[Congressional Record (Bound Edition), Volume 149 (2003), Part 20]
[House]
[Pages 27505-27923]
[From the U.S. Government Publishing Office, www.gpo.gov]




REPORT ON RESOLUTION WAIVING POINTS OF ORDER AGAINST CONFERENCE REPORT 
 ON H.R. 1588, NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2004

  Mrs. MYRICK, from the Committee on Rules, submitted a privileged 
report (Rept. No. 108-355) on the resolution (H. Res. 437) waiving 
points of order against the conference report to accompany the bill 
(H.R. 1588) to authorize appropriations for fiscal year 2004 for 
military activities of the Department of Defense, for mlitary 
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, which was referred to the House 
Calendar and ordered to be printed.

                  Conference Report (H. Rept. 108-354)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the Senate to the bill (H.R. 
     1588), to authorize appropriations for fiscal year 2004 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 by the Senate 
     amendment, insert the following:

     SECTION 1. SHORT TITLE.

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

     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. Stryker vehicle program.
Sec. 112. CH-47 helicopter program.

                       Subtitle C--Navy Programs

Sec. 121. Multiyear procurement authority for F/A-18 aircraft program.
Sec. 122. Multiyear procurement authority for Tactical Tomahawk cruise 
              missile program.
Sec. 123. Multiyear procurement authority for Virginia class submarine 
              program.
Sec. 124. Multiyear procurement authority for E-2C aircraft program.
Sec. 125. Multiyear procurement authority for Phalanx Close In Weapon 
              System program.
Sec. 126. Pilot program for flexible funding of cruiser conversions and 
              overhauls.

                     Subtitle D--Air Force Programs

Sec. 131. Elimination of quantity limitations on multiyear procurement 
              authority for C-130J aircraft.
Sec. 132. Limitation on retiring C-5 aircraft.
Sec. 133. Limitation on obligation of funds for procurement of F/A-22 
              aircraft.
Sec. 134. Aircraft for performance of aerial refueling mission.
Sec. 135. Procurement of tanker aircraft.

         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. Collaborative program for development of electromagnetic gun 
              technology.
Sec. 212. Leadership and duties of Department of Defense Test Resource 
              Management Center.
Sec. 213. Development of the Joint Tactical Radio System.
Sec. 214. Future Combat Systems.
Sec. 215. Extension of reporting requirement for RAH-66 Comanche 
              aircraft program.
Sec. 216. Studies of fleet platform architectures for the Navy.

                 Subtitle C--Ballistic Missile Defense

Sec. 221. Enhanced flexibility for ballistic missile defense systems.
Sec. 222. Fielding of ballistic missile defense capabilities.
Sec. 223. Oversight of procurement, performance criteria, and 
              operational test plans for ballistic missile defense 
              programs.
Sec. 224. Renewal of authority to assist local communities affected by 
              ballistic missile defense system test bed.
Sec. 225. Prohibition on use of funds for nuclear-armed interceptors in 
              missile defense systems.
Sec. 226. Follow-on research, development, test, and evaluation related 
              to system improvements for missile defense programs 
              transferred to military departments.

                       Subtitle D--Other Matters

Sec. 231. Global Research Watch program in the Office of the Director 
              of Defense Research and Engineering.
Sec. 232. Defense Advanced Research Projects Agency biennial strategic 
              plan.
Sec. 233. Enhancement of authority of Secretary of Defense to support 
              science, mathematics, engineering, and technology 
              education.
Sec. 234. Department of Defense program to expand high-speed, high-
              bandwidth capabilities for network-centric operations.
Sec. 235. Blue forces tracking initiative.

                  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. Reauthorization and modification of title I of Sikes Act.
Sec. 312. Clarification of Department of Defense response to 
              environmental emergencies.
Sec. 313. Repeal of authority to use environmental restoration account 
              funds for relocation of a contaminated facility.
Sec. 314. Authorization for Department of Defense participation in 
              wetland mitigation banks.
Sec. 315. Inclusion of environmental response equipment and services in 
              Navy definitions of salvage facilities and salvage 
              services.
Sec. 316. Repeal of model program for base closure environmental 
              restoration.
Sec. 317. Requirements for restoration advisory boards and exemption 
              from Federal Advisory Committee Act.
Sec. 318. Military readiness and conservation of protected species.
Sec. 319. Military readiness and marine mammal protection.
Sec. 320. Report regarding impact of civilian community encroachment 
              and certain legal requirements on military installations 
              and ranges and plan to address encroachment.
Sec. 321. Cooperative water use management related to Fort Huachuca, 
              Arizona, and Sierra Vista subwatershed.
Sec. 322. Task force on resolution of conflict between military 
              training and endangered species protection at Barry M. 
              Goldwater Range, Arizona.
Sec. 323. Public health assessment of exposure to perchlorate.
Sec. 324. Comptroller General review of Arctic Military Environmental 
              Cooperation program.

[[Page 27506]]

                 Subtitle C--Workplace and Depot Issues

Sec. 331. Exemption of certain firefighting service contracts from 
              prohibition on contracts for performance of firefighting 
              functions.
Sec. 332. Technical amendment relating to closure of Sacramento Army 
              Depot, California.
Sec. 333. Exception to competition requirement for depot-level 
              maintenance and repair workloads performed by depot-level 
              activities.
Sec. 334. Resources-based schedules for completion of public-private 
              competitions for performance of Department of Defense 
              functions.
Sec. 335. Delayed implementation of revised Office of Management and 
              Budget Circular A-76 by Department of Defense pending 
              report.
Sec. 336. Pilot program for best-value source selection for performance 
              of information technology services.
Sec. 337. High-performing organization business process reengineering 
              pilot program.
Sec. 338. Naval Aviation Depots multi-trades demonstration project.

                       Subtitle D--Other Matters

Sec. 341. Cataloging and standardization for defense supply management.
Sec. 342. Sale of Defense Information Systems Agency services to 
              contractors performing the Navy-Marine Corps Intranet 
              contract.
Sec. 343. Permanent authority for purchase of certain municipal 
              services at installations in Monterey County, California.
Sec. 344. Department of Defense telecommunications benefit.
Sec. 345. Independent assessment of material condition of the KC-135 
              aerial refueling fleet.

              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. Personnel strength authorization and accounting process.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
              reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2004 limitations on non-dual status technicians.
Sec. 415. Permanent limitations on number of non-dual status 
              technicians.

              Subtitle C--Authorizations of Appropriations

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

                   TITLE V--MILITARY PERSONNEL POLICY

                 Subtitle A--Officer Personnel Matters

Sec. 501. Standardization of qualifications for appointment as service 
              chief.
Sec. 502. Eligibility for appointment as Chief of Army Veterinary 
              Corps.
Sec. 503. Repeal of required grade of defense attache in France.
Sec. 504. Repeal of termination provisions for certain authorities 
              relating to management of general and flag officers in 
              certain grades.
Sec. 505. Retention of health professions officers to fulfill active-
              duty service commitments following promotion 
              nonselection.
Sec. 506. Permanent authority to reduce three-year time-in-grade 
              requirement for retirement in grade for officers in 
              grades above major and lieutenant commander.
Sec. 507. Contingent exclusion from officer strength and distribution-
              in-grade limitations for officer serving as Associate 
              Director of Central Intelligence for Military Support.
Sec. 508. Reappointment of incumbent Chief of Naval Operations.
Sec. 509. Secretary of Defense approval required for practice of 
              wearing uniform insignia of higher grade known as 
              ``frocking''.

                 Subtitle B--Reserve Component Matters

Sec. 511. Streamlined process for continuation of officers on the 
              Reserve Active-Status List.
Sec. 512. Consideration of Reserve officers for position vacancy 
              promotions in time of war or national emergency.
Sec. 513. Authority for delegation of required secretarial special 
              finding for placement of certain retired members in Ready 
              Reserve.
Sec. 514. Authority to provide expenses of Army and Air Staff personnel 
              and National Guard Bureau personnel attending national 
              conventions of certain military associations.
Sec. 515. Expanded authority for use of Ready Reserve in response to 
              terrorism.
Sec. 516. National Guard officers on active duty in command of National 
              Guard units.
Sec. 517. Presidential report on mobilization of reserve component 
              personnel and Secretary of Defense assessment.
Sec. 518. Authority for the use of operation and maintenance funds for 
              promotional activities of the National Committee for 
              Employer Support of the Guard and Reserve.

            Subtitle C--ROTC and Military Service Academies

Sec. 521. Expanded educational assistance authority for cadets and 
              midshipmen receiving ROTC scholarships.
Sec. 522. Increase in allocation of scholarships under Army Reserve 
              ROTC scholarship program to students at military junior 
              colleges.
Sec. 523. Authority for nonscholarship senior ROTC sophomores to 
              voluntarily contract for and receive subsistence 
              allowance.
Sec. 524. Appointments to military service academies from nominations 
              made by delegates from Guam, Virgin Islands, and American 
              Samoa.
Sec. 525. Readmission to service academies of certain former cadets and 
              midshipmen.
Sec. 526. Defense task force on sexual harassment and violence at the 
              military service academies.
Sec. 527. Actions to address sexual harassment and violence at the 
              service academies.
Sec. 528. Study and report related to permanent professors at the 
              United States Air Force Academy.
Sec. 529. Dean of the faculty of the United States Air Force Academy.

       Subtitle D--Other Military Education and Training Matters

Sec. 531. Authority for the Marine Corps University to award the degree 
              of Master of Operational Studies.
Sec. 532. Authorization for Naval Postgraduate School to provide 
              instruction to enlisted members participating in certain 
              programs.
Sec. 533. Cost reimbursement requirements for personnel receiving 
              instruction at the Air Force Institute of Technology
Sec. 534. Inclusion of accrued interest in amounts that may be repaid 
              under Selected Reserve critical specialties education 
              loan repayment program.
Sec. 535. Funding of education assistance enlistment incentives to 
              facilitate national service through Department of Defense 
              Education Benefits Fund.
Sec. 536. Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 537. Impact aid eligibility for heavily impacted local educational 
              agencies affected by privatization of military housing.

                   Subtitle E--Administrative Matters

Sec. 541. High-tempo personnel management and allowance.
Sec. 542. Enhanced retention of accumulated leave for high-deployment 
              members.
Sec. 543. Standardization of statutory authorities for exemptions from 
              requirement for access to secondary schools by military 
              recruiters.
Sec. 544. Procedures for consideration of applications for award of the 
              Purple Heart medal to veterans held as prisoners of war 
              before April 25, 1962.
Sec. 545. Authority for Reserve and retired regular officers to hold 
              State and local office notwithstanding call to active 
              duty.
Sec. 546. Policy on public identification of casualties.
Sec. 547. Space personnel career fields.
Sec. 548. Department of Defense Joint Advertising, Market Research, and 
              Studies program.
Sec. 549. Limitation on force structure reductions in Naval and Marine 
              Corps Reserve aviation squadrons.

                  Subtitle F--Military Justice Matters

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

                          Subtitle G--Benefits

Sec. 561. Additional classes of individuals eligible to participate in 
              the Federal long-term care insurance program.
Sec. 562. Authority to transport remains of retirees and retiree 
              dependents who die in military treatment facilities.
Sec. 563. Eligibility for dependents of certain mobilized reservists 
              stationed overseas to attend defense dependents schools 
              overseas.

                     Subtitle H--Domestic Violence

Sec. 571. Travel and transportation for dependents relocating for 
              reasons of personal safety.
Sec. 572. Commencement and duration of payment of transitional 
              compensation.

[[Page 27507]]

Sec. 573. Exceptional eligibility for transitional compensation.
Sec. 574. Types of administrative separations triggering coverage.
Sec. 575. Comptroller General review and report.
Sec. 576. Fatality reviews.
Sec. 577. Sense of Congress.

                       Subtitle I--Other Matters

Sec. 581. Recognition of military families.
Sec. 582. Permanent authority for support for certain chaplain-led 
              military family support programs.
Sec. 583. Department of Defense-Department of Veterans Affairs Joint 
              Executive Committee.
Sec. 584. Review of the 1991 death of Marine Corps Colonel James E. 
              Sabow.
Sec. 585. Policy on concurrent deployment to combat zones of both 
              military spouses of military families with minor 
              children.
Sec. 586. Congressional notification of amendment or cancellation of 
              Department of Defense directive relating to reasonable 
              access to military installations for certain personal 
              commercial solicitation.
Sec. 587. Study of National Guard Challenge Program.
Sec. 588. Findings and sense of Congress on reward for information 
              leading to resolution of status of members of the Armed 
              Forces who remain unaccounted for.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2004.
Sec. 602. Revised annual pay adjustment process.
Sec. 603. Computation of basic pay rate for commissioned officers with 
              prior enlisted or warrant officer service.
Sec. 604. Special subsistence allowance authorities for members 
              assigned to high-cost duty location or under other unique 
              and unusual circumstances.
Sec. 605. Basic allowance for housing for each member married to 
              another member without dependents when both spouses are 
              on sea duty.
Sec. 606. Temporary increase in authorized amount of family separation 
              allowance.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay 
              authorities for reserve forces.
Sec. 612. One-year extension of certain bonus and special pay 
              authorities for certain health care professionals.
Sec. 613. One-year extension of special pay and bonus authorities for 
              nuclear officers.
Sec. 614. One-year extension of other bonus and special pay 
              authorities.
Sec. 615. Hazardous duty pay for duty involving ski-equipped aircraft 
              on Antarctica or the Arctic icepack.
Sec. 616. Special pay for reserve officers holding positions of unusual 
              responsibility and of critical nature.
Sec. 617. Payment of Selected Reserve reenlistment bonus to members of 
              Selected Reserve who are mobilized.
Sec. 618. Availability of hostile fire and imminent danger special pay 
              for reserve component members on inactive duty.
Sec. 619. Temporary increase in authorized amount of hostile fire and 
              imminent danger special pay.
Sec. 620. Retroactive payment of hostile fire or imminent danger pay 
              for service in eastern Mediterranean Sea in Operation 
              Iraqi Freedom.
Sec. 621. Expansion of overseas tour extension incentive program to 
              officers.
Sec. 622. Repeal of congressional notification requirement for 
              designation of critical military skills for retention 
              bonus.
Sec. 623. Eligibility of warrant officers for accession bonus for new 
              officers in critical skills.
Sec. 624. Special pay for service as member of Weapons of Mass 
              Destruction Civil Support Team.
Sec. 625. Incentive bonus for conversion to military occupational 
              specialty to ease personnel shortage.
Sec. 626. Bonus for reenlistment during service on active duty in 
              Afghanistan, Iraq, or Kuwait.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Shipment of privately owned motor vehicle within continental 
              United States.
Sec. 632. Transportation of dependents to presence of members of the 
              Armed Forces retired for illness or injury incurred in 
              active duty.
Sec. 633. Payment or reimbursement of student baggage storage costs for 
              dependent children of members stationed overseas.
Sec. 634. Contracts for full replacement value for loss or damage to 
              personal property transported at Government expense.
Sec. 635. Payment of lodging expenses of members during authorized 
              leave from temporary duty location.

             Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Phase-in of full concurrent receipt of military retired pay 
              and veterans disability compensation for certain military 
              retirees.
Sec. 642. Revisions to combat-related special compensation program.
Sec. 643. Special rule for computation of retired pay base for 
              commanders of combatant commands.
Sec. 644. Survivor Benefit Plan annuities for surviving spouses of 
              Reserves not eligible for retirement who die from a cause 
              incurred or aggravated while on inactive-duty training.
Sec. 645. Survivor Benefit Plan modifications.
Sec. 646. Increase in death gratuity payable with respect to deceased 
              members of the Armed Forces.
Sec. 647. Death benefits study.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

Sec. 651. Expanded commissary access for Selected Reserve members, 
              reserve retirees under age 60, and their dependents.
Sec. 652. Defense commissary system and exchange stores system.
Sec. 653. Limitations on private operation of defense commissary store 
              functions.
Sec. 654. Use of appropriated funds to operate defense commissary 
              system.
Sec. 655. Recovery of nonappropriated fund instrumentality and 
              commissary store investments in real property at military 
              installations closed or realigned.

                       Subtitle F--Other Matters

Sec. 661. Comptroller General report on adequacy of special pays and 
              allowances for frequently deployed members.

                   TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

Sec. 701. Medical and dental screening for Ready Reserve members 
              alerted for mobilization.
Sec. 702. Coverage for Ready Reserve members under TRICARE program.
Sec. 703. Earlier eligibility date for TRICARE benefits for members of 
              reserve components.
Sec. 704. Temporary extension of transitional health care benefits.
Sec. 705. Assessment of needs of Reserves for health care benefits.
Sec. 706. Limitation on fiscal year 2004 outlays for temporary Reserve 
              health care programs.
Sec. 707. TRICARE beneficiary counseling and assistance coordinators 
              for reserve component beneficiaries.
Sec. 708. Eligibility of Reserve officers for health care pending 
              orders to active duty following commissioning.

                Subtitle B--Other Benefits Improvements

Sec. 711. Acceleration of implementation of chiropractic health care 
              for members on active duty.
Sec. 712. Reimbursement of covered beneficiaries for certain travel 
              expenses relating to specialized dental care.
Sec. 713. Eligibility for continued health benefits coverage extended 
              to certain members of uniformed services.
Sec. 714. Authority for designated providers to enroll covered 
              beneficiaries with other primary health insurance 
              coverage.

           Subtitle C--Planning, Programming, and Management

Sec. 721. Permanent extension of authority to enter into personal 
              services contracts for the performance of health care 
              responsibilities at locations other than military medical 
              treatment facilities.
Sec. 722. Department of Defense Medicare-Eligible Retiree Health Care 
              Fund valuations and contributions.
Sec. 723. Surveys on continued viability of TRICARE Standard.
Sec. 724. Plan for providing health coverage information to members, 
              former members, and dependents eligible for certain 
              health benefits.
Sec. 725. Transfer of certain members of the Pharmacy and Therapeutics 
              Committee to the Uniform Formulary Beneficiary Advisory 
              Panel under the pharmacy benefits program.
Sec. 726. Working group on military health care for persons reliant on 
              health care facilities at military installations to be 
              closed or realigned.
Sec. 727. Joint program for development and evaluation of integrated 
              healing care practices for members of the Armed Forces 
              and veterans.

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

             Subtitle A--Acquisition Policy and Management

Sec. 801. Consolidation of contract requirements.
Sec. 802. Quality control in procurement of aviation critical safety 
              items and related services.

[[Page 27508]]

Sec. 803. Federal support for enhancement of State and local anti-
              terrorism response capabilities.
Sec. 804. Special temporary contract closeout authority.
Sec. 805. Competitive award of contracts for reconstruction activities 
              in Iraq.

      Subtitle B--United States Defense Industrial Base Provisions

    Part I--Essential Items Identification and Domestic Production 
                    Capabilities Improvement Program

Sec. 811. Consistency with United States obligations under 
              international agreements.
Sec. 812. Assessment of United States defense industrial base 
              capabilities.
Sec. 813. Identification of essential items: military system breakout 
              list.
Sec. 814. Production capabilities improvement for certain essential 
              items using defense industrial base capabilities fund.

            Part II--Requirements Relating to Specific Items

Sec. 821. Elimination of unreliable sources of defense items and 
              components.
Sec. 822. Incentive program for major defense acquisition programs to 
              use machine tools and other capital assets produced 
              within the United States.
Sec. 823. Technical assistance relating to machine tools.
Sec. 824. Study of beryllium industrial base.

              Part III--Other Domestic Source Requirements

Sec. 826. Exceptions to Berry amendment for contingency operations and 
              other urgent situations.
Sec. 827. Inapplicability of Berry amendment to procurements of waste 
              and byproducts of cotton and wool fiber for use in the 
              production of propellants and explosives.
Sec. 828. Buy American exception for ball bearings and roller bearings 
              used in foreign products.

   Subtitle C--Defense Acquisition and Support Workforce Flexibility

Sec. 831. Management structure.
Sec. 832. Elimination of role of Office of Personnel Management.
Sec. 833. Single acquisition corps.
Sec. 834. Consolidation of certain education and training program 
              requirements.
Sec. 835. General management provisions.
Sec. 836. Clerical amendments.

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

Sec. 841. Additional authority to enter into personal services 
              contracts.
Sec. 842. Elimination of certain subcontract notification requirements.
Sec. 843. Multiyear task and delivery order contracts.
Sec. 844. Elimination of requirement to furnish written assurances of 
              technical data conformity.
Sec. 845. Access to information relevant to items deployed under rapid 
              acquisition and deployment procedures.
Sec. 846. Applicability of requirement for reports on maturity of 
              technology at initiation of major defense acquisition 
              programs.
Sec. 847. Certain weapons-related prototype projects.
Sec. 848. Limited acquisition authority for commander of United States 
              Joint Forces Command.

       Subtitle E--Acquisition-Related Reports and Other Matters

Sec. 851. Report on contract payments to small businesses.
Sec. 852. Contracting with employers of persons with disabilities.
Sec. 853. Demonstration project for contractors employing persons with 
              disabilities.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

Sec. 901. Clarification of responsibility of military departments to 
              support combatant commands.
Sec. 902. Combatant Commander Initiative Fund.
Sec. 903. Biennial review of national military strategy by Chairman of 
              the Joint Chiefs of Staff.
Sec. 904. Report on changing roles of United States Special Operations 
              Command.
Sec. 905. Sense of Congress regarding continuation of mission and 
              functions of Army Peacekeeping Institute.
Sec. 906. Transfer to Office of Personnel Management of personnel 
              investigative functions and related personnel of the 
              Department of Defense.
Sec. 907. Defense acquisition workforce freeze for fiscal year 2004.

                      Subtitle B--Space Activities

Sec. 911. Coordination of space science and technology activities of 
              the Department of Defense.
Sec. 912. Policy regarding assured access to space for United States 
              national security payloads.
Sec. 913. Pilot program for provision of space surveillance network 
              services to non-United States Government entities.
Sec. 914. Content of biennial global positioning system report.
Sec. 915. Report on processes-related space systems.

       Subtitle C--Department of Defense Intelligence Components

Sec. 921. Redesignation of National Imagery and Mapping Agency as 
              National Geospatial-Intelligence Agency.
Sec. 922. Protection of operational files of the National Security 
              Agency.
Sec. 923. Integration of defense intelligence, surveillance, and 
              reconnaissance capabilities
Sec. 924. Management of National Security Agency Modernization Program.
Sec. 925. Modification of obligated service requirements under National 
              Security Education Program.
Sec. 926. Authority to provide living quarters for certain students in 
              cooperative and summer education programs of the National 
              Security Agency.
Sec. 927. Commercial imagery industrial base.

                       Subtitle D--Other Matters

Sec. 931. Authority for Asia-Pacific Center for Security Studies to 
              accept gifts and donations.
Sec. 932. Repeal of rotating chairmanship of Economic Adjustment 
              Committee.
Sec. 933. Extension of certain authorities applicable to the Pentagon 
              Reservation to include a designated Pentagon continuity-
              of-Government location.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. United States contribution to NATO common-funded budgets in 
              fiscal year 2004.
Sec. 1003. Authorization of supplemental appropriations for fiscal year 
              2003.
Sec. 1004. Authorization of supplemental appropriations for fiscal year 
              2004.
Sec. 1005. Reestablishment of authority for short-term leases of real 
              or personal property across fiscal years.
Sec. 1006. Reimbursement rate for certain airlift services provided to 
              Department of State.
Sec. 1007. Limitation on payment of facilities charges assessed by 
              Department of State.
Sec. 1008. Use of the Defense Modernization Account for life cycle cost 
              reduction initiatives.
Sec. 1009. Provisions relating to defense travel cards.

                Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Repeal of requirement regarding preservation of surge 
              capability for naval surface combatants.
Sec. 1012. Enhancement of authority relating to use for experimental 
              purposes of vessels stricken from Naval Vessel Register.
Sec. 1013. Transfer of vessels stricken from the Naval Vessel Register 
              for use as artificial reefs.
Sec. 1014. Priority for Title XI assistance.
Sec. 1015. Support for transfers of decommissioned vessels and 
              shipboard equipment.
Sec. 1016. Advanced Shipbuilding Enterprise.
Sec. 1017. Report on Navy plans for basing aircraft carriers.
Sec. 1018. Limitation on disposal of obsolete naval vessel.

                    Subtitle C--Counterdrug Matters

Sec. 1021. Expansion and extension of authority to provide additional 
              support for counter-drug activities.
Sec. 1022. Authority for joint task forces to provide support to law 
              enforcement agencies conducting counter-terrorism 
              activities.
Sec. 1023. Use of funds for unified counterdrug and counterterrorism 
              campaign in Colombia.
Sec. 1024. Sense of Congress on reconsideration of decision to 
              terminate border and seaport inspection duties of 
              National Guard under National Guard drug interdiction and 
              counter-drug mission.

                          Subtitle D--Reports

Sec. 1031. Repeal and modification of various reporting requirements 
              applicable to the Department of Defense.
Sec. 1032. Plan for prompt global strike capability.
Sec. 1033. Annual report concerning dismantling of strategic nuclear 
              warheads.
Sec. 1034. Report on use of unmanned aerial vehicles for support of 
              homeland security missions.

    Subtitle E--Codifications, Definitions, and Technical Amendments

Sec. 1041. Codification and revision of defense counterintelligence 
              polygraph program authority.
Sec. 1042. General definitions applicable to facilities and operations 
              of Department of Defense.
Sec. 1043. Additional definitions for purposes of title 10, United 
              States Code.
Sec. 1044. Inclusion of annual military construction authorization 
              request in annual defense authorization request.
Sec. 1045. Technical and clerical amendments.

[[Page 27509]]

                       Subtitle F--Other Matters

Sec. 1051. Assessment of effects of specified statutory limitations on 
              the granting of security clearances.
Sec. 1052. Acquisition of historical artifacts through exchange of 
              obsolete or surplus property.
Sec. 1053. Conveyance of surplus T-37 aircraft to Air Force Aviation 
              Heritage Foundation, Incorporated.
Sec. 1054. Department of Defense biennial strategic plan for management 
              of electromagnetic spectrum.
Sec. 1055. Revision of Department of Defense directive relating to 
              management and use of radio frequency spectrum.
Sec. 1056. Sense of Congress on deployment of airborne chemical agent 
              monitoring systems at chemical stockpile disposal sites 
              in the United States.
Sec. 1057. Expansion of pre-September 11, 2001, fire grant program of 
              United States Fire Administration.
Sec. 1058. Review and enhancement of existing authorities for using Air 
              Force and Air National Guard Modular Airborne Fire-
              Fighting Systems and other Department of Defense assets 
              to fight wildfires.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

  Subtitle A--Department of Defense National Security Personnel System

Sec. 1101. Department of Defense national security personnel system.

     Subtitle B--Department of Defense Civilian Personnel Generally

Sec. 1111. Pilot program for improved civilian personnel management.
Sec. 1112. Clarification and revision of authority for demonstration 
              project relating to certain acquisition personnel 
              management policies and procedures.
Sec. 1113. Military leave for mobilized Federal civilian employees.
Sec. 1114. Restoration of annual leave for certain Department of 
              Defense employees.
Sec. 1115. Authority to employ civilian faculty members at the Western 
              Hemisphere Institute for Security Cooperation.
Sec. 1116. Extension of authority for experimental personnel program 
              for scientific and technical personnel.

    Subtitle C--Other Federal Government Civilian Personnel Matters

Sec. 1121. Modification of the overtime pay cap.
Sec. 1122. Common occupational and health standards for differential 
              payments as a consequence of exposure to asbestos.
Sec. 1123. Increase in annual student loan repayment authority.
Sec. 1124. Authorization for cabinet secretaries, secretaries of 
              military departments, and heads of executive agencies to 
              be paid on a biweekly basis.
Sec. 1125. Senior Executive Service and performance.
Sec. 1126. Design elements of pay-for-performance systems in 
              demonstration projects.
Sec. 1127. Federal flexible benefits plan administrative costs.
Sec. 1128. Employee surveys.
Sec. 1129. Human capital performance fund.

              TITLE XII--MATTERS RELATING TO OTHER NATIONS

                  Subtitle A--Matters Relating to Iraq

Sec. 1201. Medical assistance to Iraqi children injured during 
              Operation Iraqi Freedom.
Sec. 1202. Report on the conduct of Operation Iraqi Freedom.
Sec. 1203. Report on Department of Defense security and reconstruction 
              activities in Iraq.
Sec. 1204. Report on acquisition by Iraq of advanced weapons.
Sec. 1205. Sense of Congress on use of small businesses, minority-owned 
              businesses, and women-owned businesses in efforts to 
              rebuild Iraq.

           Subtitle B--Matters Relating to Export Protections

Sec. 1211. Review of export protections for military superiority 
              resources.
Sec. 1212. Report on Department of Defense costs relating to national 
              security controls on satellite exports.

        Subtitle C--Administrative Requirements and Authorities

Sec. 1221. Authority to use funds for payment of costs of attendance of 
              foreign visitors under Regional Defense Counterterrorism 
              Fellowship Program.
Sec. 1222. Recognition of superior noncombat achievements or 
              performance by members of friendly foreign forces and 
              other foreign nationals.
Sec. 1223. Expansion of authority to waive charges for costs of 
              attendance at George C. Marshall European Center for 
              Security Studies.
Sec. 1224. Authority for check cashing and currency exchange services 
              to be provided to foreign military members participating 
              in certain activities with United States forces.
Sec. 1225. Depot maintenance and repair work on certain types of 
              trainer aircraft to be transferred to foreign countries 
              as excess aircraft.

       Subtitle D--Other Reports and Sense of Congress Statements

Sec. 1231. Annual report on the NATO Prague Capabilities Commitment and 
              the NATO Response Force.
Sec. 1232. Report on actions that could be taken regarding countries 
              that initiate certain legal actions against United States 
              officials or members of the Armed Forces.
Sec. 1233. Sense of Congress on redeployment of United States forces in 
              Europe.
Sec. 1234. Sense of Congress concerning Navy port calls in Israel.

  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. Limitation on use of funds until certain permits obtained.
Sec. 1304. Limitation on use of funds for biological research in the 
              former Soviet Union.
Sec. 1305. Requirement for on-site managers.
Sec. 1306. Temporary authority to waive limitation on funding for 
              chemical weapons destruction facility in Russia.
Sec. 1307. Annual certifications on use of facilities being constructed 
              for Cooperative Threat Reduction projects or activities.
Sec. 1308. Authority to use Cooperative Threat Reduction funds outside 
              the former Soviet Union.

                 TITLE XIV--SERVICES ACQUISITION REFORM

Sec. 1401. Short title.

             Subtitle A--Acquisition Workforce and Training

Sec. 1411. Definition of acquisition.
Sec. 1412. Acquisition workforce training fund.
Sec. 1413. Acquisition workforce recruitment program.
Sec. 1414. Architectural and engineering acquisition workforce.

        Subtitle B--Adaptation of Business Acquisition Practices

          Part I--Adaptation of Business Management Practices

Sec. 1421. Chief Acquisition Officers.
Sec. 1422. Chief Acquisition Officers Council.
Sec. 1423. Statutory and regulatory review.

                Part II--Other Acquisition Improvements

Sec. 1426. Extension of authority to carry out franchise fund programs.
Sec. 1427. Improvements in contracting for architectural and 
              engineering services.
Sec. 1428. Authorization of telecommuting for Federal contractors.

              Subtitle C--Acquisitions of Commercial Items

Sec. 1431. Additional incentive for use of performance-based 
              contracting for services.
Sec. 1432. Authorization of additional commercial contract types.
Sec. 1433. Clarification of commercial services definition.

                       Subtitle D--Other Matters

Sec. 1441. Authority to enter into certain transactions for defense 
              against or recovery from terrorism or nuclear, 
              biological, chemical, or radiological attack.
Sec. 1442. Public disclosure of noncompetitive contracting for the 
              reconstruction of infrastructure in Iraq.
Sec. 1443. Special emergency procurement authority.

           TITLE XV--VETERANS' DISABILITY BENEFITS COMMISSION

Sec. 1501. Establishment of commission.
Sec. 1502. Duties of the commission.
Sec. 1503. Report.
Sec. 1504. Powers of the commission.
Sec. 1505. Personnel matters.
Sec. 1506. Termination of commission.
Sec. 1507. Funding.

             TITLE XVI--DEFENSE BIOMEDICAL COUNTERMEASURES

Sec. 1601. Research and development of defense biomedical 
              countermeasures.
Sec. 1602. Procurement of defense biomedical countermeasures.
Sec. 1603. Authorization for medical products for use in emergencies.

TITLE XVII--NATURALIZATION AND OTHER IMMIGRATION BENEFITS FOR MILITARY 
                         PERSONNEL AND FAMILIES

Sec. 1701. Requirements for naturalization through service in the Armed 
              Forces of the United States.
Sec. 1702. Naturalization benefits for members of the Selected Reserve 
              of the Ready Reserve.
Sec. 1703. Extension of posthumous benefits to surviving spouses, 
              children, and parents.
Sec. 1704. Expedited process for granting posthumous citizenship to 
              members of the Armed Forces.

[[Page 27510]]

Sec. 1705. Effective date.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Termination or modification of authority to carry out 
              certain fiscal year 2003 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
              2002 projects.
Sec. 2107. Termination or modification of authority to carry out 
              certain fiscal year 2001 projects.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Termination of authority to carry out certain fiscal year 
              2003 projects.
Sec. 2206. Termination or modification of authority to carry out 
              certain fiscal year 2002 projects.

                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
              projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Termination or modification of authority to carry out 
              certain fiscal year 2003 projects.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
              acquisition projects.
Sec. 2402. Family housing.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Termination of authority to carry out certain fiscal year 
              2003 projects.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

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

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Modification of general definitions relating to military 
              construction.
Sec. 2802. Increase in maximum amount of authorized annual emergency 
              construction.
Sec. 2803. Increase in number of family housing units in Italy 
              authorized for lease by the Navy.
Sec. 2804. Increase in authorized maximum lease term for family housing 
              and other facilities in certain foreign countries.
Sec. 2805. Conveyance of property at military installations closed or 
              realigned to support military construction.
Sec. 2806. Inapplicability of space limitations to military 
              unaccompanied housing units acquired or constructed under 
              alternative authority.
Sec. 2807. Additional material for reports on housing privatization 
              program.
Sec. 2808. Temporary, limited authority to use operation and 
              maintenance funds for construction projects outside the 
              United States.
Sec. 2809. Report on military construction requirements to support new 
              homeland defense missions of the Armed Forces.

        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Enhancement of authority to acquire low-cost interests in 
              land.
Sec. 2812. Retention and availability of amounts realized from energy 
              cost savings.
Sec. 2813. Acceptance of in-kind consideration for easements.

                Subtitle C--Base Closure and Realignment

Sec. 2821. Consideration of public-access-road issues related to base 
              closure, realignment, or placement in inactive status.
Sec. 2822. Consideration of surge requirements in 2005 round of base 
              realignments and closures.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Termination of lease and conveyance of Army Reserve 
              facility, Conway, Arkansas.
Sec. 2832. Land conveyance, Fort Campbell, Kentucky and Tennessee.
Sec. 2833. Land conveyance, Fort Knox, Kentucky.
Sec. 2834. Army National Guard Armory, Pierce City, Missouri.
Sec. 2835. Land exchange, Fort Belvoir, Virginia.

                       Part II--Navy Conveyances

Sec. 2841. Land conveyance, Navy property, Dixon, California.
Sec. 2842. Land conveyance, Marine Corps Logistics Base, Albany, 
              Georgia.
Sec. 2843. Land exchange, Naval and Marine Corps Reserve Center, 
              Portland, Oregon.
Sec. 2844. Land conveyance, Naval Reserve Center, Orange, Texas.
Sec. 2845. Land conveyance, Puget Sound Naval Shipyard, Bremerton, 
              Washington.

                    Part III--Air Force Conveyances

Sec. 2851. Land exchange, March Air Reserve Base, California.
Sec. 2852. Actions to quiet title, Fallin Waters Subdivision, Eglin Air 
              Force Base, Florida.
Sec. 2853. Modification of land conveyance, Eglin Air Force Base, 
              Florida.

                       Part IV--Other Conveyances

Sec. 2861. Land conveyance, Air Force and Army Exchange Service 
              property, Dallas, Texas.
Sec. 2862. Land conveyance, Umnak Island, Alaska.

                       Subtitle E--Other Matters

Sec. 2871. Authority to accept guarantees with gifts in development of 
              Marine Corps Heritage Center, Marine Corps Base, 
              Quantico, Virginia.
Sec. 2872. Redesignation of Yuma Training Range Complex as Bob Stump 
              Training Range Complex.
Sec. 2873. Feasibility study regarding conveyance of Louisiana Army 
              Ammunition Plant, Doyline, Louisiana.

 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.
Sec. 3105. Energy supply.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Termination of requirement for annual updates of long-term 
              plan for nuclear weapons stockpile life extension 
              program.
Sec. 3112. Department of Energy project review groups not subject to 
              Federal Advisory Committee Act by reason of inclusion of 
              employees of Department of Energy management and 
              operating contractors.
Sec. 3113. Readiness posture for resumption by the United States of 
              underground nuclear weapons tests.
Sec. 3114. Technical base and facilities maintenance and 
              recapitalization activities.
Sec. 3115. Continuation of processing, treatment, and disposition of 
              legacy nuclear materials.
Sec. 3116. Repeal of prohibition on research and development of low-
              yield nuclear weapons.
Sec. 3117. Requirement for specific authorization of Congress for 
              commencement of engineering development phase or 
              subsequent phase of Robust Nuclear Earth Penetrator.

                   Subtitle C--Proliferation Matters

Sec. 3121. Semiannual financial reports on defense nuclear 
              nonproliferation programs.
Sec. 3122. Report on reduction of excessive unobligated or unexpended 
              balances for defense nuclear nonproliferation activities.
Sec. 3123. Study and report relating to weapons-grade uranium and 
              plutonium of the independent states of the former Soviet 
              Union.
Sec. 3124. Authority to use international nuclear materials protection 
              and cooperation program funds outside the former Soviet 
              Union.
Sec. 3125. Requirement for on-site managers.

                       Subtitle D--Other Matters

Sec. 3131. Performance of personnel security investigations of certain 
              Department of Energy and Nuclear Regulatory Commission 
              employees in sensitive programs.
Sec. 3132. Policy of Department of Energy regarding future defense 
              environmental management matters.

[[Page 27511]]

Sec. 3133. Inclusion in 2005 stockpile stewardship plan of certain 
              information relating to stockpile stewardship criteria.
Sec. 3134. Progress reports on Energy Employees Occupational Illness 
              Compensation Program.
Sec. 3135. Report on integration activities of Department of Defense 
              and Department of Energy with respect to Robust Nuclear 
              Earth Penetrator.

       Subtitle E--Consolidation of National Security Provisions

Sec. 3141. Transfer and consolidation of recurring and general 
              provisions on Department of Energy national security 
              programs.

          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. Revisions to required receipt objectives for previously 
              authorized disposals from National Defense Stockpile.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                  TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Short title.

          Subtitle A--Maritime Administration Reauthorization

Sec. 3511. Authorization of appropriations for fiscal years 2004, 2005, 
              2006, 2007, and 2008.
Sec. 3512. Conveyance of obsolete vessels under title V, Merchant 
              Marine Act, 1936.
Sec. 3513. Authority to convey vessel USS HOIST (ARS-40).
Sec. 3514. Cargo preference.
Sec. 3515. Maritime education and training.
Sec. 3516. Authority to convey obsolete vessels to U.S. territories and 
              foreign countries for reefing.
Sec. 3517. Maintenance and repair reimbursement pilot program.

       Subtitle B--Amendments to Title XI Loan Guarantee Program

Sec. 3521. Equity payments by obligor for disbursement prior to 
              termination of escrow agreement.
Sec. 3522. Waivers of program requirements.
Sec. 3523. Project monitoring.
Sec. 3524. Defaults.
Sec. 3525. Decision period.
Sec. 3526. Loan guarantees.
Sec. 3527. Annual report on program.
Sec. 3528. Review of program.

                  Subtitle C--Maritime Security Fleet

Sec. 3531. Establishment of Maritime Security Fleet.
Sec. 3532. Related amendments to existing law.
Sec. 3533. Interim rules.
Sec. 3534. Repeals and conforming amendments.
Sec. 3535. GAO study of adjustment of operating agreement payment 
              criteria.
Sec. 3536. Definitions.
Sec. 3537. Effective dates.

    Subtitle D--National Defense Tank Vessel Construction Assistance

Sec. 3541. National defense tank vessel construction program.
Sec. 3542. Application procedure.
Sec. 3543. Award of assistance.
Sec. 3544. Priority for title XI assistance.
Sec. 3545. Definitions.
Sec. 3546. Authorization of appropriations.

                TITLE XXXVI--NUCLEAR SECURITY INITIATIVE

Sec. 3601. Short title.

   Subtitle A--Administration and Oversight of Threat Reduction and 
                       Nonproliferation Programs

Sec. 3611. Management assessment of Department of Defense and 
              Department of Energy threat reduction and 
              nonproliferation programs.

       Subtitle B--Relations Between the United States and Russia

Sec. 3621. Comprehensive inventory of Russian tactical nuclear weapons.
Sec. 3622. Establishment of interparliamentary Threat Reduction Working 
              Group.
Sec. 3623. Sense of Congress on cooperation by United States and NATO 
              with Russia on ballistic missile defenses.
Sec. 3624. Sense of Congress on enhanced collaboration to achieve more 
              reliable Russian early warning systems.

                       Subtitle C--Other Matters

Sec. 3631. Promotion of discussions on nuclear and radiological 
              security and safety between the International Atomic 
              Energy Agency and the Organization for Economic 
              Cooperation and Development.

     SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.

       For purposes of this Act, the term ``congressional defense 
     committees'' means--
       (1) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       (2) the Committee on Armed Services and the Committee on 
     Appropriations of the House of Representatives.
            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. Stryker vehicle program.
Sec. 112. CH-47 helicopter program.

                       Subtitle C--Navy Programs

Sec. 121. Multiyear procurement authority for F/A-18 aircraft program.
Sec. 122. Multiyear procurement authority for Tactical Tomahawk cruise 
              missile program.
Sec. 123. Multiyear procurement authority for Virginia class submarine 
              program.
Sec. 124. Multiyear procurement authority for E-2C aircraft program.
Sec. 125. Multiyear procurement authority for Phalanx Close In Weapon 
              System program.
Sec. 126. Pilot program for flexible funding of cruiser conversions and 
              overhauls.

                     Subtitle D--Air Force Programs

Sec. 131. Elimination of quantity limitations on multiyear procurement 
              authority for C-130J aircraft.
Sec. 132. Limitation on retiring C-5 aircraft.
Sec. 133. Limitation on obligation of funds for procurement of F/A-22 
              aircraft.
Sec. 134. Aircraft for performance of aerial refueling mission.
Sec. 135. Procurement of tanker aircraft.
              Subtitle A--Authorization of Appropriations

     SEC. 101. ARMY.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2004 for procurement for the Army as follows:
       (1) For aircraft, $2,098,985,000.
       (2) For missiles, $1,549,462,000.
       (3) For weapons and tracked combat vehicles, 
     $1,997,304,000.
       (4) For ammunition, $1,413,305,000.
       (5) For other procurement, $4,365,246,000.

     SEC. 102. NAVY AND MARINE CORPS.

       (a) Navy.--Funds are hereby authorized to be appropriated 
     for fiscal year 2004 for procurement for the Navy as follows:
       (1) For aircraft, $9,009,948,000.
       (2) For weapons, including missiles and torpedoes, 
     $2,233,534,000.
       (3) For shipbuilding and conversion, $11,729,984,000.
       (4) For other procurement, $4,739,143,000.
       (b) Marine Corps.--Funds are hereby authorized to be 
     appropriated for fiscal year 2004 for procurement for the 
     Marine Corps in the amount of $1,123,499,000.
       (c) Navy and Marine Corps Ammunition.--Funds are hereby 
     authorized to be appropriated for fiscal year 2004 for 
     procurement of ammunition for the Navy and the Marine Corps 
     in the amount of $924,355,000.

     SEC. 103. AIR FORCE.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2004 for procurement for the Air Force as follows:
       (1) For aircraft, $12,035,151,000.
       (2) For ammunition, $1,284,725,000.
       (3) For missiles, $4,298,505,000.
       (4) For other procurement, $11,631,859,000.

     SEC. 104. DEFENSE-WIDE ACTIVITIES.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2004 for Defense-wide procurement in the amount of 
     $3,768,506,000.
                       Subtitle B--Army Programs

     SEC. 111. STRYKER VEHICLE PROGRAM.

       (a) Limitation.--Of the funds authorized to be appropriated 
     under section 101 for procurement for the Army for fiscal 
     year 2004 that are available for the Stryker vehicle program, 
     not more than 80 percent may be obligated until--
       (1) the Secretary of the Army has submitted to the Deputy 
     Secretary of Defense the report specified in subsection (b);
       (2) the Secretary of Defense has submitted to the 
     congressional defense committees the report referred to in 
     subsection (c); and
       (3) a period of 30 days has elapsed after the date of the 
     receipt by those committees of the report and certification 
     under paragraph (2).
       (b) Secretary of the Army Report.--The report referred to 
     in subsection (a)(1) is the report required to be submitted 
     by the Secretary of the Army to the Deputy Secretary of 
     Defense not later than July 8, 2003, that identifies options 
     for modifications to the equipment and configuration of the 
     Army brigades designated as ``Stryker brigade combat teams'' 
     to assure that those brigades, after incorporating such 
     modifications, provide--
       (1) a higher level of combat capability and sustainability;
       (2) a capability across a broader spectrum of combat 
     operations; and
       (3) a capability to be employed independently of higher-
     level command formations and support.
       (c) Secretary of Defense Report.--The Secretary of Defense 
     shall transmit to the congressional defense committees, not 
     later than 30 days after the date of the receipt by the 
     Deputy Secretary of Defense of the report of the Secretary of 
     the Army referred to in subsection (b), the modification 
     options identified by the Secretary of the Army for purposes 
     of that report.

[[Page 27512]]

     The Secretary of Defense shall include any comments that may 
     be applicable to the analysis of the Secretary of the Army's 
     report.

     SEC. 112. CH-47 HELICOPTER PROGRAM.

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

     SEC. 121. MULTIYEAR PROCUREMENT AUTHORITY FOR F/A-18 AIRCRAFT 
                   PROGRAM.

       The Secretary of the Navy may, in accordance with section 
     2306b of title 10, United States Code, enter into a multiyear 
     contract, beginning with the fiscal year 2005 program year, 
     for procurement of aircraft in the F/A-18E, F/A-18F, and EA-
     18G configurations. The total number of aircraft procured 
     through a multiyear contract under this section may not 
     exceed 234.

     SEC. 122. MULTIYEAR PROCUREMENT AUTHORITY FOR TACTICAL 
                   TOMAHAWK CRUISE MISSILE PROGRAM.

