Agency, acting 
     through the U.S. Fire Administrator, in charge of 
     administration of the program. Further, the amendment would 
     create a funding floor for grants to EMS organizations, but 
     set a funding ceiling for EMS organizations that are not 
     affiliated with fire departments. The amendment would include 
     reduced matching requirements for jurisdictions with 
     populations less than 50,000, and modify the caps on 
     assistance to jurisdictions based on population. The 
     amendment would authorize $900.0 million for fiscal year 
     2005; $950.0 million for fiscal year 2006; and $1.0 billion 
     for each of fiscal years 2007 through 2009.
       The conferees are concerned about the number of 
     firefighters suffering fatal heart attacks each year while on 
     duty. The conferees direct the director to work to reduce the 
     number of on-duty firefighter fatalities by promoting life-
     saving policies, training, and equipment, including Automated 
     External Defibrillator devices. As a part of this effort, the 
     director is encouraged to examine the feasibility of 
     prioritizing life-saving training and equipment in grant 
     evaluation criteria.

     From the Committee on Armed Services, for consideration of 
     the HOuse bill and the Senate amendment, and modifications 
     committed to conference:
     Duncan Hunter,
     Curt Weldon,
     Joel Hefley,
     Jim Saxton,
     John M. McHugh,
     Terry Everett,
     Roscoe G. Bartlett,
     Howard P. ``Buck'' McKeon,
     Mac Thornberry,
     John N. Hostettler,
     Jim Ryun,
     Jim Gibbons,
     Robin Hayes,
     Ken Calvert,
     Rob Simmons,
     Ike Skelton,
     John M. Spratt, Jr.
     Solomon P. Ortiz,
     Lane Evans,
     Neil Abercrombie,
     Martin T. Meehan,
     Silvestre Reyes,
     Vic Snyder,
     Jim Turner,
     Adam Smith,
     Loretta Sanchez,
     Baron P. Hill,
     From the Permanent Select Committee on Intelligence, for 
     consideration of matters within the jurisdiction of that 
     committee under clause 11 of rule X:
     Pete Hoekstra,
     Ray LaHood,
     Jane Harman,
     From the Committee on Agriculture, for consideration of sec. 
     1076 of the Senate amendment, and modifications committed to 
     conference:
     Bob Goodlatte,
     Max Burns,
     Charles W. Stenholm,
     From the Committee on Education and the Workforce, for 
     consideration of secs. 590, 595, 596, 904, and 3135 of the 
     House bill, and secs. 351, 352, 532, 533, 707, 868, 1079, 
     3143, and 3151-3157 of the Senate amendment, and 
     modifications committed to conference:
     Sam Johnson,
     Timothy H. Bishop,
     From the Committee on Government Reform, for consideration of 
     secs. 801, 806, 807, 825, 1061, 1101-1104, 2833, 2842, and 
     2843 of the House bill, and secs. 801, 805, 832, 851, 852, 
     869, 870, 1034, 1059B, 1091, 1101, 1103-1107, 1110, 2823, 
     2824, 2833, and 3121 of the Senate amendment, and 
     modifications committed to conference:
     Tom Davis,
     From the Committee on House Administration, for consideration 
     of secs. 572 and 1065 of the Senate amendment, and 
     modifications committed to conference:
     Robert W. Ney,
     Vernon J. Ehlers,
     John B. Larson,
     From the Committee on International Relations, for 
     consideration of secs. 811, 1013, 1031, 1212, 1215, Title 
     XIII, secs. 1401-1405, 1411, 1412, 1421, and 1422 of the 
     House bill, and secs. 1014, 1051-1053, 1058, 1059A, 1059B, 
     1070, Title XII, secs. 3131 and 3132 of the Senate amendment, 
     and modifications committed to conference:
     Henry J. Hyde,
     James A. Leach,
     From the Committee on the Judiciary, for consideration of 
     secs. 551, 573, 616, 652, 825, 1075, 1078, 1105, 2833, 2842, 
     and 2843 of the House bill, and secs. 620, 842, 1063, 1068, 
     1074, 1080-1082, 1101, 1106, 1107, 2821, 2823, 2824, 3143, 
     3146, 3151-3157, 3401-3410 of the Senate amendment, and 
     modifications committed to conference:
     F. James Sensenbrenner, Jr.,
     Lamar S. Smith,
     From the Committee on Resources, for consideration of secs. 
     601 and 2834 of the House bill, and sec. 1076 of the Senate 
     amendment, and modifications committed to conference:
     Greg Walden,
     Jay Inslee,
     From the Committee on Science, for consideration of sec. 596 
     of the House bill and secs. 1034, 1092, and Title XXXV of the 
     Senate amendment, and modifications committed to conference:
     Sherwood Boehlert,
     Nick Smith,
     Bart Gordon,
     From the Committee on Small Business, for consideration of 
     secs. 807 and 3601 of the House bill, and secs. 805, 822, 
     823, 912, and 1083 of the Senate amendment, and modifications 
     committed to conference:
     Donald A. Manzullo,
     Sue W. Kelly,
     From the Committee on Transportation and Infrastructure, for 
     consideration of secs. 555, 558, 596, 601, 905, 1051, 1063, 
     1072, and 3502 of the House bill, and sec. 321, 323, 325, 
     717, 1066, 1076, 1091, 2828, 2833-2836, and Title XXXV of the 
     Senate amendment, and modifications committed to conference:
     Don Young,
     John J. Duncan, Jr.,
     Michael E. Capuano,
     From the Committee on Veterans' Affairs, for consideration of 
     secs. 2810 and 2831 of the House bill, and secs. 642, 2821, 
     and 2823 of the Senate amendment, and modifications committed 
     to conference:
     Christopher H. Smith,
     From the Committee on Ways and Means, for consideration of 
     sec. 585 of the House bill, and sec. 653 of the Senate 
     amendment, and modifications committed to conference:
     E. Clay Shaw, Jr.,
     Dave Camp,
                                Managers on the Part of the House.

     John W. Warner,
     John McCain,
     Pat Roberts,
     Wayne Allard,
     Jeff Sessions,
     Susan M. Collins,
     John Ensign,
     James M. Talent,
     Saxby Chambliss,
     Lindsey O. Graham,
     Elizabeth Dole,
     John Cornyn,
     Carl Levin,
     Edward M. Kennedy,
     Robert C. Byrd,
     Joseph Lieberman,
     Jack Reed,
     Daniel K. Akaka,
     Bill Nelson,
     Ben Nelson,
     Mark Dayton,
     Evan Bayh,
     Hillary Rodham Clinton,
     Mark Pryor,
     Managers on the Part of the Senate.

                          ____________________