       (a) Authority.--The Secretary of the Navy may, in 
     accordance with section 2306b of title 10, United States 
     Code, enter into a multiyear contract, beginning with the 
     fiscal year 2004 program year, for procurement of Tactical 
     Tomahawk cruise missiles. The total number of missiles 
     procured through a multiyear contract under this section 
     shall be determined by the Secretary of the Navy, based upon 
     the funds available, but not to exceed 900 in any year.
       (b) Tactical Tomahawk Cruise Missiles.--The Secretary of 
     the Navy may not enter into a contract authorized by 
     subsection (a) until the Secretary--
       (1) determines on the basis of operational testing that the 
     Tactical Tomahawk Cruise Missile is effective for fleet use; 
     and
       (2) submits notice of such determination to the 
     congressional defense committees.

     SEC. 123. MULTIYEAR PROCUREMENT AUTHORITY FOR VIRGINIA CLASS 
                   SUBMARINE PROGRAM.

       (a) Authority.--The Secretary of the Navy may, in 
     accordance with section 2306b of title 10, United States 
     Code, enter into a multiyear contract, beginning with the 
     fiscal year 2004 program year, for procurement of Virginia-
     class submarines.
       (b) Limitation.--The Secretary of the Navy may not enter 
     into a contract authorized by subsection (a) until--
       (1) the Secretary submits to the congressional defense 
     committees a certification that the Secretary has made each 
     of the findings with respect to such contract specified in 
     subsection (a) of section 2306b of title 10, United States 
     Code; and
       (2) a period of 30 days has elapsed after the date of the 
     transmission of such certification.
       (c) Applicability of Shipbuilder Teaming Law.--Paragraphs 
     (2)(A), (3), and (4) of section 121(b) of the National 
     Defense Authorization Act for Fiscal Year 1998 (Public Law 
     105-85; 111 Stat. 1648) shall apply in the exercise of 
     authority to enter into a multiyear contract under subsection 
     (a).

     SEC. 124. MULTIYEAR PROCUREMENT AUTHORITY FOR E-2C AIRCRAFT 
                   PROGRAM.

       (a) Aircraft.--The Secretary of the Navy may, in accordance 
     with section 2306b of title 10, United States Code, enter 
     into a multiyear contract, beginning with the fiscal year 
     2004 program year, for procurement of E-2C and TE-2C 
     aircraft.
       (b) Engines.--The Secretary of the Navy may, in accordance 
     with section 2306b of title 10, United States Code, enter 
     into a multiyear contract, beginning with the fiscal year 
     2004 program year, for procurement of engines for aircraft in 
     the E-2C or TE-2C configuration.
       (c) Limitation on Term of Contracts.--Notwithstanding 
     subsection (k) of section 2306b of title 10, United States 
     Code, a contract under this section may not be for a period 
     in excess of four program years.

     SEC. 125. MULTIYEAR PROCUREMENT AUTHORITY FOR PHALANX CLOSE 
                   IN WEAPON SYSTEM PROGRAM.

       The Secretary of the Navy may, in accordance with section 
     2306b of title 10, United States Code, enter into a multiyear 
     contract, beginning with the fiscal year 2004 program year, 
     for procurement for the Phalanx Close In Weapon System 
     program, Block 1B.

     SEC. 126. PILOT PROGRAM FOR FLEXIBLE FUNDING OF CRUISER 
                   CONVERSIONS AND OVERHAULS.

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

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

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

     SEC. 132. LIMITATION ON RETIRING C-5 AIRCRAFT.

       (a) Limitation.--The Secretary of the Air Force may not 
     proceed with a decision to retire C-5A aircraft from the 
     active inventory of the Air Force in any number that would 
     reduce the total number of such aircraft in the active 
     inventory below 112 until--
       (1) the Air Force has modified a C-5A aircraft to the 
     configuration referred to as the Reliability Enhancement and 
     Reengining Program (RERP) configuration, as planned under the 
     C-5 System Development and Demonstration program as of May 1, 
     2003; and
       (2) the Director of Operational Test and Evaluation of the 
     Department of Defense--
       (A) conducts an operational evaluation of that aircraft, as 
     so modified; and
       (B) provides to the Secretary of Defense and the 
     congressional defense committees an operational assessment.
       (b) Operational Evaluation.--An operational evaluation for 
     purposes of paragraph (2)(A) of subsection (a) is an 
     evaluation, conducted during operational testing and 
     evaluation of the aircraft, as so modified, of the 
     performance of the aircraft with respect to reliability, 
     maintainability, and availability and with respect to 
     critical operational issues.
       (c) Operational Assessment.--An operational assessment for 
     purposes of paragraph (2)(B) of subsection (a) is an 
     operational assessment of the program to modify C-5A aircraft 
     to the configuration referred to in subsection (a)(1) 
     regarding both overall suitability and deficiencies of the 
     program to improve performance of the C-5A aircraft relative 
     to requirements and specifications for reliability, 
     maintainability, and availability of that aircraft as in 
     effect on May 1, 2003.

     SEC. 133. LIMITATION ON OBLIGATION OF FUNDS FOR PROCUREMENT 
                   OF F/A-22 AIRCRAFT.

       (a) Limitation.--Of the amount appropriated for fiscal year 
     2004 for procurement of F/A-22 aircraft, $136,000,000 may not 
     be obligated until the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics submits to the 
     congressional defense committees the Under Secretary's 
     certification that--
       (1) the five aircraft designated to participate in the 
     initial operational test and evaluation program for the F/A-
     22 aircraft, plus the avionics software test aircraft, have 
     each been equipped with the avionics software operational 
     flight program that is configured for initial operational 
     test and evaluation; and

[[Page 27513]]

       (2) before the commencement of that initial operational 
     test and evaluation program, the six aircraft specified in 
     paragraph (1) demonstrate, on average, a mean time between 
     covered avionics anomalies of at least five hours.
       (b) Covered Avionics Anomalies.--For purposes of subsection 
     (a), the term ``covered avionics anomalies'' means any of the 
     following:
       (1) A software event referred to as a Type 1 failure.
       (2) A software event referred to as a Type 2 failure.
       (3) A hardware event referred to as a Type 5 failure.
       (c) Contingency Waiver Authority.--If the Under Secretary 
     notifies the Secretary of Defense that the Under Secretary is 
     unable to make the certification described in subsection (a), 
     the Secretary may waive the limitation under that subsection. 
     Upon making such a waiver--
       (1) the Secretary of Defense shall notify the congressional 
     defense committees of the waiver and of the reasons therefor; 
     and
       (2) the funds described in subsection (a) may then be 
     obligated, by reason of such waiver, after the end of the 30-
     day period beginning on the date on which the Secretary's 
     notification is received by those committees.

     SEC. 134. AIRCRAFT FOR PERFORMANCE OF AERIAL REFUELING 
                   MISSION.

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

     SEC. 135. PROCUREMENT OF TANKER AIRCRAFT.

       (a) Leased Aircraft.--The Secretary of the Air Force may 
     lease no more than 20 tanker aircraft under the multiyear 
     aircraft lease pilot program referred to in subsection (d).
       (b) Multiyear Procurement Authority.--(1) Beginning with 
     the fiscal year 2004 program year, the Secretary of the Air 
     Force may, in accordance with section 2306b of title 10, 
     United States Code, enter into a multiyear contract for the 
     purchase of tanker aircraft necessary to meet the 
     requirements of the Air Force for which leasing of tanker 
     aircraft is provided for under the multiyear aircraft lease 
     pilot program but for which the number of tanker aircraft 
     leased under the authority of subsection (a) is insufficient.
       (2) The total number of tanker aircraft purchased through a 
     multiyear contract under this subsection may not exceed 80.
       (3) Notwithstanding subsection (k) of section 2306b of 
     title 10, United States Code, a contract under this 
     subsection may be for any period not in excess of 10 program 
     years.
       (4) A multiyear contract under this subsection may be 
     initiated or continued for any fiscal year for which 
     sufficient funds are available to pay the costs of such 
     contract for that fiscal year, without regard to whether 
     funds are available to pay the costs of such contract for any 
     subsequent fiscal year. Such contract shall provide, however, 
     that performance under the contract during the subsequent 
     year or years of the contract is contingent upon the 
     appropriation of funds and shall also provide for a 
     cancellation payment to be made to the contractor if such 
     appropriations are not made.
       (c) Study of Long-Term Tanker Aircraft Maintenance and 
     Training Requirements.--(1) The Secretary of Defense shall 
     carry out a study to identify alternative means for meeting 
     the long-term requirements of the Air Force for--
       (A) the maintenance of tanker aircraft leased under the 
     multiyear aircraft lease pilot program or purchased under 
     subsection (b); and
       (B) training in the operation of tanker aircraft leased 
     under the multiyear aircraft lease pilot program or purchased 
     under subsection (b).
       (2) Not later than April 1, 2004, the Secretary of Defense 
     shall submit a report on the results of the study to the 
     congressional defense committees.
       (d) Multiyear Aircraft Lease Pilot Program Defined.--In 
     this section, the term ``multiyear aircraft lease pilot 
     program'' means the aerial refueling aircraft program 
     authorized under section 8159 of the Department of Defense 
     Appropriations Act, 2002 (division A of Public Law 107-117; 
     115 Stat. 2284).
       (e) Sense of Congress.--It is the sense of Congress that, 
     in budgeting for a program to acquire new tanker aircraft for 
     the Air Force, the President should ensure that sufficient 
     budgetary resources are provided to the Department of Defense 
     to fully execute the program and to further ensure that all 
     other critical defense programs are fully and properly 
     funded.
         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. Collaborative program for development of electromagnetic gun 
              technology.
Sec. 212. Leadership and duties of Department of Defense Test Resource 
              Management Center.
Sec. 213. Development of the Joint Tactical Radio System.
Sec. 214. Future Combat Systems.
Sec. 215. Extension of reporting requirement for RAH-66 Comanche 
              aircraft program.
Sec. 216. Studies of fleet platform architectures for the Navy.

                 Subtitle C--Ballistic Missile Defense

Sec. 221. Enhanced flexibility for ballistic missile defense systems.
Sec. 222. Fielding of ballistic missile defense capabilities.
Sec. 223. Oversight of procurement, performance criteria, and 
              operational test plans for ballistic missile defense 
              programs.
Sec. 224. Renewal of authority to assist local communities affected by 
              ballistic missile defense system test bed.
Sec. 225. Prohibition on use of funds for nuclear-armed interceptors in 
              missile defense systems.
Sec. 226. Follow-on research, development, test, and evaluation related 
              to system improvements for missile defense programs 
              transferred to military departments.

                       Subtitle D--Other Matters

Sec. 231. Global Research Watch program in the Office of the Director 
              of Defense Research and Engineering.
Sec. 232. Defense Advanced Research Projects Agency biennial strategic 
              plan.
Sec. 233. Enhancement of authority of Secretary of Defense to support 
              science, mathematics, engineering, and technology 
              education.
Sec. 234. Department of Defense program to expand high-speed, high-
              bandwidth capabilities for network-centric operations.
Sec. 235. Blue forces tracking initiative.
              Subtitle A--Authorization of Appropriations

     SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2004 for the use of the Department of Defense for 
     research, development, test, and evaluation as follows:
       (1) For the Army, $9,544,833,000.
       (2) For the Navy, $14,845,503,000.
       (3) For the Air Force, $20,555,667,000.
       (4) For Defense-wide activities, $18,438,718,000, of which 
     $286,661,000 is authorized for the Director of Operational 
     Test and Evaluation.

     SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

       (a) Fiscal Year 2004.--Of the amounts authorized to be 
     appropriated by section 201, $11,029,557,000 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. COLLABORATIVE PROGRAM FOR DEVELOPMENT OF 
                   ELECTROMAGNETIC GUN TECHNOLOGY.

       (a) Program Required.--The Secretary of Defense shall 
     establish and carry out a collaborative program for 
     evaluation and demonstration of advanced technologies and 
     concepts for advanced gun systems that use electromagnetic 
     propulsion for direct and indirect fire applications.
       (b) Description of Program.--The program under subsection 
     (a) shall be carried out collaboratively pursuant to a 
     memorandum of agreement to be entered into among the Director 
     of Defense Research and Engineering, the Secretary of the 
     Army, the Secretary of the Navy, the Director of the Defense 
     Advanced Research Projects Agency, and other appropriate 
     officials of the Department of Defense, as determined by the 
     Secretary. The program shall include the following 
     activities:
       (1) Identification of technical objectives, quantified 
     technical barriers, and enabling technologies associated with 
     development of the objective electromagnetic gun systems 
     envisioned to meet the needs of each of the Armed Forces and, 
     in so doing, identification of opportunities for development 
     of components or subsystems common to those envisioned gun 
     systems.
       (2) Preparation of a plan and schedule for development of 
     electromagnetic gun systems for military applications, 
     which--
       (A) includes the programs currently planned within the 
     Department of Defense;
       (B) describes how enabling technologies common to such 
     programs are developed and utilized; and
       (C) provides estimated dates for decision points, prototype 
     demonstrations, and transitions of technologies to 
     acquisition programs.
       (3) Identification of a strategy for the participation of 
     industry in the program.
       (c) Matters Included.--The advanced technologies and 
     concepts included under the program may include, but are not 
     limited to, the following:
       (1) Advanced electrical power, energy storage, and 
     switching systems.

[[Page 27514]]

       (2) Electromagnetic launcher materials and construction 
     techniques for long barrel life.
       (3) Guidance and control systems for electromagnetically 
     launched projectiles.
       (4) Advanced projectiles and other munitions for 
     electromagnetic gun systems.
       (5) Hypervelocity terminal effects.
       (d) Transition of Technologies.--The Secretary of Defense 
     shall encourage the transition of technologies developed 
     under the program under subsection (a) into appropriate 
     acquisition programs of the military departments.
       (e) Report.--Not later than March 31, 2004, the Director of 
     Defense Research and Engineering, in collaboration with the 
     other officials who entered into the memorandum of agreement 
     under subsection (b), shall submit a report to the 
     congressional defense committees on the implementation of the 
     program under subsection (a). The report shall include the 
     following:
       (1) A description of the memorandum of agreement entered 
     into under subsection (b).
       (2) The plan and schedule required by subsection (b)(2).
       (3) A description of the goals and objectives of the 
     program.
       (4) Identification of funding required for fiscal years 
     2004 and 2005 and for the future-years defense program to 
     carry out the program.
       (5) A description of a plan for industry participation in 
     the program.

     SEC. 212. LEADERSHIP AND DUTIES OF DEPARTMENT OF DEFENSE TEST 
                   RESOURCE MANAGEMENT CENTER.

       (a) Authority To Select Civilian Employee as Director.--
     Subsection (b)(1) of section 196 of title 10, United States 
     Code, is amended--
       (1) by striking ``on active duty. The Director'' and 
     inserting ``on active duty or from among senior civilian 
     officers and employees of the Department of Defense. A 
     commissioned officer serving as the Director''; and
       (2) by adding at the end the following: ``A civilian 
     officer or employee serving as the Director, while so 
     serving, has a pay level equivalent in grade to lieutenant 
     general.''.
       (b) Expansion of Duties of Director.--(1) Subsection 
     (c)(1)(B) of such section is amended by inserting after 
     ``Department of Defense'' the following: ``, other than 
     budgets and expenditures for activities described in section 
     139(i) of this title''.
       (2) Subsection (e)(1) of such section is amended--
       (A) by striking ``, the Director of Operational Test and 
     Evaluation,''; and
       (B) by striking ``, Director's, or head's'' and inserting 
     ``or Defense Agency head's''.

     SEC. 213. DEVELOPMENT OF THE JOINT TACTICAL RADIO SYSTEM.

       (a) Plan for Management of Development Program.--The 
     Secretary of Defense shall develop a plan for implementation 
     of management of the development program for the Joint 
     Tactical Radio System under a single joint program office. As 
     part of such plan, the Secretary shall designate an office 
     for such purpose. The Secretary shall include in the plan 
     measures to ensure that--
       (1) the Joint Tactical Radio Program has a program 
     management structure that provides strong and effective joint 
     management;
       (2) the head of the joint program office has sufficient 
     control and authority to properly execute that development 
     program; and
       (3) effective processes are established to resolve disputes 
     between military departments with respect to that program.
       (b) Program Development.--The Secretary shall provide that, 
     subject to the authority, direction, and control of the 
     Secretary, the head of the joint program office designated 
     under subsection (a) shall--
       (1) establish and control the systems engineering and the 
     performance and design specifications for the Joint Tactical 
     Radio System;
       (2) establish and control the standards for development of 
     software and equipment for that system; and
       (3) establish and control the standards for operation of 
     that system.
       (c) Program Requirements.--The Secretary shall ensure--
       (1) that there is developed and implemented a single, 
     unified concept of operations for all users of the Joint 
     Tactical Radio System; and
       (2) that the responsibility for the coordination of the 
     operational requirements for that system is vested in the 
     Chairman of the Joint Chiefs of Staff, with the participation 
     of the Joint Tactical Radio System program office.
       (d) Report on Plan.--The Secretary shall submit the plan 
     required by subsection (a) to the Committees on Armed 
     Services of the Senate and House of Representatives not later 
     than February 1, 2004.
       (e) Implementation Deadline.--The Secretary shall implement 
     the plan required by subsection (a) not later than December 
     1, 2004.

     SEC. 214. FUTURE COMBAT SYSTEMS.

       (a) Limitation.--Of the funds authorized to be appropriated 
     under section 201(1) for development and demonstration of 
     systems for the Future Combat Systems program, $170,000,000 
     may not be obligated or expended until 30 days after the 
     Secretary of the Army submits to the congressional defense 
     committees a report on such program. The report shall include 
     the following:
       (1) The findings and conclusions of--
       (A) the review of the Future Combat Systems program carried 
     out by the independent panel at the direction of the 
     Secretary of Defense; and
       (B) the milestone B review of the Future Combat Systems 
     program carried out by the Defense Acquisition Board.
       (2) For each of the three projects requested under program 
     element 64645A, a breakdown of the costs of that project for 
     fiscal year 2004 at a level of detail sufficient to justify 
     the amount requested for that project in the budget submitted 
     by the President.
       (b) Separate Program Elements.--For fiscal years beginning 
     with 2004, the Secretary of Defense shall ensure that the 
     following matters (referred to as projects under program 
     element 64645A in the budget justification materials 
     submitted in support of the President's budget for fiscal 
     year 2004) are each planned, programmed, and budgeted for as 
     a separate, dedicated program element:
       (1) The Future Combat Systems project.
       (2) The Networked Fires System Technology project.
       (3) The Objective Force Indirect Fires project.
       (c) Annual Report.--At the same time that the President 
     submits the budget for a fiscal year to Congress under 
     section 1105(a) of title 31, United States Code, the 
     Secretary of the Army shall submit to the congressional 
     defense committees a report on the programs and projects 
     comprising the Future Combat Systems program. The report 
     shall include--
       (1) for each such program or project, a breakdown of the 
     costs of that program or project for that fiscal year at a 
     level of detail sufficient to justify the amount requested 
     for that program or project in that budget; and
       (2) any updated analysis of alternatives for the program.

     SEC. 215. EXTENSION OF REPORTING REQUIREMENT FOR RAH-66 
                   COMANCHE AIRCRAFT PROGRAM.

       Section 211 of the Bob Stump National Defense Authorization 
     Act for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2479) 
     is amended in subsection (a) by inserting ``and fiscal year 
     2004'' after ``fiscal year 2003''.

     SEC. 216. STUDIES OF FLEET PLATFORM ARCHITECTURES FOR THE 
                   NAVY.

       (a) Independent Studies.--(1) The Secretary of Defense 
     shall provide for the performance of two independent studies 
     of alternative future fleet platform architectures for the 
     Navy.
       (2) The Secretary shall forward the results of each study 
     to the congressional defense committees not later than 
     January 15, 2005.
       (3) Each such study shall be submitted both in 
     unclassified, and to the extent necessary, in classified 
     versions.
       (b) Entities to Perform Studies.--The Secretary of Defense 
     shall provide for the studies under subsection (a) to be 
     performed as follows:
       (1) One study shall be performed by a federally funded 
     research and development center.
       (2) The other study shall be performed by the Office of 
     Force Transformation within the Office of the Secretary of 
     Defense and shall include participants from (A) the Office of 
     Net Assessment within the Office of the Secretary of Defense, 
     (B) the Department of the Navy, and (C) the Joint Staff.
       (c) Performance of Studies.--(1) The Secretary of Defense 
     shall require the two studies under this section to be 
     conducted independently of each other.
       (2) In performing a study under this section, the 
     organization performing the study, while being aware of the 
     current and projected fleet platform architectures, shall not 
     be limited by the current or projected fleet platform 
     architecture and shall consider the following:
       (A) The National Security Strategy of the United States.
       (B) Potential future threats to the United States and to 
     United States naval forces.
       (C) The traditional roles and missions of United States 
     naval forces.
       (D) Alternative roles and missions for United States naval 
     forces.
       (E) Other government and non-government analyses that would 
     contribute to the study through variations in study 
     assumptions or potential scenarios.
       (F) The role of evolving technology on future naval forces.
       (G) Opportunities for reduced manning and unmanned ships 
     and vehicles in future naval forces.
       (d) Study Results.--The results of each study under this 
     section shall--
       (1) present the alternative fleet platform architectures 
     considered, with assumptions and possible scenarios 
     identified for each;
       (2) provide for presentation of minority views of study 
     participants; and
       (3) for the recommended architecture, provide--
       (A) the numbers, kinds, and sizes of vessels, the numbers 
     and types of associated manned and unmanned vehicles, and the 
     basic capabilities of each of those platforms; and
       (B) other information needed to understand that 
     architecture in basic form and the supporting analysis.

                 Subtitle C--Ballistic Missile Defense

     SEC. 221. ENHANCED FLEXIBILITY FOR BALLISTIC MISSILE DEFENSE 
                   SYSTEMS.

       (a) Flexibility for Specification of Program Elements.--
     Subsection (a) of section 223 of title 10, United States 
     Code, is amended--
       (1) by inserting ``by President'' in the subsection heading 
     after ``Specified'';
       (2) by striking ``program elements governing functional 
     areas as follows:'' and inserting ``such program elements as 
     the President may specify.''; and
       (3) by striking paragraphs (1) through (6).
       (b) Conforming Amendments.--(1) Subsection (c) of such 
     section is amended by striking ``for each program element 
     specified in subsection (a)'' and inserting ``for a fiscal 
     year for any program element specified for that fiscal year 
     pursuant to subsection (a)''.
       (2) Subsection (c)(3) of section 232 of the National 
     Defense Authorization Act for Fiscal

[[Page 27515]]

     Year 2002 (Public Law 107-107; 115 Stat. 1037; 10 U.S.C. 2431 
     note) is amended by striking ``each functional area'' and all 
     that follows through ``subsection (b),'' and inserting ``each 
     then-current program element for ballistic missile defense 
     systems in effect pursuant to subsection (a) or (b)''.
       (c) Amendments Relating to Changes in Acquisition 
     Terminology.--(1) Section 223(b)(2) of title 10, United 
     States Code, is amended by striking ``means the development 
     phase whose'' and inserting ``means the period in the course 
     of an acquisition program during which the''.
       (2) Subsection (d)(1) of section 232 of the National 
     Defense Authorization Act for Fiscal Year 2002 (Public Law 
     107-107; 115 Stat. 1037; 10 U.S.C. 2431 note) is amended by 
     striking ``, as added by subsection (b)''.

     SEC. 222. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

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

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

       (a) Procurement.--(1) Chapter 9 of title 10, United States 
     Code, is amended by inserting after section 223 the following 
     new section:

     ``Sec. 223a. Ballistic missile defense programs: procurement

       ``(a) Budget Justification Materials.--In the budget 
     justification materials submitted to Congress in support of 
     the Department of Defense budget for any fiscal year (as 
     submitted with the budget of the President under section 
     1105(a) of title 31), the Secretary of Defense shall specify, 
     for each ballistic missile defense system element for which 
     the Missile Defense Agency is engaged in planning for 
     production and initial fielding, the following information:
       ``(1) The production rate capabilities of the production 
     facilities planned to be used for production of that element.
       ``(2) The potential date of availability of that element 
     for initial fielding.
       ``(3) The estimated date on which the administration of the 
     acquisition of that element is to be transferred from the 
     Director of the Missile Defense Agency to the Secretary of a 
     military department.
       ``(b) Future-Years Defense Program.--The Secretary of 
     Defense shall include in the future-years defense program 
     submitted to Congress each year under section 221 of this 
     title an estimate of the amount necessary for procurement for 
     each ballistic missile defense system element, together with 
     a discussion of the underlying factors and reasoning 
     justifying the estimate.
       ``(c) Performance Criteria.-- The Director of the Missile 
     Defense Agency shall include in the performance criteria 
     prescribed for planned development phases of the ballistic 
     missile defense system and its elements a description of the 
     intended effectiveness of each such phase against foreign 
     adversary capabilities.
       ``(d) Testing Progress.--The Director of Operational Test 
     and Evaluation shall make available for review by the 
     congressional defense committees the developmental and 
     operational test plans established to assess the 
     effectiveness of the ballistic missile defense system and its 
     elements with respect to the performance criteria described 
     in subsection (c).''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     223 the following new item:

``223a. Ballistic missile defense programs: procurement.''.

       (b) Implementation of Requirement for Availability of Test 
     Plans.--Subsection (d) of section 223a of title 10, United 
     States Code, as added by subsection (a), shall be implemented 
     not later than March 1, 2004.

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

       Section 235(b) of the National Defense Authorization Act 
     for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1041) is 
     amended--
       (1) in paragraph (1), by inserting ``or 2004'' after ``for 
     fiscal year 2002''; and
       (2) by adding at the end the following new paragraph:
       ``(3) Not later than 60 days after the date of the 
     enactment of the National Defense Authorization Act for 
     Fiscal Year 2004, the Secretary of Defense shall submit to 
     the congressional defense committees a report on the 
     community assistance projects under this subsection that are 
     to be supported using funds referred to in paragraph (1) for 
     fiscal year 2004. The report shall include, for each such 
     project, a description of the project and an estimate of the 
     total cost of the project.''.

     SEC. 225. PROHIBITION ON USE OF FUNDS FOR NUCLEAR-ARMED 
                   INTERCEPTORS IN MISSILE DEFENSE SYSTEMS.

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

     SEC. 226. FOLLOW-ON RESEARCH, DEVELOPMENT, TEST, AND 
                   EVALUATION RELATED TO SYSTEM IMPROVEMENTS FOR 
                   MISSILE DEFENSE PROGRAMS TRANSFERRED TO 
                   MILITARY DEPARTMENTS.

       (a) Requirement for Delineation of Responsibility for 
     Follow-on RDT&E.--Subsection (e) of section 224 of title 10, 
     United States Code, is amended--such section is amended--
       (1) by striking ``for each'' and inserting ``before a'';
       (2) by inserting ``is'' before ``transferred'';
       (3) by striking ``responsibility'' and inserting ``roles 
     and responsibilities''; and
       (4) by striking ``remains with the Director'' and inserting 
     ``are clearly delineated''.
       (b) Conforming Amendment.--Subsection (a) of such section 
     is amended by striking ``a Department of Defense missile 
     defense program described in subsection (b)'' and inserting 
     ``the integration of a ballistic missile defense element into 
     the overall ballistic missile defense architecture''.

                       Subtitle D--Other Matters

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

       (a) Program Required.--Chapter 139 of title 10, United 
     States Code, is amended by inserting after section 2364 the 
     following new section:

     ``Sec. 2365. Global Research Watch Program

       ``(a) Program.--The Director of Defense Research and 
     Engineering shall carry out a Global Research Watch program 
     in accordance with this section.
       ``(b) Program Goals.--The goals of the program are as 
     follows:
       ``(1) To monitor and analyze the basic and applied research 
     activities and capabilities of foreign nations in areas of 
     military interest, including allies and competitors.
       ``(2) To provide standards for comparison and comparative 
     analysis of research capabilities of foreign nations in 
     relation to the research capabilities of the United States.
       ``(3) To assist Congress and Department of Defense 
     officials in making investment decisions for research in 
     technical areas where the United States may not be the global 
     leader.
       ``(4) To identify areas where significant opportunities for 
     cooperative research may exist.
       ``(5) To coordinate and promote the international 
     cooperative research and analysis activities of each of the 
     armed forces and Defense Agencies.
       ``(6) To establish and maintain an electronic database on 
     international research capabilities, comparative assessments 
     of capabilities, cooperative research opportunities, and 
     ongoing cooperative programs.
       ``(c) Focus of Program.--The program shall be focused on 
     research and technologies at a technical maturity level 
     equivalent to Department of Defense basic and applied 
     research programs.
       ``(d) Coordination.--(1) The Director shall coordinate the 
     program with the international cooperation and analysis 
     activities of the military departments and Defense Agencies.
       ``(2) The Secretaries of the military departments and the 
     directors of the Defense Agencies shall provide the Director 
     of Defense Research and Engineering such assistance as the 
     Director may require for purposes of the program.
       ``(e) Classification of Database Information.--Information 
     in electronic databases of the Global Research Watch program 
     shall be maintained in unclassified form and, as determined 
     necessary by the Director, in classified form in such 
     databases.
       ``(f) Termination.--The requirement to carry out the 
     program under this section shall terminate on September 30, 
     2006.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after 
     section 2364 the following new item:

``2365. Global Research Watch Program.''.

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

       (a) Requirement for Plan.--Chapter 139 of title 10, United 
     States Code, is amended by inserting after section 2351 the 
     following new section:

     ``Sec. 2352. Defense Advanced Research Projects Agency: 
       biennial strategic plan

       ``(a) Requirement for Strategic Plan.--Every other year, 
     and in time for submission to Congress under subsection (c), 
     the Director of the Defense Advanced Research Projects Agency 
     shall prepare a strategic plan for the activities of that 
     agency.
       ``(b) Contents.--The strategic plan required by subsection 
     (a) shall include the following matters:
       ``(1) The long-term strategic goals of that agency.
       ``(2) Identification of the research programs of that 
     agency that support--
       ``(A) achievement of those strategic goals; and
       ``(B) exploitation of opportunities that hold the potential 
     for yielding significant military benefits.
       ``(3) The connection of the activities and programs of that 
     agency to activities and missions of the armed forces.
       ``(4) A technology transition strategy for the programs of 
     that agency.
       ``(5) A description of the policies of that agency on the 
     management, organization, and personnel of that agency.
       ``(c) Submission of Plan to Congress.--The Secretary of 
     Defense shall submit to Congress the strategic plan most 
     recently prepared under subsection (a) at the same time that 
     the President submits to Congress the budget for an even-
     numbered fiscal year under section 1105(a) of title 31.''.

[[Page 27516]]

       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 2351 the following new item:

``2352. Defense Advanced Research Projects Agency: biennial strategic 
              plan.''.

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

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

     SEC. 234. DEPARTMENT OF DEFENSE PROGRAM TO EXPAND HIGH-SPEED, 
                   HIGH-BANDWIDTH CAPABILITIES FOR NETWORK-CENTRIC 
                   OPERATIONS.

       (a) In General.--The Secretary of Defense shall carry out a 
     program of research and development to promote the 
     development of high-speed, high-bandwidth communications 
     capabilities for support of network-centric operations by the 
     Armed Forces.
       (b) Purposes.--The purposes of the program required by 
     subsection (a) are as follows:
       (1) To accelerate the development and fielding by the Armed 
     Forces of network-centric operational capabilities (including 
     expanded use of unmanned vehicles, satellite communications, 
     and sensors) through the promotion of research and 
     development, and the focused coordination of programs, to 
     achieve high-speed, high-bandwidth connectivity to military 
     assets.
       (2) To provide for the development of equipment and 
     technologies for military high-speed, high-bandwidth 
     communications capabilities for support of network-centric 
     operations.
       (c) Description of Program.--In carrying out the program of 
     research and development required by subsection (a), the 
     Secretary shall--
       (1) identify areas of advanced wireless communications in 
     which research and development, or the use of emerging 
     technologies, has significant potential to improve the 
     performance, efficiency, cost, and flexibility of advanced 
     communications systems for support of network-centric 
     operations;
       (2) develop a coordinated plan for research and development 
     on--
       (A) improved spectrum access through spectrum-efficient 
     communications for support of network-centric operations;
       (B) high-speed, high-bandwidth communications;
       (C) networks, including complex ad hoc adaptive network 
     structures;
       (D) communications devices, including efficient receivers 
     and transmitters;
       (E) computer software and wireless communication 
     applications, including robust security and encryption; and
       (F) any other matters that the Secretary considers 
     appropriate for the purposes described in subsection (b);
       (3) ensure joint research and development, and promote 
     joint systems acquisition and deployment, among the military 
     departments and defense agencies, including the development 
     of common cross-service technology requirements and doctrine, 
     so as to enhance interoperability among the military services 
     and defense agencies;
       (4) conduct joint experimentation among the Armed Forces, 
     and coordinate with the Joint Forces Command, on 
     experimentation to support the development of network-centric 
     warfare capabilities from the operational to the small unit 
     level in the Armed Forces;
       (5) consult with other Federal entities and with private 
     industry to develop cooperative research and development 
     efforts, to the extent that such efforts are practicable.
       (d) Report.--(1) The Secretary shall submit to the 
     congressional defense committees, together with the budget 
     justification materials submitted to Congress in support of 
     the Department of Defense budget for fiscal year 2006 (as 
     submitted with the budget of the President under section 
     1105(a) of title 31, United States Code), a report on the 
     activities carried out under this section through the date on 
     which the report is submitted.
       (2) The report under paragraph (1) shall include the 
     following:
       (A) A description of the research and development 
     activities carried out under subsection (a), including the 
     particular activities carried out under the plan required by 
     subsection (c)(2).
       (B) Current and proposed funding for the particular 
     activities carried out under that plan, as set forth in each 
     of subparagraphs (A) through (F) of subsection (c)(2).
       (C) A description of the joint research and development 
     activities required by subsection (c)(3).
       (D) A description of the joint experimentation activities 
     required by subsection (c)(4).
       (E) An analysis of the effects on recent military 
     operations of limitations on communications bandwidth and 
     access to radio frequency spectrum.
       (F) An assessment of the effect of additional resources on 
     the ability to achieve the purposes described in subsection 
     (b).
       (G) Such recommendations for additional activities under 
     this section as the Secretary considers appropriate to meet 
     the purposes described in subsection (b).

     SEC. 235. BLUE FORCES TRACKING INITIATIVE.

       (a) Goal.--It shall be a goal of the Department of Defense 
     to coordinate fully the various efforts of the Chairman of 
     the Joint Chiefs of Staff, the commanders of the combatant 
     commands, and the Secretaries of the military departments to 
     develop an effective system for tracking of United States and 
     other friendly forces (known as ``blue forces'') during 
     combat operations.
       (b) Joint Blue Forces Tracking Experiment.--(1) The 
     Secretary of Defense, acting through the commander of the 
     United States Joint Forces Command, shall carry out a joint 
     experiment during fiscal year 2004 to demonstrate and 
     evaluate available joint blue forces tracking technologies.
       (2) The objectives of the experiment under paragraph (1) 
     are as follows:
       (A) To explore various options for tracking United States 
     and other friendly forces during combat operations.
       (B) To determine an optimal, achievable, and upgradable 
     solution for the development, acquisition, and fielding of a 
     system for tracking all United States military forces that is 
     coordinated and interoperable and also accommodates the 
     participation of military forces of allied nations with 
     United States forces in combat operations.
       (c) Report.--Not later than 60 days after the conclusion of 
     the experiment under subsection (b), but not later than 
     December 1, 2004, the Secretary shall submit to the 
     congressional defense committees a report on the results of 
     the experiment, together with a comprehensive plan for the 
     development, acquisition, and fielding of a functional, near 
     real-time blue forces tracking system.
                  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. Reauthorization and modification of title I of Sikes Act.
Sec. 312. Clarification of Department of Defense response to 
              environmental emergencies.
Sec. 313. Repeal of authority to use environmental restoration account 
              funds for relocation of a contaminated facility.
Sec. 314. Authorization for Department of Defense participation in 
              wetland mitigation banks.
Sec. 315. Inclusion of environmental response equipment and services in 
              Navy definitions of salvage facilities and salvage 
              services.
Sec. 316. Repeal of model program for base closure environmental 
              restoration.
Sec. 317. Requirements for restoration advisory boards and exemption 
              from Federal Advisory Committee Act.
Sec. 318. Military readiness and conservation of protected species.
Sec. 319. Military readiness and marine mammal protection.
Sec. 320. Report regarding impact of civilian community encroachment 
              and certain legal requirements on military installations 
              and ranges and plan to address encroachment.
Sec. 321. Cooperative water use management related to Fort Huachuca, 
              Arizona, and Sierra Vista subwatershed.
Sec. 322. Task force on resolution of conflict between military 
              training and endangered species protection at Barry M. 
              Goldwater Range, Arizona.
Sec. 323. Public health assessment of exposure to perchlorate.
Sec. 324. Comptroller General review of Arctic Military Environmental 
              Cooperation program.

                 Subtitle C--Workplace and Depot Issues

Sec. 331. Exemption of certain firefighting service contracts from 
              prohibition on contracts for performance of firefighting 
              functions.
Sec. 332. Technical amendment relating to closure of Sacramento Army 
              Depot, California.

[[Page 27517]]

Sec. 333. Exception to competition requirement for depot-level 
              maintenance and repair workloads performed by depot-level 
              activities.
Sec. 334. Resources-based schedules for completion of public-private 
              competitions for performance of Department of Defense 
              functions.
Sec. 335. Delayed implementation of revised Office of Management and 
              Budget Circular A-76 by Department of Defense pending 
              report.
Sec. 336. Pilot program for best-value source selection for performance 
              of information technology services.
Sec. 337. High-performing organization business process reengineering 
              pilot program.
Sec. 338. Naval Aviation Depots multi-trades demonstration project.

                       Subtitle D--Other Matters

Sec. 341. Cataloging and standardization for defense supply management.
Sec. 342. Sale of Defense Information Systems Agency services to 
              contractors performing the Navy-Marine Corps Intranet 
              contract.
Sec. 343. Permanent authority for purchase of certain municipal 
              services at installations in Monterey County, California.
Sec. 344. Department of Defense telecommunications benefit.
Sec. 345. Independent assessment of material condition of the KC-135 
              aerial refueling fleet.
              Subtitle A--Authorization of Appropriations

     SEC. 301. OPERATION AND MAINTENANCE FUNDING.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2004 for the use of the Armed Forces and other 
     activities and agencies of the Department of Defense for 
     expenses, not otherwise provided for, for operation and 
     maintenance, in amounts as follows:
       (1) For the Army, $24,627,037,000.
       (2) For the Navy, $27,975,559,000.
       (3) For the Marine Corps, $3,426,056,000.
       (4) For the Air Force, $26,089,670,000.
       (5) For Defense-wide activities, $16,243,157,000.
       (6) For the Army Reserve, $1,966,009,000.
       (7) For the Naval Reserve, $1,171,921,000.
       (8) For the Marine Corps Reserve, $173,952,000.
       (9) For the Air Force Reserve, $2,179,188,000.
       (10) For the Army National Guard, $4,256,331,000.
       (11) For the Air National Guard, $4,406,146,000.
       (12) For the United States Court of Appeals for the Armed 
     Forces, $10,333,000.
       (13) For Environmental Restoration, Army, $396,018,000.
       (14) For Environmental Restoration, Navy, $256,153,000.
       (15) For Environmental Restoration, Air Force, 
     $384,307,000.
       (16) For Environmental Restoration, Defense-wide, 
     $24,081,000.
       (17) For Environmental Restoration, Formerly Used Defense 
     Sites, $252,619,000.
       (18) For Overseas Humanitarian, Disaster, and Civic Aid 
     programs, $59,000,000.
       (19) For Cooperative Threat Reduction programs, 
     $450,800,000.
       (20) Overseas Contingencies Program, $5,000,000.

     SEC. 302. WORKING CAPITAL FUNDS.

       Funds are hereby authorized to be appropriated for fiscal 
     year 2004 for the use of the Armed Forces 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, $632,261,000.
       (2) For the National Defense Sealift Fund, $1,062,762,000.
       (3) For the Defense Commissary Agency Working Capital Fund, 
     $1,089,246,000.

     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 
     2004 for expenses, not otherwise provided for, for the 
     Defense Health Program, $15,401,509,000, of which--
       (1) $15,007,887,000 is for Operation and Maintenance;
       (2) $65,796,000 is for Research, Development, Test, and 
     Evaluation; and
       (3) $327,826,000 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 2004 for expenses, not 
     otherwise provided for, for Chemical Agents and Munitions 
     Destruction, Defense, $1,530,261,000, of which--
       (A) $1,199,168,000 is for Operation and Maintenance;
       (B) $251,881,000 is for Research, Development, Test, and 
     Evaluation; and
       (C) $79,212,000 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 2004 for expenses, not 
     otherwise provided for, for Drug Interdiction and Counter-
     Drug Activities, Defense-wide, $817,371,000.
       (d) Defense Inspector General.--Funds are hereby authorized 
     to be appropriated for the Department of Defense for fiscal 
     year 2004 for expenses, not otherwise provided for, for the 
     Office of the Inspector General of the Department of Defense, 
     $162,449,000, of which--
       (1) $160,049,000 is for Operation and Maintenance;
       (2) $2,100,000 is for Research, Development, Test, and 
     Evaluation; and
       (3) $300,000 is for Procurement.
                  Subtitle B--Environmental Provisions

     SEC. 311. REAUTHORIZATION AND MODIFICATION OF TITLE I OF 
                   SIKES ACT.

       (a) Reauthorization.--Section 108 of the Sikes Act (16 
     U.S.C. 670f) is amended by striking ``fiscal years 1998 
     through 2003'' each place it appears and inserting ``fiscal 
     years 2004 through 2008''.
       (b) Sense of Congress Regarding Section 107.--(1) Congress 
     finds the following:
       (A) The Department of Defense maintains over 25,000,000 
     acres of valuable fish and wildlife habitat on approximately 
     400 military installations nationwide.
       (B) These lands contain a wealth of plant and animal life, 
     vital wetlands for migratory birds, and nearly 300 federally 
     listed threatened species and endangered species.
       (C) Increasingly, land surrounding military bases are being 
     developed with residential and commercial infrastructure that 
     fragments fish and wildlife habitat and decreases its ability 
     to support a diversity of species.
       (D) Comprehensive conservation plans, such as integrated 
     natural resource management plans under the Sikes Act (16 
     U.S.C. 670 et seq.), can ensure that these ecosystem values 
     can be protected and enhanced while allowing these lands to 
     meet the needs of military operations.
       (E) Section 107 of the Sikes Act (16 U.S.C. 670e-2) 
     requires sufficient numbers of professionally trained natural 
     resources management personnel and natural resources law 
     enforcement personnel to be available and assigned 
     responsibility to perform tasks necessary to carry out title 
     I of the Sikes Act, including the preparation and 
     implementation of integrated natural resource management 
     plans.
       (F) Managerial and policymaking functions performed by 
     Department of Defense on-site professionally trained natural 
     resource management personnel on military installations are 
     appropriate governmental functions.
       (G) Professionally trained civilian biologists in permanent 
     Federal Government career managerial positions are essential 
     to oversee fish and wildlife and natural resource 
     conservation programs and are essential to the conservation 
     of wildlife species on military land.
       (2) It is the sense of Congress that the Secretary of 
     Defense should take whatever steps are necessary to ensure 
     that section 107 of the Sikes Act (16 U.S.C. 670e-2) is fully 
     implemented consistent with the findings made in paragraph 
     (1).
       (c) Pilot Program.--(1) Section 101 of the Sikes Act (16 
     U.S.C. 670a) is amended by adding at the end the following 
     new subsection:
       ``(g) Pilot Program for Invasive Species Management for 
     Military Installations in Guam.--
       ``(1) Inclusion of invasive species management.--During 
     fiscal years 2004 through 2008, the Secretary of Defense 
     shall, to the extent practicable and conducive to military 
     readiness, incorporate in integrated natural resources 
     management plans for military installations in Guam the 
     management, control, and eradication of invasive species--
       ``(A) that are not native to the ecosystem of the military 
     installation; and
       ``(B) the introduction of which cause or may cause harm to 
     military readiness, the environment, or human health and 
     safety.
       ``(2) Consultation.--The Secretary of Defense shall carry 
     out this subsection in consultation with the Secretary of the 
     Interior.''.
       (2) Section 101(g) of the Sikes Act, as added by paragraph 
     (1), shall apply--
       (A) to any integrated natural resources management plan 
     prepared for a military installation in Guam under section 
     101(a)(1) of such Act on or after the date of the enactment 
     of this Act; and
       (B) effective March 1, 2004, to any integrated natural 
     resources management plan prepared for a military 
     installation in Guam under such section before the date of 
     the enactment of this Act.

     SEC. 312. CLARIFICATION OF DEPARTMENT OF DEFENSE RESPONSE TO 
                   ENVIRONMENTAL EMERGENCIES.

       (a) Transportation of Humanitarian Relief Supplies to 
     Respond to Environmental Emergencies.--Section 402 of title 
     10, United States Code, is amended--
       (1) by redesignating subsection (d) as subsection (e); and
       (2) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d)(1) The Secretary of Defense may use the authority 
     provided by subsection (a) to transport supplies intended for 
     use to respond to, or mitigate the effects of, an event or 
     condition, such as an oil spill, that threatens serious harm 
     to the environment, but only if other sources to provide such 
     transportation are not readily available.
       ``(2) Notwithstanding subsection (a), the Secretary of 
     Defense may require reimbursement for

[[Page 27518]]

     costs incurred by the Department of Defense to transport 
     supplies under this subsection.''.
       (b) Conditions on Provision of Transportation.--Subsection 
     (b) of such section is amended--
       (1) in paragraph (1)(C), by inserting ``or entity'' after 
     ``people'';
       (2) in paragraph (1)(E), by inserting ``or use'' after 
     ``distribution''; and
       (3) in paragraph (3), by striking ``donor to ensure that 
     supplies to be transported under this section'' and inserting 
     ``entity requesting the transport of supplies under this 
     section to ensure that the supplies''.
       (c) Provision of Disaster Assistance.--Section 404 of such 
     title is amended--
       (1) in subsection (a), by inserting ``or serious harm to 
     the environment'' after ``loss of lives'';
       (2) in subsection (c)(2), by inserting ``or the 
     environment'' after ``human lives''; and
       (3) by adding at the end the following new subsection:
       ``(e) Limitation on Transportation Assistance.--
     Transportation services authorized under subsection (b) may 
     be provided in response to a manmade or natural disaster to 
     prevent serious harm to the environment, when human lives are 
     not at risk, only if other sources to provide such 
     transportation are not readily available.''.
       (d) Provision of Humanitarian Assistance.--Section 2561(a) 
     of such title is amended--
       (1) by inserting ``(1)'' before ``To the extent''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The Secretary of Defense may use the authority 
     provided by paragraph (1) to transport supplies intended for 
     use to respond to, or mitigate the effects of, an event or 
     condition, such as an oil spill, that threatens serious harm 
     to the environment, but only if other sources to provide such 
     transportation are not readily available. The Secretary may 
     require reimbursement for costs incurred by the Department of 
     Defense to transport supplies under this paragraph.''.

     SEC. 313. REPEAL OF AUTHORITY TO USE ENVIRONMENTAL 
                   RESTORATION ACCOUNT FUNDS FOR RELOCATION OF A 
                   CONTAMINATED FACILITY.

       (a) Repeal.--Effective October 1, 2003, section 2703(c) of 
     title 10, United States Code, is amended--
       (1) in paragraph (1) by striking ``only--'' and all that 
     follows through the period at the end and inserting ``only to 
     carry out the environmental restoration functions of the 
     Secretary of Defense and the Secretaries of the military 
     departments under this chapter and under any other provision 
     of law.'';
       (2) by striking paragraphs (2) and (3); and
       (3) by redesignating paragraph (4) as paragraph (2) and 
     striking the second sentence of such paragraph.
       (b) Effect of Repeal on Existing Agreements.--An agreement 
     in effect on September 30, 2003, under section 2703(c)(1)(B) 
     of title 10, United States Code, as in effect on that date, 
     to pay for the costs of permanently relocating a facility 
     because of a release or threatened release of hazardous 
     substances, pollutants, or contaminants shall remain in 
     effect after that date, subject to the terms of the 
     agreement, and costs may be paid in accordance with the terms 
     of the agreement, notwithstanding the amendments made by 
     subsection (a).

     SEC. 314. AUTHORIZATION FOR DEPARTMENT OF DEFENSE 
                   PARTICIPATION IN WETLAND MITIGATION BANKS.

       (a) DOD Participation.--(1) Chapter 159 of title 10, United 
     States Code, is amended by inserting after section 2694a the 
     following new section:

     ``Sec. 2694b. Participation in wetland mitigation banks

       ``(a) Authority to Participate.--The Secretary of a 
     military department, and the Secretary of Defense with 
     respect to matters concerning a Defense Agency, when engaged 
     in an authorized activity that may or will result in the 
     destruction of, or an adverse impact to, a wetland, may make 
     payments to a wetland mitigation banking program or `in-lieu-
     fee' mitigation sponsor approved in accordance with the 
     Federal Guidance for the Establishment, Use and Operation of 
     Mitigation Banks (60 Fed. Reg. 58605; November 28, 1995) or 
     the Federal Guidance on the Use of In-Lieu-Fee Arrangements 
     for Compensatory Mitigation Under Section 404 of the Clean 
     Water Act and Section 10 of the Rivers and Harbors Act (65 
     Fed. Reg. 66913; November 7, 2000), or any successor 
     administrative guidance or regulation.
       ``(b) Alternative to Creation of Wetland.--Participation in 
     a wetland mitigation banking program or consolidated user 
     site under subsection (a) shall be in lieu of mitigating 
     wetland impacts through the creation of a wetland on Federal 
     property.
       ``(c) Treatment of Payments.--Payments made under 
     subsection (a) to a wetland mitigation banking program or 
     consolidated user site may be treated as eligible project 
     costs for military construction.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2694a the following new item:

``2694b. Participation in wetland mitigation banks.''.
       (b) Mitigation and Mitigation Banking Regulations.--(1) To 
     ensure opportunities for Federal agency participation in 
     mitigation banking, the Secretary of the Army, acting through 
     the Chief of Engineers, shall issue regulations establishing 
     performance standards and criteria for the use, consistent 
     with section 404 of the Federal Water Pollution Control Act 
     (33 U.S.C. 1344), of on-site, off-site, and in-lieu fee 
     mitigation and mitigation banking as compensation for lost 
     wetlands functions in permits issued by the Secretary of the 
     Army under such section. To the maximum extent practicable, 
     the regulatory standards and criteria shall maximize 
     available credits and opportunities for mitigation, provide 
     flexibility for regional variations in wetland conditions, 
     functions and values, and apply equivalent standards and 
     criteria to each type of compensatory mitigation.
       (2) Final regulations shall be issued not later than two 
     years after the date of the enactment of this Act.

     SEC. 315. INCLUSION OF ENVIRONMENTAL RESPONSE EQUIPMENT AND 
                   SERVICES IN NAVY DEFINITIONS OF SALVAGE 
                   FACILITIES AND SALVAGE SERVICES.

       (a) Salvage Facilities.--Section 7361 of title 10, United 
     States Code, is amended by adding at the end the following 
     new subsection:
       ``(e) Salvage Facilities Defined.--In this section, the 
     term `salvage facilities' includes equipment and gear 
     utilized to prevent, abate, or minimize damage to the 
     environment.''.
       (b) Settlement of Claims for Salvage Services.--Section 
     7363 of such title is amended--
       (1) by inserting ``(a) Authority to Settle Claim.--'' 
     before ``The Secretary''; and
       (2) by adding at the end the following new subsection:
       ``(b) Salvage Services Defined.--In this section, the term 
     `salvage services' includes services performed in connection 
     with a marine salvage operation that are intended to prevent, 
     abate, or minimize damage to the environment.''.

     SEC. 316. REPEAL OF MODEL PROGRAM FOR BASE CLOSURE 
                   ENVIRONMENTAL RESTORATION.

       Section 2926 of the National Defense Authorization Act for 
     Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2687 note) is 
     repealed.

     SEC. 317. REQUIREMENTS FOR RESTORATION ADVISORY BOARDS AND 
                   EXEMPTION FROM FEDERAL ADVISORY COMMITTEE ACT.

       (a) Membership and Meeting Requirements for Restoration 
     Advisory Boards.--The Secretary of Defense shall amend the 
     regulations required by section 2705(d)(2) of title 10, 
     United States Code, relating to the establishment, 
     characteristics, composition, and funding of restoration 
     advisory boards to ensure that each restoration advisory 
     board complies with the following requirements:
       (1) Each restoration advisory board shall be fairly 
     balanced in its membership in terms of the points of view 
     represented and the functions to be performed.
       (2) Unless a closed or partially closed meeting is 
     determined to be proper in accordance with one or more of the 
     exceptions listed in the section 552b(c) of title 5, United 
     States Code, each meeting of a restoration advisory board 
     shall be--
       (A) held at a reasonable time and in a manner or place 
     reasonably accessible to the public, including individuals 
     with disabilities; and
       (B) open to the public.
       (3) Timely notice of each meeting of a restoration advisory 
     board shall be published in a local newspaper of general 
     circulation.
       (4) Interested persons may appear before or file statements 
     with a restoration advisory board, subject to such reasonable 
     restrictions as the Secretary may prescribe.
       (5) Subject to section 552 of title 5, United States Code, 
     the records, reports, minutes, appendixes, working papers, 
     drafts, studies, agenda, or other documents that were made 
     available to, prepared for, or prepared by each restoration 
     advisory board shall be available for public inspection and 
     copying at a single, publicly accessible location, such as a 
     public library or an appropriate office of the military 
     installation for which the restoration advisory board is 
     established, at least until the restoration advisory board is 
     terminated.
       (6) Detailed minutes of each meeting of each restoration 
     advisory board shall be kept and shall contain a record of 
     the persons present, a complete and accurate description of 
     matters discussed and conclusions reached, and copies of all 
     reports received, issued, or approved by the restoration 
     advisory board. The accuracy of the minutes of a restoration 
     advisory board shall be certified by the chairperson of the 
     board.
       (b) FACA Exemption.--Section 2705(d)(2) of title 10, United 
     States Code, is amended by adding at the end the following 
     new subparagraph:
       ``(C) The Federal Advisory Committee Act (5 U.S.C. App.) 
     shall not apply to a restoration advisory board established 
     under this subsection.''.

     SEC. 318. MILITARY READINESS AND CONSERVATION OF PROTECTED 
                   SPECIES.

       (a) Limitation on Designation of Critical Habitat.--Section 
     4(a)(3) of the Endangered Species Act of 1973 (16 U.S.C. 
     1533(a)(3)) is amended--
       (1) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively;
       (2) by inserting ``(A)'' after ``(3)''; and
       (3) by adding at the end the following:
       ``(B)(i) The Secretary shall not designate as critical 
     habitat any lands or other geographical areas owned or 
     controlled by the Department of Defense, or designated for 
     its use, that are subject to an integrated natural resources 
     management plan prepared under section 101 of the Sikes Act 
     (16 U.S.C. 670a), if the Secretary determines in writing that 
     such plan provides a

[[Page 27519]]

     benefit to the species for which critical habitat is proposed 
     for designation.
       ``(ii) Nothing in this paragraph affects the requirement to 
     consult under section 7(a)(2) with respect to an agency 
     action (as that term is defined in that section).
       ``(iii) Nothing in this paragraph affects the obligation of 
     the Department of Defense to comply with section 9, including 
     the prohibition preventing extinction and taking of 
     endangered species and threatened species.''.
       (b) Consideration of Effects of Designation of Critical 
     Habitat.--Section 4(b)(2) of the Endangered Species Act of 
     1973 (16 U.S.C. 1533(b)(2)) is amended by inserting ``the 
     impact on national security,'' after ``the economic 
     impact,''.

     SEC. 319. MILITARY READINESS AND MARINE MAMMAL PROTECTION.

       (a) Definition of Harassment for Military Readiness 
     Activities.--Section 3(18) of the Marine Mammal Protection 
     Act of 1972 (16 U.S.C. 1362(18)) is amended by striking 
     subparagraphs (B) and (C) and inserting the following new 
     subparagraphs:
       ``(B) In the case of a military readiness activity (as 
     defined in section 315(f) of Public Law 107-314; 16 U.S.C. 
     703 note) or a scientific research activity conducted by or 
     on behalf of the Federal Government consistent with section 
     104(c)(3), the term `harassment' means--
       ``(i) any act that injures or has the significant potential 
     to injure a marine mammal or marine mammal stock in the wild; 
     or
       ``(ii) any act that disturbs or is likely to disturb a 
     marine mammal or marine mammal stock in the wild by causing 
     disruption of natural behavioral patterns, including, but not 
     limited to, migration, surfacing, nursing, breeding, feeding, 
     or sheltering, to a point where such behavioral patterns are 
     abandoned or significantly altered.
       ``(C) The term `Level A harassment' means harassment 
     described in subparagraph (A)(i) or, in the case of a 
     military readiness activity or scientific research activity 
     described in subparagraph (B), harassment described in 
     subparagraph (B)(i).
       ``(D) The term `Level B harassment' means harassment 
     described in subparagraph (A)(ii) or, in the case of a 
     military readiness activity or scientific research activity 
     described in subparagraph (B), harassment described in 
     subparagraph (B)(ii).''.
       (b) Exemption of Actions Necessary for National Defense.--
     Section 101 of the Marine Mammal Protection Act of 1972 (16 
     U.S.C. 1371) is amended by inserting after subsection (e) the 
     following:
       ``(f) Exemption of Actions Necessary for National 
     Defense.--(1) The Secretary of Defense, after conferring with 
     the Secretary of Commerce, the Secretary of the Interior, or 
     both, as appropriate, may exempt any action or category of 
     actions undertaken by the Department of Defense or its 
     components from compliance with any requirement of this Act, 
     if the Secretary determines that it is necessary for national 
     defense.
       ``(2) An exemption granted under this subsection--
       ``(A) subject to subparagraph (B), shall be effective for a 
     period specified by the Secretary of Defense; and
       ``(B) shall not be effective for more than 2 years.
       ``(3)(A) The Secretary of Defense may issue additional 
     exemptions under this subsection for the same action or 
     category of actions, after--
       ``(i) conferring with the Secretary of Commerce, the 
     Secretary of the Interior, or both as appropriate; and
       ``(ii) making a new determination that the additional 
     exemption is necessary for national defense.
       ``(B) Each additional exemption under this paragraph shall 
     be effective for a period specified by the Secretary of 
     Defense, of not more than 2 years.
       ``(4) Not later than 30 days after issuing an exemption 
     under paragraph (1) or an additional exemption under 
     paragraph (3), 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 notice 
     describing the exemption and the reasons therefor. The notice 
     may be provided in classified form if the Secretary of 
     Defense determines that use of the classified form is 
     necessary for reasons of national security.''.
       (c) Incidental Takings of Marine Mammals in Military 
     Readiness Activities.--Section 101(a)(5) of the Marine Mammal 
     Protection Act of 1972 (16 U.S.C. 1371(a)(5)) is amended--
       (1) in subparagraph (A)--
       (A) by redesignating clauses (i) and (ii) and subclauses 
     (I) and (II) as subclauses (I) and (II) and items (aa) and 
     (bb), respectively;
       (B) by inserting ``(i)'' after ``(5)(A)''; and
       (C) by adding at the end the following new clauses:
       ``(ii) For a military readiness activity (as defined in 
     section 315(f) of Public Law 107-314; 16 U.S.C. 703 note), a 
     determination of `least practicable adverse impact on such 
     species or stock' under clause (i)(II)(aa) shall include 
     consideration of personnel safety, practicality of 
     implementation, and impact on the effectiveness of the 
     military readiness activity. Before making the required 
     determination, the Secretary shall consult with the 
     Department of Defense regarding personnel safety, 
     practicality of implementation, and impact on the 
     effectiveness of the military readiness activity.
       ``(iii) Notwithstanding clause (i), for any authorization 
     affecting a military readiness activity (as defined in 
     section 315(f) of Public Law 107-314; 16 U.S.C. 703 note), 
     the Secretary shall publish the notice required by such 
     clause only in the Federal Register.'';
       (2) in subparagraph (D), by adding at the end the following 
     new clauses:
       ``(vi) For a military readiness activity (as defined in 
     section 315(f) of Public Law 107-314; 16 U.S.C. 703 note), a 
     determination of `least practicable adverse impact on such 
     species or stock' under clause (i)(I) shall include 
     consideration of personnel safety, practicality of 
     implementation, and impact on the effectiveness of the 
     military readiness activity. Before making the required 
     determination, the Secretary shall consult with the 
     Department of Defense regarding personnel safety, 
     practicality of implementation, and impact on the 
     effectiveness of the military readiness activity.
       ``(vii) Notwithstanding clause (iii), for any authorization 
     affecting a military readiness activity (as defined in 
     section 315(f) of Public Law 107-314; 16 U.S.C. 703 note), 
     the Secretary shall publish the notice required by such 
     clause only in the Federal Register.''; and
       (3) by adding at the end the following new subparagraph:
       ``(F) Notwithstanding the provisions of this subsection, 
     any authorization affecting a military readiness activity (as 
     defined in section 315(f) of Public Law 107-314; 16 U.S.C. 
     703 note) shall not be subject to the following requirements:
       ``(i) In subparagraph (A), `within a specified geographical 
     region' and `within that region of small numbers'.
       ``(ii) In subparagraph (B), `within a specified 
     geographical region' and `within one or more regions'.
       ``(iii) In subparagraph (D), `within a specific geographic 
     region', `of small numbers', and `within that region'.''.

     SEC. 320. REPORT REGARDING IMPACT OF CIVILIAN COMMUNITY 
                   ENCROACHMENT AND CERTAIN LEGAL REQUIREMENTS ON 
                   MILITARY INSTALLATIONS AND RANGES AND PLAN TO 
                   ADDRESS ENCROACHMENT.

       (a) Study Required.--The Secretary of Defense shall conduct 
     a study on the impact, if any, of the following types of 
     encroachment issues affecting military installations and 
     operational ranges:
       (1) Civilian community encroachment on those military 
     installations and ranges whose operational training 
     activities, research, development, test, and evaluation 
     activities, or other operational, test and evaluation, 
     maintenance, storage, disposal, or other support functions 
     require, or in the future reasonably may require, safety or 
     operational buffer areas. The requirement for such a buffer 
     area may be due to a variety of factors, including air 
     operations, ordnance operations and storage, or other 
     activities that generate or might generate noise, electro-
     magnetic interference, ordnance arcs, or environmental 
     impacts that require or may require safety or operational 
     buffer areas.
       (2) Compliance by the Department of Defense with State 
     Implementation Plans for Air Quality under section 110 of the 
     Clean Air Act (42 U.S.C. 7410).
       (3) Compliance by the Department of Defense with the Solid 
     Waste Disposal Act (42 U.S.C. 6901 et seq.) and the 
     Comprehensive Environmental Response, Compensation, and 
     Liability Act of 1980 (42 U.S.C. 9601 et seq.).
       (b) Matters To Be Included With Respect to Civilian 
     Community Encroachments.--With respect to paragraph (1) of 
     subsection (a), the study shall include the following:
       (1) A list of all military installations described in 
     subsection (a)(1) at which civilian community encroachment is 
     occurring.
       (2) A description and analysis of the types and degree of 
     such civilian community encroachment at each military 
     installation included on the list.
       (3) An analysis, including views and estimates of the 
     Secretary of Defense, of the current and potential future 
     impact of such civilian community encroachment on operational 
     training activities, research, development, test, and 
     evaluation activities, and other significant operational, 
     test and evaluation, maintenance, storage, disposal, or other 
     support functions performed by military installations 
     included on the list. The analysis shall include the 
     following:
       (A) A review of training and test ranges at military 
     installations, including laboratories and technical centers 
     of the military departments, included on the list.
       (B) A description and explanation of the trends of such 
     encroachment, as well as consideration of potential future 
     readiness problems resulting from unabated encroachment.
       (4) An estimate of the costs associated with current and 
     anticipated partnerships between the Department of Defense 
     and non-Federal entities to create buffer zones to preclude 
     further development around military installations included on 
     the list, and the costs associated with the conveyance of 
     surplus property around such military installations for 
     purposes of creating buffer zones.
       (5) Options and recommendations for possible legislative or 
     budgetary changes necessary to mitigate current and 
     anticipated future civilian community encroachment problems.
       (c) Matters To Be Included With Respect to Compliance With 
     Specified Laws.--With respect to paragraphs (2) and (3) of 
     subsection (a), the study shall include the following:
       (1) A list of all military installations and other 
     locations at which the Armed Forces are encountering problems 
     related to compliance with the laws specified in such 
     paragraphs.

[[Page 27520]]

       (2) A description and analysis of the types and degree of 
     compliance problems encountered.
       (3) An analysis, including views and estimates of the 
     Secretary of Defense, of the current and potential future 
     impact of such compliance problems on the following functions 
     performed at military installations:
       (A) Operational training activities.
       (B) Research, development, test, and evaluation activities.
       (C) Other significant operational, test and evaluation, 
     maintenance, storage, disposal, or other support functions.
       (4) A description and explanation of the trends of such 
     compliance problems, as well as consideration of potential 
     future readiness problems resulting from such compliance 
     problems.
       (d) Plan to Respond to Encroachment Issues.--On the basis 
     of the study conducted under subsection (a), including the 
     specific matters required to be addressed by subsections (b) 
     and (c), the Secretary of Defense shall prepare a plan to 
     respond to the encroachment issues described in subsection 
     (a) affecting military installations and operational ranges.
       (e) Reporting Requirements.--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 the following reports regarding the study 
     conducted under subsection (a), including the specific 
     matters required to be addressed by subsections (b) and (c):
       (1) Not later than January 31, 2004, an interim report 
     describing the progress made in conducting the study and 
     containing the information collected under the study as of 
     that date.
       (2) Not later than January 31, 2006, a report containing 
     the results of the study and the encroachment response plan 
     required by subsection (d).
       (3) Not later than January 31, 2007, and each January 31 
     thereafter through January 31, 2010, a report describing the 
     progress made in implementing the encroachment response plan.

     SEC. 321. COOPERATIVE WATER USE MANAGEMENT RELATED TO FORT 
                   HUACHUCA, ARIZONA, AND SIERRA VISTA 
                   SUBWATERSHED.

       (a) Limitation on Federal Responsibility for Civilian Water 
     Consumption Impacts.--
       (1) Limitation.--For purposes of section 7 of the 
     Endangered Species Act of 1973 (16 U.S.C. 1536), concerning 
     any present and future Federal agency action at Fort 
     Huachuca, Arizona, water consumption by State, local, and 
     private entities off of the installation that is not a direct 
     or indirect effect of the agency action or an effect of other 
     activities that are interrelated or interdependent with that 
     agency action, shall not be considered in determining whether 
     such agency action is likely to jeopardize the continued 
     existence of any endangered or threatened species or result 
     in the destruction or adverse modification of designated 
     critical habitat.
       (2) Voluntary regional conservation efforts.--Nothing in 
     this subsection shall prohibit Federal agencies operating at 
     Fort Huachuca from voluntarily undertaking efforts to 
     mitigate water consumption.
       (3) Definition of water consumption.--In this subsection, 
     the term ``water consumption'' means all water use off of the 
     installation from any source.
       (4) Effective date.--This subsection applies only to 
     Federal agency actions regarding which the Federal agency 
     involved determines that consultation, or reinitiation of 
     consultation, under section 7 of the Endangered Species Act 
     of 1973 (16 U.S.C. 1536) is required with regard to an agency 
     action at Fort Huachuca on or after the date of the enactment 
     of this Act.
       (b) Recognition of Upper San Pedro Partnership.--Congress 
     hereby recognizes the Upper San Pedro Partnership, Arizona, a 
     partnership of Fort Huachuca, Arizona, other Federal, State, 
     and local governmental and nongovernmental entities, and its 
     efforts to establish a collaborative water use management 
     program in the Sierra Vista Subwatershed, Arizona, to achieve 
     the sustainable yield of the regional aquifer, so as to 
     protect the Upper San Pedro River, Arizona, and the San Pedro 
     Riparian National Conservation Area, Arizona.
       (c) Report on Water Use Management and Conservation of 
     Regional Aquifer.--
       (1) In general.--The Secretary of Interior shall prepare, 
     in consultation with the Secretary of Agriculture and the 
     Secretary of Defense and in cooperation with the other 
     members of the Partnership, a report on the water use 
     management and conservation measures that have been 
     implemented and are needed to restore and maintain the 
     sustainable yield of the regional aquifer by and after 
     September 30, 2011. The Secretary of the Interior shall 
     submit the report to Congress not later than December 31, 
     2004.
       (2) Purpose.--The purpose of the report is to set forth 
     measurable annual goals for the reduction of the overdrafts 
     of the groundwater of the regional aquifer, to identify 
     specific water use management and conservation measures to 
     facilitate the achievement of such goals, and to identify 
     impediments in current Federal, State, and local laws that 
     hinder efforts on the part of the Partnership to mitigate 
     water usage in order to restore and maintain the sustainable 
     yield of the regional aquifer by and after September 30, 
     2011.
       (3) Report elements.--The report shall use data from 
     existing and ongoing studies and include the following 
     elements:
       (A) The net quantity of water withdrawn from and recharged 
     to the regional aquifer in the one-year period preceding the 
     date of the submission of the report.
       (B) The quantity of the overdraft of the regional aquifer 
     to be reduced by the end of each of fiscal years 2005 through 
     2011 to achieve sustainable yield.
       (C) With respect to the reduction of overdraft for each 
     fiscal year as specified under subparagraph (B), an 
     allocation of responsibility for the achievement of such 
     reduction among the water-use controlling members of the 
     Partnership who have the authority to implement measures to 
     achieve such reduction.
       (D) The water use management and conservation measures to 
     be undertaken by each water-use controlling member of the 
     Partnership to contribute to the reduction of the overdraft 
     for each fiscal year as specified under subparagraph (B), and 
     to meet the responsibility of each such member for each such 
     reduction as allocated under subparagraph (C), including--
       (i) a description of each measure;
       (ii) the cost of each measure;
       (iii) a schedule for the implementation of each measure;
       (iv) a projection by fiscal year of the amount of the 
     contribution of each measure to the reduction of the 
     overdraft; and
       (v) a list of existing laws that impede full implementation 
     of any measure.
       (E) The monitoring and verification activities to be 
     undertaken by the Partnership to measure the reduction of the 
     overdraft for each fiscal year and the contribution of each 
     member of the Partnership to the reduction of the overdraft.
       (d) Annual Report on Progress Toward Sustainable Yield.--
       (1) In general.--Not later than October 31, 2005, and each 
     October 31 thereafter through 2011, the Secretary of the 
     Interior shall submit, on behalf of the Partnership, to 
     Congress a report on the progress of the Partnership during 
     the preceding fiscal year toward achieving and maintaining 
     the sustainable yield of the regional aquifer by and after 
     September 30, 2011.
       (2) Report elements.--Each report shall include the 
     following:
       (A) The quantity of the overdraft of the regional aquifer 
     reduced during the reporting period, and whether such 
     reduction met the goal specified for such fiscal year under 
     subsection (c)(3)(B).
       (B) The water use management and conservation measures 
     undertaken by each water-use controlling member of the 
     Partnership in the fiscal year covered by such report, 
     including the extent of the contribution of such measures to 
     the reduction of the overdraft for such fiscal year.
       (C) The legislative accomplishments made during the fiscal 
     year covered by such report in removing legal impediments 
     that hinder the mitigation of water use by members of the 
     Partnership.
       (e) Verification Information.--Information used to verify 
     overdraft reductions of the regional aquifer shall include at 
     a minimum the following:
       (1) The annual report of the Arizona Corporation Commission 
     on annual groundwater pumpage of the private water companies 
     in the Sierra Vista Subwatershed.
       (2) The San Pedro base flow monitoring record of the 
     Charleston flow gauge of the United States Geological Survey.
       (3) Current surveys of the groundwater levels in area wells 
     as reported by the Arizona Department of Water Resources and 
     by Federal agencies.
       (f) Sense of Congress.--It is the sense of Congress that 
     any future appropriations to the Partnership should take into 
     account whether the Partnership has met its annual goals for 
     overdraft reduction.
       (g) Definitions.--In this section:
       (1) The term ``Partnership'' means the Upper San Pedro 
     Partnership, Arizona.
       (2) The term ``regional aquifer'' means the Sierra Vista 
     Subwatershed regional aquifer, Arizona.
       (3) The term ``water-use controlling member'' has the 
     meaning given that term by the Partnership.

     SEC. 322. TASK FORCE ON RESOLUTION OF CONFLICT BETWEEN 
                   MILITARY TRAINING AND ENDANGERED SPECIES 
                   PROTECTION AT BARRY M. GOLDWATER RANGE, 
                   ARIZONA.

       (a) Task Force.--The Secretary of Defense shall establish a 
     task force to determine and assess various means of resolving 
     the conflict between the dual objectives at Barry M. 
     Goldwater Range, Arizona, of the full utilization of live 
     ordnance delivery areas for military training and the 
     protection of endangered species that are present at Barry M. 
     Goldwater Range.
       (b) Composition.--The task force shall be composed of the 
     following members:
       (1) The Air Force range officer, who shall serve as 
     chairperson of the task force.
       (2) The range officer at Barry M. Goldwater Range.
       (3) The commander of Luke Air Force Base, Arizona.
       (4) The commander of Marine Corps Air Station, Yuma, 
     Arizona.
       (5) The Director of the United States Fish and Wildlife 
     Service.
       (6) The manager of the Cabeza Prieta National Wildlife 
     Refuge, Arizona.
       (7) A representative of the Department of Game and Fish of 
     the State of Arizona, selected by the Secretary in 
     consultation with the Governor of the State of Arizona.
       (8) A representative of a wildlife interest group in the 
     State of Arizona, selected by the Secretary in consultation 
     with wildlife interest groups in the State of Arizona.
       (9) A representative of an environmental interest group 
     (other than a wildlife interest

[[Page 27521]]

     group) in the State of Arizona, as selected by the Secretary 
     in consultation with environmental interest groups in the 
     State of Arizona.
       (c) Duties.--The task force shall--
       (1) assess the effects of the presence of endangered 
     species on military training activities in the live ordnance 
     delivery areas at Barry M. Goldwater Range and in any other 
     areas of the range that are adversely effected by the 
     presence of endangered species;
       (2) determine various means of addressing any significant 
     adverse effects on military training activities on Barry M. 
     Goldwater Range that are identified pursuant to paragraph 
     (1); and
       (3) determine the benefits and costs associated with the 
     implementation of each means identified under paragraph (2).
       (d) Use of Experts.--The chairperson of the task force may 
     secure for the task force the services of such experts with 
     respect to the duties of the task force as the chairperson 
     considers advisable to carry out such duties.
       (e) Report.--Not later than February 28, 2005, the task 
     force shall submit to Congress a report containing--
       (1) a description of the assessments and determinations 
     made under subsection (c);
       (2) such recommendations for legislative and administrative 
     action as the task force considers appropriate; and
       (3) an evaluation of the utility of task force proceedings 
     as a means of resolving conflicts between military training 
     objectives and protection of endangered species at other 
     military training and testing ranges.

     SEC. 323. PUBLIC HEALTH ASSESSMENT OF EXPOSURE TO 
                   PERCHLORATE.

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

     SEC. 324. COMPTROLLER GENERAL REVIEW OF ARCTIC MILITARY 
                   ENVIRONMENTAL COOPERATION PROGRAM.

       (a) Requirement for Review.--The Comptroller General shall 
     conduct a review of the Arctic Military Environmental 
     Cooperation program, including--
       (1) the current and proposed technology development and 
     demonstration role of the program in United States 
     nonproliferation efforts; and
       (2) the relationship of the program to the Cooperative 
     Threat Reduction Program 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) Elements of Review.--The review shall include an 
     assessment of the following:
       (1) Whether the conditions in the Western Pacific region 
     require an expansion of the Arctic Military Environmental 
     Cooperation program to include that region.
       (2) The extent to which foreign countries, including 
     Russia, make financial contributions to the program.
       (3) The extent to which the Cooperative Threat Reduction 
     Program and the G-8 Global Partnership Against the Spread of 
     Weapons and Materials of Mass Destruction Initiative use the 
     program.
       (4) Whether the program is important to the disarmament and 
     nonproliferation functions of the Cooperative Threat 
     Reduction Program.
       (5) Future-year funding and program plans of the Department 
     of Defense for the program.
       (c) Report on Review.--Not later than May 1, 2004, the 
     Comptroller General shall submit to Congress a report 
     containing the results of the review.
                 Subtitle C--Workplace and Depot Issues

     SEC. 331. EXEMPTION OF CERTAIN FIREFIGHTING SERVICE CONTRACTS 
                   FROM PROHIBITION ON CONTRACTS FOR PERFORMANCE 
                   OF FIREFIGHTING FUNCTIONS.

       (a) Additional Exemption.--Section 2465(b) of title 10, 
     United States Code, is amended by adding at the end the 
     following new paragraph:
       ``(4) A contract for the performance of firefighting 
     functions if the contract is--
       ``(A) for a period of one year or less; and
       ``(B) covers only the performance of firefighting functions 
     that, in the absence of the contract, would have to be 
     performed by members of the armed forces who are not readily 
     available to perform such functions by reason of a 
     deployment.''.
       (b) Conforming Amendments.--Such section is further 
     amended--
       (1) by striking ``apply--'' and inserting ``apply to the 
     following contracts:'';
       (2) by striking ``to a'' at the beginning of paragraphs 
     (1), (2), and (3) and inserting ``A'';
       (3) by striking the semicolon at the end of paragraph (1) 
     and inserting a period; and
       (4) by striking ``; or'' at the end of paragraph (2) and 
     inserting a period.

     SEC. 332. TECHNICAL AMENDMENT RELATING TO CLOSURE OF 
                   SACRAMENTO ARMY DEPOT, CALIFORNIA.

       Section 2466 of title 10, United States Code, is amended--
       (1) by striking subsection (d); and
       (2) by redesignating subsection (e) as subsection (d).

     SEC. 333. EXCEPTION TO COMPETITION REQUIREMENT FOR DEPOT-
                   LEVEL MAINTENANCE AND REPAIR WORKLOADS 
                   PERFORMED BY DEPOT-LEVEL ACTIVITIES.

       Section 2469 of title 10, United States Code, is amended--
       (1) in subsection (b), by striking ``Subsection'' and 
     inserting ``Except as provided in subsection (c), 
     subsection'';
       (2) by redesignating subsection (c) as subsection (d); and
       (3) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Exception for Public-Private Partnerships.--The 
     requirements of subsection (a) may be waived in the case of a 
     depot-level maintenance and repair workload that is performed 
     at a Center of Industrial and Technical Excellence designated 
     under subsection (a) of section 2474 of this title by a 
     public-private partnership entered into under subsection (b) 
     of such section consisting of a depot-level activity and a 
     private entity.''.

     SEC. 334. RESOURCES-BASED SCHEDULES FOR COMPLETION OF PUBLIC-
                   PRIVATE COMPETITIONS FOR PERFORMANCE OF 
                   DEPARTMENT OF DEFENSE FUNCTIONS.

       (a) Application of Timeframes.--Any interim or final 
     deadline or other schedule-related milestone for the 
     completion of a Department of Defense public-private 
     competition shall be established solely on the basis of 
     considered research and sound analysis regarding the 
     availability of sufficient personnel, training, and technical 
     resources to the Department of Defense to carry out such 
     competition in a timely manner.
       (b) Extension of Timeframes.--(1) The Department of Defense 
     official responsible for managing a Department of Defense 
     public-private competition shall extend any interim or final 
     deadline or other schedule-related milestone established 
     (consistent with subsection (a)) for the completion of the 
     competition if the official determines that the personnel, 
     training, or technical resources available to the Department 
     of Defense to carry out the competition in a timely manner 
     are insufficient.
       (2) A determination under this subsection shall be made 
     pursuant to procedures prescribed by the Secretary of 
     Defense.

     SEC. 335. DELAYED IMPLEMENTATION OF REVISED OFFICE OF 
                   MANAGEMENT AND BUDGET CIRCULAR A-76 BY 
                   DEPARTMENT OF DEFENSE PENDING REPORT.

       (a) Limitation Pending Report.--No studies or competitions 
     may be conducted under the policies and procedures contained 
     in the revised Office of Management and Budget Circular A-76 
     dated May 29, 2003 (68 Fed. Reg. 32134), relating to the 
     possible contracting out of commercial activities being 
     performed, as of such date, by employees of the Department of 
     Defense, until the end of the 45-day period beginning on the 
     date on which the Secretary of Defense submits to Congress a 
     report on the effects of the revisions.
       (b) Content of Report.--The report required by subsection 
     (a) shall contain, at a minimum, specific information 
     regarding the following:
       (1) The extent to which the revised circular will ensure 
     that employees of the Department of Defense have the 
     opportunity to compete to retain their jobs.
       (2) The extent to which the revised circular will provide 
     appeal and protest rights to employees of the Department of 
     Defense.
       (3) Identify safeguards in the revised circular to ensure 
     that all public-private competitions are fair, appropriate, 
     and comply with requirements of full and open competition.

[[Page 27522]]

       (4) The plans of the Department to ensure an appropriate 
     phase-in period for the revised circular, as recommended by 
     the Commercial Activities Panel of the Government Accounting 
     Office in its April 2002 report to Congress, including 
     recommendations for any legislative changes that may be 
     required to ensure a smooth and efficient phase-in period.
       (5) The plans of the Department to provide training to 
     employees of the Department of Defense regarding the revised 
     circular, including how the training will be funded, how 
     employees will be selected to receive the training, and the 
     number of employees likely to receive the training.
       (6) The plans of the Department to collect and analyze data 
     on the costs and quality of work contracted out or retained 
     in-house as a result of a sourcing process conducted under 
     the revised circular.

     SEC. 336. PILOT PROGRAM FOR BEST-VALUE SOURCE SELECTION FOR 
                   PERFORMANCE OF INFORMATION TECHNOLOGY SERVICES.

       (a) Authority to Use Best-Value Criterion.--The Secretary 
     of Defense may carry out a pilot program for the procurement 
     of information technology services for the Department of 
     Defense that uses a best-value criterion in the selection of 
     the source for the performance of the information technology 
     services.
       (b) Required Examination Under Pilot Project.--Under the 
     pilot program, the Secretary of Defense shall modify the 
     examination otherwise required by section 2461(b)(3)(A) of 
     title 10, United States Code, to be an examination of the 
     performance of an information technology services function by 
     Department of Defense civilian employees and by one or more 
     private contractors to demonstrate whether--
       (1) a change to performance by the private sector will 
     result in the best value to the Government over the life of 
     the contract, as determined in accordance with the 
     competition requirements of Office of Management and Budget 
     Circular A-76; and
       (2) certain benefits exist, in addition to price, that 
     warrant performance of the function by a private sector 
     source at a cost higher than that of performance by 
     Department of Defense civilian employees.
       (c) Exemption for Pilot Program.--Section 2462(a) of title 
     10, United States Code, does not apply to the procurement of 
     information technology services under the pilot program.
       (d) Duration of Pilot Program.--(1) The authority to carry 
     out the pilot program begins on the date on which the 
     Secretary of Defense submits to Congress the report on the 
     effect of the recent revisions to Office of Management and 
     Budget Circular A-76, as required by section 335 of this Act, 
     and expires on September 30, 2008.
       (2) The expiration of the pilot program shall not affect 
     the selection of the source for the performance of an 
     information technology services function for the Department 
     of Defense for which the analysis required by section 
     2461(b)(3) of title 10, United States Code, has been 
     commenced before the expiration date or for which a 
     solicitation has been issued before the expiration date.
       (e) GAO Review.--Not later than February 1, 2008, the 
     Comptroller General shall submit to Congress a report 
     containing--
       (1) a review of the pilot program to assess the extent to 
     which the pilot program is effective and is equitable for the 
     potential public sources and the potential private sources of 
     information technology services for the Department of 
     Defense; and
       (2) any other conclusions of the Comptroller General 
     resulting from the review.
       (f) Information Technology Service Defined.--In this 
     section, the term ``information technology service'' means 
     any service performed in the operation or maintenance of 
     information technology (as defined in section 11101 of title 
     40, United States Code) that is necessary for or beneficial 
     to the accomplishment of the authorized functions of the 
     Department of Defense (other than functions which the 
     Secretary of Defense determines must be performed by military 
     or Government personnel).

     SEC. 337. HIGH-PERFORMING ORGANIZATION BUSINESS PROCESS 
                   REENGINEERING PILOT PROGRAM.

       (a) Pilot Program.--The Secretary of Defense shall 
     establish a pilot program under which the Secretary concerned 
     shall create, or continue the implementation of, high-
     performing organizations through the conduct of a Business 
     Process Reengineering initiative at selected military 
     installations and facilities under the jurisdiction of the 
     Secretary concerned.
       (b) Effect of Participation in Pilot Program.--(1) During 
     the period of an organization's participation in the pilot 
     program, including the periods referred to in paragraphs (2) 
     and (3) of subsection (f), the Secretary concerned may not 
     require the organization to undergo any Office of Management 
     and Budget Circular A-76 competition or other public-private 
     competition involving any function of the organization 
     covered by the Business Process Reengineering initiative. The 
     organization may elect to undergo such a competition as part 
     of the initiative.
       (2) Civilian employee or military personnel positions of 
     the participating organization that are part of the Business 
     Process Reengineering initiative shall be counted toward any 
     numerical goals, target, or quota that the Secretary 
     concerned is required or requested to meet during the term of 
     the pilot program regarding the number of positions to be 
     covered by public-private competitions.
       (c) Eligible Organizations.--Subject to subsection (d), the 
     Secretary concerned may select two types of organizations to 
     participate in the pilot program:
       (1) Organizations that underwent a Business Process 
     Reengineering initiative within the preceding five years, 
     achieved major performance enhancements under the initiative, 
     and will be able to sustain previous or achieve new 
     performance goals through the continuation of its existing or 
     completed Business Process Reengineering plan.
       (2) Organizations that have not undergone or have not 
     successfully completed a Business Process Reengineering 
     initiative, but which propose to achieve, and reasonably 
     could reach, enhanced performance goals through 
     implementation of a Business Process Reengineering 
     initiative.
       (d) Additional Eligibility Requirements.--(1) To be 
     eligible for selection to participate in the pilot program 
     under subsection (c)(1), an organization described in such 
     subsection shall demonstrate, to the satisfaction of the 
     Secretary concerned, the completion of a total organizational 
     assessment that resulted in enhanced performance measures at 
     least comparable to those performance measures that might be 
     achieved through competitive sourcing.
       (2) To be eligible for selection to participate in the 
     pilot program under subsection (c)(2), an organization 
     described in such subsection shall identify, to the 
     satisfaction of the Secretary concerned--
       (A) functions, processes, and measures to be studied under 
     the Business Process Reengineering initiative;
       (B) adequate resources to carry out the Business Process 
     Reengineering initiative; and
       (C) labor-management agreements in place to ensure 
     effective implementation of the Business Process 
     Reengineering initiative.
       (e) Limitation on Number of Participants.--Total 
     participants in the pilot program is limited to eight 
     military installations and facilities, with some participants 
     to be drawn from organizations described in subsection (c)(1) 
     and some participants to be drawn from organizations 
     described in subsection (c)(2).
       (f) Implementation and Duration.--(1) The implementation 
     and management of a Business Process Reengineering initiative 
     under the pilot program shall be the responsibility of the 
     commander of the military installation or facility at which 
     the Business Process Reengineering initiative is carried out.
       (2) An organization selected to participate in the pilot 
     program shall be given a reasonable initial period, to be 
     determined by the Secretary concerned, in which the 
     organization must implement the Business Process 
     Reengineering initiative. At the end of this period, the 
     Secretary concerned shall determine whether the organization 
     has achieved initial progress toward designation as a high-
     performing organization. In the absence of such progress, the 
     Secretary concerned shall terminate the organization's 
     participation in the pilot program.
       (3) If an organization successfully completes 
     implementation of the Business Process Reengineering 
     initiative under paragraph (2), the Secretary concerned shall 
     designate the organization as a high-performing organization 
     and grant the organization an additional five-year period in 
     which to achieve projected or planned efficiencies and 
     savings under the pilot program.
       (g) Reviews and Reports.--The Secretary concerned shall 
     conduct annual performance reviews of the participating 
     organizations or functions under the jurisdiction of the 
     Secretary concerned. Reviews and reports shall evaluate 
     organizational performance measures or functional performance 
     measures and determine whether organizations are performing 
     satisfactorily for purposes of continuing participation in 
     the pilot program.
       (h) Performance Measures.--Performance measures utilized in 
     the pilot program should include the following, which shall 
     be measured against organizational baselines determined 
     before participation in the pilot program:
       (1) Costs, savings, and overall financial performance of 
     the organization.
       (2) Organic knowledge, skills or expertise.
       (3) Efficiency and effectiveness of key functions or 
     processes.
       (4) Efficiency and effectiveness of the overall 
     organization.
       (5) General customer satisfaction.
       (i) Definitions.--In this section
       (1) The term ``Business Process Reengineering'' refers to 
     an organization's complete and thorough analysis and 
     reengineering of mission and support functions and processes 
     to achieve improvements in performance, including a 
     fundamental reshaping of the way work is done to better 
     support an organization's mission and reduce costs.
       (2) The term ``high-performing organization'' means an 
     organization whose performance exceeds that of comparable 
     providers, whether public or private.
       (3) The term ``Secretary concerned'' means the Secretary of 
     a military department and the Secretary of Defense, with 
     respect to matters concerning the Defense Agencies.

     SEC. 338. NAVAL AVIATION DEPOTS MULTI-TRADES DEMONSTRATION 
                   PROJECT.

       (a) Demonstration Project Required.--In accordance with 
     section 4703 of title 5, United States Code, the Secretary of 
     the Navy shall carry out a demonstration project under which 
     three Naval Aviation Depots are given the flexibility to 
     promote by one grade level workers who are certified at the 
     journey level as able to perform multiple trades.

[[Page 27523]]

       (b) Selection Requirements.--As a condition on eligibility 
     for selection to participate in the demonstration project, 
     the head of a Naval Aviation Depot shall submit to the 
     Secretary a business case analysis and concept plan--
       (1) that, on the basis of the results of analysis of work 
     processes, demonstrate that process improvements would result 
     from the trade combinations proposed to be implemented under 
     the demonstration project; and
       (2) that describes the improvements in cost, quality, or 
     schedule of work that are anticipated to result from the 
     participation in the demonstration project.
       (c) Participating Workers.--(1) Actual worker participation 
     in the demonstration project shall be determined through 
     competitive selection. Not more than 15 percent of the wage 
     grade journeyman at a demonstration project location may be 
     selected to participate.
       (2) Job descriptions and competency-based training plans 
     must be developed for each worker while in training under the 
     demonstration project and once certified as a multi-trade 
     worker. A certified multi-trade worker who receives a pay 
     grade promotion under the demonstration project must use each 
     new skill during at least 25 percent of the worker's work 
     year.
       (d) Funding Source.--Appropriations for operation and 
     maintenance of the Naval Aviation Depots selected to 
     participate in the demonstration project shall be used as the 
     source of funds to carry out the demonstration project, 
     including the source of funds for pay increases made under 
     the project.
       (e) Duration.--The demonstration project shall be conducted 
     during fiscal years 2004 through 2006.
       (f) Report.--Not later than January 15, 2007, the Secretary 
     shall submit a report to Congress describing the results of 
     the demonstration project.
       (g) GAO Evaluation.--The Secretary shall transmit a copy of 
     the report to the Comptroller General. Within 90 days after 
     receiving the report, the Comptroller General shall submit to 
     Congress an evaluation of the report.
                       Subtitle D--Other Matters

     SEC. 341. CATALOGING AND STANDARDIZATION FOR DEFENSE SUPPLY 
                   MANAGEMENT.

       Section 2451 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(d) The Secretary shall coordinate with the Administrator 
     of General Services to enable the use of commercial 
     identifiers for commercial items within the Federal 
     cataloging system.''.

     SEC. 342. SALE OF DEFENSE INFORMATION SYSTEMS AGENCY SERVICES 
                   TO CONTRACTORS PERFORMING THE NAVY-MARINE CORPS 
                   INTRANET CONTRACT.

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

     SEC. 343. PERMANENT AUTHORITY FOR PURCHASE OF CERTAIN 
                   MUNICIPAL SERVICES AT INSTALLATIONS IN MONTEREY 
                   COUNTY, CALIFORNIA.

       (a) Authority.--Subject to section 2465 of title 10, United 
     States Code, public works, utility, and other municipal 
     services needed for the operation of any Department of 
     Defense asset in Monterey County, California, may be 
     purchased from government agencies located in that county.
       (c) Repeal of Existing Temporary Authority.--Section 816 of 
     the National Defense Authorization Act for Fiscal Year 1995 
     (Public Law 103-337; 108 Stat. 2820) is repealed.

     SEC. 344. DEPARTMENT OF DEFENSE TELECOMMUNICATIONS BENEFIT.

       (a) Provision of Prepaid Phone Cards.--As soon as possible 
     after the date of the enactment of this Act, the Secretary of 
     Defense shall provide, wherever practicable, prepaid phone 
     cards, or an equivalent telecommunications benefit which 
     includes access to telephone service, to members of the Armed 
     Forces stationed outside the United States who (as determined 
     by the Secretary) are eligible for combat zone tax exclusion 
     benefits due to their service in direct support of Operation 
     Enduring Freedom and Operation Iraqi Freedom to enable those 
     members to make telephone calls without cost to the member.
       (b) Monthly Benefit.--The value of the benefit provided 
     under subsection (a) to any member in any month, to the 
     extent the benefit is provided from amounts available to the 
     Department of Defense, may not exceed--
       (1) $40; or
       (2) 120 calling minutes, if the cost to the Department of 
     Defense of providing such number of calling minutes is less 
     than the amount specified in paragraph (1).
       (c) End of Program.--The program established by subsection 
     (a) shall terminate on September 30, 2004.
       (d) Funding.--(1)(A) In carrying out the program under this 
     section, the Secretary shall maximize the use of existing 
     Department of Defense telecommunications programs and 
     capabilities, free or reduced-cost services of private sector 
     entities, and programs to enhance morale and welfare.
       (B) The Secretary may not award a contract to a commercial 
     firm for the purposes of subparagraph (A) other than through 
     the use of competitive procedures.
       (2) The Secretary may accept gifts and donations in order 
     to defray the costs of the program under this section. Such 
     gifts and donations may be accepted from--
       (A) any foreign government;
       (B) any foundation or other charitable organization, 
     including any that is organized or operates under the laws of 
     a foreign country; and
       (C) any source in the private sector of the United States 
     or a foreign country.
       (e) Deployment of Additional Telephone Equipment.--If the 
     Secretary of Defense determines that, in order to implement 
     this section as quickly as practicable, it is necessary to 
     provide additional telephones in any area to facilitate 
     telephone calling for which benefits are provided under this 
     section, the Secretary may, consistent with the availability 
     of resources, award competitively bid contracts to one or 
     more commercial entities for the provision and installation 
     of telephones in that area.
       (f) No Compromise of Military Mission.--The Secretary of 
     Defense should not take any action under this section that 
     would compromise the military objectives or mission of the 
     Department of Defense.

     SEC. 345. INDEPENDENT ASSESSMENT OF MATERIAL CONDITION OF THE 
                   KC-135 AERIAL REFUELING FLEET.

       Not later than May 1, 2004, the Secretary of Defense shall 
     submit to the congressional defense committees an assessment, 
     conducted by an entity outside of the Department of Defense, 
     of the material condition of the fleet of KC-135 aerial 
     refueling aircraft of the Air Force. The assessment shall 
     include the following:
       (1) Trend analysis for operational readiness for KC-135E 
     and KC-135R aircraft from fiscal year 1996 through fiscal 
     year 2003.
       (2) Trend analysis for the number of manhours of 
     organizational-level and depot-level maintenance required for 
     KC-135E and KC-135R aircraft from fiscal year 1996 through 
     fiscal year 2003, setting forth separately the manhours 
     required for control and treatment of corrosion.
       (3) The number of KC-135E and KC-135R aircraft grounded due 
     to corrosion for each year, and the length of time each 
     aircraft was grounded pending corrosion repair, based on 
     maintenance conducted from fiscal year 1996 through fiscal 
     year 2003.
       (4) An itemization of improved corrosion repair processes 
     for KC-135E and KC-135R aircraft used between fiscal year 
     1996 and fiscal year 2003 which resulted in a decrease in the 
     number of manhours required for control and treatment of 
     corrosion.
       (5) An analysis of the relationship between manhours for 
     corrosion repair as set forth under paragraph (2) and the 
     processes set forth under paragraph (4).
       (6) An analysis of major structural repairs required due to 
     corrosion for KC-135E and KC-135R aircraft annually from 
     fiscal year 1996 through fiscal year 2003.
              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. Personnel strength authorization and accounting process.

                       Subtitle B--Reserve Forces

Sec. 411. End strengths for Selected Reserve.
Sec. 412. End strengths for Reserves on active duty in support of the 
              reserves.
Sec. 413. End strengths for military technicians (dual status).
Sec. 414. Fiscal year 2004 limitations on non-dual status technicians.
Sec. 415. Permanent limitations on number of non-dual status 
              technicians.

              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.

       The Armed Forces are authorized strengths for active duty 
     personnel as of September 30, 2004, as follows:
       (1) The Army, 482,400.
       (2) The Navy, 373,800.
       (3) The Marine Corps, 175,000.
       (4) The Air Force, 359,300.

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

       Section 691(b) of title 10, United States Code, is amended 
     as follows:
       (1) Army.--Paragraph (1) is amended by striking ``480,000'' 
     and inserting ``482,400''.
       (2) Navy.--Paragraph (2) is amended by striking ``375,700'' 
     and inserting ``373,800''.
       (3) Air force.--Paragraph (4) is amended by striking 
     ``359,000'' and inserting ``359,300''.

     SEC. 403. PERSONNEL STRENGTH AUTHORIZATION AND ACCOUNTING 
                   PROCESS.

       (a) Quarterly Strength Levels.--Section 115 of title 10, 
     United States Code, is amended--
       (1) by redesignating subsections (c), (e), and (g) as 
     subsections (e), (g), and (c), respectively, and by 
     transferring--

[[Page 27524]]

       (A) subsection (e), as so redesignated, so as to appear 
     after subsection (d);
       (B) subsection (g), as so redesignated, so as to appear 
     after subsection (f); and
       (C) subsection (c), as so redesignated, so as to appear 
     after subsection (b);
       (2) by transferring subsection (d) to the end of such 
     section and redesignating that subsection as subsection (h); 
     and
       (3) by inserting after subsection (c), as redesignated and 
     transferred by paragraph (1), the following new subsection 
     (d):
       ``(d) End-of-Quarter Strength Levels.--(1) The Secretary of 
     Defense shall prescribe and include in the budget 
     justification documents submitted to Congress in support of 
     the President's budget for the Department of Defense for any 
     fiscal year the Secretary's proposed end-of-quarter strengths 
     for each of the first three quarters of the fiscal year for 
     which the budget is submitted, in addition to the Secretary's 
     proposed fiscal-year end-strengths for that fiscal year. Such 
     end-of-quarter strengths shall be submitted for each category 
     of personnel for which end strengths are required to be 
     authorized by law under subsection (a) or (c). The Secretary 
     shall ensure that resources are provided in the budget at a 
     level sufficient to support the end-of-quarter and fiscal-
     year end-strengths as submitted.
       ``(2)(A) After annual end-strength levels required by 
     subsections (a) and (c) are authorized by law for a fiscal 
     year, the Secretary of Defense shall promptly prescribe end-
     of-quarter strength levels for the first three quarters of 
     that fiscal year applicable to each such end-strength level. 
     Such end-of-quarter strength levels shall be established for 
     any fiscal year as levels to be achieved in meeting each of 
     those annual end-strength levels authorized by law in 
     accordance with subsection (a) (as such levels may be 
     adjusted pursuant to subsection (e)) and subsection (c).
       ``(B) At least annually, the Secretary of Defense shall 
     establish for each of the armed forces (other than the Coast 
     Guard) the maximum permissible variance of actual strength 
     for an armed force at the end of any given quarter from the 
     end-of-quarter strength established pursuant to subparagraph 
     (A). Such variance shall be such that it promotes the 
     maintaining of the strength necessary to achieve the end-
     strength levels authorized in accordance with subsection (a) 
     (as adjusted pursuant to subsection (e)) and subsection (c).
       ``(3) Whenever the Secretary establishes an end-of-quarter 
     strength level under subparagraph (A) of paragraph (2), or 
     modifies a strength level under the authority provided in 
     subparagraph (B) of paragraph (2), the Secretary shall notify 
     the Committee on Armed Services of the Senate and the 
     Committee on Armed Services of the House of Representatives 
     of that strength level or of that modification, as the case 
     may be.''.
       (b) Conforming and Stylistic Amendments.--Such section is 
     further amended--
       (1) in subsection (a), by inserting ``Active-Duty and 
     Selected Reserve End Strengths To Be Authorized by Law.--'' 
     after ``(a)'';
       (2) in subsection (b), by inserting ``Limitation 
     on Appropriations for Military Personnel.--'' after ``(b)'';
       (3) in subsection (c), as redesignated and transferred by 
     subsection (a)(1), by inserting ``Military Technician (Dual 
     Status) End Strengths To Be Authorized by Law.--'' after 
     ``(c)'';
       (4) in subsection (e), as redesignated and transferred by 
     subsection (a)(1), by inserting ``Authority for Secretary of 
     Defense Variances for Active-Duty and Selected Reserve End 
     Strengths.--'' after ``(e)'';
       (5) in subsection (f)--
       (A) by inserting ``Authority for Service Secretary 
     Variances for Active-Duty End Strengths.--'' after ``(f)''; 
     and
       (B) in paragraph (2), by striking ``subsection (c)(1)'' and 
     inserting ``subsection (e)(1)'';
       (6) in subsection (g), as redesignated and transferred by 
     subsection (a)(1), by inserting ``Adjustment When Coast Guard 
     is Operating as a Service in the Navy.--'' after ``(g)''; and
       (7) in subsection (h), as redesignated and transferred by 
     subsection (a)(2), by inserting ``Certain Active-Duty 
     Personnel Excluded from Counting for Active-Duty End 
     Strengths.--'' after ``(h)''.
       (c) Cross Reference Amendments.--Section 10216 of such 
     title is amended by striking ``section 115(g)'' each place it 
     appears and inserting ``section 115(c)''.
       (d) Effective Date.--Subsection (d) of section 115 of title 
     10, United States Code, as added by subsection (a)(3), shall 
     apply with respect to the budget request for fiscal year 2005 
     and thereafter.
                       Subtitle B--Reserve Forces

     SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

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

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

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

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

       The minimum number of military technicians (dual status) as 
     of the last day of fiscal year 2004 for the reserve 
     components of the Army and the Air Force (notwithstanding 
     section 129 of title 10, United States Code) shall be the 
     following:
       (1) For the Army Reserve, 6,949.
       (2) For the Army National Guard of the United States, 
     24,589.
       (3) For the Air Force Reserve, 9,991.
       (4) For the Air National Guard of the United States, 
     22,806.

     SEC. 414. FISCAL YEAR 2004 LIMITATIONS ON NON-DUAL STATUS 
                   TECHNICIANS.

       (a) Limitations.--(1) Within the limitation provided in 
     section 10217(c)(2) of title 10, United States Code, the 
     number of non-dual status technicians employed by the 
     National Guard as of September 30, 2004, may not exceed the 
     following:
       (A) For the Army National Guard of the United States, 
     1,600.
       (B) For the Air National Guard of the United States, 350.
       (2) The number of non-dual status technicians employed by 
     the Army Reserve as of September 30, 2004, may not exceed 
     910.
       (3) The number of non-dual status technicians employed by 
     the Air Force Reserve as of September 30, 2004, may not 
     exceed 90.
       (b) Non-Dual Status Technicians Defined.--In this section, 
     the term ``non-dual status technician'' has the meaning given 
     that term in section 10217(a) of title 10, United States 
     Code.

     SEC. 415. PERMANENT LIMITATIONS ON NUMBER OF NON-DUAL STATUS 
                   TECHNICIANS.

       Section 10217(c) of title 10, United States Code, is 
     amended by striking ``and Air Force Reserve may not exceed 
     175'' and inserting ``may not exceed 595 and by the Air Force 
     Reserve may not exceed 90''.
              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 
     2004 a total of $98,908,400,000. The authorization in the 
     preceding sentence supersedes any other authorization of 
     appropriations (definite or indefinite) for such purpose for 
     fiscal year 2004.

     SEC. 422. ARMED FORCES RETIREMENT HOME.

       There is hereby authorized to be appropriated for fiscal 
     year 2004 from the Armed Forces Retirement Home Trust Fund 
     the sum of $65,279,000 for the operation of the Armed Forces 
     Retirement Home.
                   TITLE V--MILITARY PERSONNEL POLICY

                 Subtitle A--Officer Personnel Matters

Sec. 501. Standardization of qualifications for appointment as service 
              chief.
Sec. 502. Eligibility for appointment as Chief of Army Veterinary 
              Corps.
Sec. 503. Repeal of required grade of defense attache in France.
Sec. 504. Repeal of termination provisions for certain authorities 
              relating to management of general and flag officers in 
              certain grades.
Sec. 505. Retention of health professions officers to fulfill active-
              duty service commitments following promotion 
              nonselection.
Sec. 506. Permanent authority to reduce three-year time-in-grade 
              requirement for retirement in grade for officers in 
              grades above major and lieutenant commander.
Sec. 507. Contingent exclusion from officer strength and distribution-
              in-grade limitations for officer serving as Associate 
              Director of Central Intelligence for Military Support.

[[Page 27525]]

Sec. 508. Reappointment of incumbent Chief of Naval Operations.
Sec. 509. Secretary of Defense approval required for practice of 
              wearing uniform insignia of higher grade known as 
              ``frocking''.

                 Subtitle B--Reserve Component Matters

Sec. 511. Streamlined process for continuation of officers on the 
              Reserve Active-Status List.
Sec. 512. Consideration of Reserve officers for position vacancy 
              promotions in time of war or national emergency.
Sec. 513. Authority for delegation of required secretarial special 
              finding for placement of certain retired members in Ready 
              Reserve.
Sec. 514. Authority to provide expenses of Army and Air Staff personnel 
              and National Guard Bureau personnel attending national 
              conventions of certain military associations.
Sec. 515. Expanded authority for use of Ready Reserve in response to 
              terrorism.
Sec. 516. National Guard officers on active duty in command of National 
              Guard units.
Sec. 517. Presidential report on mobilization of reserve component 
              personnel and Secretary of Defense assessment.
Sec. 518. Authority for the use of operation and maintenance funds for 
              promotional activities of the National Committee for 
              Employer Support of the Guard and Reserve.

            Subtitle C--ROTC and Military Service Academies

Sec. 521. Expanded educational assistance authority for cadets and 
              midshipmen receiving ROTC scholarships.
Sec. 522. Increase in allocation of scholarships under Army Reserve 
              ROTC scholarship program to students at military junior 
              colleges.
Sec. 523. Authority for nonscholarship senior ROTC sophomores to 
              voluntarily contract for and receive subsistence 
              allowance.
Sec. 524. Appointments to military service academies from nominations 
              made by delegates from Guam, Virgin Islands, and American 
              Samoa.
Sec. 525. Readmission to service academies of certain former cadets and 
              midshipmen.
Sec. 526. Defense task force on sexual harassment and violence at the 
              military service academies.
Sec. 527. Actions to address sexual harassment and violence at the 
              service academies.
Sec. 528. Study and report related to permanent professors at the 
              United States Air Force Academy.
Sec. 529. Dean of the faculty of the United States Air Force Academy.

       Subtitle D--Other Military Education and Training Matters

Sec. 531. Authority for the Marine Corps University to award the degree 
              of Master of Operational Studies.
Sec. 532. Authorization for Naval Postgraduate School to provide 
              instruction to enlisted members participating in certain 
              programs.
Sec. 533. Cost reimbursement requirements for personnel receiving 
              instruction at the Air Force Institute of Technology
Sec. 534. Inclusion of accrued interest in amounts that may be repaid 
              under Selected Reserve critical specialties education 
              loan repayment program.
Sec. 535. Funding of education assistance enlistment incentives to 
              facilitate national service through Department of Defense 
              Education Benefits Fund.
Sec. 536. Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and Department 
              of Defense civilian employees.
Sec. 537. Impact aid eligibility for heavily impacted local educational 
              agencies affected by privatization of military housing.

                   Subtitle E--Administrative Matters

Sec. 541. High-tempo personnel management and allowance.
Sec. 542. Enhanced retention of accumulated leave for high-deployment 
              members.
Sec. 543. Standardization of statutory authorities for exemptions from 
              requirement for access to secondary schools by military 
              recruiters.
Sec. 544. Procedures for consideration of applications for award of the 
              Purple Heart medal to veterans held as prisoners of war 
              before April 25, 1962.
Sec. 545. Authority for Reserve and retired regular officers to hold 
              State and local office notwithstanding call to active 
              duty.
Sec. 546. Policy on public identification of casualties.
Sec. 547. Space personnel career fields.
Sec. 548. Department of Defense Joint Advertising, Market Research, and 
              Studies program.
Sec. 549. Limitation on force structure reductions in Naval and Marine 
              Corps Reserve aviation squadrons.

                  Subtitle F--Military Justice Matters

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

                          Subtitle G--Benefits

Sec. 561. Additional classes of individuals eligible to participate in 
              the Federal long-term care insurance program.
Sec. 562. Authority to transport remains of retirees and retiree 
              dependents who die in military treatment facilities.
Sec. 563. Eligibility for dependents of certain mobilized reservists 
              stationed overseas to attend defense dependents schools 
              overseas.

                     Subtitle H--Domestic Violence

Sec. 571. Travel and transportation for dependents relocating for 
              reasons of personal safety.
Sec. 572. Commencement and duration of payment of transitional 
              compensation.
Sec. 573. Exceptional eligibility for transitional compensation.
Sec. 574. Types of administrative separations triggering coverage.
Sec. 575. Comptroller General review and report.
Sec. 576. Fatality reviews.
Sec. 577. Sense of Congress.

                       Subtitle I--Other Matters

Sec. 581. Recognition of military families.
Sec. 582. Permanent authority for support for certain chaplain-led 
              military family support programs.
Sec. 583. Department of Defense-Department of Veterans Affairs Joint 
              Executive Committee.
Sec. 584. Review of the 1991 death of Marine Corps Colonel James E. 
              Sabow.
Sec. 585. Policy on concurrent deployment to combat zones of both 
              military spouses of military families with minor 
              children.
Sec. 586. Congressional notification of amendment or cancellation of 
              Department of Defense directive relating to reasonable 
              access to military installations for certain personal 
              commercial solicitation.
Sec. 587. Study of National Guard Challenge Program.
Sec. 588. Findings and sense of Congress on reward for information 
              leading to resolution of status of members of the Armed 
              Forces who remain unaccounted for.
                 Subtitle A--Officer Personnel Matters

     SEC. 501. STANDARDIZATION OF QUALIFICATIONS FOR APPOINTMENT 
                   AS SERVICE CHIEF.

       (a) Chief of Naval Operations.--Section 5033(a)(1) of title 
     10, United States Code, is amended by striking ``from 
     officers on the active-duty list in the line of the Navy who 
     are eligible to command at sea and who hold the grade of rear 
     admiral or above'' and inserting ``from the flag officers of 
     the Navy''.
       (b) Commandant of the Marine Corps.--Section 5043(a)(1) of 
     title 10, United States Code, is amended by striking ``from 
     officers on the active-duty list of the Marine Corps not 
     below the grade of colonel'' and inserting ``from the general 
     officers of the Marine Corps''.

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

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

     SEC. 503. REPEAL OF REQUIRED GRADE OF DEFENSE ATTACHE IN 
                   FRANCE.

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

     SEC. 504. REPEAL OF TERMINATION PROVISIONS FOR CERTAIN 
                   AUTHORITIES RELATING TO MANAGEMENT OF GENERAL 
                   AND FLAG OFFICERS IN CERTAIN GRADES.

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

     SEC. 505. RETENTION OF HEALTH PROFESSIONS OFFICERS TO FULFILL 
                   ACTIVE-DUTY SERVICE COMMITMENTS FOLLOWING 
                   PROMOTION NONSELECTION.

       (a) In General.--Section 632 of title 10, United States 
     Code, is amended--
       (1) in subsection (a)(1), by inserting ``except as provided 
     in paragraph (3) and in subsection (c),'' before ``be 
     discharged''; and

[[Page 27526]]

       (2) by adding at the end the following new subsection:
       ``(c)(1) If a health professions officer described in 
     paragraph (2) is subject to discharge under subsection (a)(1) 
     and, as of the date on which the officer is to be discharged 
     under that paragraph, the officer has not completed a period 
     of active duty service obligation that the officer incurred 
     under section 2005, 2114, 2123, or 2603 of this title, the 
     officer shall be retained on active duty until completion of 
     such active duty service obligation, and then be discharged 
     under that subsection, unless sooner retired or discharged 
     under another provision of law.
       ``(2) The Secretary concerned may waive the applicability 
     of paragraph (1) to any officer if the Secretary determines 
     that completion of the active duty service obligation of that 
     officer is not in the best interest of the service.
       ``(3) This subsection applies to a medical officer or 
     dental officer or an officer appointed in a medical skill 
     other than as a medical officer or dental officer (as defined 
     in regulations prescribed by the Secretary of Defense).''.
       (b) Technical Amendments.--Sections 630(2), 631(a)(3), and 
     632(a)(3) of such title are amended by striking ``clause'' 
     and inserting ``paragraph''.
       (c) Effective Date.--The amendments made by subsection (a) 
     shall not apply in the case of an officer who as of the date 
     of the enactment of this Act is required to be discharged 
     under section 632(a)(1) of title 10, United States Code, by 
     reason of having failed of selection for promotion to the 
     next higher regular grade a second time.

     SEC. 506. PERMANENT AUTHORITY TO REDUCE THREE-YEAR TIME-IN-
                   GRADE REQUIREMENT FOR RETIREMENT IN GRADE FOR 
                   OFFICERS IN GRADES ABOVE MAJOR AND LIEUTENANT 
                   COMMANDER.

       (a) Active Component Officers.--Subsection (a)(2)(A) of 
     section 1370 of title 10, United States Code, is amended by 
     striking ``in the case of retirements effective during the 
     period beginning on October 1, 2002, and ending on December 
     31, 2003''.
       (b) Reserve Component Officers.--Subsection (d)(5)(A) of 
     such section is amended by striking ``2 years'' and all that 
     follows and inserting ``two years.''.

     SEC. 507. CONTINGENT EXCLUSION FROM OFFICER STRENGTH AND 
                   DISTRIBUTION-IN-GRADE LIMITATIONS FOR OFFICER 
                   SERVING AS ASSOCIATE DIRECTOR OF CENTRAL 
                   INTELLIGENCE FOR MILITARY SUPPORT.

       (a) Associate Director Not Counted.--Chapter 32 of title 
     10, United State Code, is amended by adding at the end the 
     following new section:

     ``Sec. 528. Exclusion: officer serving as Associate Director 
       of Central Intelligence for Military Support

       ``(a) When none of the individuals serving in a position 
     specified in subsection (b) is an officer of the armed 
     forces, an officer of the armed forces assigned to the 
     position of Associate Director of Central Intelligence for 
     Military Support, while serving in that position, shall not 
     be counted against the numbers and percentages of officers of 
     the grade of that officer authorized for that officer's armed 
     force.
       ``(b) The positions referred to in subsection (a) are the 
     following:
       ``(1) Director of Central Intelligence.
       ``(2) Deputy Director of Central Intelligence.
       ``(3) Deputy Director of Central Intelligence for Community 
     Management.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

``528. Exclusion: Associate Director of Central Intelligence for 
              Military Support.''.

     SEC. 508. REAPPOINTMENT OF INCUMBENT CHIEF OF NAVAL 
                   OPERATIONS.

       Notwithstanding the provisions of section 5033(a)(1) of 
     title 10, United States Code, the President, by and with the 
     advice and consent of the Senate, may reappoint the officer 
     serving as Chief of Naval Operations on October 1, 2003, for 
     an additional term as Chief of Naval Operations. Such a 
     reappointment shall be for a term of not more than two years.

     SEC. 509. SECRETARY OF DEFENSE APPROVAL REQUIRED FOR PRACTICE 
                   OF WEARING UNIFORM INSIGNIA OF HIGHER GRADE 
                   KNOWN AS ``FROCKING''.

       (a) OSD Approval Required.--Section 777(b) of title 10, 
     United States Code, is amended--
       (1) by striking ``and'' at the end of paragraph (1);
       (2) by striking the period at the end of paragraph (2) and 
     inserting ``; and''; and
       (3) by adding at the end the following new paragraph:
       ``(3) in the case of an officer selected for promotion to a 
     grade above colonel or, in the case of an officer of the 
     Navy, a grade above captain--
       ``(A) authority for that officer to wear the insignia of 
     that grade has been approved by the Secretary of Defense (or 
     a civilian officer within the Office of the Secretary of 
     Defense whose appointment was made with the advice and 
     consent of the Senate and to whom the Secretary delegates 
     such approval authority); and
       ``(B) the Secretary of Defense has submitted to Congress a 
     written notification of the intent to authorize the officer 
     to wear the insignia for that grade and a period of 30 days 
     has elapsed after the date of the notification.''.
       (b) Effective Date.--Paragraph (3) of subsection (b) of 
     section 777 of title 10, United States Code, as added by 
     subsection (a), shall not apply with respect to the wearing 
     by an officer of insignia for a grade that was authorized 
     under that section before the date of the enactment of this 
     Act.
                 Subtitle B--Reserve Component Matters

     SEC. 511. STREAMLINED PROCESS FOR CONTINUATION OF OFFICERS ON 
                   THE RESERVE ACTIVE-STATUS LIST.

       (a) Repeal of Requirement for Use of Selection Boards.--
     Section 14701 of title 10, United States Code, is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``by a selection board 
     convened under section 14101(b) of this title'' and inserting 
     ``under regulations prescribed by the Secretary of Defense''; 
     and
       (B) in paragraph (6), by striking ``as a result of the 
     convening of a selection board under section 14101(b) of this 
     title'' and inserting ``under regulations prescribed under 
     paragraph (1)'';
       (2) by striking subsections (b) and (c); and
       (3) by redesignating subsection (d) as subsection (b).
       (b) Conforming Amendments.--(1) Section 14101(b) of such 
     title is amended--
       (A) by striking ``Continuation Boards'' and inserting 
     ``Selective Early Separation Boards'';
       (B) by striking paragraph (1);
       (C) by redesignating paragraphs (2) and (3) as paragraphs 
     (1) and (2), respectively; and
       (D) by striking the last sentence.
       (2) Section 14102(a) of such title is amended by striking 
     ``Continuation boards'' and inserting ``Selection boards 
     convened under section 14101(b) of this title''.
       (3) Section 14705(b)(1) of such title is amended by 
     striking ``continuation board'' and inserting ``selection 
     board''.

     SEC. 512. CONSIDERATION OF RESERVE OFFICERS FOR POSITION 
                   VACANCY PROMOTIONS IN TIME OF WAR OR NATIONAL 
                   EMERGENCY.

       (a) Promotion Consideration While on Active-Duty List.--(1) 
     Subsection (d) of section 14317 of title 10, United States 
     Code, is amended by striking ``If a reserve officer'' and 
     inserting ``Except as provided in subsection (e), if a 
     reserve officer''.
       (2) Subsection (e) of such section is amended to read as 
     follows:
       ``(e) Officers Ordered to Active Duty in Time of War or 
     National Emergency.--(1) A reserve officer who is not on the 
     active-duty list and who is ordered to active duty in time of 
     war or national emergency may, if eligible, be considered for 
     promotion--
       ``(A) by a mandatory promotion board convened under section 
     14101(a) of this title or a special selection board convened 
     under section 14502 of this title; or
       ``(B) in the case of an officer who has been ordered to or 
     is serving on active duty in support of a contingency 
     operation, by a vacancy promotion board convened under 
     section 14101(a) of this title.
       ``(2) An officer may not be considered for promotion under 
     this subsection after the end of the two-year period 
     beginning on the date on which the officer is ordered to 
     active duty.
       ``(3) An officer may not be considered for promotion under 
     this subsection during a period when the operation of this 
     section has been suspended by the President under section 
     123(a) of this title.
       ``(4) Consideration of an officer for promotion under this 
     subsection shall be under regulations prescribed by the 
     Secretary of the military department concerned.''.
       (b) Conforming Amendment.--Section 14315(a)(1) of such 
     title is amended by striking ``as determined by the Secretary 
     concerned, is available'' and inserting ``under regulations 
     prescribed by the Secretary concerned, has been 
     recommended''.

     SEC. 513. AUTHORITY FOR DELEGATION OF REQUIRED SECRETARIAL 
                   SPECIAL FINDING FOR PLACEMENT OF CERTAIN 
                   RETIRED MEMBERS IN READY RESERVE.

       The last sentence of section 10145(d) of title 10, United 
     States Code, is amended to read as follows: ``The authority 
     of the Secretary concerned under the preceding sentence may 
     not be delegated--
       ``(1) to a civilian officer or employee of the military 
     department concerned below the level of Assistant Secretary; 
     or
       ``(2) to a member of the armed forces below the level of 
     the lieutenant general or vice admiral in an armed force with 
     responsibility for military personnel policy in that armed 
     force.''.

     SEC. 514. AUTHORITY TO PROVIDE EXPENSES OF ARMY AND AIR STAFF 
                   PERSONNEL AND NATIONAL GUARD BUREAU PERSONNEL 
                   ATTENDING NATIONAL CONVENTIONS OF CERTAIN 
                   MILITARY ASSOCIATIONS.

       (a) Authority.--Section 107(a)(2) of title 32, United 
     States Code, is amended--
       (1) by striking ``officers'' and inserting ``members'';
       (2) by striking ``Army General Staff'' and inserting ``Army 
     Staff''; and
       (3) by striking ``the National Guard Association of the 
     United States'' and inserting ``the Enlisted Association of 
     the National Guard of the United States, the National Guard 
     Association of the United States,''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall not apply with respect to funds appropriated for a 
     fiscal year before fiscal year 2004.

     SEC. 515. EXPANDED AUTHORITY FOR USE OF READY RESERVE IN 
                   RESPONSE TO TERRORISM.

       Section 12304 of title 10, United States Code, is amended--
       (1) in subsection (b)(2), by striking ``catastrophic'' and 
     inserting ``significant''; and

[[Page 27527]]

       (2) by adding at the end of subsection (c) the following 
     new paragraph:
       ``(3) No unit or member of a reserve component may be 
     ordered to active duty under this section to provide 
     assistance referred to in subsection (b) unless the President 
     determines that the requirements for responding to an 
     emergency referred to in that subsection have exceeded, or 
     will exceed, the response capabilities of local, State, and 
     Federal civilian agencies.''.

     SEC. 516. NATIONAL GUARD OFFICERS ON ACTIVE DUTY IN COMMAND 
                   OF NATIONAL GUARD UNITS.

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

     SEC. 517. PRESIDENTIAL REPORT ON MOBILIZATION OF RESERVE 
                   COMPONENT PERSONNEL AND SECRETARY OF DEFENSE 
                   ASSESSMENT.

       (a) Presidential Report--Not later than six months after 
     the date of the enactment of this Act, the President shall 
     transmit to Congress a report on the mobilization during 
     fiscal years 2002 and 2003 of members of the reserve 
     components. The report shall include, for each of those 
     fiscal years, the following:
       (1) The number of members of the reserve components who 
     were called or ordered to active duty under a provision of 
     law specified in section 101(a)(13)(B) of title 10, United 
     States Code.
       (2) Of the members counted under paragraph (1), the number 
     who, under a call or order to active duty referred to in 
     paragraph (1), served on active duty for one year or more 
     (including any extension on active duty) and, for those 
     members, specification of their military specialties and the 
     number of such members in each such specialty.
       (3) Of the members counted under paragraph (1), the number 
     who, under a provision of law referred to in paragraph (1), 
     were called or ordered to active duty more than once and, for 
     those members, specification of their military specialties 
     and the number of such members in each such specialty.
       (b) Assessment by Secretary of Defense.--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 Senate and the Committee on Armed Services of 
     the House of Representatives the following:
       (1) A description of the effects on reserve component 
     recruitment and retention that have resulted from--
       (A) the calls and orders of Reserves to active duty during 
     fiscal years 2002 and 2003; and
       (B) the tempo of the service of the Reserves on the active 
     duty to which called or ordered.
       (2) A description of changes in the Armed Forces, including 
     any changes in the allocation of roles and missions, in force 
     structure, and in capabilities between the active components 
     and the reserve components of the Armed Forces, that are 
     envisioned by the Secretary of Defense on the basis of--
       (A) the effects discussed under paragraph (1); or
       (B) the lessons learned from calling and ordering the 
     reserve components to active duty during fiscal years 2002 
     and 2003.
       (C) future military force structure and capabilities 
     requirements.
       (3) On the basis of the lessons learned as a result of 
     calling and ordering members of the reserve components to 
     active duty during fiscal years 2002 and 2003, an assessment 
     of the process for calling and ordering such members to 
     active duty, preparing such members for active duty, 
     processing such members into the force upon entry onto active 
     duty, and deploying such members, including an assessment of 
     the adequacy of the alert and notification process from the 
     perspectives of individual members, of reserve component 
     units, and of employers of such members.

     SEC. 518. AUTHORITY FOR THE USE OF OPERATION AND MAINTENANCE 
                   FUNDS FOR PROMOTIONAL ACTIVITIES OF THE 
                   NATIONAL COMMITTEE FOR EMPLOYER SUPPORT OF THE 
                   GUARD AND RESERVE.

       Section 2241 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(c) Activities of the National Committee for Employer 
     Support of the Guard and Reserve.--Amounts appropriated for 
     operation and maintenance may, under regulations prescribed 
     by the Secretary of Defense, be used by the Secretary for 
     official reception, representation, and advertising 
     activities and materials of the National Committee for 
     Employer Support of the Guard and Reserve to further employer 
     commitments to their employees who are members of a reserve 
     component.''.
            Subtitle C--ROTC and Military Service Academies

     SEC. 521. EXPANDED EDUCATIONAL ASSISTANCE AUTHORITY FOR 
                   CADETS AND MIDSHIPMEN RECEIVING ROTC 
                   SCHOLARSHIPS.

       (a) Financial Assistance Program for Service on Active 
     Duty.--Section 2107(c) of title 10, United States Code, is 
     amended by adding at the end the following new paragraphs:
       ``(3) In the case of a cadet or midshipman eligible to 
     receive financial assistance under paragraph (1) or (2), the 
     Secretary of the military department concerned may, in lieu 
     of all or part of the financial assistance described in 
     paragraph (1), provide financial assistance in the form of 
     room and board expenses for the cadet or midshipman and other 
     expenses required by the educational institution.
       ``(4) The total amount of financial assistance, including 
     the payment of room and board and other educational expenses, 
     provided to a cadet or midshipman in an academic year under 
     this subsection may not exceed an amount equal to the amount 
     that could be provided as financial assistance for such cadet 
     or midshipman under paragraph (1) or (2), or another amount 
     determined by the Secretary concerned, without regard to 
     whether room and board and other educational expenses for 
     such cadet or midshipman are paid under paragraph (3).''.
       (b) Financial Assistance Program for Service in Troop 
     Program Units.--Section 2107a(c) of such title is amended--
       (1) by inserting ``(1)'' after ``(c)''; and
       (2) by adding at the end the following new paragraphs:
       ``(2) In the case of a cadet eligible to receive financial 
     assistance under paragraph (1), the Secretary of the military 
     department concerned may, in lieu of all or part of the 
     financial assistance described in paragraph (1), provide 
     financial assistance in the form of room and board expenses 
     for such cadet and other expenses required by the educational 
     institution.
       ``(3) The total amount of financial assistance, including 
     the payment of room and board and any other educational 
     expenses, provided to a cadet in an academic year under this 
     subsection may not exceed an amount equal to the amount that 
     could be provided as financial assistance for such cadet 
     under paragraph (1), or another amount determined by the 
     Secretary of the Army, without regard to whether the room and 
     board and other educational expenses for such cadet are paid 
     under paragraph (2).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to payment of expenses of cadets and midshipmen 
     of the Senior Reserve Officers' Training Corps program that 
     are due after the date of the enactment of this Act.

     SEC. 522. INCREASE IN ALLOCATION OF SCHOLARSHIPS UNDER ARMY 
                   RESERVE ROTC SCHOLARSHIP PROGRAM TO STUDENTS AT 
                   MILITARY JUNIOR COLLEGES.

       Section 2107a(h) of title 10, United States Code, is 
     amended by striking ``10'' each place it appears and 
     inserting ``17''.

     SEC. 523. AUTHORITY FOR NONSCHOLARSHIP SENIOR ROTC SOPHOMORES 
                   TO VOLUNTARILY CONTRACT FOR AND RECEIVE 
                   SUBSISTENCE ALLOWANCE.

       (a) Authority for Allowance.--Section 209 of title 37, 
     United States Code, is amended--
       (1) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively; and
       (2) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Nonscholarship Senior ROTC Members Not in Advanced 
     Training.--A member of the Selected Reserve Officers' 
     Training Corps who has entered into an agreement under 
     section 2103a of title 10 is entitled to a monthly 
     subsistence allowance at a rate prescribed under subsection 
     (a). That allowance may be paid to the member by reason of 
     such agreement for a maximum of 20 months.''.
       (b) Authority To Accept Enrollment.--(1) Chapter 103 of 
     title 10, United States Code, is amended by inserting after 
     section 2103 the following new section:

     ``Sec. 2103a. Students not eligible for advanced training: 
       commitment to military service

       ``(a) Authority.--A member of the program who has completed 
     successfully the first year of a four-year Senior Reserve 
     Officers' Training Corps course and who is not eligible for 
     advanced training under section 2104 of this title and is not 
     a cadet or midshipman appointed under section 2107 of this 
     title may--
       ``(1) contract with the Secretary of the military 
     department concerned, or the Secretary's designated 
     representative, to serve for the period required by the 
     program; and
       ``(2) agree in writing to accept an appointment, if 
     offered, as a commissioned officer in the Army, Navy, Air 
     Force, or Marine Corps, as the case may be, and to serve in 
     the armed forces for the period prescribed by the Secretary.
       ``(b) Eligibilty Requirements.--A member of the program may 
     enter into a contract and agreement under this section (and 
     receive a subsistence allowance under section 209(c) of title 
     37) only if the person--
       ``(1) is a citizen of the United States;
       ``(2) enlists in an armed force under the jurisdiction of 
     the Secretary of the military department concerned for the 
     period prescribed by the Secretary; and
       ``(3) executes a certificate of loyalty in such form as the 
     Secretary of Defense prescribes or take a loyalty oath as 
     prescribed by the Secretary.

[[Page 27528]]

       ``(c) Parental Consent for Minors.--A member of the program 
     who is a minor may enter into a contract under subsection 
     (a)(1) only with the consent of the member's parent or 
     guardian.
       ``(d) Termination of Authority.--No contract may be entered 
     into under subsection (a)(1) after December 31, 2006.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2103 the following new item:

``2103a. Students not eligible for advanced training: commitment to 
              military service.''.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on January 1, 2004.

     SEC. 524. APPOINTMENTS TO MILITARY SERVICE ACADEMIES FROM 
                   NOMINATIONS MADE BY DELEGATES FROM GUAM, VIRGIN 
                   ISLANDS, AND AMERICAN SAMOA.

       (a) United States Military Academy.--Section 4342(a) of 
     title 10, United States Code, is amended--
       (1) in paragraphs (6) and (8), by striking ``Two'' and 
     inserting ``Three''; and
       (2) in paragraph (9), by striking ``One'' and inserting 
     ``Two''.
       (b) United States Naval Academy.--Section 6954(a) of such 
     title is amended--
       (1) in paragraphs (6) and (8), by striking ``Two'' and 
     inserting ``Three''; and
       (2) in paragraph (9), by striking ``One'' and inserting 
     ``Two''.
       (c) United States Air Force Academy.--Section 9342(a) of 
     such title is amended--
       (1) in paragraphs (6) and (8), by striking ``Two'' and 
     inserting ``Three''; and
       (2) in paragraph (9), by striking ``One'' and inserting 
     ``Two''.
       (d) Effective Date.--The amendments made by this section 
     shall apply with respect to the nomination of candidates for 
     appointment to the United States Military Academy, the United 
     States Naval Academy, and the United States Air Force Academy 
     for classes entering those academies after the date of the 
     enactment of this Act.

     SEC. 525. READMISSION TO SERVICE ACADEMIES OF CERTAIN FORMER 
                   CADETS AND MIDSHIPMEN.

       (a) Inspector General Report as Basis for Readmission.--(1) 
     When a formal report by an Inspector General within the 
     Department of Defense concerning the circumstances of the 
     separation of a cadet or midshipman from one of the service 
     academies contains a specific finding specified in paragraph 
     (2), the Secretary of the military department concerned may 
     use that report as the sole basis for readmission of the 
     former cadet or midshipman to the respective service academy.
       (2) A finding specified in this paragraph is a finding that 
     substantiates that a former service academy cadet or 
     midshipman, while attending the service academy--
       (A) received administrative or punitive action or 
     nonjudicial punishment as a result of reprisal;
       (B) resigned in lieu of disciplinary, administrative, or 
     other action that the formal report concludes constituted a 
     threat of reprisal; or
       (C) otherwise suffered an injustice that contributed to the 
     resignation of the cadet or midshipman.
       (b) Readmission.--In the case of a formal report by an 
     Inspector General described in subsection (a), the Secretary 
     concerned shall offer the former cadet or midshipman an 
     opportunity for readmission to the service academy from which 
     the former cadet or midshipman resigned, if the former cadet 
     or midshipman is otherwise eligible for such readmission.
       (c) Applications for Readmission.--A former cadet or 
     midshipman described in a report referred to in subsection 
     (a) may apply for readmission to the service academy on the 
     basis of that report and shall not be required to submit the 
     request for readmission through a board for the correction of 
     military records.
       (d) Regulations To Minimize Adverse Impact Upon 
     Readmission.--The Secretary of each military department shall 
     prescribe regulations for the readmission of a former cadet 
     or midshipman described in subsections (a), with the goal, to 
     the maximum extent practicable, of readmitting the former 
     cadet or midshipman at no loss of the academic or military 
     status held by the former cadet at the time of resignation.
       (e) Construction With Other Remedies.--This section does 
     not preempt or supersede any other remedy that may be 
     available to a former cadet or midshipman.
       (f) Service Academies.--In this section, the term ``service 
     academy'' means the following:
       (1) The United States Military Academy.
       (2) The United States Naval Academy.
       (3) The United States Air Force Academy.

     SEC. 526. DEFENSE TASK FORCE ON SEXUAL HARASSMENT AND 
                   VIOLENCE AT THE MILITARY SERVICE ACADEMIES.

       (a) Establishment.--The Secretary of Defense shall 
     establish a Department of Defense task force to examine 
     matters relating to sexual harassment and violence at the 
     United States Military Academy and the United States Naval 
     Academy.
       (b) Recommendations.--Not later than 12 months after the 
     date on which all members of the task force have been 
     appointed, the task force shall submit to the Secretary of 
     Defense a report recommending ways by which the Department of 
     Defense and the Department of the Army and the Department of 
     the Navy may more effectively address matters relating to 
     sexual harassment and violence at the United States Military 
     Academy and the United States Naval Academy, respectively. 
     The report shall include an assessment of, and 
     recommendations (including any recommended changes in law) 
     for measures to improve, with respect to sexual harassment 
     and violence at those academies, the following:
       (1) Victims' safety programs.
       (2) Offender accountability.
       (3) Effective prevention of sexual harassment and violence.
       (4) Collaboration among military organizations with 
     responsibility or jurisdiction with respect to sexual 
     harassment and violence.
       (5) Coordination between military and civilian communities, 
     including local support organizations, with respect to sexual 
     harassment and violence.
       (6) Coordination between military and civilian communities, 
     including civilian law enforcement relating to acts of sexual 
     harassment and violence.
       (7) Data collection and case management and tracking.
       (8) Curricula and training, including standard training 
     programs for cadets at the United States Military Academy and 
     midshipmen at the United States Naval Academy and for 
     permanent personnel assigned to those academies.
       (9) Responses to sexual harassment and violence at those 
     academies, including standard guidelines.
       (10) Other issues identified by the task force relating to 
     sexual harassment and violence at those academies.
       (c) Methodology.--The task force shall consider the 
     findings and recommendations of previous reviews and 
     investigations of sexual harassment and violence conducted 
     for those academies as one of the bases for its assessment.
       (d) Report.--(1) The task force shall submit to the 
     Secretary of Defense and the Secretaries of the Army and the 
     Navy a report on the activities of the task force and on the 
     activities of the United States Military Academy and the 
     United States Naval Academy to respond to sexual harassment 
     and violence at those academies.
       (2) The report shall include the following:
       (A) Any barriers to implementation of improvements as a 
     result of those efforts.
       (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 as 
     the task force considers appropriate, including whether cases 
     of sexual assault at those academies should be included in 
     the Department of Defense database known as the Defense 
     Incident-Based Reporting System.
       (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.
       (e) Report on Air Force Academy.--Simultaneously with the 
     submission of the report under subsection (d)(3), the 
     Secretary of Defense, in coordination with the Secretary of 
     the Air Force, shall submit to the committees specified in 
     that subsection the Secretary's assessment of the 
     effectiveness of corrective actions being taken at the United 
     States Air Force Academy as a result of various 
     investigations conducted at that Academy into matters 
     involving sexual assault and harassment.
       (f) Composition.--(1) The task force shall consist of not 
     more than 14 members, to be appointed by the Secretary of 
     Defense. Members shall be appointed from each of the Army, 
     Navy, Air Force, and Marine Corps, and shall include an equal 
     number of personnel of the Department of Defense (military 
     and civilian) and persons from outside the Department of 
     Defense. Members appointed from outside the Department of 
     Defense may be appointed from other Federal departments and 
     agencies, from State and local agencies, or from the private 
     sector.
       (2) The Secretary shall ensure that the membership of the 
     task force appointed from the Department of Defense includes 
     at least one judge advocate.
       (3) In appointing members to the task force, the Secretary 
     may--
       (A) consult with the Attorney General regarding a 
     representative from the Office of Violence Against Women of 
     the Department of Justice; and
       (B) consult with the Secretary of Health and Human Services 
     regarding a representative from the Women's Health office of 
     the Department of Health and Human Services.
       (4) Each member of the task force appointed from outside 
     the Department of Defense shall be an individual who has 
     demonstrated expertise in the area of sexual harassment and 
     violence or shall be appointed from one of the following:
       (A) A representative from the Office of Civil Rights of the 
     Department of Education.
       (B) A representative from the Centers for Disease Control 
     and Prevention of the Department of Health and Human 
     Services.
       (C) A sexual assault policy and advocacy organization.
       (D) A civilian law enforcement agency.
       (E) A judicial policy organization.
       (F) A national crime victim policy organization.
       (5) The members of the task force shall be appointed not 
     later than 120 days after the date of the enactment of this 
     Act.
       (g) Co-Chairs of the Task Force.--There shall be two co-
     chairs of the task force. One of the co-chairs shall be 
     designated by the Secretary of the Defense at the time of 
     appointment

[[Page 27529]]

     from among the Department of Defense personnel on the task 
     force. The other co-chair shall be selected from among the 
     members appointed from outside the Department of Defense by 
     those members.
       (h) Administrative Support.--(1) Each member of the task 
     force who is a member of the Armed Forces or a civilian 
     officer or employee of the United States shall serve without 
     compensation (other than compensation to which entitled as a 
     member of the Armed Forces or an officer or employee of the 
     United States, as the case may be). Other members of the task 
     force shall be appointed in accordance with, and subject to, 
     section 3161 of title 5, United States Code.
       (2) The Deputy Under Secretary of Defense for Personnel and 
     Readiness, under the direction of the Under Secretary of 
     Defense for Personnel and Readiness, shall provide oversight 
     of the task force. The Washington Headquarters Services of 
     the Department of Defense shall provide the task force with 
     personnel, facilities, and other administrative support as 
     necessary for the performance of the task force's duties.
       (3) The Deputy Under Secretary shall coordinate with the 
     Secretary of the Army to provide visits of the task force to 
     the United States Military Academy and with the Secretary of 
     the Navy to provide visits of the task force to the United 
     States Naval Academy.
       (i) 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 (d)(3).

     SEC. 527. ACTIONS TO ADDRESS SEXUAL HARASSMENT AND VIOLENCE 
                   AT THE SERVICE ACADEMIES.

       (a) Policy on Sexual Harassment and Violence.--(1) Under 
     guidance prescribed by the Secretary of Defense--
       (A) the Secretary of the Army shall direct the 
     Superintendent of the United States Military Academy to 
     prescribe a policy on sexual harassment and violence 
     applicable to the personnel of the United States Military 
     Academy;
       (B) the Secretary of the Navy shall direct the 
     Superintendent of the United States Naval Academy to 
     prescribe a policy on sexual harassment and violence 
     applicable to the personnel of the United States Naval 
     Academy; and
       (C) the Secretary of the Air Force shall direct the 
     Superintendent of the United States Air Force Academy to 
     prescribe a policy on sexual harassment and violence 
     applicable to the personnel of the United States Air Force 
     Academy.
       (2) The policy on sexual harassment and violence prescribed 
     for an academy under paragraph (1) shall specify the 
     following:
       (A) Programs to promote awareness of the incidence of rape, 
     acquaintance rape, and other sexual offenses of a criminal 
     nature that involve academy personnel.
       (B) Procedures that a cadet or midshipman should follow in 
     the case of an occurrence of sexual harassment or violence, 
     including--
       (i) a specification of the person or persons to whom the 
     alleged offense should be reported;
       (ii) a specification of any other person whom the victim 
     should contact; and
       (iii) procedures on the preservation of evidence 
     potentially necessary for proof of criminal sexual assault.
       (C) Procedures for disciplinary action in cases of alleged 
     criminal sexual assault involving academy personnel.
       (D) Any other sanction authorized to be imposed in a 
     substantiated case of harassment or violence involving 
     academy personnel in rape, acquaintance rape, or any other 
     criminal sexual offense, whether forcible or nonforcible.
       (E) Required training on the policy for all academy 
     personnel, including the specific training required for 
     personnel who process allegations of sexual harassment or 
     violence involving academy personnel.
       (3) In prescribing the policy on sexual harassment and 
     violence for an academy under paragraph (1), the 
     Superintendent of that academy shall take into 
     consideration--
       (A) the findings, conclusions, and recommendations of the 
     panel established pursuant to title V of the Emergency 
     Wartime Supplemental Appropriations Act, 2003 (Public Law 
     108-11; 117 Stat. 609) to review sexual misconduct 
     allegations at the United States Air Force Academy; and
       (B) the findings, conclusions, and recommendations of other 
     previous reviews and investigations of sexual harassment and 
     violence conducted with respect to one or more of the 
     academies covered by paragraph (1).
       (4) The policy for each such academy required by paragraph 
     (1) shall be prescribed not later than June 1, 2004.
       (b) Annual Assessment.--(1) The Secretary of Defense, 
     through the Secretaries of the military departments, shall 
     direct each Superintendent to conduct at the academy under 
     the jurisdiction of that Superintendent an assessment during 
     each academy program year to determine the effectiveness of 
     the academy's policies, training, and procedures on sexual 
     harassment and violence to prevent criminal sexual harassment 
     and violence involving academy personnel.
       (2) For the assessment for each of the 2004, 2005, 2006, 
     2007, and 2008 academy program years, the Superintendent 
     shall conduct a survey of all academy personnel--
       (A) to measure--
       (i) the incidence, during that program year, of sexual 
     harassment and violence events, on or off the academy 
     reservation, that have been reported to officials of the 
     academy; and
       (ii) the incidence, in that program year, of sexual 
     harassment and violence events, on or off the academy 
     reservation, that have not been reported to officials of the 
     academy; and
       (B) to assess the perceptions of academy personnel on--
       (i) the policies, training, and procedures on sexual 
     harassment and violence involving academy personnel;
       (ii) the enforcement of such policies;
       (iii) the incidence of sexual harassment and violence 
     involving academy personnel in such program year; and
       (iv) any other issues relating to sexual harassment and 
     violence involving academy personnel.
       (c) Annual Report.--(1) The Secretary of the Army, the 
     Secretary of the Navy, and the Secretary of the Air Force 
     shall direct the Superintendent of the United States Military 
     Academy, the Superintendent of the United States Naval 
     Academy, and the Superintendent of the United States Air 
     Force Academy, respectively, to submit to the Secretary a 
     report on sexual harassment and violence involving academy 
     personnel for each of the 2004, 2005, 2006, 2007, and 2008 
     academy program years.
       (2) The annual report for an academy under paragraph (1) 
     shall contain, for the academy program year covered by the 
     report, the following matters:
       (A) The number of sexual assaults, rapes, and other sexual 
     offenses involving academy personnel that have been reported 
     to academy officials during the program year, and the number 
     of the reported cases that have been substantiated.
       (B) The policies, procedures, and processes implemented by 
     the Secretary of the military department concerned and the 
     leadership of the academy in response to sexual harassment 
     and violence involving academy personnel during the program 
     year.
       (C) In the report for the 2004 academy program year, a 
     discussion of the survey conducted under subsection (b), 
     together with an analysis of the results of the survey and a 
     discussion of any initiatives undertaken on the basis of such 
     results and analysis.
       (D) In the report for each of the subsequent academy 
     program years, the results of the annual survey conducted in 
     such program year under subsection (b).
       (E) A plan for the actions that are to be taken in the 
     following academy program year regarding prevention of and 
     response to sexual harassment and violence involving academy 
     personnel.
       (3) The Secretary of a military department shall transmit 
     the annual report on an academy under this subsection, 
     together with the Secretary's comments on the report, to the 
     Secretary of Defense and the Board of Visitors of the 
     academy.
       (4) The Secretary of Defense shall transmit the annual 
     report on each academy under this subsection, together with 
     the Secretary's comments on the report to, the Committees on 
     Armed Services of the Senate and the House of 
     Representatives.
       (5) The report for the 2004 academy program year for an 
     academy shall be submitted to the Secretary of the military 
     department concerned not later than one year after the date 
     of the enactment of this Act.
       (6) In this subsection, the term ``academy program year'' 
     with respect to a year, means the academy program year that 
     ends in that year.

     SEC. 528. STUDY AND REPORT RELATED TO PERMANENT PROFESSORS AT 
                   THE UNITED STATES AIR FORCE ACADEMY.

       (a) Secretary of Air Force Recommendations.--Not later than 
     six months after the date of the enactment of the Act, the 
     Secretary of the Air Force shall submit to the Secretary of 
     Defense a report containing recommended changes in policy and 
     law pertaining to the selection, tenure, utilization, 
     responsibilities, and qualifications of the permanent 
     professors at the Air Force Academy.
       (b) Secretary of Defense Recommendations.--Not later than 
     one month after receiving the report of the Secretary of the 
     Air Force under subsection (a), the Secretary of Defense 
     shall submit to the Committees on Armed Services of the 
     Senate and House of Representatives the report received from 
     the Secretary of the Air Force, together with the 
     recommendations of the Secretary of Defense for action and 
     proposals for legislation.
       (c) Matters To Be Considered by Secretary of Air Force.--
     The Secretary of the Air Force in preparing the report 
     required by subsection (a), shall, at a minimum, do the 
     following:
       (1) Conduct a comprehensive review and assessment of the 
     existing faculty system at the Air Force Academy, including 
     both civilian and military permanent professorships.
       (2) Take into account the findings, conclusions, and 
     recommendation regarding faculty and permanent professorships 
     at the Air Force Academy of--
       (A) the report of the Panel to Review Sexual Misconduct 
     Allegations at the U. S. Air Force Academy (referred to as 
     the ``Fowler Panel''), dated September 22, 2003;
       (B) the report released on June 19, 2003, of the special 
     working group appointed by the Secretary of the Air Force 
     known as the Working Group Concerning the Deterrence of and 
     Response to Incidents of Sexual Assault at the U.S. Air Force 
     Academy, which was led by the General Counsel of the 
     Department of the Air Force; and
       (C) the Agenda for Change of the Air Force Academy dated 
     March 26, 2003.
       (3) Solicit information regarding the faculty and permanent 
     professorship systems at the United States Naval Academy and 
     the United

[[Page 27530]]

     States Military Academy and consider that information as part 
     of the required assessment.
       (4) Consult with experts on higher education outside the 
     Department of Defense.

     SEC. 529. DEAN OF THE FACULTY OF THE UNITED STATES AIR FORCE 
                   ACADEMY.

       (a) Authority to Appoint Dean from Persons Other Than Air 
     Force Academy Faculty Heads of Departments.--Subsection (a) 
     of section 9335 of title 10, United States Code, is amended 
     to read as follows:
       ``(a) The Dean of the Faculty is responsible to the 
     Superintendent for developing and sustaining the curriculum 
     and overseeing the faculty of the Academy. The 
     qualifications, selection procedures, training, pay grade, 
     and retention of the Dean shall be prescribed by the 
     Secretary of the Air Force. If a person appointed as the Dean 
     is not an officer on active duty, the person shall be 
     appointed as a member of the Senior Executive Service.''.
       (b) Conforming Amendments.--Subsection (b) of such section 
     is amended--
       (1) in the first sentence--
       (A) by striking ``of the Air Force'' and inserting ``on 
     active duty''; and
       (B) by inserting ``(or the equivalent)'' after ``brigadier 
     general'' both places it appears; and
       (2) in the last sentence--
       (A) by inserting ``applicable'' before ``limitation''; and
       (C) by striking ``of the Air Force''.
       (c) Statutory Status as Permanent Professor.--(1) Section 
     9331(b)(2) of such title is amended by striking ``dean of the 
     Faculty, who is a permanent professor'' and inserting ``Dean 
     of the Faculty''.
       (2) Section 9336(a) of such title is amended by striking 
     ``, other than the Dean of the Faculty,''.
       (d) Applicability.--The amendments made by this section 
     shall apply with respect to any Dean of the Faculty of the 
     United States Air Force Academy selected on or after the date 
     of the enactment of this Act.
       Subtitle D--Other Military Education and Training Matters

     SEC. 531. AUTHORITY FOR THE MARINE CORPS UNIVERSITY TO AWARD 
                   THE DEGREE OF MASTER OF OPERATIONAL STUDIES.

       (a) Authority.--Section 7102 of title 10, United States 
     Code, is amended--
       (1) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively; and
       (2) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Command and Staff College of the Marine Corp 
     University.--Upon the recommendation of the Director and 
     faculty of the Command and Staff College of the Marine Corps 
     University, the President of the Marine Corps University may 
     confer the degree of master of operational studies upon 
     graduates of the Command and Staff College's School of 
     Advanced Warfighting who fulfill the requirements for that 
     degree.''.
       (b) Effective Date.--The authority to confer the degree of 
     master of operational studies under section 7102(c) of title 
     10, United States Code (as added by subsection (a)) may not 
     be exercised until the Secretary of Education determines, and 
     certifies to the President of the Marine Corps University, 
     that the requirements established by the Command and General 
     Staff College of the Marine Corps University for that degree 
     are in accordance with generally applicable requirements for 
     a degree of master of arts.

     SEC. 532. AUTHORIZATION FOR NAVAL POSTGRADUATE SCHOOL TO 
                   PROVIDE INSTRUCTION TO ENLISTED MEMBERS 
                   PARTICIPATING IN CERTAIN PROGRAMS.

       (a) Expanded Eligibility for Enlisted Personnel.--
     Subsection (a)(2) of section 7045 of title 10, United States 
     Code, is amended to read as follows:
       ``(2)(A) The Secretary may permit an enlisted member of the 
     armed forces to receive instruction at the Naval Postgraduate 
     School through attendance at an executive level seminar.
       ``(B) The Secretary may permit an eligible enlisted member 
     of the armed forces to receive instruction at the 
     Postgraduate School in connection with pursuit of a program 
     of education in information assurance as a participant in the 
     Information Security Scholarship program under chapter 112 of 
     this title. To be eligible for instruction under this 
     subparagraph, the enlisted member must have been awarded a 
     baccalaureate degree by an institution of higher education.
       ``(C) In addition to instruction authorized under 
     subparagraphs (A) and (B), the Secretary may, on a space-
     available basis, permit an enlisted member of the armed 
     forces who is assigned permanently to the staff of the 
     Postgraduate School or to a nearby command to receive 
     instruction at the Postgraduate School.''.
       (b) Reimbursement.--Subsection (b) of such section is 
     amended--
       (1) by striking ``The Department'' and inserting ``(1) 
     Except as provided under paragraph (3), the Department'';
       (2) by striking ``officers'' in the first sentence and 
     inserting ``members'';
       (3) by designating the second sentence as paragraph (2) and 
     in that sentence--
       (A) by inserting ``under subsection (a)(2)(C)'' after 
     ``permitted'';
       (B) by inserting ``on a space-available basis'' after 
     ``instruction at the Postgraduate School''; and
       (C) by striking ``(taking into consideration the admission 
     of enlisted members on a space-available basis)''; and
       (4) by adding at the end the following new paragraph:
       ``(3) The requirements for payment of costs and fees under 
     paragraph (1) shall be subject to such exceptions as the 
     Secretary of Defense may prescribe for members of the armed 
     forces who receive instruction at the Postgraduate School in 
     connection with pursuit of a degree or certification as 
     participants in the Information Security Scholarship program 
     under chapter 112 of this title.''.

     SEC. 533. COST REIMBURSEMENT REQUIREMENTS FOR PERSONNEL 
                   RECEIVING INSTRUCTION AT THE AIR FORCE 
                   INSTITUTE OF TECHNOLOGY

       (a) Reimbursement From Other Services.--Section 9314 of 
     title 10, United States Code, is amended by adding at the end 
     the following new subsection:
       ``(c) Reimbursement.--(1) The Department of the Army, the 
     Department of the Navy, and the Department of Homeland 
     Security shall bear the cost of the instruction at the Air 
     Force Institute of Technology that is received by members of 
     the armed forces detailed for that instruction by the 
     Secretaries of the Army, Navy, and Homeland Security, 
     respectively.
       ``(2) Members of the Army, Navy, Marine Corps, and Coast 
     Guard may only be detailed for instruction at the Institute 
     on a space-available basis.
       ``(3) In the case of an enlisted member of the Army, Navy, 
     Marine Corps, and Coast Guard permitted to receive 
     instruction at the Institute, the Secretary of the Air Force 
     shall charge that member only for such costs and fees as the 
     Secretary considers appropriate (taking into consideration 
     the admission of enlisted members on a space-available 
     basis).''.
       (b) Stylistic Amendments.--(1) Subsection (a) of such 
     section is amended by inserting ``Authority to Confer 
     Degrees.--'' after ``(a)''.
       (2) Subsection (b) of such section is amended by inserting 
     ``Civilian Faculty.--'' after ``(b)''.
       (c) Clarifying Amendment.--Subsection (a) of such section 
     is further amended--
       (1) by striking ``When the'' and all that follows through 
     ``the Commander'' and inserting ``(1) The Commander'';
       (2) by striking ``that Institute'' and inserting ``the 
     United States Air Force Institute of Technology''; and
       (3) by adding at the end the following new paragraph:
       ``(2) The authority under this subsection to confer a 
     degree is effective only during a period when the United 
     States Air Force Institute of Technology is accredited with 
     respect to the award of that degree by a nationally 
     recognized accreditation association or authority.''.

     SEC. 534. INCLUSION OF ACCRUED INTEREST IN AMOUNTS THAT MAY 
                   BE REPAID UNDER SELECTED RESERVE CRITICAL 
                   SPECIALTIES EDUCATION LOAN REPAYMENT PROGRAM.

       Section 16301 of title 10, United States Code, is amended--
       (1) in subsection (b), by inserting before the period at 
     the end the following: ``, plus the amount of any interest 
     that may accrue during the current year''; and
       (2) in subsection (c), by adding at the end the following 
     new sentence: ``For the purposes of this section, any 
     interest that has accrued on the loan for periods before the 
     current year shall be considered as within the total loan 
     amount that shall be repaid.''.

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

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

     SEC. 536. ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT 
                   BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED 
                   FORCES AND DEPARTMENT OF DEFENSE CIVILIAN 
                   EMPLOYEES.

       (a) Continuation of Department of Defense Program for 
     Fiscal Year 2004.--Of the amount authorized to be 
     appropriated pursuant to section 301(5) for operation and 
     maintenance for Defense-wide activities, $30,000,000 shall be 
     available only for the purpose of providing educational 
     agencies assistance to local educational agencies.
       (b) Notification.--Not later than June 30, 2004, the 
     Secretary of Defense shall notify each local educational 
     agency that is eligible for educational agencies assistance 
     for fiscal year 2004 of--
       (1) that agency's eligibility for the assistance; and

[[Page 27531]]

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

     SEC. 537. IMPACT AID ELIGIBILITY FOR HEAVILY IMPACTED LOCAL 
                   EDUCATIONAL AGENCIES AFFECTED BY PRIVATIZATION 
                   OF MILITARY HOUSING.

       (a) Transition.--Section 8003(b)(2)(H) of the Elementary 
     and Secondary Education Act of 1965 (20 U.S.C. 7703(b)(2)(H)) 
     is amended by striking clauses (i) and (ii) and inserting the 
     following:
       ``(i) Eligibility.--For any fiscal year, a heavily impacted 
     local educational agency that received a basic support 
     payment under this paragraph for the prior fiscal year, but 
     is ineligible for such payment for the current fiscal year 
     under subparagraph (B), (C), (D), or (E), as the case may be, 
     by reason of the conversion of military housing units to 
     private housing described in clause (iii), shall be deemed to 
     meet the eligibility requirements under subparagraph (B) or 
     (C), as the case may be, for the period during which the 
     housing units are undergoing such conversion.
       ``(ii) Amount of payment.--The amount of a payment to a 
     heavily impacted local educational agency for a fiscal year 
     by reason of the application of clause (i), and calculated in 
     accordance with subparagraph (D) or (E), as the case may be, 
     shall be based on the number of children in average daily 
     attendance in the schools of such agency for the fiscal year 
     and under the same provisions of subparagraph (D) or (E) 
     under which the agency was paid during the prior fiscal 
     year.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect beginning with basic support payments under 
     section 8003(b)(2) of the Elementary and Secondary Education 
     Act of 1965 (20 U.S.C. 7703(b)(2)) for fiscal year 2003.
                   Subtitle D--Administrative Matters

     SEC. 541. HIGH-TEMPO PERSONNEL MANAGEMENT AND ALLOWANCE.

       (a) Deployment Management.--Subsection (a) of section 991 
     of title 10, United States Code, is amended to read as 
     follows:
       ``(a) Management Responsibilities.--(1) The deployment (or 
     potential deployment) of a member of the armed forces shall 
     be managed to ensure that the member is not deployed, or 
     continued in a deployment, on any day on which the total 
     number of days on which the member has been deployed--
       ``(A) out of the preceding 365 days would exceed the one-
     year high-deployment threshold; or
       ``(B) out of the preceding 730 days would exceed the two-
     year high-deployment threshold.
       ``(2) In this subsection:
       ``(A) The term `one-year high-deployment threshold' means--
       ``(i) 220 days; or
       ``(ii) a lower number of days prescribed by the Secretary 
     of Defense, acting through the Under Secretary of Defense for 
     Personnel and Readiness.
       ``(B) The term `two-year high-deployment threshold' means--
       ``(i) 400 days; or
       ``(ii) a lower number of days prescribed by the Secretary 
     of Defense, acting through the Under Secretary of Defense for 
     Personnel and Readiness.
       ``(3) A member may be deployed, or continued in a 
     deployment, without regard to paragraph (1) if the 
     deployment, or continued deployment, is approved by the 
     Secretary of Defense. The authority of the Secretary under 
     the preceding sentence may only be delegated to--
       ``(A) a civilian officer of the Department of Defense 
     appointed by the President, by and with the advise and 
     consent of the Senate, or a member of the Senior Executive 
     Service; or
       ``(B) a general or flag officer in that member's chain of 
     command (including an officer in the grade of colonel, or in 
     the case of the Navy, captain, serving in a general or flag 
     officer position who has been selected for promotion to the 
     grade of brigadier general or rear admiral (lower half) in a 
     report of a selection board convened under section 611(a) or 
     14101(a) of this title that has been approved by the 
     President).''.
       (b) Changes From Per Diem to High-Deployment Allowance.--
     (1) Subsection (a) of section 436 of title 37, United States 
     Code, is amended to read as follows:
       ``(a) Monthly Allowance.--The Secretary of the military 
     department concerned shall pay a high-deployment allowance to 
     a member of the armed forces under the Secretary's 
     jurisdiction for each month during which the member--
       ``(1) is deployed; and
       ``(2) at any time during that month--
       ``(A) has been deployed for 191 or more consecutive days 
     (or a lower number of consecutive days prescribed by the 
     Secretary of Defense, acting through the Under Secretary of 
     Defense for Personnel and Readiness);
       ``(B) has been deployed, out of the preceding 730 days, for 
     a total of 401 or more days (or a lower number of days 
     prescribed by the Secretary of Defense, acting through the 
     Under Secretary of Defense for Personnel and Readiness); or
       ``(C) in the case of a member of a reserve component, is on 
     active duty--
       ``(i) under a call or order to active duty for a period of 
     more than 30 days that is the second (or later) such call or 
     order to active duty (whether voluntary or involuntary) for 
     that member in support of the same contingency operation; or
       ``(ii) for a period of more than 30 days under a provision 
     of law referred to in section 101(a)(13)(B) of title 10, if 
     such period begins within one year after the date on which 
     the member was released from previous service on active duty 
     for a period of more than 30 days under a call or order 
     issued under such a provision of law.''.
       (2) Subsection (c) of such section is amended to read as 
     follows:
       ``(c) Rate.--The monthly rate of the allowance payable to a 
     member under this section shall be determined by the 
     Secretary concerned, not to exceed $1,000 per month.''.
       (3) Such section is further amended by adding at the end 
     the following new subsections:
       ``(g) Authority to Exclude Certain Duty Assignments.--The 
     Secretary concerned may exclude members serving in specified 
     duty assignments from eligibility for the high-deployment 
     allowance while serving in those assignments. Any such 
     specification of duty assignments may only be made with the 
     approval of the Secretary of Defense, acting through the 
     Under Secretary of Defense for Personnel and Readiness. 
     Specification of a particular duty assignment for purposes of 
     this subsection may not be implemented so as to apply to the 
     member serving in that position at the time of such 
     specification.
       ``(h) Payment From Operation and Maintenance Funds.--The 
     monthly allowance payable to a member under this section 
     shall be paid from appropriations available for operation and 
     maintenance for the armed force in which the member 
     serves.''.
       (4) Such section is further amended--
       (A) in subsection (d), by striking ``per diem'';
       (B) in subsection (e), by striking ``per diem'' and 
     inserting ``allowance''; and
       (C) in subsection (f)--
       (i) by striking ``per diem'' and inserting ``allowance''; 
     and
       (ii) by striking ``day on which'' and inserting ``month 
     during which''.
       (5)(A) The heading of such section is amended to read as 
     follows:

     ``Sec. 436. High-deployment allowance: lengthy or numerous 
       deployments; frequent mobilizations''.

       (B) The item relating to such section in the table of 
     sections at the beginning of chapter 7 of such title is 
     amended to read as follows:

``436. High-deployment allowance: lengthy or numerous deployments; 
              frequent mobilizations.''.
       (c) Changes to Reporting Requirement.--Section 487(b)(5) of 
     title 10, United States Code, is amended to read as follows:
       ``(5) For each of the armed forces, the description shall 
     indicate, for the period covered by the report--
       ``(A) the number of members who received the high-
     deployment allowance under section 436 of title 37;
       ``(B) the number of members who received each rate of 
     allowance paid;
       ``(C) the number of members who received the allowance for 
     one month, for two months, for three months, for four months, 
     for five months, for six months, and for more than six 
     months; and
       ``(D) the total amount spent on the allowance.''.

     SEC. 542. ENHANCED RETENTION OF ACCUMULATED LEAVE FOR HIGH-
                   DEPLOYMENT MEMBERS.

       (a) Enhanced Authority to Retain Accumulated Leave.--
     Paragraph (1) of section 701(f) of title 10, United States 
     Code, is amended to read as follows:
       ``(f)(1)(A) The Secretary concerned, under uniform 
     regulations to be prescribed by the Secretary of Defense, may 
     authorize a member described in subparagraph (B) who, except 
     for this paragraph, would lose any accumulated leave in 
     excess of 60 days at the end of the fiscal year, to retain an 
     accumulated total of 120 days leave.
       ``(B) This subsection applies to a member who serves on 
     active duty for a continuous period of at least 120 days--
       ``(i) in an area in which the member is entitled to special 
     pay under section 310(a) of title 37; or
       ``(ii) while assigned to a deployable ship or mobile unit 
     or to other duty comparable to that specified in clause (i) 
     that is designated for the purpose of this subsection.
       ``(C) Except as provided in paragraph (2), leave in excess 
     of 60 days accumulated under this paragraph is lost unless it 
     is used by the member before the end of the third fiscal year 
     after the fiscal year in which the continuous period of 
     service referred to in subparagraph (B) terminated.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on October 1, 2003, or the date of the 
     enactment of this Act, whichever is later.

     SEC. 543. STANDARDIZATION OF STATUTORY AUTHORITIES FOR 
                   EXEMPTIONS FROM REQUIREMENT FOR ACCESS TO 
                   SECONDARY SCHOOLS BY MILITARY RECRUITERS.

       (a) Consistency With Elementary and Secondary Education Act 
     of 1965.--Paragraph

[[Page 27532]]

     (5) of section 503(c) of title 10, United States Code, is 
     amended by striking ``apply to--'' and all that follows 
     through ``school which'' and inserting ``apply to a private 
     secondary school that''.
       (b) Correction of Cross Reference.--Paragraph (6)(A)(i) of 
     such section is amended by striking ``14101'' and ``8801'' 
     and inserting ``9101'' and ``7801'', respectively.

     SEC. 544. PROCEDURES FOR CONSIDERATION OF APPLICATIONS FOR 
                   AWARD OF THE PURPLE HEART MEDAL TO VETERANS 
                   HELD AS PRISONERS OF WAR BEFORE APRIL 25, 1962.

       Section 521 of the National Defense Authorization Act for 
     Fiscal Year 1996 (Public Law 104-106; 110 Stat. 309; 10 
     U.S.C. 1129 note) is amended by adding at the end the 
     following new subsection:
       ``(d) Procedures for Award.--In determining whether a 
     former prisoner of war who submits an application for the 
     award of the Purple Heart under subsection (a) is eligible 
     for that award, the Secretary concerned shall apply the 
     following procedures:
       ``(1) Failure of the applicant to provide any documentation 
     as required by the Secretary shall not in itself disqualify 
     the application from being considered.
       ``(2) In evaluating the application, the Secretary shall 
     consider (A) historical information as to the prison camp or 
     other circumstances in which the applicant was held captive, 
     and (B) the length of time that the applicant was held 
     captive.
       ``(3) To the extent that information is readily available, 
     the Secretary shall assist the applicant in obtaining 
     information or identifying the sources of information 
     referred to in paragraph (2).
       ``(4) The Secretary shall review a completed application 
     under this section based upon the totality of the information 
     presented, taking into account the length of time between the 
     period during which the applicant was held as a prisoner of 
     war and the date of the application.''.

     SEC. 545. AUTHORITY FOR RESERVE AND RETIRED REGULAR OFFICERS 
                   TO HOLD STATE AND LOCAL OFFICE NOTWITHSTANDING 
                   CALL TO ACTIVE DUTY.

       Section 973(b) of title 10, United States Code, is 
     amended--
       (1) by redesignating paragraph (4) as paragraph (5);
       (2) in paragraph (3)--
       (A) by inserting ``by reason of subparagraph (A) of 
     paragraph (1)'' after ``applies''; and
       (B) by striking ``, the District of Columbia,'' and all 
     that follows through ``such government)'' and inserting ``(or 
     of any political subdivision of a State)''; and
       (3) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4)(A) An officer to whom this subsection applies by 
     reason of subparagraph (B) or (C) of paragraph (1) may not 
     hold, by election or appointment, a civil office in the 
     government of a State (or of any political subdivision of a 
     State) if the holding of such office while this subsection so 
     applies to the officer--
       ``(i) is prohibited under the laws of that State; or
       ``(ii) as determined by the Secretary of Defense or by the 
     Secretary of Homeland Security with respect to the Coast 
     Guard when it is not operating as a service in the Navy, 
     interferes with the performance of the officer's duties as an 
     officer of the armed forces.
       ``(B) Except as otherwise authorized by law, while an 
     officer referred to in subparagraph (A) is serving on active 
     duty, the officer may not exercise the functions of a civil 
     office held by the officer as described in that 
     subparagraph.''; and
       (4) by adding at the end the following
       ``(6) In this subsection, the term `State' includes the 
     District of Columbia and a territory, possession, or 
     commonwealth of the United States.''.

     SEC. 546. POLICY ON PUBLIC IDENTIFICATION OF CASUALTIES.

       (a) Requirement for Policy.--Not later than 180 days after 
     the date of the enactment of this Act, the Secretary of 
     Defense shall prescribe the policy of the Department of 
     Defense on public release of the name or other personally 
     identifying information of any member of the Army, Navy, Air 
     Force, or Marine Corps who while on active duty or performing 
     inactive-duty training is killed or injured, whose duty 
     status becomes unknown, or who is otherwise considered to be 
     a casualty.
       (b) Guidance on Timing of Release.--The policy under 
     subsection (a) shall include guidance for ensuring that any 
     public release of information on a member under the policy 
     occurs only after the lapse of an appropriate period 
     following notification of the next-of-kin regarding the 
     casualty status of such member.

     SEC. 547. SPACE PERSONNEL CAREER FIELDS.

       (a) Strategy Required.--The Secretary of Defense shall 
     develop a strategy for the Department of Defense that will--
       (1) promote the development of space personnel career 
     fields within each of the military departments; and
       (2) ensure that the space personnel career fields developed 
     by the military departments are integrated with each other to 
     the maximum extent practicable.
       (b) Report.--Not later than February 1, 2004, the Secretary 
     shall submit to the Committees on Armed Services of the 
     Senate and the House of Representatives a report on the 
     strategy developed under subsection (a). The report shall 
     include the following:
       (1) A statement of the strategy developed under subsection 
     (a), together with an explanation of that strategy.
       (2) An assessment of the measures required for the 
     Department of Defense and the military departments to 
     integrate the space personnel career fields of the military 
     departments.
       (3) A comprehensive assessment of the adequacy of the 
     actions of the Secretary of Air Force pursuant to section 
     8084 of title 10, United States Code, to establish for Air 
     Force officers a career field for space.
       (c) General Accounting Office Review and Reports.--(1) The 
     Comptroller General shall review the strategy developed under 
     subsection (a) and the status of efforts by the military 
     departments in developing space personnel career fields.
       (2) The Comptroller General shall submit to the committees 
     referred to in subsection (b) two reports on the review under 
     paragraph (1), as follows:
       (A) Not later than June 15, 2004, the Comptroller General 
     shall submit a report that assesses how effective that 
     Department of Defense strategy and the efforts by the 
     military departments, when implemented, are likely to be for 
     developing the personnel required by each of the military 
     departments who are expert in development of space doctrine 
     and concepts of space operations, the development of space 
     systems, and operation of space systems.
       (B) Not later than March 15, 2005, the Comptroller General 
     shall submit a report that assesses, as of the date of the 
     report--
       (i) the effectiveness of that Department of Defense 
     strategy and the efforts by the military departments in 
     developing the personnel required by each of the military 
     departments who are expert in development of space doctrine 
     and concepts of space operations, the development of space 
     systems, and in operation of space systems; and
       (ii) progress made in integrating the space career fields 
     of the military departments.

     SEC. 548. DEPARTMENT OF DEFENSE JOINT ADVERTISING, MARKET 
                   RESEARCH, AND STUDIES PROGRAM.

       (a) Program Authorized.--The Secretary of Defense may carry 
     out a joint advertising, market research, and studies program 
     to complement the recruiting advertising programs of the 
     military departments and improve the ability of the military 
     departments to attract and recruit qualified individuals to 
     serve in the Armed Forces.
       (b) Funding.--Of the amount authorized to be appropriated 
     by section 301(5) for operation and maintenance for Defense-
     wide activities, $7,500,000 may be made available to carry 
     out the joint advertising, market research, and studies 
     program.

     SEC. 549. LIMITATION ON FORCE STRUCTURE REDUCTIONS IN NAVAL 
                   AND MARINE CORPS RESERVE AVIATION SQUADRONS.

       The Secretary of the Navy may not reduce or disestablish a 
     Naval Reserve or Marine Corps Reserve aviation squadron 
     before February 1, 2004.
                  Subtitle E--Military Justice Matters

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

       Subsection (b) of section 843 of title 10, United States 
     Code (article 43 of the Uniform Code of Military Justice), is 
     amended--
       (1) by redesignating paragraph (2) as paragraph (3); and
       (2) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2)(A) A person charged with having committed a child 
     abuse offense against a child is liable to be tried by court-
     martial if the sworn charges and specifications are received 
     before the child attains the age of 25 years by an officer 
     exercising summary court-martial jurisdiction with respect to 
     that person.
       ``(B) In subparagraph (A), the term `child abuse offense' 
     means an act that involves sexual or physical abuse of a 
     person who has not attained the age of 16 years and 
     constitutes any of the following offenses:
       ``(i) Rape or carnal knowledge in violation of section 920 
     of this title (article 120).
       ``(ii) Maiming in violation of section 924 of this title 
     (article 124).
       ``(iii) Sodomy in violation of section 925 of this title 
     (article 126).
       ``(iv) Aggravated assault or assault consummated by a 
     battery in violation of section 928 of this title (article 
     128).
       ``(v) Indecent assault, assault with intent to commit 
     murder, voluntary manslaughter, rape, or sodomy, or indecent 
     acts or liberties with a child in violation of section 934 of 
     this title (article 134).''.

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

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

[[Page 27533]]

     for conduct on a military installation that is in more than 
     one State; or
       ``(ii) the blood alcohol content limit specified in 
     paragraph (3).'';
       (B) in paragraphs (1)(B) and (3), by striking ``maximum''; 
     and
       (C) in paragraph (4)(A), by striking ``maximum 
     permissible'' and all that follows through the period at the 
     end and inserting ``amount of alcohol concentration in a 
     person's blood or breath at which operation or control of a 
     vehicle, aircraft, or vessel is prohibited.''.
                          Subtitle F--Benefits

     SEC. 561. ADDITIONAL CLASSES OF INDIVIDUALS ELIGIBLE TO 
                   PARTICIPATE IN THE FEDERAL LONG-TERM CARE 
                   INSURANCE PROGRAM.

       (a) Certain Employees of the District of Columbia 
     Government.--Section 9001(1) of title 5, United States Code, 
     is amended by striking ``2105(c),'' and all that follows and 
     inserting ``2105(c).''.
       (b) Former Federal Employees Who Would Be Eligible To Begin 
     Receiving an Annuity Upon Attaining the Requisite Minimum 
     Age.--Section 9001(2) of title 5, United States Code, is 
     amended--
       (1) in subparagraph (A), by striking ``and'' at the end;
       (2) in subparagraph (B), by striking the period and 
     inserting ``; and''; and
       (3) by adding at the end the following new subparagraph:
       ``(C) any former employee who, on the basis of his or her 
     service, would meet all requirements for being considered an 
     `annuitant' within the meaning of subchapter III of chapter 
     83, chapter 84, or any other retirement system for employees 
     of the Government, but for the fact that such former employee 
     has not attained the minimum age for title to annuity.''.
       (c) Reservists Transferred to the Retired Reserve Who Are 
     Under Age 60.--Section 9001(4) of title 5, United States 
     Code, is amended by striking ``including'' and all that 
     follows through ``who has'' and inserting ``and a member who 
     has been transferred to the Retired Reserve and who would be 
     entitled to retired pay under chapter 1223 of title 10 but 
     for not having''.
       (d) Reference Amendment.--Section 9001(2)(A) of title 5, 
     United States Code, as amended by subsection (b), is further 
     amended by striking ``of this subsection''.

     SEC. 562. AUTHORITY TO TRANSPORT REMAINS OF RETIREES AND 
                   RETIREE DEPENDENTS WHO DIE IN MILITARY 
                   TREATMENT FACILITIES.

       (a) Authorized Transportation.--Section 1490 of title 10, 
     United States Code, is amended--
       (1) in subsection (a), by striking ``located in the United 
     States''; and
       (2) in subsection (b)(1), by striking ``outside the United 
     States or to a place''.
       (b) Conforming Amendment.--Subsection (c) of such section 
     is amended to read as follows:
       ``(c) Definition of Dependent.--In this section, the term 
     `dependent' has the meaning given such term in section 
     1072(2) of this title.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply only with respect to persons dying on or after 
     the date of the enactment of this Act.

     SEC. 563. ELIGIBILITY FOR DEPENDENTS OF CERTAIN MOBILIZED 
                   RESERVISTS STATIONED OVERSEAS TO ATTEND DEFENSE 
                   DEPENDENTS SCHOOLS OVERSEAS.

       (a) Tuition Status Parity With Dependents of Other 
     Reservists.--Section 1404(c) of the Defense Dependents' 
     Education Act of 1978 (20 U.S.C. 923(c)) is amended--
       (1) by inserting ``(1)'' after ``(c)''; and
       (2) by adding at the end the following new paragraph:
       ``(2)(A) The Secretary shall include in the regulations 
     prescribed under this subsection a requirement that children 
     in the class of children described in subparagraph (B) shall 
     be subject to the same tuition requirements, or waiver of 
     tuition requirements, as children in the class of children 
     described in subparagraph (C).
       ``(B) The class of children described in this subparagraph 
     are children of members of reserve components of the Armed 
     Forces who--
       ``(i) are on active duty under an order to active duty 
     under section 12301 or 12302 of title 10, United States Code;
       ``(ii) were ordered to active duty from a location in the 
     United States (other than in Alaska or Hawaii); and
       ``(iii) are serving on active duty outside the United 
     States or in Alaska or Hawaii.
       ``(C) The class of children described in this subparagraph 
     are children of members of reserve components of the Armed 
     Forces who--
       ``(i) are on active duty under an order to active duty 
     under section 12301 or 12302 of title 10, United States Code;
       ``(ii) were ordered to active duty from a location outside 
     the United States (or in Alaska or Hawaii); and
       ``(iii) are serving on active duty outside the United 
     States or in Alaska or Hawaii.''.
       (b) Clerical Amendment.--The heading of such section is 
     amended to read as follows:


          ``space-available enrollment of students; tuition''.

                     Subtitle G--Domestic Violence

     SEC. 571. TRAVEL AND TRANSPORTATION FOR DEPENDENTS RELOCATING 
                   FOR REASONS OF PERSONAL SAFETY.

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

     SEC. 572. COMMENCEMENT AND DURATION OF PAYMENT OF 
                   TRANSITIONAL COMPENSATION.

       (a) Commencement.--Paragraph (1)(A) of section 1059(e) of 
     title 10, United States Code, is amended by striking ``shall 
     commence'' and all that follows and inserting ``shall 
     commence--
       ``(i) as of the date the court-martial sentence is adjudged 
     if the sentence, as adjudged, includes a dismissal, 
     dishonorable discharge, bad conduct discharge, or forfeiture 
     of all pay and allowances; or
       ``(ii) if there is a pretrial agreement that provides for 
     disapproval or suspension of the dismissal, dishonorable 
     discharge, bad conduct discharge, or forfeiture of all pay 
     and allowances, as of the date of the approval of the court-
     martial sentence by the person acting under section 860(c) of 
     this title (article 60(c) of the Uniform Code of Military 
     Justice) if the sentence, as approved, includes an 
     unsuspended dismissal, dishonorable discharge, bad conduct 
     discharge, or forfeiture of all pay and allowances; and''.
       (b) Duration.--(1) Paragraph (2) of such section is amended 
     by striking ``a period of 36 months'' and all that follows 
     through ``12 months'' and inserting ``a period of not less 
     than 12 months and not more than 36 months, as established in 
     policies prescribed by the Secretary concerned''.
       (2) Policies under subsection (e)(2) of section 1059 of 
     title 10, United States Code, as amended by paragraph (1), 
     for the duration of transitional compensation payments under 
     that section shall be prescribed under such subsection not 
     later than six months after the date of the enactment of this 
     Act.
       (c) Termination.--Paragraph (3)(A) of such section is 
     amended by striking ``punishment applicable to the member 
     under the sentence is remitted, set aside, or mitigated'' and 
     inserting ``conviction is disapproved by the person acting 
     under section 860(c) of this title (article 60(c) of the 
     Uniform Code of Military Justice) or set aside, or each such 
     punishment applicable to the member under the sentence is 
     disapproved by the person acting under section 860(c) of this 
     title, remitted, set aside, suspended, or mitigated''.
       (d) Effective Date.--The amendments made by this section 
     shall apply only with respect to cases in which a court-
     martial sentence is ajudged on or after the date of the 
     enactment of this Act.

     SEC. 573. EXCEPTIONAL ELIGIBILITY FOR TRANSITIONAL 
                   COMPENSATION.

       (a) Authority.--Section 1059 of title 10, United States 
     Code, is amended by adding at the end the following new 
     subsection:
       ``(m) Exceptional Eligibility for Dependents of Former 
     Members.--(1) The Secretary concerned, under regulations 
     prescribed under subsection (k), may authorize eligibility 
     for benefits under this section for dependents and former 
     dependents of a former member of the armed forces in a case 
     in which the dependents or former dependents are not 
     otherwise eligible for such benefits and the Secretary 
     concerned determines that the former member engaged in 
     conduct that is a dependent-abuse offense under this section 
     and the former member was separated from active duty other 
     than as described in subsection (b).
       ``(2) In a case in which the Secretary concerned, under the 
     authority of paragraph (1), authorizes benefits to be 
     provided under this section, such benefits shall be provided 
     in the same manner as if the former member were an individual 
     described in subsection (b), except that, under regulations 
     prescribed under subsection (k), the Secretary shall make 
     such adjustments to the commencement and duration of payment 
     provisions of subsection (e), and may make adjustments to 
     other provisions of this section, as the Secretary considers 
     necessary in light of the circumstances in order to provide 
     benefits substantially equivalent to the benefits provided in 
     the case of an individual described in subsection (b).
       ``(3) The authority of the Secretary concerned under 
     paragraph (1) may not be delegated.''.
       (b) Effective Date.--The authority under subsection (m) of 
     section 1059 of title 10, United

[[Page 27534]]

     States Code, as added by subsection (a), may be exercised 
     with respect to eligibility for benefits under that section 
     only for dependents and former dependents of individuals who 
     are separated from active duty in the Armed Forces on or 
     after the date of the enactment of this Act.

     SEC. 574. TYPES OF ADMINISTRATIVE SEPARATIONS TRIGGERING 
                   COVERAGE.

       Section 1059(b)(2) of title 10, United States Code, is 
     amended by inserting ``, voluntarily or involuntarily,'' 
     after ``administratively separated''.

     SEC. 575. COMPTROLLER GENERAL REVIEW AND REPORT.

       (a) Review.--During the two-year period beginning on the 
     date of the enactment of this Act, the Comptroller General 
     shall review and assess the progress of the Department of 
     Defense in implementing the recommendations of the Defense 
     Task Force on Domestic Violence. In reviewing the status of 
     the Department's efforts, the Comptroller General should 
     specifically focus on--
       (1) the efforts of the Department to ensure confidentiality 
     for victims and accountability and education of commanding 
     officers and chaplains; and
       (2) the resources that the Department of Defense has 
     provided toward such implementation, including personnel, 
     facilities, and other administrative support, in order to 
     ensure that necessary resources are provided to the 
     organization within the Office of the Secretary of Defense 
     with direct responsibility for oversight of implementation by 
     the military departments of recommendations of the Task Force 
     in order for that organization to carry out its duties and 
     responsibilities.
       (b) Report.--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 on 
     the results of the review and assessment under subsection (a) 
     not later than 30 months after the date of the enactment of 
     this Act.

     SEC. 576. FATALITY REVIEWS.

       (a) Army.--(1) Part II of subtitle B of title 10, United 
     States Code, is amended by adding at the end the following 
     new chapter:

   ``CHAPTER 375--MISCELLANEOUS INVESTIGATION REQUIREMENTS AND OTHER 
                                 DUTIES

``Sec.
``4061. Fatality reviews.

     ``Sec. 4061. Fatality reviews

       ``(a) Review of Fatalities.--The Secretary of the Army 
     shall conduct a multidisciplinary, impartial review (referred 
     to as a `fatality review') in the case of each fatality known 
     or suspected to have resulted from domestic violence or child 
     abuse against any of the following:
       ``(1) A member of the Army on active duty.
       ``(2) A current or former dependent of a member of the Army 
     on active duty.
       ``(3) A current or former intimate partner who has a child 
     in common or has shared a common domicile with a member of 
     the Army on active duty.
       ``(b) Matters To Be Included.--The report of a fatality 
     review under subsection (a) shall, at a minimum, include the 
     following:
       ``(1) An executive summary.
       ``(2) Data setting forth victim demographics, injuries, 
     autopsy findings, homicide or suicide methods, weapons, 
     police information, assailant demographics, and household and 
     family information.
       ``(3) Legal disposition.
       ``(4) System intervention and failures, if any, within the 
     Department of Defense.
       ``(5) A discussion of significant findings.
       ``(6) Recommendations for systemic changes, if any, within 
     the Department of the Army and the Department of Defense.
       ``(c) OSD Guidance.--The Secretary of Defense shall 
     prescribe guidance, which shall be uniform for the military 
     departments, for the conduct of reviews by the Secretary 
     under subsection (a).''.
       (2) The tables of chapters at the beginning of subtitle B, 
     and at the beginning of part II of subtitle B, of such title 
     are each amended by inserting after the item relating to 
     chapter 373 the following new item:

``375. Miscellaneous Investigation Requirements and Other Du4061''.....

       (b) Navy and Marine Corps.--(1) Chapter 555 of title 10, 
     United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 6036. Fatality reviews

       ``(a) Review of Fatalities.--The Secretary of the Navy 
     shall conduct a multidisciplinary, impartial review (referred 
     to as a `fatality review') in the case of each fatality known 
     or suspected to have resulted from domestic violence or child 
     abuse against any of the following.
       ``(1) A member of the naval service on active duty.
       ``(2) A current or former dependent of a member of the 
     naval service on active duty.
       ``(3) A current or former intimate partner who has a child 
     in common or has shared a common domicile with a member of 
     the naval service on active duty.
       ``(b) Matters To Be Included.--The report of a fatality 
     review under subsection (a) shall, at a minimum, include the 
     following:
       ``(1) An executive summary.
       ``(2) Data setting forth victim demographics, injuries, 
     autopsy findings, homicide or suicide methods, weapons, 
     police information, assailant demographics, and household and 
     family information.
       ``(3) Legal disposition.
       ``(4) System intervention and failures, if any, within the 
     Department of Defense.
       ``(5) A discussion of significant findings.
       ``(6) Recommendations for systemic changes, if any, within 
     the Department of the Navy and the Department of Defense.
       ``(c) OSD Guidance.--The Secretary of Defense shall 
     prescribe guidance, which shall be uniform for the military 
     departments, for the conduct of reviews by the Secretary 
     under subsection (a).''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``6036. Fatality reviews.''.

       (c) Air Force.--(1) Part II of subtitle D of such title is 
     amended by adding at the end the following new chapter:

   ``CHAPTER 875--MISCELLANEOUS INVESTIGATION REQUIREMENTS AND OTHER 
                                 DUTIES

``Sec.
``9061. Fatality reviews.

     ``Sec. 9061. Fatality reviews

       ``(a) Review of Fatalities.--The Secretary of the Air Force 
     shall conduct a multidisciplinary, impartial review (referred 
     to as a `fatality review') in the case of each fatality known 
     or suspected to have resulted from domestic violence or child 
     abuse against any of the following:
       ``(1) A member of the Air Force on active duty.
       ``(2) A current or former dependent of a member of the Air 
     Force on active duty.
       ``(3) A current or former intimate partner who has a child 
     in common or has shared a common domicile with a member of 
     the Air Force on active duty.
       ``(b) Matters To Be Included.--The report of a fatality 
     review under subsection (a) shall, at a minimum, include the 
     following:
       ``(1) An executive summary.
       ``(2) Data setting forth victim demographics, injuries, 
     autopsy findings, homicide or suicide methods, weapons, 
     police information, assailant demographics, and household and 
     family information.
       ``(3) Legal disposition.
       ``(4) System intervention and failures, if any, within the 
     Department of Defense.
       ``(5) A discussion of significant findings.
       ``(6) Recommendations for systemic changes, if any, within 
     the Department of the Air Force and the Department of 
     Defense.
       ``(c) OSD Guidance.--The Secretary of Defense shall 
     prescribe guidance, which shall be uniform for the military 
     departments, for the conduct of reviews by the Secretary 
     under subsection (a).''.
       (2) The tables of chapters at the beginning of subtitle D, 
     and at the beginning of part II of subtitle D, of such title 
     are each amended by inserting after the item relating to 
     chapter 873 the following new item:

``875. Miscellaneous Investigation Requirements and Other Du9061''.....

       (d) Applicability.--Sections 4061, 6036, and 9061 of title 
     10, United States Code, as added by this section, apply with 
     respect to fatalities that occur on or after the date of the 
     enactment of this Act.

     SEC. 577. SENSE OF CONGRESS.

       It is the sense of Congress that--
       (1) the Secretary of Defense should develop a Department of 
     Defense strategic plan for domestic violence that 
     incorporates the core principles of domestic violence 
     intervention identified by the Defense Task Force on Domestic 
     Violence in its third annual report under section 591(e) of 
     the National Defense Authorization Act for Fiscal Year 2000 
     (Public Law 106-65; 10 U.S.C. 1562 note); and
       (2) the Secretary of each military department should 
     establish and support a Victim Advocate Protocol as 
     recommended by the Defense Task Force on Domestic Violence.
                       Subtitle H--Other Matters

     SEC. 581. RECOGNITION OF MILITARY FAMILIES.

       (a) Findings.--Congress makes the following findings:
       (1) The families of both active and reserve component 
     members of the Armed Forces, through their sacrifices and 
     their dedication to the Nation and its values, contribute 
     immeasurably to the readiness of the Armed Forces.
       (2) Without the continued support of military families, the 
     Nation's ability to sustain a high quality all-volunteer 
     military force would be undermined.
       (3) In the perilous and challenging times of the global war 
     on terrorism, with hundreds of thousands of active and 
     reserve component military personnel deployed overseas in 
     places of combat and other imminent danger, military families 
     are making extraordinary sacrifices and will be required to 
     do so for the foreseeable future.
       (4) Beginning in 1997, military family service and support 
     centers have responded to the encouragement and support of 
     private, non-profit organizations to recognize and honor the 
     American military family during the Thanksgiving period each 
     November.
       (b) Military Family Recognition.--In view of the findings 
     in subsection (a), Congress determines that it is appropriate 
     that special measures be taken annually to recognize and 
     honor the American military family.
       (c) Department of Defense Programs and Activities.--The 
     Secretary of Defense shall--
       (1) implement and sustain programs, including appropriate 
     ceremonies and activities, to recognize and honor the 
     contributions and sacrifices of the American military family, 
     including families of both active and reserve component 
     military personnel;

[[Page 27535]]

       (2) focus the celebration of the American military family 
     during a specific period of each year to give full and proper 
     recognition to those families; and
       (3) seek the assistance and support of appropriate civilian 
     organizations, associations, and other entities (A) in 
     carrying out the annual celebration of the American military 
     family, and (B) in sustaining other, longer-term efforts to 
     support the American military family.

     SEC. 582. PERMANENT AUTHORITY FOR SUPPORT FOR CERTAIN 
                   CHAPLAIN-LED MILITARY FAMILY SUPPORT PROGRAMS.

       (a) In General.--(1) Chapter 88 of title 10, United States 
     Code, is amended by inserting at the end of subchapter I the 
     following new section:

     ``Sec. 1789. Chaplain-led programs: authorized support

       ``(a) Authority.--The Secretary of a military department 
     may provide support services described in subsection (b) to 
     support chaplain-led programs to assist members of the armed 
     forces on active duty and their immediate family members, and 
     members of reserve components in an active status and their 
     immediate family members, in building and maintaining a 
     strong family structure.
       ``(b) Authorized Support Services.--The support services 
     referred to in subsection (a) are costs of transportation, 
     food, lodging, child care, supplies, fees, and training 
     materials for members of the armed forces and their family 
     members while participating in programs referred to in that 
     subsection, including participation at retreats and 
     conferences.
       ``(c) Immediate Family Members.--In this section, the term 
     `immediate family members', with respect to a member of the 
     armed forces, means--
       ``(1) the member's spouse; and
       ``(2) any child (as defined in section 1072(6) of this 
     title) of the member who is described in subparagraph (D) of 
     section 1072(2) of this title.''.
       (2) The table of sections at the beginning of such 
     subchapter is amended by inserting after the item relating to 
     section 1788 the following new item:

``1789. Chaplain-led programs: authorized support.''.

       (b) Effective Date.--Section 1789 of title 10, United 
     States Code, as added by subsection (a), shall take effect on 
     October 1, 2003.

     SEC. 583. DEPARTMENT OF DEFENSE-DEPARTMENT OF VETERANS 
                   AFFAIRS JOINT EXECUTIVE COMMITTEE.

       (a) Establishment of Joint Committee.--(1) Chapter 3 of 
     title 38, United States Code, is amended by adding at the end 
     the following new section:

     ``Sec. 320. Department of Veterans Affairs-Department of 
       Defense Joint Executive Committee

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

``320. Department of Veterans Affairs-Department of Defense Joint 
              Executive Committee.''.

       (b) Conforming Amendments.--(1) Subsection (c) of section 
     8111 of such title is repealed.
       (2) Such section is further amended--
       (A) in subsection (b)(2), by striking ``the interagency 
     committee provided for under subsection (c)'' and inserting 
     ``the Department of Veterans Affairs-Department of Defense 
     Joint Executive Committee under section 320 of this title'';
       (B) in subsection (d)(1), by striking ``Committee 
     established in subsection (c)'' and inserting ``Department of 
     Veterans Affairs-Department of Defense Joint Executive 
     Committee'';
       (C) in subsection (e)(1), by striking ``Committee under 
     subsection (c)(2)'' and inserting ``Department of Veterans 
     Affairs-Department of Defense Joint Executive Committee with 
     respect to health care resources''; and
       (D) in subsection (f)(2), by striking subparagraphs (B) and 
     (C) and inserting the following:
       ``(B) The assessment of further opportunities identified by 
     the Department of Veterans Affairs-Department of Defense 
     Joint Executive Committee under subsection (d)(3) of section 
     320 of this title for the sharing of health-care resources 
     between the two Departments.
       ``(C) Any recommendation made by that committee under 
     subsection (c)(2) of that section during that fiscal year.''.
       (c) Technical Amendments.--Subsection (f) of such section 
     is further amended by inserting ``(Public Law 107-314)'' in 
     paragraphs (3), (4)(A), (4)(B), and (5) after ``for Fiscal 
     Year 2003''.
       (d) Effective Date.--(1) If this Act is enacted before 
     October 1, 2003--
       (A) section 320 of title 38, United States Code, as added 
     by subsection (a), shall take effect on October 1, 2003; and
       (B) the amendments made by subsections (b) and (c) shall 
     take effect on October 1, 2003, immediately after the 
     amendment made by section 721(a)(1) of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003 (Public Law 
     107-314; 116 Stat. 2589).
       (2) If this Act is enacted on or after October 1, 2003, the 
     amendments made by this section shall take effect on the date 
     of the enactment of this Act.

     SEC. 584. REVIEW OF THE 1991 DEATH OF MARINE CORPS COLONEL 
                   JAMES E. SABOW.

       (a) Review Required.--Not later than 60 days after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     commence a review, as specified in subsection (c), of the 
     death of Colonel James S. Sabow, United States Marine Corps, 
     who died on January 22, 1991, at the Marine Corps Air 
     Station, El Toro, California.
       (b) Focus of Review.--The principal focus of the review 
     under subsection (a) shall be to determine the cause of the 
     death of Colonel Sabow, given the medical and forensic 
     factors associated with that death.
       (c) Review by Outside Experts.--The Secretary of Defense 
     shall provide that the evidence concerning the cause of the 
     death of Colonel Sabow and the medical and forensic factors 
     associated with that death shall be reviewed by medical and 
     forensic experts outside the Department of Defense.
       (d) Report.--Not later than six months 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 written report on the findings of the 
     review under subsection (a). The Secretary shall include in 
     the report (1) the Secretary's conclusions as a result of the 
     review, including the Secretary's conclusions regarding the 
     cause of death of Colonel Sabow, and (2) the conclusions of 
     the experts reviewing the matter under subsection (c).

     SEC. 585. POLICY ON CONCURRENT DEPLOYMENT TO COMBAT ZONES OF 
                   BOTH MILITARY SPOUSES OF MILITARY FAMILIES WITH 
                   MINOR CHILDREN.

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

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

       An amendment to Department of Defense Directive 1344.7, 
     ``Personal Commercial Solicitation on DoD Installations'', or 
     cancellation of

[[Page 27536]]

     that directive, shall not take effect until the end of the 
     30-day period beginning on the date on which the Secretary of 
     Defense submits to Congress notice of the amendment or 
     cancellation and the reasons therefor.

     SEC. 587. STUDY OF NATIONAL GUARD CHALLENGE PROGRAM.

       (a) Study Required.--The Secretary of Defense shall conduct 
     a study to evaluate--
       (1) the adequacy and impact of the matching funds 
     requirement in effect under section 509(d) of title 32, 
     United States Code, for States to participate in the National 
     Guard Challenge Program; and
       (2) the value of the National Guard Challenge Program to 
     the Department of Defense.
       (b) Consideration of Matching Fund Alternatives.--As part 
     of the study, the Secretary shall identify potential 
     alternatives to the matching funds structure provided for the 
     National Guard Challenge Program under section 509(d) of 
     title 32, United States Code, such as a range of Federal-
     State matching ratios, that would provide flexibility in the 
     management of the program to better respond to temporary 
     fiscal conditions.
       (c) Submission of Study.--Not later than March 1, 2004, the 
     Secretary shall submit to Congress a report containing the 
     results of the study and such recommendations as the 
     Secretary considers appropriate in response to the study.

     SEC. 588. FINDINGS AND SENSE OF CONGRESS ON REWARD FOR 
                   INFORMATION LEADING TO RESOLUTION OF STATUS OF 
                   MEMBERS OF THE ARMED FORCES WHO REMAIN 
                   UNACCOUNTED FOR.

       (a) Findings.--Congress makes the following findings:
       (1) The Department of Defense estimates that there are more 
     than 10,000 members of the Armed Forces and others who as a 
     result of activities during the Korean War or the Vietnam War 
     were placed in a missing status or a prisoner of war status, 
     or who were determined to have been killed in action, 
     although remains of those members have not been recovered, 
     and they remain unaccounted for.
       (2) One member of the Armed Forces, Navy Captain Michael 
     Scott Speicher, remains unaccounted for from the first 
     Persian Gulf War, and there have been credible reports of his 
     having been seen alive in Iraq in the years since his 
     aircraft was shot down on the first night of that war on 
     January 16, 1991.
       (3) The United States should pursue every lead and 
     otherwise maintain a relentless and thorough quest to 
     completely account for the fates of those members of the 
     Armed Forces who are missing or otherwise unaccounted for.
       (4) The Secretary of Defense has the authority to disburse 
     funds as a reward to individuals who provide information 
     leading to the conclusive resolution of cases of missing 
     members of the Armed Forces.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Secretary of Defense should--
       (1) use the authority available to the Secretary to 
     disburse funds rewarding individuals who provide information 
     leading to the conclusive resolution of the status of any 
     missing member of the Armed Forces; and
       (2) authorize and publicize a reward of $1,000,000 for 
     information resolving the fate of any member of the Armed 
     Forces, such as Navy Captain Michael Scott Speicher, who the 
     Secretary has reason to believe may be alive in captivity.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Increase in basic pay for fiscal year 2004.
Sec. 602. Revised annual pay adjustment process.
Sec. 603. Computation of basic pay rate for commissioned officers with 
              prior enlisted or warrant officer service.
Sec. 604. Special subsistence allowance authorities for members 
              assigned to high-cost duty location or under other unique 
              and unusual circumstances.
Sec. 605. Basic allowance for housing for each member married to 
              another member without dependents when both spouses are 
              on sea duty.
Sec. 606. Temporary increase in authorized amount of family separation 
              allowance.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pay 
              authorities for reserve forces.
Sec. 612. One-year extension of certain bonus and special pay 
              authorities for certain health care professionals.
Sec. 613. One-year extension of special pay and bonus authorities for 
              nuclear officers.
Sec. 614. One-year extension of other bonus and special pay 
              authorities.
Sec. 615. Hazardous duty pay for duty involving ski-equipped aircraft 
              on Antarctica or the Arctic icepack.
Sec. 616. Special pay for reserve officers holding positions of unusual 
              responsibility and of critical nature.
Sec. 617. Payment of Selected Reserve reenlistment bonus to members of 
              Selected Reserve who are mobilized.
Sec. 618. Availability of hostile fire and imminent danger special pay 
              for reserve component members on inactive duty.
Sec. 619. Temporary increase in authorized amount of hostile fire and 
              imminent danger special pay.
Sec. 620. Retroactive payment of hostile fire or imminent danger pay 
              for service in eastern Mediterranean Sea in Operation 
              Iraqi Freedom.
Sec. 621. Expansion of overseas tour extension incentive program to 
              officers.
Sec. 622. Repeal of congressional notification requirement for 
              designation of critical military skills for retention 
              bonus.
Sec. 623. Eligibility of warrant officers for accession bonus for new 
              officers in critical skills.
Sec. 624. Special pay for service as member of Weapons of Mass 
              Destruction Civil Support Team.
Sec. 625. Incentive bonus for conversion to military occupational 
              specialty to ease personnel shortage.
Sec. 626. Bonus for reenlistment during service on active duty in 
              Afghanistan, Iraq, or Kuwait.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Shipment of privately owned motor vehicle within continental 
              United States.
Sec. 632. Transportation of dependents to presence of members of the 
              Armed Forces retired for illness or injury incurred in 
              active duty.
Sec. 633. Payment or reimbursement of student baggage storage costs for 
              dependent children of members stationed overseas.
Sec. 634. Contracts for full replacement value for loss or damage to 
              personal property transported at Government expense.
Sec. 635. Payment of lodging expenses of members during authorized 
              leave from temporary duty location.

             Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Phase-in of full concurrent receipt of military retired pay 
              and veterans disability compensation for certain military 
              retirees.
Sec. 642. Revisions to combat-related special compensation program.
Sec. 643. Special rule for computation of retired pay base for 
              commanders of combatant commands.
Sec. 644. Survivor Benefit Plan annuities for surviving spouses of 
              Reserves not eligible for retirement who die from a cause 
              incurred or aggravated while on inactive-duty training.
Sec. 645. Survivor Benefit Plan modifications.
Sec. 646. Increase in death gratuity payable with respect to deceased 
              members of the Armed Forces.
Sec. 647. Death benefits study.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

Sec. 651. Expanded commissary access for Selected Reserve members, 
              reserve retirees under age 60, and their dependents.
Sec. 652. Defense commissary system and exchange stores system.
Sec. 653. Limitations on private operation of defense commissary store 
              functions.
Sec. 654. Use of appropriated funds to operate defense commissary 
              system.
Sec. 655. Recovery of nonappropriated fund instrumentality and 
              commissary store investments in real property at military 
              installations closed or realigned.

                       Subtitle F--Other Matters

Sec. 661. Comptroller General report on adequacy of special pays and 
              allowances for frequently deployed members.
                     Subtitle A--Pay and Allowances

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

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

[[Page 27537]]



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


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


                          WARRANT OFFICERS \1\
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade      2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,119.40   3,355.80   3,452.40   3,547.20   3,710.40
W-3..............   2,848.80   2,967.90   3,089.40   3,129.30   3,257.10
W-2..............   2,505.90   2,649.00   2,774.10   2,865.30   2,943.30
W-1..............   2,212.80   2,394.00   2,515.20   2,593.50   2,802.30
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------

[[Page 27538]]

 
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,871.50   4,035.00   4,194.30   4,359.00   4,617.30
W-3..............   3,403.20   3,595.80   3,786.30   3,988.80   4,140.60
W-2..............   3,157.80   3,321.60   3,443.40   3,562.20   3,643.80
W-1..............   2,928.30   3,039.90   3,164.70   3,247.20   3,321.90
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
W-5..............      $0.00  $5,360.70  $5,544.30  $5,728.80  $5,914.20
W-4..............   4,782.60   4,944.30   5,112.00   5,277.00   5,445.90
W-3..............   4,291.80   4,356.90   4,424.10   4,570.20   4,716.30
W-2..............   3,712.50   3,843.00   3,972.60   4,103.70   4,103.70
W-1..............   3,443.70   3,535.80   3,535.80   3,535.80   3,535.80
------------------------------------------------------------------------
\1\ Notwithstanding the basic pay rates specified in this table, the
  actual rate of basic pay for warrant officers may not exceed the rate
  of pay for level V of the Executive Schedule.


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

     SEC. 602. REVISED ANNUAL PAY ADJUSTMENT PROCESS.

       (a) Requirement for Annual Adjustment.--Subsection (a) of 
     section 1009 of title 37, United States Code, is amended to 
     read as follows:
       ``(a) Requirement for Annual Adjustment.--Effective on 
     January 1 of each year, the rates of basic pay for members of 
     the uniformed services under section 203(a) of this title 
     shall be increased under this section.''.
       (b) Effectiveness of Adjustment.--Subsection (b) of such 
     section is amended by striking ``shall--'' and all that 
     follows and inserting ``shall have the force and effect of 
     law.''.
       (c) Percentage of Adjustment; Alternative Pay Adjustment 
     Authority.--Such section is further amended--
       (1) by striking subsections (c), (d), (e), and (g);
       (2) by redesignating subsection (f) as subsection (d);
       (3) by inserting after subsection (b) the following new 
     subsection (c):
       ``(c) Equal Percentage Increase for All Members.--(1) An 
     adjustment made under this section in a year shall provide 
     all eligible members with an increase in the monthly basic 
     pay that is the percentage (rounded to the nearest one-tenth 
     of one percent) by which the ECI for the base quarter of the 
     year before the preceding year exceeds the ECI for the base 
     quarter of the second year before the preceding calendar year 
     (if at all).
       ``(2) Notwithstanding paragraph (1), but subject to 
     subsection (d), the percentage of the adjustment taking 
     effect under this section during each of fiscal years 2004, 
     2005, and 2006, shall be one-half of one percentage point 
     higher than the percentage that would otherwise be applicable 
     under such paragraph.
       ``(3) In this subsection:
       ``(A) The term `ECI' means the Employment Cost Index (wages 
     and salaries, private industry workers) published quarterly 
     by the Bureau of Labor Statistics.
       ``(B) The term `base quarter' for any year is the three-
     month period ending on September 30 of such year.''; and
       (4) by adding at the end the following new subsection:
       ``(e) Presidential Determination of Need for Alternative 
     Pay Adjustment.--(1) If, because of national emergency or 
     serious economic

[[Page 27539]]

     conditions affecting the general welfare, the President 
     considers the pay adjustment which would otherwise be 
     required by this section in any year to be inappropriate, the 
     President shall prepare and transmit to Congress before 
     September 1 of the preceding year a plan for such alternative 
     pay adjustments as the President considers appropriate, 
     together with the reasons therefor.
       ``(2) In evaluating an economic condition affecting the 
     general welfare under this subsection, the President shall 
     consider pertinent economic measures including the Indexes of 
     Leading Economic Indicators, the Gross Domestic Product, the 
     unemployment rate, the budget deficit, the Consumer Price 
     Index, the Producer Price Index, the Employment Cost Index, 
     and the Implicit Price Deflator for Personal Consumption 
     Expenditures.
       ``(3) The President shall include in the plan submitted to 
     Congress under paragraph (1) an assessment of the impact that 
     the alternative pay adjustments proposed in the plan would 
     have on the Government's ability to recruit and retain well-
     qualified persons for the uniformed services.''.

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

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

     SEC. 604. SPECIAL SUBSISTENCE ALLOWANCE AUTHORITIES FOR 
                   MEMBERS ASSIGNED TO HIGH-COST DUTY LOCATION OR 
                   UNDER OTHER UNIQUE AND UNUSUAL CIRCUMSTANCES.

       Section 402 of title 37, United States Code, is amended--
       (1) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively; and
       (2) by inserting after subsection (e) the following new 
     subsection:
       ``(f) Special Rule for High-Cost Duty Locations and Other 
     Unique and Unusual Circumstances.--The Secretary of Defense 
     may authorize a member of the armed forces who is not 
     entitled to the meals portion of the per diem in connection 
     with an assignment in a high-cost duty location or under 
     other unique and unusual circumstances, as determined by the 
     Secretary, to receive any or all of the following:
       ``(1) Meals at no cost to the member, regardless of the 
     entitlement of the member to a basic allowance for 
     subsistence under subsection (a).
       ``(2) A basic allowance for subsistence at the standard 
     rate, regardless of the entitlement of the member for all 
     meals or select meals during the duty day.
       ``(3) A supplemental subsistence allowance at a rate higher 
     than the basic allowance for subsistence rates in effect 
     under this section, regardless of the entitlement of the 
     member for all meals or select meals during the duty day.''.

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

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

     SEC. 606. TEMPORARY INCREASE IN AUTHORIZED AMOUNT OF FAMILY 
                   SEPARATION ALLOWANCE.

       Section 427 of title 37, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(e) Temporary Increase in Authorized Amount of 
     Allowance.--For the period beginning on October 1, 2003, and 
     ending on December 31, 2004, the monthly allowance authorized 
     by subsection (a)(1) shall be increased to $250.''.
           Subtitle B--Bonuses and Special and Incentive Pays

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

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

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

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

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

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

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

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

     SEC. 615. HAZARDOUS DUTY PAY FOR DUTY INVOLVING SKI-EQUIPPED 
                   AIRCRAFT ON ANTARCTICA OR THE ARCTIC ICEPACK.

       (a) Additional Type of Duty Eligible for Pay.--Section 
     301(a) of title 37, United States Code, is amended--
       (1) in paragraph (11), by striking ``or'' at the end;
       (2) by redesignating paragraph (12) as paragraph (13); and
       (3) by inserting after paragraph (11) the following new 
     paragraph:
       ``(12) involving use of ski-equipped aircraft on the ground 
     in Antarctica or on the Arctic ice-pack; or''.
       (b) Monthly Amount.--Subsection (c) of such section is 
     amended--
       (1) in paragraph (1), by striking ``(11)'' and inserting 
     ``(12)''; and
       (2) in paragraph (2)(A), by striking ``(12)'' and inserting 
     ``(13)''.
       (c) Technical Amendments.--(1) Subsections (a)(2), (b), 
     (c), and (f)(2)(A) of such section are amended by striking 
     ``clause'' each place it appears and inserting ``paragraph''.
       (2) Subsection (c)(1) of such section is amended by 
     striking ``clauses'' and inserting ``paragraphs''.
       (d) Effective Date.--Paragraph (12) of section 301(a) of 
     title 37, United States Code, as added by subsection (a)(3), 
     shall apply to duty described in such paragraph that is 
     performed on or after October 1, 2003.

     SEC. 616. SPECIAL PAY FOR RESERVE OFFICERS HOLDING POSITIONS 
                   OF UNUSUAL RESPONSIBILITY AND OF CRITICAL 
                   NATURE.

       (a) Eligibility.--Section 306 of title 37, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) by inserting ``(1)'' after ``(a)'';
       (B) by striking ``who is entitled to the basic pay of pay 
     grade O-6 or below and'' and inserting ``described in 
     paragraph (2)''; and
       (C) by adding at the end the following new paragraph:

[[Page 27540]]

       ``(2) An officer of the armed forces referred to in 
     paragraph (1) is an officer who is entitled to the basic pay 
     under section 204 of this title, or the compensation under 
     section 206 of this title, of pay grade O-6 or below.'';
       (2) by redesignating subsections (b) through (e) as 
     subsections (c) through (f), respectively; and
       (3) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) If an officer entitled to compensation under section 
     206 of this title is paid special pay under subsection (a) 
     for the performance of duties in a position designated under 
     such subsection, the special pay shall be paid at the rate of 
     \1/30\ of the monthly rate authorized by such subsection for 
     each day of the performance of duties in the designated 
     position.''.
       (b) Limitation.--Subsection (d) of such section, as 
     redesignated by subsection (a)(2) of this section, is 
     amended--
       (1) by inserting ``(1)'' after ``(d)'';
       (2) in paragraph (1), as so designated, by inserting ``or 
     mobilization in support of a contingency operation'' after 
     ``training''; and
       (3) by adding at the end the following new paragraph:
       ``(2) Of the number of officers in the Selected Reserve of 
     the Ready Reserve of an armed force who are not on active 
     duty (other than for training or mobilization in support of a 
     contingency operation), not more than 5 percent of the number 
     of such officers in each of the pay grades O-3 and below, and 
     not more than 10 percent of the number of such officers in 
     pay grade O-4, O-5, or O-6, may be paid special pay under 
     subsection (b).''.

     SEC. 617. PAYMENT OF SELECTED RESERVE REENLISTMENT BONUS TO 
                   MEMBERS OF SELECTED RESERVE WHO ARE MOBILIZED.

       Section 308b of title 37, United States Code, as amended by 
     section 611(a), is further amended--
       (1) by redesignating subsections (d), (e), and (f) as 
     subsections (e), (f), and (g), respectively; and
       (2) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) Payment to Mobilized Members.--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.''.

     SEC. 618. AVAILABILITY OF HOSTILE FIRE AND IMMINENT DANGER 
                   SPECIAL PAY FOR RESERVE COMPONENT MEMBERS ON 
                   INACTIVE DUTY.

       (a) Expansion and Clarification of Current Law.--Section 
     310 of title 37, United States Code, is amended--
       (1) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively; and
       (2) by striking subsection (a) and inserting the following 
     new subsections:
       ``(a) Eligibility and Special Pay Amount.--Under 
     regulations prescribed by the Secretary of Defense, a member 
     of a uniformed service may be paid special pay at the rate of 
     $150 for any month in which--
       ``(1) the member was entitled to basic pay or compensation 
     under section 204 or 206 of this title; and
       ``(2) the member--
       ``(A) was subject to hostile fire or explosion of hostile 
     mines;
       ``(B) was on duty in an area in which the member was in 
     imminent danger of being exposed to hostile fire or explosion 
     of hostile mines and in which, during the period the member 
     was on duty in the area, other members of the uniformed 
     services were subject to hostile fire or explosion of hostile 
     mines;
       ``(C) was killed, injured, or wounded by hostile fire, 
     explosion of a hostile mine, or any other hostile action; or
       ``(D) was on duty in a foreign area in which the member was 
     subject to the threat of physical harm or imminent danger on 
     the basis of civil insurrection, civil war, terrorism, or 
     wartime conditions.
       ``(b) Continuation During Hospitalization.--A member 
     covered by subsection (a)(2)(C) who is hospitalized for the 
     treatment of the injury or wound may be paid special pay 
     under this section for not more than three additional months 
     during which the member is so hospitalized.''.
       (b) Clerical Amendments.--Such section is further amended--
       (1) in subsection (c), as redesignated by subsection 
     (a)(1), by inserting ``Limitations and Administration.--'' 
     before ``(1)''; and
       (2) in subsection (d), as redesignated by subsection 
     (a)(1), by inserting ``Determinations of Fact.--'' before 
     ``Any''.
       (c) Effective Date.--Subsections (a) and (b) of section 310 
     of title 37, United States Code, as added by subsection 
     (a)(2), shall take effect as of September 11, 2001.
       (d) Relation to Temporary Increase in Authorized Amount of 
     Hostile Fire and Imminent Danger Special Pay.--(1) The 
     amendment made by subsection (a)(2) does not affect the 
     authority to pay an increased amount of hostile fire and 
     imminent danger special pay under section 310 of title 37, 
     United States Code, pursuant to--
       (A) the amendment made by subsection (a) of section 1316 of 
     Public Law 108-11 (117 Stat. 570) during the period specified 
     in subsection (c)(1) of such section, as modified by section 
     113 of Public Law 108-84 (117 Stat. 1044); or
       (B) the amendment made by section 619 of this Act during 
     the period specified in such amendment.
       (2) Effective as of April 16, 2003, section 1316(c)(2) of 
     Public Law 108-11 (117 Stat. 570) is amended by inserting 
     ``the dollar amounts specified in'' before ``sections''.

     SEC. 619. TEMPORARY INCREASE IN AUTHORIZED AMOUNT OF HOSTILE 
                   FIRE AND IMMINENT DANGER SPECIAL PAY.

       Section 310 of title 37, United States Code, as amended by 
     section 618, is further amended by adding at the end the 
     following new subsection:
       ``(e) Temporary Increase in Authorized Amount of Special 
     Pay.--For the period beginning on October 1, 2003, and ending 
     on December 31, 2004, the rate of pay authorized by 
     subsection (a) shall be increased to $225.''.

     SEC. 620. RETROACTIVE PAYMENT OF HOSTILE FIRE OR IMMINENT 
                   DANGER PAY FOR SERVICE IN EASTERN MEDITERRANEAN 
                   SEA IN OPERATION IRAQI FREEDOM.

       (a) Payment Authorized.--The Secretary of Defense may 
     authorize the payment of hostile fire or imminent danger pay 
     under section 310(a) of title 37, United States Code, to 
     members of the Armed Forces who were assigned to duty, during 
     the period beginning on March 19, 2003, and ending on April 
     11, 2003, in the area specified in subsection (b) in 
     connection with Operation Iraqi Freedom at any time during 
     that period.
       (b) Specified Area.--The area referred to in subsection (a) 
     is the Mediterranean Sea east of 30 degrees East Longitude 
     (sea area only).

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

       (a) Special Pay or Bonus for Extending Overseas Tour of 
     Duty.--(1) Subsections (a) and (b) of section 314 of title 
     37, United States Code, are amended by striking ``an enlisted 
     member'' and inserting ``a member''.
       (2)(A) The heading of such section is amended to read as 
     follows:

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

       (B) The item relating to such section in the table of 
     sections at the beginning of chapter 5 of such title is 
     amended to read as follows:

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

     SEC. 622. REPEAL OF CONGRESSIONAL NOTIFICATION REQUIREMENT 
                   FOR DESIGNATION OF CRITICAL MILITARY SKILLS FOR 
                   RETENTION BONUS.

       Section 323(b) of title 37, United States Code, is 
     amended--
       (1) by striking ``(1)''; and
       (2) by striking paragraph (2).

     SEC. 623. ELIGIBILITY OF WARRANT OFFICERS FOR ACCESSION BONUS 
                   FOR NEW OFFICERS IN CRITICAL SKILLS.

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

     SEC. 624. SPECIAL PAY FOR SERVICE AS MEMBER OF WEAPONS OF 
                   MASS DESTRUCTION CIVIL SUPPORT TEAM.

       (a) In General.--Chapter 5 of title 37, United States Code, 
     is amended by inserting after section 305a the following new 
     section:

     ``Sec. 305b. Special pay: service as member of Weapons of 
       Mass Destruction Civil Support Team

       ``(a) Special Pay Authorized.--The Secretary of a military 
     department may pay special pay under this subsection to 
     members of an armed force under the jurisdiction of the 
     Secretary who are entitled to basic pay under section 204 and 
     are assigned by orders to duty as members of a Weapons of 
     Mass Destruction Civil Support Team if the Secretary 
     determines that the payment of such special pay is needed to 
     address recruitment or retention concerns in that armed 
     force.
       ``(b) Monthly Rate.--The monthly rate of special pay under 
     subsection (a) may not exceed $150.
       ``(c) Inclusion of Reserve Component Members Performing 
     Inactive Duty Training.-- (1) To the extent funds are made 
     available to carry out this subsection, the Secretary of a 
     military department may pay the special pay under subsection 
     (a) to members of a reserve component of the armed forces who 
     are entitled to compensation under section 206 of this title 
     and who perform duty under orders as members of a Weapons of 
     Mass Destruction Civil Support Team.
       ``(2) The amount of the special pay for a member referred 
     to in paragraph (1) shall be equal to \1/30\ of the monthly 
     special pay rate in effect under subsection (b) for each day 
     on which the member performs duty under orders as members of 
     a Weapons of Mass Destruction Civil Support Team.
       ``(d) Regulations.--Special pay under this section shall be 
     provided in accordance with regulations prescribed by the 
     Secretary of Defense.
       ``(e) Definition.--In this section, the term `Weapons of 
     Mass Destruction Civil Support Team' means a team of members 
     of the reserve components of the armed forces that is 
     established under section 12310(c) of title 10 in support of 
     emergency preparedness programs to prepare for or to respond 
     to any emergency involving the use of a weapon of mass 
     destruction.''.

[[Page 27541]]

       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 305a the following new item:

``305b. Special pay: service as member of Weapons of Mass Destruction 
              Civil Support Team.''.

     SEC. 625. INCENTIVE BONUS FOR CONVERSION TO MILITARY 
                   OCCUPATIONAL SPECIALTY TO EASE PERSONNEL 
                   SHORTAGE.

       (a) In General.--Chapter 5 of title 37, United States Code, 
     is amended by adding at the end the following new section:

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

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

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

     SEC. 626. BONUS FOR REENLISTMENT DURING SERVICE ON ACTIVE 
                   DUTY IN AFGHANISTAN, IRAQ, OR KUWAIT.

       (a) Critical Skill Reenlistment Bonus.--Section 308(a) of 
     title 37, United States Code, is amended by adding at the end 
     the following new paragraph:
       ``(5) The Secretary of Defense may waive the eligibility 
     requirement in paragraph (1)(B) in the case of a reenlistment 
     or voluntary extension of enlistment by a member of the armed 
     forces that is entered into as described in this subsection 
     while the member is serving on active duty in Afghanistan, 
     Iraq, or Kuwait in support of Operation Enduring Freedom or 
     Operation Iraqi Freedom.''.
       (b) Selected Reserve Reenlistment Bonus.--Section 308b(c) 
     of such title is amended by adding at the end the following 
     new paragraph:
       ``(3) In the case of a reenlistment or voluntary extension 
     of enlistment by a member of the armed forces that is entered 
     into as described in subsection (a) while the member is 
     serving on active duty in Afghanistan, Iraq, or Kuwait in 
     support of Operation Enduring Freedom or Operation Iraqi 
     Freedom, the Secretary concerned may waive so much of 
     paragraph (1)(B) or subsection (a)(2) as requires that the 
     skill or unit in which the member reenlists or extends an 
     enlistment be a designated skill or designated unit 
     determined by the Secretary concerned.''.
       (c) Ready Reserve Reenlistment Bonus.--Section 308h(a) of 
     such title is amended by adding at the end the following new 
     paragraph:
       ``(4) The Secretary concerned may waive the eligibility 
     requirement in paragraph (2)(B) in the case of a reenlistment 
     or voluntary extension of enlistment by a member of the armed 
     forces that is entered into as described in this subsection 
     while the member is serving on active duty in Afghanistan, 
     Iraq, or Kuwait in support of Operation Enduring Freedom and 
     Operation Iraqi Freedom.''.
       (d) Retroactive Application.--The amendments made by this 
     section shall take effect as of March 18, 2003, and apply 
     with respect to reenlistments or the voluntary extension of 
     enlistments that are entered into on or after that date.
            Subtitle C--Travel and Transportation Allowances

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

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

     SEC. 632. TRANSPORTATION OF DEPENDENTS TO PRESENCE OF MEMBERS 
                   OF THE ARMED FORCES RETIRED FOR ILLNESS OR 
                   INJURY INCURRED IN ACTIVE DUTY.

       Section 411h(a) of title 37, United States Code, is 
     amended--
       (1) in paragraph (1), by striking ``military control'' and 
     inserting ``control''; and
       (2) in paragraph (2)(A)--
       (A) by striking ``or is entitled'' and inserting ``, is 
     entitled''; and
       (B) by inserting before the semicolon at the end the 
     following: ``, or is retired for the illness or injury 
     referred to in subparagraph (B)''.

     SEC. 633. PAYMENT OR REIMBURSEMENT OF STUDENT BAGGAGE STORAGE 
                   COSTS FOR DEPENDENT CHILDREN OF MEMBERS 
                   STATIONED OVERSEAS.

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

     SEC. 634. CONTRACTS FOR FULL REPLACEMENT VALUE FOR LOSS OR 
                   DAMAGE TO PERSONAL PROPERTY TRANSPORTED AT 
                   GOVERNMENT EXPENSE.

       (a) Authority.--Chapter 157 of title 10, United States 
     Code, is amended by inserting after section 2636 the 
     following new section:

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

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


[[Page 27542]]


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

     SEC. 635. PAYMENT OF LODGING EXPENSES OF MEMBERS DURING 
                   AUTHORIZED LEAVE FROM TEMPORARY DUTY LOCATION.

       (a) Payment or Reimbursement Authorized.--Chapter 7 of 
     title 37, United States Code, is amended by inserting after 
     section 404a the following new section:

     ``Sec. 404b. Travel and transportation allowances: lodging 
       expenses at temporary duty location for members on 
       authorized leave

       ``(a) Payment or Reimbursement Authorized.--The Secretary 
     concerned may pay or reimburse a member of the armed forces 
     assigned to temporary duty as described in subsection (b) for 
     lodging expenses incurred by the member at the temporary duty 
     location while the member is in an authorized leave status.
       ``(b) Covered Members.--Subsection (a) applies with respect 
     to a member assigned to temporary duty, for a period of more 
     than 30 days, in support of a contingency operation or in 
     other specific situations designated by the Secretary 
     concerned if the member----
       ``(1) immediately before taking the authorized leave, was 
     performing the temporary duty at a location away from the 
     home or permanent duty station of the member;
       ``(2) was receiving a per diem allowance under section 
     404(a)(4) of this title to cover lodging and subsistence 
     expenses incurred at the temporary duty location because 
     quarters of the United States were not available for 
     assignment to the member at that location; and
       ``(3) immediately after completing the authorized leave, 
     returns to the duty location.
       ``(c) Payment Limitation.--The amount paid or reimbursed 
     under subsection (a) for a member may not exceed the lesser 
     of--
       ``(1) the actual daily cost of lodging incurred by the 
     member at the temporary duty location while the member was in 
     an authorized leave status; and
       ``(2) the lodging portion of the applicable daily per diem 
     rate for the temporary duty location.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 404a the following new item:

``404b. Travel and transportation allowances: lodging expenses at 
              temporary duty location for members on authorized 
              leave.''.
             Subtitle D--Retired Pay and Survivor Benefits

     SEC. 641. PHASE-IN OF FULL CONCURRENT RECEIPT OF MILITARY 
                   RETIRED PAY AND VETERANS DISABILITY 
                   COMPENSATION FOR CERTAIN MILITARY RETIREES.

       (a) Concurrent Receipt.--Section 1414 of title 10, United 
     States Code, is amended to read as follows:

     ``Sec. 1414. Members eligible for retired pay who are also 
       eligible for veterans' disability compensation for 
       disabilities rated 50 percent or higher: concurrent payment 
       of retired pay and veterans' disability compensation

       ``(a) Payment of Both Retired Pay and Compensation.--
       ``(1) In general.--Subject to subsection (b), a member or 
     former member of the uniformed services who is entitled for 
     any month to retired pay and who is also entitled for that 
     month to veterans' disability compensation for a qualifying 
     service-connected disability (hereinafter in this section 
     referred to as a `qualified retiree') is entitled to be paid 
     both for that month without regard to sections 5304 and 5305 
     of title 38. During the period beginning on January 1, 2004, 
     and ending on December 31, 2013, payment of retired pay to 
     such a qualified retiree is subject to subsection (c).
       ``(2) Qualifying service-connected disability.--In this 
     section, the term `qualifying service-connected disability' 
     means a service-connected disability or combination of 
     service-connected disabilities that is rated as not less than 
     50 percent disabling by the Secretary of Veterans Affairs.
       ``(b) Special Rules for Chapter 61 Disability Retirees.--
       ``(1) Career retirees.--The retired pay of a member retired 
     under chapter 61 of this title with 20 years or more of 
     service otherwise creditable under section 1405 of this 
     title, or at least 20 years of service computed under section 
     12732 of this title, at the time of the member's retirement 
     is subject to reduction under sections 5304 and 5305 of title 
     38, but only to the extent that the amount of the member's 
     retired pay under chapter 61 of this title exceeds the amount 
     of retired pay to which the member would have been entitled 
     under any other provision of law based upon the member's 
     service in the uniformed services if the member had not been 
     retired under chapter 61 of this title.
       ``(2) Disability retirees with less than 20 years of 
     service.--Subsection (a) does not apply to a member retired 
     under chapter 61 of this title with less than 20 years of 
     service otherwise creditable under section 1405 of this 
     title, or with less than 20 years of service computed under 
     section 12732 of this title, at the time of the member's 
     retirement.
       ``(c) Phase-in of Full Concurrent Receipt.--During the 
     period beginning on January 1, 2004, and ending on December 
     31, 2013, retired pay payable to a qualified retiree shall be 
     determined as follows:
       ``(1) Calendar year 2004.--For a month during 2004, the 
     amount of retired pay payable to a qualified retiree is the 
     amount (if any) of retired pay in excess of the current 
     baseline offset plus the following:
       ``(A) For a month for which the retiree receives veterans' 
     disability compensation for a disability rated as total, 
     $750.
       ``(B) For a month for which the retiree receives veterans' 
     disability compensation for a disability rated as 90 percent, 
     $500.
       ``(C) For a month for which the retiree receives veterans' 
     disability compensation for a disability rated as 80 percent, 
     $350.
       ``(D) For a month for which the retiree receives veterans' 
     disability compensation for a disability rated as 70 percent, 
     $250.
       ``(E) For a month for which the retiree receives veterans' 
     disability compensation for a disability rated as 60 percent, 
     $125.
       ``(F) For a month for which the retiree receives veterans' 
     disability compensation for a disability rated as 50 percent, 
     $100.
       ``(2) Calendar year 2005.--For a month during 2005, the 
     amount of retired pay payable to a qualified retiree is the 
     sum of--
       ``(A) the amount specified in paragraph (1) for that 
     qualified retiree; and
       ``(B) 10 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount specified in paragraph 
     (1) for that member's disability.
       ``(3) Calendar year 2006.--For a month during 2006, the 
     amount of retired pay payable to a qualified retiree is the 
     sum of--
       ``(A) the amount determined under paragraph (2) for that 
     qualified retiree; and
       ``(B) 20 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount determined under 
     paragraph (2) for that qualified retiree.
       ``(4) Calendar year 2007.--For a month during 2007, the 
     amount of retired pay payable to a qualified retiree is the 
     sum of--
       ``(A) the amount determined under paragraph (3) for that 
     qualified retiree; and
       ``(B) 30 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount determined under 
     paragraph (3) for that qualified retiree.
       ``(5) Calendar year 2008.--For a month during 2008, the 
     amount of retired pay payable to a qualified retiree is the 
     sum of--
       ``(A) the amount determined under paragraph (4) for that 
     qualified retiree; and
       ``(B) 40 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount determined under 
     paragraph (4) for that qualified retiree.
       ``(6) Calendar year 2009.--For a month during 2009, the 
     amount of retired pay payable to a qualified retiree is the 
     sum of--
       ``(A) the amount determined under paragraph (5) for that 
     qualified retiree; and
       ``(B) 50 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount determined under 
     paragraph (5) for that qualified retiree.
       ``(7) Calendar year 2010.--For a month during 2010, the 
     amount of retired pay payable to a qualified retiree is the 
     sum of--
       ``(A) the amount determined under paragraph (6) for that 
     qualified retiree; and
       ``(B) 60 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount determined under 
     paragraph (6) for that qualified retiree.
       ``(8) Calendar year 2011.--For a month during 2011, the 
     amount of retired pay payable to a qualified retiree is the 
     sum of--
       ``(A) the amount determined under paragraph (7) for that 
     qualified retiree; and
       ``(B) 70 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount determined under 
     paragraph (7) for that qualified retiree.
       ``(9) Calendar year 2012.--For a month during 2012, the 
     amount of retired pay payable to a qualified retiree is the 
     sum of--
       ``(A) the amount determined under paragraph (8) for that 
     qualified retiree; and
       ``(B) 80 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount determined under 
     paragraph (8) for that qualified retiree.
       ``(10) Calendar year 2013.--For a month during 2013, the 
     amount of retired pay payable to a qualified retiree is the 
     sum of--
       ``(A) the amount determined under paragraph (9) for that 
     qualified retiree; and
       ``(B) 90 percent of the difference between (i) the current 
     baseline offset, and (ii) the amount determined under 
     paragraph (9) for that qualified retiree.
       ``(11) General limitation.--Retired pay determined under 
     this subsection for a qualified retiree, if greater than the 
     amount of retired pay otherwise applicable to that qualified 
     retiree, shall be reduced to the amount of retired pay 
     otherwise applicable to that qualified retiree.
       ``(d) Coordination With Combat-Related Special Compensation 
     Program.--
       ``(1) In general.--A person who is a qualified retiree 
     under this section and is also an eligible combat-related 
     disabled uniformed services retiree under section 1413a of 
     this title may receive special compensation in accordance 
     with that section or retired pay in accordance with this 
     section, but not both.
       ``(2) Annual open season.--The Secretary concerned shall 
     provide for an annual period (referred to as an `open 
     season') during which a person described in paragraph (1) 
     shall have the right to make an election to change from 
     receipt of special compensation in accordance with section 
     1413a of this title to receipt of retired pay in accordance 
     with this section, or the reverse, as the case may be. Any 
     such election shall be

[[Page 27543]]

     made under regulations prescribed by the Secretary concerned. 
     Such regulations shall provide for the form and manner for 
     making such an election and shall provide for the date as of 
     when such an election shall become effective. In the case of 
     the Secretary of a military department, such regulations 
     shall be subject to approval by the Secretary of Defense.
       ``(e) Definitions.--In this section:
       ``(1) Retired pay.--The term `retired pay' includes 
     retainer pay, emergency officers' retirement pay, and naval 
     pension.
       ``(2) Veterans' disability compensation.--The term 
     `veterans' disability compensation' has the meaning given the 
     term `compensation' in section 101(13) of title 38.
       ``(3) Disability rated as total.--The term `disability 
     rated as total' means--
       ``(A) a disability, or combination of disabilities, that is 
     rated as total under the standard schedule of rating 
     disabilities in use by the Department of Veterans Affairs; or
       ``(B) a disability, or combination of disabilities, for 
     which the scheduled rating is less than total but for which a 
     rating of total is assigned by reason of inability of the 
     disabled person concerned to secure or follow a substantially 
     gainful occupation as a result of disabilities for which 
     veterans' disability compensation may be paid.
       ``(4) Current baseline offset.--
       ``(A) In general.--The term `current baseline offset' for 
     any qualified retiree means the amount for any month that is 
     the lesser of--
       ``(i) the amount of the applicable monthly retired pay of 
     the qualified retiree for that month; and
       ``(ii) the amount of monthly veterans' disability 
     compensation to which the qualified retiree is entitled for 
     that month.
       ``(B) Applicable retired pay.--In subparagraph (A), the 
     term `applicable retired pay' for a qualified retiree means 
     the amount of monthly retired pay to which the qualified 
     retiree is entitled, determined without regard to this 
     section or sections 5304 and 5305 of title 38, except that in 
     the case of such a retiree who was retired under chapter 61 
     of this title, such amount is the amount of retired pay to 
     which the member would have been entitled under any other 
     provision of law based upon the member's service in the 
     uniformed services if the member had not been retired under 
     chapter 61 of this title.''.
       (b) Repeal of Superceded Special Compensation Authority.--
     Section 1413 of title 10, United States Code, is repealed.
       (c) Source of Funds for Special Compensation Authorities 
     for Department of Defense Retirees.--
       (1) Sections 1413(g) and 1413a(h) of title 10, United 
     States Code, are each amended--
       (A) by inserting before ``Payments under'' the following 
     new sentence: ``Payments under this section for a member of 
     the Army, Navy, Air Force, or Marine Corps shall be paid from 
     the Department of Defense Military Retirement Fund.''; and
       (B) by inserting ``for any other member'' before ``for any 
     fiscal year''.
       (2) Section 1463(a)(1) of such title is amended by 
     inserting before the semicolon the following: ``and payments 
     under section 1413, 1413a, or 1414 of this title paid to such 
     members''.
       (3) Section 1465(b) of such title is amended by adding at 
     the end the following new paragraph:
       ``(3) At the same time that the Secretary of Defense makes 
     the determination required by paragraph (1) for any fiscal 
     year, the Secretary shall determine the amount of the 
     Treasury contribution to be made to the Fund for the next 
     fiscal year under section 1466(b)(2)(D) of this title. That 
     amount shall be determined in the same manner as the 
     determination under paragraph (1) of the total amount of 
     Department of Defense contributions to be made to the Fund 
     during that fiscal year under section 1466(a) of this title, 
     except that for purposes of this paragraph the Secretary, in 
     making the calculations required by subparagraphs (A) and (B) 
     of that paragraph, shall use the single level percentages 
     determined under subsection (c)(4), rather than those 
     determined under subsection (c)(1).''.
       (4) Section 1465(c) of such title is amended--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by inserting before the semicolon 
     at the end the following: ``, to be determined without regard 
     to section 1413, 1413a, or 1414 of this title'';
       (ii) in subparagraph (B), by inserting before the period at 
     the end the following: ``, to be determined without regard to 
     section 1413, 1413a, or 1414 of this title''; and
       (iii) in the sentence following subparagraph (B), by 
     striking ``subsection (b)'' and inserting ``subsection 
     (b)(1)'';
       (B) by redesignating paragraph (4) as paragraph (5); and
       (C) by inserting after paragraph (3) the following new 
     paragraph (4):
       ``(4) Whenever the Secretary carries out an actuarial 
     valuation under paragraph (1), the Secretary shall include as 
     part of such valuation the following:
       ``(A) A determination of a single level percentage 
     determined in the same manner as applies under subparagraph 
     (A) of paragraph (1), but based only upon the provisions of 
     sections 1413, 1413a, and 1414 of this title.
       ``(B) A determination of a single level percentage 
     determined in the same manner as applies under subparagraph 
     (B) of paragraph (1), but based only upon the provisions of 
     sections 1413, 1413a, and 1414 of this title.

     Such single level percentages shall be used for the purposes 
     of subsection (b)(3).''.
       (5) Section 1466(b) of such title is amended--
       (A) in paragraph (1), by striking ``sections 1465(a) and 
     1465(c)'' and inserting ``sections 1465(a), 1465(b)(3), 
     1465(c)(2), and 1465(c)(3)''; and
       (B) by adding at the end of paragraph (2) the following new 
     subparagraph:
       ``(D) The amount for that year determined by the Secretary 
     of Defense under section 1465(b)(3) of this title for the 
     cost to the Fund arising from increased amounts payable from 
     the Fund by reason of section 1413, 1413a, or 1414 of this 
     title.''.
       (6) The amendments made by this subsection shall take 
     effect as of October 1, 2003. The Secretary of Defense shall 
     provide for such administrative adjustments as necessary to 
     provide for payments made for any period during fiscal year 
     2004 before the date of the enactment of this Act to be 
     treated as having been made in accordance with such 
     amendments and for the provisions of such amendments to be 
     implemented as if enacted as of September 30, 2003.
       (d) Clerical Amendments.--The table of sections at the 
     beginning of chapter 71 of such title is amended--
       (1) by striking the item relating to section 1413; and
       (2) by striking the item relating to section 1414 and 
     inserting the following:

``1414. Members eligible for retired pay who are also eligible for 
              veterans' disability compensation for disabilities rated 
              50 percent or higher: concurrent payment of retired pay 
              and veterans' disability compensation.''.
       (e) Effective Date.--The amendments made by subsections (a) 
     and (b) shall take effect on January 1, 2004, and shall apply 
     to payments for months beginning on or after that date.

     SEC. 642. REVISIONS TO COMBAT-RELATED SPECIAL COMPENSATION 
                   PROGRAM.

       (a) Extension of Program To Combat-Related Disabilities 
     Rated Below 60 Percent.--(1) Subsection (e) of section 1413a 
     of title 10, United States Code, is amended to read as 
     follows:
       ``(e) Combat-Related Disability.--In this section, the term 
     `combat-related disability' means a disability that is 
     compensable under the laws administered by the Secretary of 
     Veterans Affairs and that--
       ``(1) is attributable to an injury for which the member was 
     awarded the Purple Heart; or
       ``(2) was incurred (as determined under criteria prescribed 
     by the Secretary of Defense)--
       ``(A) as a direct result of armed conflict;
       ``(B) while engaged in hazardous service;
       ``(C) in the performance of duty under conditions 
     simulating war; or
       ``(D) through an instrumentality of war.''.
       (2) Subsection (c)(2) of such section is amended by 
     striking ``qualifying''.
       (b) Clarification of Service Required for Eligibility.--
     Subsection (c)(1) of such section is amended by inserting 
     before the semicolon the following: ``or is entitled to 
     retired pay under section 12731 of this title (other than by 
     reason of section 12731b of this title)''.
       (c) Clarification of Determination of Amount of 
     Compensation.--Subsection (b)(1) of such section is amended 
     by striking ``for a'' and all that follows and inserting 
     ``under subsection (a) for any month is the amount of 
     compensation to which the retiree is entitled under title 38 
     for that month, determined without regard to any disability 
     of the retiree that is not a combat-related disability.''.
       (d) Revised Coordination Provision.--Subsection (f) of such 
     section is amended to read as follows:
       ``(f) Coordination With Concurrent Receipt Provision.--
     Subsection (d) of section 1414 of this title provides for 
     coordination between benefits under that section and under 
     this section.''.
       (e) Clerical Amendments.--(1) The heading of such section 
     is amended to read as follows:

     ``Sec. 1413a. Combat-related special compensation''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 71 of such title is 
     amended to read as follows:

``1413a. Combat-related special compensation.''.
       (f) Effective Date.--The amendments made by subsections 
     (a), (b), and (c) shall apply to payments under section 1413a 
     of title 10, United States Code, for months beginning on or 
     after January 1, 2004. The amendment made by subsection (d) 
     shall take effect on January 1, 2004.

     SEC. 643. SPECIAL RULE FOR COMPUTATION OF RETIRED PAY BASE 
                   FOR COMMANDERS OF COMBATANT COMMANDS.

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

     SEC. 644. SURVIVOR BENEFIT PLAN ANNUITIES FOR SURVIVING 
                   SPOUSES OF RESERVES NOT ELIGIBLE FOR RETIREMENT 
                   WHO DIE FROM A CAUSE INCURRED OR AGGRAVATED 
                   WHILE ON INACTIVE-DUTY TRAINING.

       (a) Surviving Spouse Annuity.--Paragraph (1) of section 
     1448(f) of title 10, United States Code, is amended to read 
     as follows:

[[Page 27544]]

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

     SEC. 645. SURVIVOR BENEFIT PLAN MODIFICATIONS.

       (a) Eligibility of Dependent Children for Survivor 
     Annuities in Cases of Deaths of Members on Active Duty.--(1) 
     Paragraph (2) of section 1448(d) of title 10, United States 
     Code, is amended to read as follows:
       ``(2) Dependent children.--
       ``(A) Annuity when no eligible surviving spouse.--In the 
     case of a member described in paragraph (1), the Secretary 
     concerned shall pay an annuity under this subchapter to the 
     member's dependent children under section 1450(a)(2) of this 
     title as applicable.
       ``(B) Optional annuity when there is an eligible surviving 
     spouse.--In the case of a member described in paragraph (1) 
     who dies on or after the date of the enactment of the 
     National Defense Authorization Act for Fiscal Year 2004 and 
     for whom there is a surviving spouse eligible for an annuity 
     under paragraph (1), the Secretary may pay an annuity under 
     this subchapter to the member's dependent children under 
     section 1450(a)(3) of this title, if applicable, instead of 
     paying an annuity to the surviving spouse under paragraph 
     (1), if the Secretary concerned, in consultation with the 
     surviving spouse, determines it appropriate to provide an 
     annuity for the dependent children under this paragraph 
     instead of an annuity for the surviving spouse under 
     paragraph (1).''.
       (2) Paragraph (1) of such section is amended by striking 
     ``The Secretary concerned'' and inserting ``Except as 
     provided in paragraph (2)(B), the Secretary concerned''.
       (b) Vitiation of Survivor Annuity Elections Made by 
     Disability Retirees who Die of Disability-related Causes.--
     (1) Section 1448(b)(1) of such title is amended by adding at 
     the end the following new subparagraph:
       ``(F) Vitiation of election by disability retiree who dies 
     of disability-related cause.--If a member retired on or after 
     the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 2004 under chapter 61 of 
     this title dies within one year after the date on which the 
     member is so retired and the cause of death is related to a 
     disability for which the member was retired under that 
     chapter (as determined under regulations prescribed by the 
     Secretary of Defense)--
       ``(i) an election made by the member under paragraph (1) to 
     provide an annuity under the Plan to any person other than a 
     dependent of that member (as defined in section 1072(2) of 
     this title) is vitiated; and
       ``(ii) the amounts by which the member's retired pay was 
     reduced under section 1452 of this title shall be refunded 
     and paid to the person to whom the annuity under the Plan 
     would have been paid pursuant to such election.''.
       (2) Section 1458 of such title is amended by adding at the 
     end the following new subsection:
       ``(j) Vitiation of Election by Disability Retiree Who Dies 
     of Disability-Related Cause.--If a member retired on or after 
     the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 2004 under chapter 61 of 
     this title dies within one year after the date on which the 
     member is so retired and the cause of death is related to a 
     disability for which the member was retired under that 
     chapter (as determined under regulations prescribed by the 
     Secretary of Defense)--
       ``(1) an election made by the member to provide a 
     supplemental spouse annuity under this subchapter is 
     vitiated; and
       ``(2) the amounts by which the member's retired pay was 
     reduced under section 1460 of this title shall be refunded 
     and paid to the person to whom the supplemental spouse 
     annuity would have been paid pursuant to such election.''.
       (c) Insurable Interest Annuity Deemed Elections.--Section 
     1448(d) of such title is amended by adding at the end the 
     following new paragraph:
       ``(6) Deemed election.--
       ``(A) Annuity for dependent.--In the case of a member 
     described in paragraph (1) who dies on or after the date of 
     the enactment of the National Defense Authorization Act for 
     Fiscal Year 2004, the Secretary concerned may, if no other 
     annuity is payable on behalf of the member under this 
     subchapter, pay an annuity to a natural person who has an 
     insurable interest in such member as if the annuity were 
     elected by the member under subsection (b)(1). The Secretary 
     concerned may pay such an annuity under this paragraph only 
     in the case of a person who is a dependent of that member (as 
     defined in section 1072(2) of this title).
       ``(B) Computation of annuity.--An annuity under this 
     subparagraph shall be computed under section 1451(b) of this 
     title as if the member had retired for total disability on 
     the date of death with reductions as specified under section 
     1452(c) of this title, as applicable to the ages of the 
     member and the natural person with an insurable interest.''.

     SEC. 646. INCREASE IN DEATH GRATUITY PAYABLE WITH RESPECT TO 
                   DECEASED MEMBERS OF THE ARMED FORCES.

       (a) Amount of Death Gratuity.--Section 1478(a) of title 10, 
     United States Code, is amended by striking ``$6,000'' and 
     inserting ``$12,000''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect as of September 11, 2001, and shall apply 
     with respect to deaths occurring on or after that date.

     SEC. 647. DEATH BENEFITS STUDY.

       (a) Sense of Congress.--It is the sense of Congress that--
       (1) the sacrifices made by the members of the Armed Forces 
     are significant and are worthy of meaningful expressions of 
     gratitude by the United States, especially in cases of 
     sacrifice through loss of life;
       (2) the tragic events of September 11, 2001, and subsequent 
     worldwide combat operations in the Global War on Terrorism 
     and in Operation Iraqi Freedom have highlighted the 
     significant disparity between the financial benefits for 
     survivors of deceased members of the Armed Forces and the 
     financial benefits for survivors of civilian victims of 
     terrorism;
       (3) the death benefits system composed of the death 
     gratuity paid by the Department of Defense to survivors of 
     members of the Armed Forces, the subsequently established 
     Servicemembers' Group Life Insurance (SGLI) program, and 
     other benefits for survivors of deceased members has evolved 
     over time, but there are increasing indications that the 
     evolution of such benefits has failed to keep pace with the 
     expansion of indemnity and compensation available to segments 
     of United States society outside the Armed Forces, a failure 
     that is especially apparent in a comparison of the benefits 
     for survivors of deceased members with the compensation 
     provided to families of civilian victims of terrorism; and
       (4) while the Servicemembers' Group Life Insurance (SGLI) 
     program provides an assured source of life insurance for 
     members of the Armed Forces that benefits the survivors of 
     such members upon death, that program requires servicemembers 
     to pay for that life insurance coverage and does not provide 
     an assured minimum benefit.
       (b) Study Required.--The Secretary of Defense shall carry 
     out a study of the totality of all current and projected 
     death benefits for survivors of deceased members of the Armed 
     Forces to determine the adequacy of such benefits. In 
     carrying out the study, the Secretary shall--
       (1) compare the Federal death benefits for survivors of 
     deceased members of the Armed Forces with--
       (A) commercial and other private sector death benefits 
     plans for segments of United States society outside the Armed 
     Forces; and
       (B) the benefits available under Public Law 107-37 (115 
     Stat. 219) (commonly known as the ``Public Safety Officer 
     Benefits Bill'');
       (2) assess the personnel policy effects that would result 
     from a revision of the death gratuity benefit to provide a 
     stratified schedule of entitlement amounts that places a 
     premium on deaths resulting from participation in combat or 
     from acts of terrorism;
       (3) assess the adequacy of the current system of Survivor 
     Benefit Plan annuities under title 10, United States Code, 
     and dependency and indemnity compensation under title 38, 
     United States Code, and the anticipated effects (if any) of 
     an elimination of the offset of Survivor Benefit Plan 
     annuities by dependency and indemnity compensation payments;
       (4) examine the commercial insurability of members of the 
     Armed Forces in high-risk military occupational specialties; 
     and
       (5) examine the extent to which private trusts and 
     foundations engage in fundraising or otherwise provide 
     financial benefits for survivors of deceased members of the 
     Armed Forces.
       (c) Report.--Not later than March 1, 2004, 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:
       (1) The assessments, analyses, and conclusions resulting 
     from the study.
       (2) Proposed legislation to address the deficiencies in the 
     system of Federal death benefits for survivors of deceased 
     members of the Armed Forces that are identified in the course 
     of the study.
       (3) An estimate of the costs of the system of death 
     benefits provided for in the proposed legislation.
       (d) Comptroller General Study.--The Comptroller General 
     shall conduct a study to identify the death benefits that are 
     payable under Federal, State, and local laws for employees of 
     the United States, State governments, and local governments. 
     Not later than March 1, 2004, the Comptroller General shall 
     submit a report containing the results of the study to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives.

[[Page 27545]]


    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

     SEC. 651. EXPANDED COMMISSARY ACCESS FOR SELECTED RESERVE 
                   MEMBERS, RESERVE RETIREES UNDER AGE 60, AND 
                   THEIR DEPENDENTS.

       (a) Access to Military Commissaries.--Section 1065 of title 
     10, United States Code, is amended--
       (1) in subsections (a), (b), and (c), by inserting 
     ``commissary stores and'' after ``use'' each place it 
     appears; and
       (2) in subsection (d)--
       (A) by inserting ``commissary stores and'' after ``use'' 
     the first and third places it appears; and
       (B) by inserting ``stores and'' after ``use'' the second 
     and fourth places it appears.
       (b) Conforming Amendments; Transfer of Section.--Chapter 54 
     of such title is amended--
       (1) by striking sections 1063 and 1064;
       (2) in section 1063a(c)(2), by striking ``section 1065(e)'' 
     and inserting ``section 1063(e)'';
       (3) by redesignating section 1063a, as amended by paragraph 
     (2), as section 1064;
       (4) by transferring section 1065, as amended by subsection 
     (a), so as to appear after section 1062; and
       (5) by striking the heading of such section, as amended by 
     subsection (a) and transferred by paragraph (4), and 
     inserting the following new heading:

     ``Sec. 1063. Use of commissary stores and MWR retail 
       facilities: members of reserve components and reserve 
       retirees under age 60''.

       (c) Clerical Amendments.--The table of sections at the 
     beginning of such chapter is amended by striking the items 
     relating to sections 1063, 1063a, 1064, and 1065 and 
     inserting the following new items:

``1063. Use of commissary stores and MWR retail facilities: members of 
              reserve components and reserve retirees under age 60.
       ``1064. Use of commissary stores and MWR retail facilities: 
           members of National Guard serving in federally declared 
           disaster or national emergency.''.

     SEC. 652. DEFENSE COMMISSARY SYSTEM AND EXCHANGE STORES 
                   SYSTEM.

       (a) Existence of Systems.--Chapter 147 of title 10, United 
     States Code, is amended by inserting before section 2482 the 
     following new section:

     ``Sec. 2481. Existence of defense commissary system and 
       exchange stores system

       ``(a) In General.--The Secretary of Defense shall operate a 
     defense commissary system and an exchange stores system in 
     the manner provided by this chapter and other provisions of 
     law.
       ``(b) Separate Systems.--(1) Except as provided in 
     paragraph (2), the defense commissary system and the exchange 
     stores system shall be operated as separate systems of the 
     Department of Defense.
       ``(2) This subsection does not apply to the following:
       ``(A) Combined exchange and commissary stores operated 
     under the authority provided by section 2490a of this title.
       ``(B) NEXMART stores of the Navy Exchange Service Command 
     established before October 1, 2003.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting before the 
     item relating to section 2482 the following new item:

``2481. Existence of defense commissary system and exchange stores 
              system.''.

     SEC. 653. LIMITATIONS ON PRIVATE OPERATION OF DEFENSE 
                   COMMISSARY STORE FUNCTIONS.

       Section 2482(a) of title 10, United States Code, is 
     amended--
       (1) by striking the first and second sentences and 
     inserting the following: ``(1) Under such regulations as the 
     Secretary of Defense may approve, private persons may operate 
     selected commissary store functions, except that such 
     functions may not include functions relating to the 
     procurement of products to be sold in a commissary store or 
     functions relating to the overall management of a commissary 
     system or the management of a commissary store.''; and
       (2) by adding at the end the following new paragraph:
       ``(2) Any change to private operation of a commissary store 
     function that is being performed by more than 10 Department 
     of Defense civilian employees shall not take effect until the 
     end of the 75-day period beginning on the date on which the 
     Secretary of Defense submits to Congress written notice of 
     the change.''.

     SEC. 654. USE OF APPROPRIATED FUNDS TO OPERATE DEFENSE 
                   COMMISSARY SYSTEM.

       (a) Requirement That Commissary Operating Expenses Be Paid 
     From Appropriated Funds.--Section 2484 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'' in the first 
     sentence and inserting ``shall''.
       (b) Supplemental Funds for Commissary Operations.--Such 
     section is further amended by adding at the end the following 
     new subsection:
       ``(c) Supplemental Funds for Commissary Operations.--
     Amounts appropriated to cover the expenses of operating the 
     Defense Commissary Agency and the defense commissary system 
     may be supplemented with additional funds from manufacturers' 
     coupon redemption fees, handling fees for tobacco products, 
     and other amounts received as reimbursement for other support 
     activities provided by commissary activities.''.

     SEC. 655. RECOVERY OF NONAPPROPRIATED FUND INSTRUMENTALITY 
                   AND COMMISSARY STORE INVESTMENTS IN REAL 
                   PROPERTY AT MILITARY INSTALLATIONS CLOSED OR 
                   REALIGNED.

       (a) 1988 Law.--Section 204(b)(7)(C) of the Defense 
     Authorization Amendments and Base Closure and Realignment Act 
     (Public Law 100-526; 10 U.S.C. 2687 note) is amended--
       (1) in the second sentence of clause (i), by striking ``The 
     Secretary may use amounts in the account (in such an 
     aggregate amount as is provided in advance in appropriation 
     Acts)'' and inserting ``Subject to the limitation in clause 
     (iii), amounts in the reserve account are hereby made 
     available to the Secretary, without appropriation and until 
     expended,'';
       (2) by redesignating clause (iii) as clause (iv); and
       (3) by inserting after clause (ii) the following new clause 
     (iii):
       ``(iii) The aggregate amount obligated from the reserve 
     account established under clause (i) may not exceed the 
     following:
       ``(I) In fiscal year 2004, $31,000,000.
       ``(II) In fiscal year 2005, $24,000,000.
       ``(III) In fiscal year 2006, $15,000,000.''.
       (b) 1990 Law.--Section 2906(d)(3) 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 ``The Secretary may use amounts in the account (in 
     such an aggregate amount as is provided in advance in 
     appropriation Acts)'' and inserting ``Subject to the 
     limitation contained in section 204(b)(7)(C)(iii) of the 
     Defense Authorization Amendments and Base Closure and 
     Realignment Act, amounts in the reserve account are hereby 
     made available to the Secretary, without appropriation and 
     until expended,''.
                       Subtitle F--Other Matters

     SEC. 661. COMPTROLLER GENERAL REPORT ON ADEQUACY OF SPECIAL 
                   PAYS AND ALLOWANCES FOR FREQUENTLY DEPLOYED 
                   MEMBERS.

       Not later than April 1, 2004, the Comptroller General shall 
     submit to Congress a report regarding the adequacy of special 
     pays and allowances for members of the Armed Forces who are 
     frequently deployed away from their permanent duty stations 
     for periods of less than 30 days. The report shall include an 
     assessment of the eligibility requirements for the family 
     separation allowance under section 427 of title 37, United 
     States Code, including those relating to required duration of 
     absences from the permanent duty station.
                   TITLE VII--HEALTH CARE PROVISIONS

               Subtitle A--Enhanced Benefits for Reserves

Sec. 701. Medical and dental screening for Ready Reserve members 
              alerted for mobilization.
Sec. 702. Coverage for Ready Reserve members under TRICARE program.
Sec. 703. Earlier eligibility date for TRICARE benefits for members of 
              reserve components.
Sec. 704. Temporary extension of transitional health care benefits.
Sec. 705. Assessment of needs of Reserves for health care benefits.
Sec. 706. Limitation on fiscal year 2004 outlays for temporary Reserve 
              health care programs.
Sec. 707. TRICARE beneficiary counseling and assistance coordinators 
              for reserve component beneficiaries.
Sec. 708. Eligibility of Reserve officers for health care pending 
              orders to active duty following commissioning.

                Subtitle B--Other Benefits Improvements

Sec. 711. Acceleration of implementation of chiropractic health care 
              for members on active duty.
Sec. 712. Reimbursement of covered beneficiaries for certain travel 
              expenses relating to specialized dental care.
Sec. 713. Eligibility for continued health benefits coverage extended 
              to certain members of uniformed services.
Sec. 714. Authority for designated providers to enroll covered 
              beneficiaries with other primary health insurance 
              coverage.

           Subtitle C--Planning, Programming, and Management

Sec. 721. Permanent extension of authority to enter into personal 
              services contracts for the performance of health care 
              responsibilities at locations other than military medical 
              treatment facilities.
Sec. 722. Department of Defense Medicare-Eligible Retiree Health Care 
              Fund valuations and contributions.
Sec. 723. Surveys on continued viability of TRICARE Standard.
Sec. 724. Plan for providing health coverage information to members, 
              former members, and dependents eligible for certain 
              health benefits.
Sec. 725. Transfer of certain members of the Pharmacy and Therapeutics 
              Committee to the Uniform Formulary Beneficiary Advisory 
              Panel under the pharmacy benefits program.
Sec. 726.  Working group on military health care for persons reliant on 
              health care facilities at military installations to be 
              closed or realigned.

[[Page 27546]]

Sec. 727. Joint program for development and evaluation of integrated 
              healing care practices for members of the Armed Forces 
              and veterans.
               Subtitle A--Enhanced Benefits for Reserves

     SEC. 701. MEDICAL AND DENTAL SCREENING FOR READY RESERVE 
                   MEMBERS ALERTED FOR MOBILIZATION.

       Subsection (f) of section 1074a of title 10, United States 
     Code, as amended by section 1114 of the Emergency 
     Supplemental Appropriations Act for Defense and for the 
     Reconstruction of Iraq and Afghanistan, 2004, is amended to 
     read as follows:
       ``(f)(1) At any time after the Secretary concerned notifies 
     members of the Ready Reserve that the members are to be 
     called or ordered to active duty for a period of more than 30 
     days, the administering Secretaries may provide to each such 
     member any medical and dental screening and care that is 
     necessary to ensure that the member meets the applicable 
     medical and dental standards for deployment.
       ``(2) The notification to members of the Ready Reserve 
     described in paragraph (1) shall include notice that the 
     members are eligible for screening and care under this 
     section.
       ``(3) A member provided medical or dental screening or care 
     under paragraph (1) may not be charged for the screening or 
     care.''.

     SEC. 702. COVERAGE FOR READY RESERVE MEMBERS UNDER TRICARE 
                   PROGRAM.

       Section 1076b of title 10, United States Code, as amended 
     by section 1115 of the Emergency Supplemental Appropriations 
     Act for Defense and for the Reconstruction of Iraq and 
     Afghanistan, 2004, is amended to read as follows:

     ``Sec. 1076b. TRICARE program: coverage for members of the 
       Ready Reserve

       ``(a) Eligibility.--Each member of the Selected Reserve of 
     the Ready Reserve and each member of the Individual Ready 
     Reserve described in section 10144(b) of this title is 
     eligible, subject to subsection (h), to enroll in TRICARE and 
     receive benefits under such enrollment for any period that 
     the member--
       ``(1) is an eligible unemployment compensation recipient; 
     or
       ``(2) is not eligible for health care benefits under an 
     employer-sponsored health benefits plan.
       ``(b) Types of Coverage.--(1) A member eligible under 
     subsection (a) may enroll for either of the following types 
     of coverage:
       ``(A) Self alone coverage.
       ``(B) Self and family coverage.
       ``(2) An enrollment by a member for self and family covers 
     the member and the dependents of the member who are described 
     in subparagraph (A), (D), or (I) of section 1072(2) of this 
     title.
       ``(c) Open Enrollment Periods.--The Secretary of Defense 
     shall provide for at least one open enrollment period each 
     year. During an open enrollment period, a member eligible 
     under subsection (a) may enroll in the TRICARE program or 
     change or terminate an enrollment in the TRICARE program.
       ``(d) Scope of Care.--(1) A member and the dependents of a 
     member enrolled in the TRICARE program under this section 
     shall be entitled to the same benefits under this chapter as 
     a member of the uniformed services on active duty or a 
     dependent of such a member, respectively.
       ``(2) Section 1074(c) of this title shall apply with 
     respect to a member enrolled in the TRICARE program under 
     this section.
       ``(e) Premiums.--(1) The Secretary of Defense shall charge 
     premiums for coverage pursuant to enrollments under this 
     section. The Secretary shall prescribe for each of the 
     TRICARE program options a premium for self alone coverage and 
     a premium for self and family coverage.
       ``(2) The monthly amount of the premium in effect for a 
     month for a type of coverage under this section shall be the 
     amount equal to 28 percent of the total amount determined by 
     the Secretary on an appropriate actuarial basis as being 
     reasonable for the coverage.
       ``(3) The premiums payable by a member under this 
     subsection may be deducted and withheld from basic pay 
     payable to the member under section 204 of title 37 or from 
     compensation payable to the member under section 206 of such 
     title. The Secretary shall prescribe the requirements and 
     procedures applicable to the payment of premiums by members 
     not entitled to such basic pay or compensation.
       ``(4) Amounts collected as premiums under this subsection 
     shall be credited to the appropriation available for the 
     Defense Health Program Account under section 1100 of this 
     title, shall be merged with sums in such Account that are 
     available for the fiscal year in which collected, and shall 
     be available under subparagraph (B) of such section for such 
     fiscal year.
       ``(f) Other Charges.--A person who receives health care 
     pursuant to an enrollment in a TRICARE program option under 
     this section, including a member who receives such health 
     care, shall be subject to the same deductibles, copayments, 
     and other nonpremium charges for health care as apply under 
     this chapter for health care provided under the same TRICARE 
     program option to dependents described in subparagraph (A), 
     (D), or (I) of section 1072(2) of this title.
       ``(g) Termination of Enrollment.--(1) A member enrolled in 
     the TRICARE program under this section may terminate the 
     enrollment only during an open enrollment period provided 
     under subsection (c), except as provided in subsection (h).
       ``(2) An enrollment of a member for self alone or for self 
     and family under this section shall terminate on the first 
     day of the first month beginning after the date on which the 
     member ceases to be eligible under subsection (a).
       ``(3) The enrollment of a member under this section may be 
     terminated on the basis of failure to pay the premium charged 
     the member under this section.
       ``(h) Relationship to Transition TRICARE Coverage Upon 
     Separation From Active Duty.--(1) A member may not enroll in 
     the TRICARE program under this section while entitled to 
     transitional health care under subsection (a) of section 1145 
     of this title or while authorized to receive health care 
     under subsection (c) of such section.
       ``(2) A member who enrolls in the TRICARE program under 
     this section within 90 days after the date of the termination 
     of the member's entitlement or eligibility to receive health 
     care under subsection (a) or (c) of section 1145 of this 
     title may terminate the enrollment at any time within one 
     year after the date of the enrollment.
       ``(i) Certification of Noncoverage by Other Health Benefits 
     Plan.--The Secretary of Defense may require a member to 
     submit any certification that the Secretary considers 
     appropriate to substantiate the member's assertion that the 
     member is not covered for health care benefits under any 
     other health benefits plan.
       ``(j) Eligible Unemployment Compensation Recipient 
     Defined.--In this section, the term `eligible unemployment 
     compensation recipient' means, with respect to any month, any 
     individual who is determined eligible for any day of such 
     month for unemployment compensation under State law (as 
     defined in section 205(9) of the Federal-State Extended 
     Unemployment Compensation Act of 1970), including Federal 
     unemployment compensation laws administered through the 
     State.
       ``(k) Regulations.--The Secretary of Defense, in 
     consultation with the other administering Secretaries, shall 
     prescribe regulations for the administration of this section.
       ``(l) Termination of Authority.--An enrollment in TRICARE 
     under this section may not continue after December 31, 
     2004.''.

     SEC. 703. EARLIER ELIGIBILITY DATE FOR TRICARE BENEFITS FOR 
                   MEMBERS OF RESERVE COMPONENTS.

       Subsection (d) of section 1074 of title 10, United States 
     Code, as amended by section 1116 of the Emergency 
     Supplemental Appropriations Act for Defense and for the 
     Reconstruction of Iraq and Afghanistan, 2004, is amended to 
     read as follows:
       ``(d)(1) For the purposes of this chapter, a member of a 
     reserve component of the armed forces who is issued a 
     delayed-effective-date active-duty order, or is covered by 
     such an order, shall be treated as being on active duty for a 
     period of more than 30 days beginning on the later of the 
     date that is--
       ``(A) the date of the issuance of such order; or
       ``(B) 90 days before the date on which the period of active 
     duty is to commence under such order for that member.
       ``(2) In this subsection, the term `delayed-effective-date 
     active-duty order' means an 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 that provides for active-duty service to begin 
     under such order on a date after the date of the issuance of 
     the order.
       ``(3) This subsection shall cease to be effective on 
     December 31, 2004.''.

     SEC. 704. TEMPORARY EXTENSION OF TRANSITIONAL HEALTH CARE 
                   BENEFITS.

       (a) Extension.--Subject to subsection (b), and 
     notwithstanding section 1117 of the Emergency Supplemental 
     Appropriations Act for Defense and for the Reconstruction of 
     Iraq and Afghanistan, 2004, during the period beginning on 
     the date of the enactment of this Act and ending on December 
     31, 2004, section 1145(a) of title 10, United States Code, 
     shall be administered by substituting for paragraph (3) the 
     following:
       ``(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.''.
       (b) Effective Date.--(1) Subsection (a) shall apply with 
     respect to separations from active duty that take effect on 
     or after the date of the enactment of this Act.
       (2) Beginning on January 1, 2005, the period for which a 
     member is provided transitional health care benefits under 
     section 1145(a) of title 10, United States Code, shall be 
     adjusted as necessary to comply with the limits provided 
     under paragraph (3) of such section.

     SEC. 705. ASSESSMENT OF NEEDS OF RESERVES FOR HEALTH CARE 
                   BENEFITS.

       (a) GAO Evaluation of Needs of Reserve Components for 
     Health Care Benefits.--The Comptroller General shall evaluate 
     the needs of members of the reserve components of the Armed 
     Forces and their families for obtaining and maintaining 
     coverage for health care benefits under health care benefits 
     plans and programs.
       (b) Special Concern.--In conducting the evaluation under 
     this section, the Comptroller General shall give special 
     consideration to the implications of the increased use of the 
     reserve components for carrying out and supporting operations 
     of the Armed Forces that has been experienced since the 1980s 
     and is anticipated to continue, particularly the increased 
     frequency and magnitude of the mobilization of Reserves and 
     the increased length of the periods of active duty of 
     Reserves when mobilized.
       (c) Matters Covered.--The evaluation under this section 
     shall include the following matters:
       (1) An examination of the extent to which Reserves and the 
     members of their families are covered by health care benefits 
     plans when the Reserves are not on active duty, including--

[[Page 27547]]

       (A) the sources of the coverage;
       (B) the scope of the benefits; and
       (C) the extent to which the Reserves and the members of 
     their families use the benefits available.
       (2) An identification of options for providing health care 
     benefits to Reserves and the members of their families not 
     covered by health care benefits plans without creating an 
     incentive for other Reserves to terminate coverage by such 
     plans.
       (3) A review of Department of Defense initiatives during 
     fiscal years 2003 and 2004 to address the problems of access 
     of mobilized Reserves and their families to health care and 
     health care benefits, including--
       (A) a determination of the effectiveness of such 
     initiatives; and
       (B) a determination of the extent to which the problems 
     continue.
       (4) An identification of options for continuing, after a 
     Reserve is mobilized, any coverage of the Reserve and the 
     Reserve's family that exists under a health benefits plan 
     before the Reserve is mobilized.
       (5) An assessment of the effects of--
       (A) the provisions of this title that authorize or require 
     the Department of Defense to provide assistance specifically 
     to Reserves to facilitate the access to and use of TRICARE 
     benefits by Reserves or members of their families; and
       (B) the provisions of this title that provide eligibility 
     for health care under chapter 55 of title 10, United States 
     Code, for Reserves who are alerted by the Department of 
     Defense to prepare to be mobilized imminently.
       (6) An examination of the existing programs under which the 
     Department of Defense provides health care benefits to 
     mobilized Reserves during a transitional period immediately 
     following the release of the Reserves from the active duty 
     for which mobilized, including an assessment of the extent to 
     which those programs meet the needs of such Reserves for 
     health care benefits on a transitional basis.
       (d) Report.--Not later than May 1, 2004, 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 by this subsection, 
     including findings and recommendations.
       (e) Definitions.--In this section:
       (1) The term ``mobilized'' means called or ordered to 
     active duty for a period of more than 30 days (as defined in 
     section 101(d)(2) of title 10, United States Code).
       (2) The term ``Reserves'' means members of the reserve 
     components of the Armed Forces.

     SEC. 706. LIMITATION ON FISCAL YEAR 2004 OUTLAYS FOR 
                   TEMPORARY RESERVE HEALTH CARE PROGRAMS.

       (a) Outlay Limitation.--In the administration of the 
     temporary Reserve health care programs, the Secretary of 
     Defense shall carry out those program so as to limit the 
     total Department of Defense expenditures under those program 
     during fiscal year 2004 to an amount not in excess 
     $400,000,000.
       (b) Continuity of Care.--In the administration of the 
     temporary Reserve health care programs, the Secretary of 
     Defense shall carry out the implementation and termination of 
     those programs so as to ensure the least amount of disruption 
     to the continuity of care for persons provided care under 
     those programs.
       (c) Temporary Reserve Health Care Programs.--For purposes 
     of this section, the term ``temporary Reserve health care 
     programs'' means the following:
       (1) The program under section 1076b of title 10, United 
     States Code, as amended by section 702.
       (2) The program under section 1074(d) of title 10, United 
     States Code, as amended by section 703.
       (3) The program under section 704.

     SEC. 707. TRICARE BENEFICIARY COUNSELING AND ASSISTANCE 
                   COORDINATORS FOR RESERVE COMPONENT 
                   BENEFICIARIES.

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

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

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

     SEC. 711. ACCELERATION OF IMPLEMENTATION OF CHIROPRACTIC 
                   HEALTH CARE FOR MEMBERS ON ACTIVE DUTY.

       The Secretary of Defense shall accelerate the 
     implementation of the plan required by section 702 of the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001 (Public Law 106-398; 114 Stat. 1654A-173) (relating 
     to chiropractic health care services and benefits), with a 
     goal of completing implementation of the plan by October 1, 
     2005.

     SEC. 712. REIMBURSEMENT OF COVERED BENEFICIARIES FOR CERTAIN 
                   TRAVEL EXPENSES RELATING TO SPECIALIZED DENTAL 
                   CARE.

       Section 1074i of title 10, United States Code, is amended--
       (1) by inserting ``(a) In General.--'' before ``In any 
     case''; and
       (2) by adding at the end the following new subsection:
       ``(b) Definitions.--In this section:
       ``(1) The term `specialty care provider' includes a dental 
     specialist.
       ``(2) The term `dental specialist' means an oral surgeon, 
     orthodontist, prosthodontist, periodontist, endodontist, or 
     pediatric dentist, and includes such other providers of 
     dental care and services as determined appropriate by the 
     Secretary of Defense.''.

     SEC. 713. ELIGIBILITY FOR CONTINUED HEALTH BENEFITS COVERAGE 
                   EXTENDED TO CERTAIN MEMBERS OF UNIFORMED 
                   SERVICES.

       (a) Extension.--Section 1078a(b) of title 10, United States 
     Code, is amended in paragraphs (1), (2)(A), and (3)(A) by 
     striking ``armed forces'' and inserting ``uniformed 
     services'' each place it appears.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to members of the uniformed services who are not 
     otherwise covered by section 1078a of title 10, United States 
     Code, before the date of the enactment of this Act and who, 
     on or after such date, first meet the eligibility criteria 
     specified in subsection (b) of that section.

     SEC. 714. AUTHORITY FOR DESIGNATED PROVIDERS TO ENROLL 
                   COVERED BENEFICIARIES WITH OTHER PRIMARY HEALTH 
                   INSURANCE COVERAGE.

       Subsection (d) of section 724 of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201; 
     10 U.S.C. 1073 note) is amended to read as follows:
       ``(d) Additional Enrollment Authority.--(1) Subject to 
     paragraph (2), other covered beneficiaries may also receive 
     health care services from a designated provider.
       ``(2)(A) The designated provider may market such services 
     to, and enroll, covered beneficiaries who--
       ``(i) subject to the limitation in subparagraph (B), have 
     other primary health insurance coverage (other than Medicare 
     coverage) covering basic primary care and inpatient and 
     outpatient services; or
       ``(ii) are enrolled in the direct care system under the 
     TRICARE program, regardless of whether the covered 
     beneficiaries were users of the health care delivery system 
     of the uniformed services in prior years.
       ``(B) For each fiscal year beginning after September 30, 
     2003, the number of covered beneficiaries who are newly 
     enrolled by a designated provider pursuant to subparagraph 
     (A)(i) may not exceed 10 percent of the excess (if any) of--
       ``(i) the number of enrollees in managed care plans offered 
     by designated providers as of the first day of such fiscal 
     year; over
       ``(ii) the number of such enrollees as of the first day of 
     the immediately preceding fiscal year.
       ``(3) For purposes of this subsection, a covered 
     beneficiary who has other primary health insurance coverage 
     includes any covered beneficiary who has primary health 
     insurance coverage--
       ``(A) on the date of enrollment with a designated provider 
     pursuant to paragraph (2)(A)(i); or
       ``(B) on such date of enrollment and during the period 
     after such date while the beneficiary is enrolled with the 
     designated provider.''.
           Subtitle C--Planning, Programming, and Management

     SEC. 721. PERMANENT EXTENSION OF AUTHORITY TO ENTER INTO 
                   PERSONAL SERVICES CONTRACTS FOR THE PERFORMANCE 
                   OF HEALTH CARE RESPONSIBILITIES AT LOCATIONS 
                   OTHER THAN MILITARY MEDICAL TREATMENT 
                   FACILITIES.

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

     SEC. 722. DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE 
                   HEALTH CARE FUND VALUATIONS AND CONTRIBUTIONS.

       (a) Separate Periodic Actuarial Valuation for Single 
     Uniformed Service.--Section 1115(c) of title 10, United 
     States Code, is amended by adding at the end of paragraph (1) 
     the following: ``The Secretary of Defense may determine a 
     separate single level dollar amount under subparagraph (A) or 
     (B) for any participating uniformed service, if, in the 
     judgment of the Secretary, such a determination would produce 
     a more accurate and appropriate actuarial valuation for that 
     uniformed service.''.

[[Page 27548]]

       (b) Associated Calculations of Payments Into the Fund.--
     Section 1116 of such title is amended--
       (1) in subsection (a), by striking ``the amount that'' in 
     the matter preceding paragraph (1) and inserting ``the amount 
     that, subject to subsection (b),'';
       (2) by redesignating subsections (b) and (c) as subsections 
     (c) and (d), respectively; and
       (3) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) If an actuarial valuation referred to in paragraph 
     (1) or (2) of subsection (a) has been calculated as a 
     separate single level dollar amount for a participating 
     uniformed service under section 1115(c)(1) of this title, the 
     administering Secretary for the department in which such 
     uniformed service is operating shall calculate the amount 
     under such paragraph separately for such uniformed service. 
     If the administering Secretary is not the Secretary of 
     Defense, the administering Secretary shall notify the 
     Secretary of Defense of the amount so calculated. To 
     determine a single amount for the purpose of paragraph (1) or 
     (2) of subsection (a), as the case may be, the Secretary of 
     Defense shall aggregate the amount calculated under this 
     subsection for a uniformed service for the purpose of such 
     paragraph with the amount or amounts calculated (whether 
     separately or otherwise) for the other uniformed services for 
     the purpose of such paragraph.''.
       (c) Conforming Amendment.--Subsections (a) and (c)(5) of 
     section 1115 of such title are amended by striking ``section 
     1116(b) of this title'' and inserting ``section 1116(c) of 
     this title''.

     SEC. 723. SURVEYS ON CONTINUED VIABILITY OF TRICARE STANDARD.

       (a) Requirement for Surveys.--(1) The Secretary of Defense 
     shall conduct surveys in the TRICARE market areas in the 
     United States to determine how many health care providers are 
     accepting new patients under TRICARE Standard in each such 
     market area.
       (2) The Secretary shall carry out the surveys in at least 
     20 TRICARE market areas in the United States each fiscal year 
     after fiscal year 2003 until all such market areas in the 
     United States have been surveyed. The Secretary shall 
     complete six of the fiscal year 2004 surveys not later than 
     March 31, 2004.
       (3) In prioritizing the market areas for the sequence in 
     which market areas are to be surveyed under this subsection, 
     the Secretary shall consult with representatives of TRICARE 
     beneficiaries and health care providers to identify locations 
     where TRICARE Standard beneficiaries are experiencing 
     significant levels of access-to-care problems under TRICARE 
     Standard and shall give a high priority to surveying health 
     care providers in such areas.
       (b) Supervision.--(1) The Secretary shall designate a 
     senior official of the Department of Defense to take the 
     actions necessary for achieving and maintaining participation 
     of health care providers in TRICARE Standard in each TRICARE 
     market area in a number that is adequate to ensure the 
     viability of TRICARE Standard for TRICARE beneficiaries in 
     that market area.
       (2) The official designated under paragraph (1) shall have 
     the following duties:
       (A) To educate health care providers about TRICARE 
     Standard.
       (B) To encourage health care providers to accept patients 
     under TRICARE Standard.
       (C) To ensure that TRICARE beneficiaries have the 
     information necessary to locate TRICARE Standard providers 
     readily.
       (D) To recommend adjustments in TRICARE Standard provider 
     payment rates that the official considers necessary to ensure 
     adequate availability of TRICARE Standard providers for 
     TRICARE Standard beneficiaries.
       (c) GAO Review.--(1) The Comptroller General shall, on an 
     ongoing basis, review--
       (A) the processes, procedures, and analysis used by the 
     Department of Defense to determine the adequacy of the number 
     of health care providers--
       (i) that currently accept TRICARE Standard beneficiaries as 
     patients under TRICARE Standard in each TRICARE market area 
     (as of the date of completion of the review); and
       (ii) that would accept TRICARE Standard beneficiaries as 
     new patients under TRICARE Standard in each TRICARE market 
     area (within a reasonable time after the date of completion 
     of the review); and
       (B) the actions taken by the Department of Defense to 
     ensure ready access of TRICARE Standard beneficiaries to 
     health care under TRICARE Standard in each TRICARE market 
     area.
       (2)(A) The Comptroller General shall submit to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives a semiannual report on the results of the 
     review under paragraph (1). The first semiannual report shall 
     be submitted not later than June 30, 2004.
       (B) The semiannual report under subparagraph (A) shall 
     include the following:
       (i) An analysis of the adequacy of the surveys under 
     subsection (a).
       (ii) The adequacy of existing statutory authority to 
     address inadequate levels of participation by health care 
     providers in TRICARE Standard.
       (iii) Identification of policy-based obstacles to achieving 
     adequacy of availability of TRICARE Standard health care in 
     the TRICARE market areas.
       (iv) An assessment of the adequacy of Department of Defense 
     education programs to inform health care providers about 
     TRICARE Standard.
       (v) An assessment of the adequacy of Department of Defense 
     initiatives to encourage health care providers to accept 
     patients under TRICARE Standard.
       (vi) An assessment of the adequacy of information available 
     to TRICARE Standard beneficiaries to facilitate access by 
     such beneficiaries to health care under TRICARE Standard.
       (vii) Any need for adjustment of health care provider 
     payment rates to attract participation in TRICARE Standard by 
     appropriate numbers of health care providers.
       (d) Definitions.--In this section:
       (1) The term ``TRICARE Standard'' means the option of the 
     TRICARE program that is also known as the Civilian Health and 
     Medical Program of the Uniformed Services, as defined in 
     section 1072(4) of title 10, United States Code.
       (2) The term ``United States'' means the United States (as 
     defined in section 101(a) of title 10, United States Code), 
     its possessions (as defined in such section), and the 
     Commonwealth of Puerto Rico.

     SEC. 724. PLAN FOR PROVIDING HEALTH COVERAGE INFORMATION TO 
                   MEMBERS, FORMER MEMBERS, AND DEPENDENTS 
                   ELIGIBLE FOR CERTAIN HEALTH BENEFITS.

       (a) Health Information Plan Required.--The Secretary of 
     Defense shall develop a plan to--
       (1) ensure that each household that includes one or more 
     eligible persons is provided information concerning--
       (A) the extent of health coverage provided by sections 1079 
     or 1086 of title 10, United States Code, for each such 
     person;
       (B) the costs, including the limits on such costs, that 
     each such person is required to pay for such health coverage;
       (C) sources of information for locating TRICARE-authorized 
     providers in the household's locality; and
       (D) methods to obtain assistance in resolving difficulties 
     encountered with billing, payments, eligibility, locating 
     TRICARE-authorized providers, collection actions, and such 
     other issues as the Secretary considers appropriate;
       (2) provide mechanisms to ensure that each eligible person 
     has access to information identifying TRICARE-authorized 
     providers in the person's locality who have agreed to accept 
     new patients under section 1079 or 1086 of title 10, United 
     States Code, and to ensure that such information is 
     periodically updated;
       (3) provide mechanisms to ensure that each eligible person 
     who requests assistance in locating a TRICARE-authorized 
     provider is provided such assistance;
       (4) provide information and recruitment materials and 
     programs aimed at attracting participation of health care 
     providers as necessary to meet health care access 
     requirements for all eligible persons; and
       (5) provide mechanisms to allow for the periodic 
     identification by the Department of Defense of the number and 
     locality of eligible persons who may intend to rely on 
     TRICARE-authorized providers for health care services.
       (b) Implementation of Plan.--The Secretary of Defense shall 
     implement the plan required by subsection (a) with respect to 
     any contract entered into by the Department of Defense after 
     May 31, 2003, for managed health care.
       (c) Definitions.--In this section:
       (1) The term ``eligible person'' means a person eligible 
     for health benefits under section 1079 or 1086 of title 10, 
     United States Code.
       (2) The term ``TRICARE-authorized provider'' means a 
     facility, doctor, or other provider of health care services--
       (A) that meets the licensing and credentialing 
     certification requirements in the State where the services 
     are rendered;
       (B) that meets requirements under regulations relating to 
     TRICARE for the type of health care services rendered; and
       (C) that has accepted reimbursement by the Secretary of 
     Defense as payment for services rendered during the 12-month 
     period preceding the date of the most recently updated 
     provider information provided to households under the plan 
     required by subsection (a).
       (d) Submission of Plan.--Not later than March 31, 2004, the 
     Secretary shall submit to the Committees on Armed Services of 
     the Senate and House of Representatives the plan required by 
     subsection (a), together with a schedule for implementation 
     of the plan.

     SEC. 725. TRANSFER OF CERTAIN MEMBERS OF THE PHARMACY AND 
                   THERAPEUTICS COMMITTEE TO THE UNIFORM FORMULARY 
                   BENEFICIARY ADVISORY PANEL UNDER THE PHARMACY 
                   BENEFITS PROGRAM.

       Section 1074g of title 10, United States Code, is amended--
       (1) in subsection (b)(1) in the second sentence, by 
     striking ``facilities,'' and all that follows through the end 
     of the sentence and inserting ``facilities and 
     representatives of providers in facilities of the uniformed 
     services.''; and
       (2) in subsection (c)(2)--
       (A) by striking ``represent nongovernmental'' and inserting 
     the following: ``represent--
       ``(A) nongovernmental'';
       (B) by striking the period at the end and inserting a 
     semicolon; and
       (C) by adding at the end the following new subparagraphs:
       ``(B) contractors responsible for the TRICARE retail 
     pharmacy program;
       ``(C) contractors responsible for the national mail-order 
     pharmacy program; and
       ``(D) TRICARE network providers.''.

[[Page 27549]]



     SEC. 726. WORKING GROUP ON MILITARY HEALTH CARE FOR PERSONS 
                   RELIANT ON HEALTH CARE FACILITIES AT MILITARY 
                   INSTALLATIONS TO BE CLOSED OR REALIGNED.

       (a) In General.--Section 722 of the National Defense 
     Authorization Act for Fiscal Year 1993 (Public Law 102-484; 
     10 U.S.C. 1073 note) is amended by striking subsections (a), 
     (b), (c), and (d) and inserting the following new 
     subsections:
       ``(a) Establishment.--Not later than December 31, 2003, the 
     Secretary of Defense shall establish a working group on the 
     provision of military health care to persons who rely for 
     health care on health care facilities located at military 
     installations--
       ``(1) inside the United States that are selected for 
     closure or realignment in the 2005 round of realignments and 
     closures authorized by sections 2912, 2913, and 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 title XXX of the National Defense Authorization Act 
     for Fiscal Year 2002 (Public Law 107-107; 155 Stat. 1342); or
       ``(2) outside the United States that are selected for 
     closure or realignment as a result of force posture changes.
       ``(b) Membership.--The members of the working group shall 
     include, at a minimum, the following:
       ``(1) The Assistant Secretary of Defense for Health 
     Affairs, or a designee of the Assistant Secretary.
       ``(2) The Surgeon General of the Army, or a designee of 
     that Surgeon General.
       ``(3) The Surgeon General of the Navy, or a designee of 
     that Surgeon General.
       ``(4) The Surgeon General of the Air Force, or a designee 
     of that Surgeon General.
       ``(5) At least one independent member (appointed by the 
     Secretary of Defense) from each TRICARE region, but not to 
     exceed a total of 12 members appointed under this paragraph, 
     whose experience in matters within the responsibility of the 
     working group qualify that person to represent persons 
     authorized health care under chapter 55 of title 10, United 
     States Code.
       ``(c) Duties.--(1) In developing the recommendations for 
     the 2005 round of realignments and closures required by 
     sections 2913 and 2914 of the Defense Base Closure and 
     Realignment Act of 1990, the Secretary of Defense shall 
     consult with the working group.
       ``(2) The working group shall be available to provide 
     assistance to the Defense Base Closure and Realignment 
     Commission.
       ``(3) In the case of each military installation referred to 
     in paragraph (1) or (2) of subsection (a) whose closure or 
     realignment will affect the accessibility to health care 
     services for persons entitled to such services under chapter 
     55 of title 10, United States Code, the working group shall 
     provide to the Secretary of Defense a plan for the provision 
     of the health care services to such persons.
       ``(d) Special Considerations.--In carrying out its duties 
     under subsection (c), the working group--
       ``(1) shall conduct meetings with persons entitled to 
     health care services under chapter 55 of title 10, United 
     States Code, or representatives of such persons;
       ``(2) may use reliable sampling techniques;
       ``(3) may visit the areas where closures or realignments of 
     military installations will adversely affect the 
     accessibility of health care for such persons and may conduct 
     public meetings; and
       ``(4) shall ensure that members of the uniformed services 
     on active duty, members and former members of the uniformed 
     services entitled to retired or retainer pay, and dependents 
     and survivors of such members and retired personnel are 
     afforded the opportunity to express their views.''.
       (b) Termination.--Section 722 of such Act is further 
     amended by adding at the end the following new subsection:
       ``(f) Termination.--The working group established pursuant 
     to subsection (a) shall terminate on December 31, 2006.''.
       (c) Conforming Amendment.--Subsection (e) of such section 
     is amended by striking ``joint services''.

     SEC. 727. JOINT PROGRAM FOR DEVELOPMENT AND EVALUATION OF 
                   INTEGRATED HEALING CARE PRACTICES FOR MEMBERS 
                   OF THE ARMED FORCES AND VETERANS.

       (a) Program.--The Secretary of Defense and the Secretary of 
     Veterans Affairs may conduct a program to develop and 
     evaluate integrated healing care practices for members of the 
     Armed Forces and veterans. Any such program shall be carried 
     out through the Department of Veterans Affairs-Department of 
     Defense Joint Executive Committee established under section 
     320 of title 38, United States Code.
       (b) Source of DOD Funds.--Amounts authorized to be 
     appropriated by this Act for the Defense Health Program may 
     be used for the program under subsection (a).
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

             Subtitle A--Acquisition Policy and Management

Sec. 801. Consolidation of contract requirements.
Sec. 802. Quality control in procurement of aviation critical safety 
              items and related services.
Sec. 803. Federal support for enhancement of State and local anti-
              terrorism response capabilities.
Sec. 804. Special temporary contract closeout authority.
Sec. 805. Competitive award of contracts for reconstruction activities 
              in Iraq.

      Subtitle B--United States Defense Industrial Base Provisions

    Part I--Essential Items Identification and Domestic Production 
                    Capabilities Improvement Program

Sec. 811. Consistency with United States obligations under 
              international agreements.
Sec. 812. Assessment of United States defense industrial base 
              capabilities.
Sec. 813. Identification of essential items: military system breakout 
              list.
Sec. 814. Production capabilities improvement for certain essential 
              items using defense industrial base capabilities fund.

            Part II--Requirements Relating to Specific Items

Sec. 821. Elimination of unreliable sources of defense items and 
              components.
Sec. 822. Incentive program for major defense acquisition programs to 
              use machine tools and other capital assets produced 
              within the United States.
Sec. 823. Technical assistance relating to machine tools.
Sec. 824. Study of beryllium industrial base.

              Part III--Other Domestic Source Requirements

Sec. 826. Exceptions to Berry amendment for contingency operations and 
              other urgent situations.
Sec. 827. Inapplicability of Berry amendment to procurements of waste 
              and byproducts of cotton and wool fiber for use in the 
              production of propellants and explosives.
Sec. 828. Buy American exception for ball bearings and roller bearings 
              used in foreign products.

   Subtitle C--Defense Acquisition and Support Workforce Flexibility

Sec. 831. Management structure.
Sec. 832. Elimination of role of Office of Personnel Management.
Sec. 833. Single acquisition corps.
Sec. 834. Consolidation of certain education and training program 
              requirements.
Sec. 835. General management provisions.
Sec. 836. Clerical amendments.

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

Sec. 841. Additional authority to enter into personal services 
              contracts.
Sec. 842. Elimination of certain subcontract notification requirements.
Sec. 843. Multiyear task and delivery order contracts.
Sec. 844. Elimination of requirement to furnish written assurances of 
              technical data conformity.
Sec. 845. Access to information relevant to items deployed under rapid 
              acquisition and deployment procedures.
Sec. 846. Applicability of requirement for reports on maturity of 
              technology at initiation of major defense acquisition 
              programs.
Sec. 847. Certain weapons-related prototype projects.
Sec. 848. Limited acquisition authority for commander of United States 
              Joint Forces Command.

       Subtitle E--Acquisition-Related Reports and Other Matters

Sec. 851. Report on contract payments to small businesses.
Sec. 852. Contracting with employers of persons with disabilities.
Sec. 853. Demonstration project for contractors employing persons with 
              disabilities.
             Subtitle A--Acquisition Policy and Management

     SEC. 801. CONSOLIDATION OF CONTRACT REQUIREMENTS.

       (a) Amendment to Title 10.--(1) Chapter 141 of title 10, 
     United States Code, is amended by inserting after section 
     2381 the following new section:

     ``Sec. 2382. Consolidation of contract requirements: policy 
       and restrictions

       ``(a) Policy.--The Secretary of Defense shall require the 
     Secretary of each military department, the head of each 
     Defense Agency, and the head of each Department of Defense 
     Field Activity to ensure that the decisions made by that 
     official regarding consolidation of contract requirements of 
     the department, agency, or field activity, as the case may 
     be, are made with a view to providing small business concerns 
     with appropriate opportunities to participate in Department 
     of Defense procurements as prime contractors and appropriate 
     opportunities to participate in such procurements as 
     subcontractors.
       ``(b) Limitation on Use of Acquisition Strategies Involving 
     Consolidation.--(1) An official of a military department, 
     Defense Agency, or Department of Defense Field Activity may 
     not execute an acquisition strategy that includes a 
     consolidation of contract requirements of the military 
     department, agency, or activity with a total value in excess 
     of $5,000,000, unless the senior procurement executive 
     concerned first--
       ``(A) conducts market research;
       ``(B) identifies any alternative contracting approaches 
     that would involve a lesser degree of consolidation of 
     contract requirements; and

[[Page 27550]]

       ``(C) determines that the consolidation is necessary and 
     justified.
       ``(2) A senior procurement executive may determine that an 
     acquisition strategy involving a consolidation of contract 
     requirements is necessary and justified for the purposes of 
     paragraph (1) if the benefits of the acquisition strategy 
     substantially exceed the benefits of each of the possible 
     alternative contracting approaches identified under 
     subparagraph (B) of that paragraph. However, savings in 
     administrative or personnel costs alone do not constitute, 
     for such purposes, a sufficient justification for a 
     consolidation of contract requirements in a procurement 
     unless the total amount of the cost savings is expected to be 
     substantial in relation to the total cost of the procurement.
       ``(3) Benefits considered for the purposes of paragraphs 
     (1) and (2) may include cost and, regardless of whether 
     quantifiable in dollar amounts--
       ``(A) quality;
       ``(B) acquisition cycle;
       ``(C) terms and conditions; and
       ``(D) any other benefit.
       ``(c) Definitions.--In this section:
       ``(1) The terms `consolidation of contract requirements' 
     and `consolidation', with respect to contract requirements of 
     a military department, Defense Agency, or Department of 
     Defense Field Activity, mean a use of a solicitation to 
     obtain offers for a single contract or a multiple award 
     contract to satisfy two or more requirements of that 
     department, agency, or activity for goods or services that 
     have previously been provided to, or performed for, that 
     department, agency, or activity under two or more separate 
     contracts smaller in cost than the total cost of the contract 
     for which the offers are solicited.
       ``(2) The term `multiple award contract' means--
       ``(A) a contract that is entered into by the Administrator 
     of General Services under the multiple award schedule program 
     referred to in section 2302(2)(C) of this title;
       ``(B) a multiple award task order contract or delivery 
     order contract that is entered into under the authority of 
     sections 2304a through 2304d of this title or sections 303H 
     through 303K of the Federal Property and Administrative 
     Services Act of 1949 (41 U.S.C. 253h through 253k); and
       ``(C) any other indeterminate delivery, indeterminate 
     quantity contract that is entered into by the head of a 
     Federal agency with two or more sources pursuant to the same 
     solicitation.
       ``(3) The term `senior procurement executive concerned' 
     means--
       ``(A) with respect to a military department, the official 
     designated under section 16(3) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 414(3)) as the senior 
     procurement executive for the military department; or
       ``(B) with respect to a Defense Agency or a Department of 
     Defense Field Activity, the official so designated for the 
     Department of Defense.
       ``(4) The term `small business concern' means a business 
     concern that is determined by the Administrator of the Small 
     Business Administration to be a small-business concern by 
     application of the standards prescribed under section 3(a) of 
     the Small Business Act (15 U.S.C. 632(a)).''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2381 the following new item:

``2382. Consolidation of contract requirements: policy and 
              restrictions.''.
       (b) Data Review.--(1) The Secretary of Defense shall revise 
     the data collection systems of the Department of Defense to 
     ensure that such systems are capable of identifying each 
     procurement that involves a consolidation of contract 
     requirements within the department with a total value in 
     excess of $5,000,000.
       (2) The Secretary shall ensure that appropriate officials 
     of the Department of Defense periodically review the 
     information collected pursuant to paragraph (1) in 
     cooperation with the Small Business Administration--
       (A) to determine the extent of the consolidation of 
     contract requirements in the Department of Defense; and
       (B) to assess the impact of the consolidation of contract 
     requirements on the availability of opportunities for small 
     business concerns to participate in Department of Defense 
     procurements, both as prime contractors and as 
     subcontractors.
       (3) In this subsection:
       (A) The term ``consolidation of contract requirements'' has 
     the meaning given that term in section 2382(c)(1) of title 
     10, United States Code, as added by subsection (a).
       (B) The term ``small business concern'' means a business 
     concern that is determined by the Administrator of the Small 
     Business Administration to be a small-business concern by 
     application of the standards prescribed under section 3(a) of 
     the Small Business Act (15 U.S.C. 632(a)).
       (c) Applicability.--This section applies with respect to 
     procurements for which solicitations are issued after the 
     date occurring 180 days after the date of the enactment of 
     this Act.

     SEC. 802. QUALITY CONTROL IN PROCUREMENT OF AVIATION CRITICAL 
                   SAFETY ITEMS AND RELATED SERVICES.

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

     SEC. 803. FEDERAL SUPPORT FOR ENHANCEMENT OF STATE AND LOCAL 
                   ANTI-TERRORISM RESPONSE CAPABILITIES.

       (a) Procurements of Anti-Terrorism Technologies and 
     Services by State and Local Governments.--The Administrator 
     for Federal Procurement Policy shall establish a program 
     under which States and units of local government may procure 
     through contracts entered into by the Department of Defense 
     or the Department of Homeland Security anti-terrorism 
     technologies or anti-terrorism services for the purpose of 
     preventing, detecting, identifying, deterring, or recovering 
     from acts of terrorism.
       (b) Authorities.--Under the program, the Secretary of 
     Defense and the Secretary of Homeland Security may, but shall 
     not be required to, award contracts using the procedures 
     established by the Administrator of General Services for the 
     multiple awards schedule program of the General Services 
     Administration.
       (c) Definition.--In this section, the term ``State or local 
     government'' has the meaning provided in section 502(c)(3) of 
     title 40, United States Code.

     SEC. 804. SPECIAL TEMPORARY CONTRACT CLOSEOUT AUTHORITY.

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

     SEC. 805. COMPETITIVE AWARD OF CONTRACTS FOR RECONSTRUCTION 
                   ACTIVITIES IN IRAQ.

       (a) Competitive Award of Contracts.--The Department of 
     Defense shall fully comply with chapter 137 of title 10, 
     United States Code, and other applicable procurement laws and 
     regulations for any contract awarded for reconstruction 
     activities in Iraq, and shall conduct a full and open 
     competition for performing work needed for the reconstruction 
     of the Iraqi oil industry.
       (b) Report.--If the Department of Defense does not have a 
     fully competitive contract in place to replace the March 8, 
     2003, contract for the reconstruction of the Iraqi oil 
     industry on the date of the enactment of this Act, the 
     Secretary of Defense shall submit to Congress, not later than 
     30 days after such date of enactment, a report detailing the 
     reasons for allowing the March 8, 2003, contract to continue.

[[Page 27551]]


      Subtitle B--United States Defense Industrial Base Provisions

    Part I--Essential Items Identification and Domestic Production 
                    Capabilities Improvement Program

     SEC. 811. CONSISTENCY WITH UNITED STATES OBLIGATIONS UNDER 
                   INTERNATIONAL AGREEMENTS.

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

     SEC. 812. ASSESSMENT OF UNITED STATES DEFENSE INDUSTRIAL BASE 
                   CAPABILITIES.

       (a) Assessment Program.--(1) The Secretary of Defense shall 
     establish a program to assess--
       (A) the degree to which the United States is dependent on 
     foreign sources of supply; and
       (B) the capabilities of the United States defense 
     industrial base to produce military systems necessary to 
     support the national security objectives set forth in section 
     2501 of title 10, United States Code.
       (2) For purposes of the assessment program, the Secretary 
     shall use existing data, as required under subsection (b), 
     and submit an annual report, as required under subsection 
     (c).
       (b) Use of Existing Data.--(1) At a minimum, with respect 
     to each prime contract with a value greater than $25,000 for 
     the procurement of defense items and components, the 
     following information from existing sources shall be used for 
     purposes of the assessment program:
       (A) Whether the contractor is a United States or foreign 
     contractor.
       (B) The principal place of business of the contractor and 
     the principal place of performance of the contract.
       (C) Whether the contract was awarded on a sole source basis 
     or after receipt of competitive offers.
       (D) The dollar value of the contract.
       (2) The Federal Procurement Data System described in 
     section 6(d)(4)(A) of the Office of Federal Procurement 
     Policy Act (41 U.S.C. 405(d)(4)(A)), or any successor system, 
     shall collect from contracts described in paragraph (1) the 
     information specified in that paragraph.
       (3) Information obtained in the implementation of this 
     section is subject to the same limitations on disclosure, and 
     penalties for violation of such limitations, as is provided 
     under section 2507 of title 10, United States Code. Such 
     information also shall be exempt from release under section 
     552 of title 5, United States Code.
       (4) For purposes of meeting the requirements set forth in 
     this section, the Secretary of Defense may not require the 
     provision of information beyond the information that is 
     currently provided to the Department of Defense through 
     existing data collection systems by non-Federal entities with 
     respect to contracts and subcontracts with the Department of 
     Defense or any military department.
       (c) Annual Report.--(1) Not later than February 1 of each 
     year, 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 program covering 
     the preceding fiscal year. The first report under this 
     subsection shall cover fiscal year 2004 and shall be 
     submitted to the Committees no later than February 1, 2005.
       (2)(A) The report shall include the following with respect 
     to contracts described in subsection (b):
       (i) The total number and value of such contracts awarded by 
     the Department of Defense.
       (ii) The total number and value of such contracts awarded 
     on a sole source basis.
       (iii) The total number and value of contracts described in 
     clause (ii) awarded to foreign contractors, summarized by 
     country.
       (iv) The total number and value of contracts awarded to 
     foreign contractors through competitive procedures, 
     summarized by country.
       (B) The report also shall include--
       (i) the status of the matters described in subparagraphs 
     (A) and (B) of subsection (a)(1);
       (ii) the status of implementation of successor procurement 
     data management systems; and
       (iii) such other matters as the Secretary considers 
     appropriate.

     SEC. 813. IDENTIFICATION OF ESSENTIAL ITEMS: MILITARY SYSTEM 
                   BREAKOUT LIST.

       (a) Identification Process.--(1) The Secretary of Defense 
     shall establish a process, using the Defense Logistics 
     Information System existing database, to identify, with 
     respect to each military system--
       (A) the essential items, assemblies, and components of the 
     system that are active items, assemblies, and components;
       (B) foreign and domestic sources of supply for active 
     items, assemblies, and components of the system;
       (C) the active items, assemblies, and components of the 
     system that are commercial; and
       (D) Federal Supply Class and North American Industry 
     Classification System Codes for active items, assemblies, and 
     components of the system.
       (2) Any modification to the logistics management system or 
     any successor system of the Department of Defense shall 
     maintain the capability to identify--
       (A) essential items, assemblies, and components described 
     in paragraph (1)(A);
       (B) foreign and domestic sources of supply for active 
     items, assemblies, and components;
       (C) the active items, assemblies, and components of the 
     system that are commercial; and
       (D) Federal Supply Class and North American Industry 
     Classification System Codes for active items, assemblies, and 
     components.
       (3) For purposes of meeting the requirements set forth in 
     this section, the Secretary of Defense may not require the 
     provision of information beyond the information that is 
     currently provided to the Department of Defense through 
     existing data collection systems by non-Federal entities with 
     respect to contracts and subcontracts with the Department of 
     Defense or any military department.
       (b) Military System Essential Item Breakout List.--The 
     Secretary of Defense shall produce a list, to be known as the 
     ``military system essential item breakout list'', consisting 
     of the items, assemblies, and components identified under 
     subsection (a)(1)(A). In producing the list, the Secretary of 
     Defense shall consider the results of the report under 
     subsection (c).
       (c) Assessment.--Not later than 18 months after the date of 
     the enactment of this Act, the Secretary of Defense, acting 
     through a federally funded research and development center, 
     shall prepare a report that--
       (1) assesses the criteria that should be used for 
     identifying whether an item, assembly, or component is 
     essential to a military system; and
       (2) recommends which items, assemblies, and components 
     should be included on the military system essential item 
     breakout list under subsection (b).
       (d) Report.--(1) Not later than November 1 of each year, 
     beginning with November 1, 2005, the Secretary of Defense 
     shall submit to the Committees on Armed Services of the 
     Senate and the House of Representatives a report on the 
     implementation of this section. The report may be submitted 
     in classified and unclassified form.
       (2) The report shall include the following:
       (A) A list of each military system covered by the process 
     established under subsection (a).
       (B) A list of the items, assemblies, and components on the 
     military system essential item breakout list that are 
     manufactured or produced outside the United States, setting 
     forth military and commercial separately.
       (C) The portion of the entire military system essential 
     item breakout list that consists of the items, assemblies, 
     and components listed under subparagraph (B) (stated as a 
     percentage).
       (D) A list of each Federal Supply Class and North American 
     Industry Classification System Code represented on the 
     military system essential item breakout list, and the portion 
     of the entire military system essential item breakout list 
     that consists of items, assemblies, or components in such 
     classes or codes (stated as a percentage).
       (E) A list of each country outside the United States where 
     the items, assemblies, and components listed under 
     subparagraph (B) are manufactured or produced, and the 
     portion of the entire military system essential item breakout 
     list that consists of--
       (i) the items, assemblies, or components manufactured or 
     produced in that country, setting forth military and 
     commercial separately (stated as a percentage); and
       (ii) the Federal Supply Classes and North American Industry 
     Classification System Codes represented by those items, 
     assemblies, or components (stated as a percentage).
       (3) The Secretary shall submit an interim version of the 
     report required by this subsection not later than February 1, 
     2005, containing as much information as is practicable to be 
     included by such date.

     SEC. 814. PRODUCTION CAPABILITIES IMPROVEMENT FOR CERTAIN 
                   ESSENTIAL ITEMS USING DEFENSE INDUSTRIAL BASE 
                   CAPABILITIES FUND.

       (a) Establishment of Fund.--There is established in the 
     Treasury of the United States a separate fund to be known as 
     the Defense Industrial Base Capabilities Fund (hereafter in 
     this section referred to as the ``Fund'').
       (b) Moneys in Fund.--There shall be credited to the Fund 
     amounts appropriated to it.
       (c) Use of Fund.--The Secretary of Defense is authorized to 
     use all amounts in the Fund, subject to appropriation, for 
     the purposes of enhancing or reconstituting United States 
     industrial capability to produce items on the military system 
     essential item breakout list (as described in section 812(b)) 
     or items subject to section 2534 of title 10, United States 
     Code, in the quantity and of the quality necessary to achieve 
     national security objectives.
       (d) Limitation on Use of Fund.--Before the obligation of 
     any amounts in the Fund, the Secretary of Defense shall 
     submit to Congress a report describing the Secretary's plans 
     for implementing the Fund established in subsection (a), 
     including the priorities for the obligation of amounts in the 
     Fund, the criteria for determining the recipients of such 
     amounts, and the mechanisms through which such amounts may be 
     provided to the recipients.
       (e) Availability of Funds.--Amounts in the Fund shall 
     remain available until expended.
       (f) Fund Manager.--The Secretary of Defense shall designate 
     a Fund manager. The duties of the Fund manager shall 
     include--
       (1) ensuring the visibility and accountability of 
     transactions engaged in through the Fund; and
       (2) reporting to Congress each year regarding activities of 
     the Fund during the previous fiscal year.

            Part II--Requirements Relating to Specific Items

     SEC. 821. ELIMINATION OF UNRELIABLE SOURCES OF DEFENSE ITEMS 
                   AND COMPONENTS.

       (a) Identification of Certain Countries.--The Secretary of 
     Defense, in coordination with the Secretary of State, shall 
     identify and list

[[Page 27552]]

     foreign countries that restrict the provision or sale of 
     military goods or services to the United States because of 
     United States counterterrorism or military operations after 
     the date of the enactment of this Act. The Secretary shall 
     review and update the list as appropriate. The Secretary may 
     remove a country from the list, if the Secretary determines 
     that doing so would be in the interest of national defense.
       (b) Prohibition on Procurement of Items From Identified 
     Countries.--The Secretary of Defense may not procure any 
     items or components contained in military systems if the 
     items or components, or the systems, are manufactured in any 
     foreign country identified under subsection (a).
       (c) Waiver Authority.--The Secretary of Defense may waive 
     the limitation in subsection (b) if the Secretary determines 
     in writing and notifies Congress that the Department of 
     Defense's need for the item is of such an unusual and 
     compelling urgency that the Department would be unable to 
     meet national security objectives.
       (d) Effective Date.--(1) Subject to paragraph (2), 
     subsection (b) applies to contracts in existence on the date 
     of the enactment of this Act or entered into after such date.
       (2) With respect to contracts in existence on the date of 
     the enactment of this Act, the Secretary of Defense shall 
     take such action as is necessary to ensure that such 
     contracts are in compliance with subsection (b) not later 
     than 24 months after such date.

     SEC. 822. INCENTIVE PROGRAM FOR MAJOR DEFENSE ACQUISITION 
                   PROGRAMS TO USE MACHINE TOOLS AND OTHER CAPITAL 
                   ASSETS PRODUCED WITHIN THE UNITED STATES.

       (a) In General.--(1) Chapter 144 of title 10, United States 
     Code, is amended by inserting after section 2435 the 
     following new section:

     ``Sec. 2436. Major defense acquisition programs: incentive 
       program for contractors to purchase capital assets 
       manufactured in United States

       ``(a) Establishment of Incentive Program.--The Secretary of 
     Defense shall plan and establish an incentive program in 
     accordance with this section for contractors to purchase 
     capital assets manufactured in the United States in part with 
     funds available to the Department of Defense.
       ``(b) Defense Industrial Capabilities Fund May Be Used.--
     The Secretary of Defense may use the Defense Industrial 
     Capabilities Fund, established under section 814 of the 
     National Defense Authorization Act for Fiscal Year 2004, for 
     incentive payments under the program established under this 
     section.
       ``(c) Applicability to Major Defense Acquisition Program 
     Contracts.--The incentive program shall apply to contracts 
     for the procurement of a major defense acquisition program.
       ``(d) Consideration.--The Secretary of Defense shall 
     provide consideration in source selection in any request for 
     proposals for a major defense acquisition program for 
     offerors with eligible capital assets.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     2435 the following new item:

``2436. Major defense acquisition programs: incentive program for 
              contractors to purchase capital assets manufactured in 
              United States.''.

       (b) Regulations.--(1) The Secretary of Defense shall 
     prescribe regulations as necessary to carry out section 2436 
     of title 10, United States Code, as added by this section.
       (2) The Secretary may prescribe interim regulations as 
     necessary to carry out such section. For this purpose, the 
     Secretary is excepted from compliance with the notice and 
     comment requirements of section 553 of title 5, United States 
     Code. All interim rules prescribed under the authority of 
     this paragraph that are not earlier superseded by final rules 
     shall expire no later than 270 days after the effective date 
     of section 2436 of title 10, United States Code, as added by 
     this section.
       (c) Effective Date.--Section 2436 of title 10, United 
     States Code, as added by subsection (a), shall apply with 
     respect to contracts entered into after the expiration of the 
     18-month period beginning on the date of the enactment of 
     this Act.

     SEC. 823. TECHNICAL ASSISTANCE RELATING TO MACHINE TOOLS.

       (a) Technical Assistance.--The Secretary of Defense shall 
     publish in the Federal Register information on Government 
     contracting for purposes of assisting machine tool companies 
     in the United States and entities that use machine tools. The 
     information shall contain, at a minimum, the following:
       (1) An identification of resources with respect to 
     Government contracting regulations, including compliance 
     procedures and information on the availability of counseling.
       (2) An identification of resources for locating 
     opportunities for contracting with the Department of Defense, 
     including information about defense contracts that are 
     expected to be carried out that may require the use of 
     machine tools.
       (b) Science and Technology Initiatives.--The Secretary of 
     Defense shall incorporate into the Department of Defense 
     science and technology initiatives on manufacturing 
     technology an objective of developing advanced machine tool 
     capabilities. Such technologies shall be used to improve the 
     technological capabilities of the United States domestic 
     machine tool industrial base in meeting national security 
     objectives.

     SEC. 824. STUDY OF BERYLLIUM INDUSTRIAL BASE.

       (a) Requirement for Study.--The Secretary of Defense shall 
     conduct a study of the adequacy of the industrial base of the 
     United States to meet defense requirements of the United 
     States for beryllium.
       (b) Report.--Not later than March 31, 2005, the Secretary 
     shall submit a report on the results of the study to 
     Congress. The report shall contain, at a minimum, the 
     following information:
       (1) A discussion of the issues identified with respect to 
     the long-term supply of beryllium.
       (2) An assessment of the need, if any, for modernization of 
     the primary sources of production of beryllium.
       (3) A discussion of the advisability of, and concepts for, 
     meeting the future defense requirements of the United States 
     for beryllium and maintaining a stable domestic industrial 
     base of sources of beryllium through--
       (A) cooperative arrangements commonly referred to as 
     public-private partnerships;
       (B) the administration of the National Defense Stockpile 
     under the Strategic and Critical Materials Stock Piling Act; 
     and
       (C) any other means that the Secretary identifies as 
     feasible.

              Part III--Other Domestic Source Requirements

     SEC. 826. EXCEPTIONS TO BERRY AMENDMENT FOR CONTINGENCY 
                   OPERATIONS AND OTHER URGENT SITUATIONS.

       Section 2533a(d) of title 10, United States Code, is 
     amended--
       (1) by striking ``Outside the United States'' in the 
     subsection heading;
       (2) in paragraph (1), by inserting ``or procurements of any 
     item listed in subsection (b)(1)(A), (b)(2), or (b)(3) in 
     support of contingency operations'' after ``in support of 
     combat operations''; and
       (3) by adding at the end the following new paragraph:
       ``(4) Procurements of any item listed in subsection 
     (b)(1)(A), (b)(2), or (b)(3) for which the use of procedures 
     other than competitive procedures has been approved on the 
     basis of section 2304(c)(2) of this title, relating to 
     unusual and compelling urgency of need.''.

     SEC. 827. INAPPLICABILITY OF BERRY AMENDMENT TO PROCUREMENTS 
                   OF WASTE AND BYPRODUCTS OF COTTON AND WOOL 
                   FIBER FOR USE IN THE PRODUCTION OF PROPELLANTS 
                   AND EXPLOSIVES.

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

     SEC. 828. BUY AMERICAN EXCEPTION FOR BALL BEARINGS AND ROLLER 
                   BEARINGS USED IN FOREIGN PRODUCTS.

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

     SEC. 831. MANAGEMENT STRUCTURE.

       (a) Repeal of Requirements for Certain Career Management 
     Directors, Boards, and Policies.--Sections 1703, 1705, 1706, 
     and 1707 of title 10, United States Code, are repealed.
       (b) Conforming Amendments.--Chapter 87 of such title is 
     amended--
       (1) in section 1724(d)--
       (A) in the first sentence, by striking ``The acquisition 
     career program board concerned'' and all that follows through 
     ``if the board certifies'' and inserting ``the Secretary of 
     Defense may waive any or all of the requirements of 
     subsections (a) and (b) with respect to an employee of the 
     Department of Defense or member of the armed forces if the 
     Secretary determines'';
       (B) in the second sentence, by striking ``the board'' and 
     inserting ``the Secretary''; and
       (C) by striking the third sentence;
       (2) in section 1732(b)--
       (A) in paragraph (1)(C), by striking ``, as validated by 
     the appropriate career program management board''; and
       (B) in paragraph (2)(A)(ii), by striking ``has been 
     certified by the acquisition career program board of the 
     employing military department as possessing'' and inserting 
     ``possess'';
       (3) in section 1732(d)--
       (A) in paragraph (1)--
       (i) in the first sentence, by striking ``the acquisition 
     career program board of a military department'' and all that 
     follows through ``if the board certifies'' and inserting 
     ``The Secretary of Defense may waive any or all of the 
     requirements of subsection (b) with respect to an employee if 
     the Secretary determines'';
       (ii) in the second sentence, by striking ``the board'' and 
     inserting ``the Secretary''; and
       (iii) by striking the third sentence; and
       (B) in paragraph (2), by striking ``The acquisition career 
     program board of a military department'' and inserting ``The 
     Secretary'';

[[Page 27553]]

       (4) in section 1734--
       (A) in subsection (d)--
       (i) by striking paragraph (2); and
       (ii) by redesignating paragraph (3) as paragraph (2), and 
     in that paragraph by striking the second sentence; and
       (B) in subsection (e)(2), by striking ``, by the 
     acquisition career program board of the department 
     concerned,''; and
       (5) in section 1737(c)--
       (A) by striking paragraph (2); and
       (B) by striking ``(1) The Secretary'' and inserting ``The 
     Secretary''.

     SEC. 832. ELIMINATION OF ROLE OF OFFICE OF PERSONNEL 
                   MANAGEMENT.

       (a) Workforce Qualification Requirements and 
     Examinations.--Section 1725 of such title is repealed.
       (b) Acquisition Corps Requirements.--Subchapter III of 
     chapter 87 of title 10, United States Code, is amended--
       (1) in section 1731, by striking subsection (c);
       (2) in section 1732(c)(2), by striking the second and third 
     sentences;
       (3) in section 1734(g)--
       (A) by striking paragraph (2); and
       (B) in paragraph (1), by striking ``(1) The Secretary'' and 
     inserting ``The Secretary''; and
       (4) in section 1737, by striking subsection (d).
       (c) Appointment of Scholarship Recipient in Competitive 
     Service.--Section 1744(c)(3)(A)(i) of such title is amended 
     by striking ``and such other requirements as the Office of 
     Personnel Management may prescribe''.

     SEC. 833. SINGLE ACQUISITION CORPS.

       Subchapter III of chapter 87 of title 10, United States 
     Code, as amended by section 832, is further amended--
       (1) in section 1731--
       (A) in subsection (a)--
       (i) by striking ``each of the military departments and one 
     or more Corps, as he considers appropriate, for the other 
     components of'' in the first sentence; and
       (ii) by striking the second sentence; and
       (B) in subsection (b), by striking ``an Acquisition Corps'' 
     and inserting ``the Acquisition Corps'';
       (2) in sections 1732(a), 1732(e)(1), 1732(e)(2), 1733(a), 
     1734(e)(1), and 1737(a)(1), by striking ``an Acquisition 
     Corps'' and inserting ``the Acquisition Corps''; and
       (3) in section 1734--
       (A) in subsection (g), by striking ``each Acquisition 
     Corps, a test program in which members of a Corps'' and 
     inserting ``the Acquisition Corps, a test program in which 
     members of the Corps''; and
       (B) in subsection (h), by striking ``making assignments of 
     civilian and military members of the Acquisition Corps of 
     that military department'' and inserting ``making assignments 
     of civilian and military personnel of that military 
     department who are members of the Acquisition Corps''.

     SEC. 834. CONSOLIDATION OF CERTAIN EDUCATION AND TRAINING 
                   PROGRAM REQUIREMENTS.

       (a) Consolidation of Authority.--Section 1742 of such title 
     is amended to read as follows:

     ``Sec. 1742. Internship, cooperative education, and 
       scholarship programs

       ``The Secretary of Defense shall conduct the following 
     education and training programs:
       ``(1) An intern program for purposes of providing highly 
     qualified and talented individuals an opportunity for 
     accelerated promotions, career broadening assignments, and 
     specified training to prepare them for entry into the 
     Acquisition Corps.
       ``(2) A cooperative education credit program under which 
     the Secretary arranges, through cooperative arrangements 
     entered into with one or more accredited institutions of 
     higher education, for such institutions to grant 
     undergraduate credit for work performed by students who are 
     employed by the Department of Defense in acquisition 
     positions.
       ``(3) A scholarship program for the purpose of qualifying 
     personnel for acquisition positions in the Department of 
     Defense.''.
       (b) Conforming Amendments.--Sections 1743 and 1744 of such 
     title are repealed.

     SEC. 835. GENERAL MANAGEMENT PROVISIONS.

       Subchapter V of chapter 87 of title 10, United States Code, 
     is amended--
       (1) by striking section 1763; and
       (2) by adding at the end the following new section 1764:

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

       ``(a) Authority.--(1) The Secretary of Defense may 
     prescribe a different minimum number of years of experience, 
     different minimum education qualifications, and different 
     tenure of service qualifications to be required for 
     eligibility for appointment or advancement to an acquisition 
     position referred to in subsection (b) than is required for 
     such position under or pursuant to any provision of this 
     chapter.
       ``(2) Any requirement prescribed under paragraph (1) for a 
     position referred to in any paragraph of subsection (b) shall 
     be applied uniformly to all positions referred to in such 
     paragraph.
       ``(b) Applicability.--This section applies to the following 
     acquisition positions in the Department of Defense:
       ``(1) Contracting officer, except a position referred to in 
     paragraph (5).
       ``(2) Program executive officer.
       ``(3) Senior contracting official.
       ``(4) Program manager.
       ``(5) A position in the contract contingency force of an 
     armed force that is filled by a member of that armed force.
       ``(c) Definition.--In this section, the term `contract 
     contingency force', with respect to an armed force, has the 
     meaning given such term in regulations prescribed by the 
     Secretary concerned.''.

     SEC. 836. CLERICAL AMENDMENTS.

       The tables of sections for chapter 87 of title 10, United 
     States Code, are amended as follows:
       (1) The table of sections at the beginning of subchapter I 
     is amended by striking the items relating to sections 1703, 
     1705, 1706, and 1707.
       (2) The table of sections at the beginning of subchapter II 
     is amended by striking the item relating to section 1725.
       (3) The table of sections at the beginning of subchapter IV 
     is amended by striking the items relating to sections 1742, 
     1743, and 1744 and inserting the following:

``1742. Internship, cooperative education, and scholarship programs.''.

       (4) The table of sections at the beginning of subchapter V 
     is amended by striking the item relating to section 1763 and 
     inserting the following:
``1764. Authority to establish different minimum requirements.''.
Subtitle D--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

     SEC. 841. ADDITIONAL AUTHORITY TO ENTER INTO PERSONAL 
                   SERVICES CONTRACTS.

       (a) Additional Authority.--Section 129b of title 10, United 
     States Code is amended by adding at the end the following new 
     subsection:
       ``(d) Additional Authority for Personal Services 
     Contracts.--(1) In addition to the authority provided under 
     subsection (a), the Secretary of Defense may enter into 
     personal services contracts if the personal services--
       ``(A) are to be provided by individuals outside the United 
     States, regardless of their nationality, and are determined 
     by the Secretary to be necessary and appropriate for 
     supporting the activities and programs of the Department of 
     Defense outside the United States;
       ``(B) directly support the mission of a defense 
     intelligence component or counter-intelligence organization 
     of the Department of Defense; or
       ``(C) directly support the mission of the special 
     operations command of the Department of Defense.
       ``(2) The contracting officer for a personal services 
     contract under this subsection shall be responsible for 
     ensuring that--
       ``(A) the services to be procured are urgent or unique; and
       ``(B) it would not be practicable for the Department to 
     obtain such services by other means.
       ``(3) The requirements of section 3109 of title 5 shall not 
     apply to a contract entered into under this subsection.''.
       (b) Conforming Amendments.--(1) The heading for section 
     129b of such title is amended to read as follows:

     ``Sec. 129b. Authority to procure personal services''.

       (2) The item relating to section 129b in the table of 
     sections at the beginning of chapter 3 of such title is 
     amended to read as follows:

``129b. Authority to procure personal services.''.

     SEC. 842. ELIMINATION OF CERTAIN SUBCONTRACT NOTIFICATION 
                   REQUIREMENTS.

       Subsection (e) of section 2306 of title 10, United States 
     Code, is amended--
       (1) by striking ``(A)'' and ``(B)'' and inserting ``(i)'' 
     and ``(ii)'', respectively;
       (2) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively;
       (3) by striking ``Each'' and inserting ``(1) Except as 
     provided in paragraph (2), each''; and
       (4) by adding at the end the following new paragraph:
       ``(2) Paragraph (1) shall not apply to a prime contract 
     with a contractor that maintains a purchasing system approved 
     by the contracting officer for the contract.''.

     SEC. 843. MULTIYEAR TASK AND DELIVERY ORDER CONTRACTS.

       (a) Repeal of Applicability of Existing Authority and 
     Limitations.--Section 2306c of title 10, United States Code, 
     is amended by striking subsection (g).
       (b) Contract Period.--Section 2304a of such title is 
     amended--
       (1) by redesignating subsections (f) and (g) as subsections 
     (g) and (h), respectively; and
       (2) by inserting after subsection (e) the following new 
     subsection (f):
       ``(f) Contract Period.--The head of an agency entering into 
     a task or delivery order contract under this section may 
     provide for the contract to cover a total period of not more 
     than five years.''.

     SEC. 844. ELIMINATION OF REQUIREMENT TO FURNISH WRITTEN 
                   ASSURANCES OF TECHNICAL DATA CONFORMITY.

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

     SEC. 845. ACCESS TO INFORMATION RELEVANT TO ITEMS DEPLOYED 
                   UNDER RAPID ACQUISITION AND DEPLOYMENT 
                   PROCEDURES.

       Section 806(c) of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314; 
     116 Stat. 2607; 10 U.S.C. 2302 note) is amended by adding at 
     the end the following new paragraph:

[[Page 27554]]

       ``(3) If items are deployed under the rapid acquisition and 
     deployment procedures prescribed pursuant to this section, or 
     under any other authority, before the completion of 
     operational test and evaluation of the items, the Director of 
     Operational Test and Evaluation shall have access to 
     operational records and data relevant to such items in 
     accordance with section 139(e)(3) of title 10, United States 
     Code, for the purpose of completing operational test and 
     evaluation of the items. The access to the operational 
     records and data shall be provided in a time and manner 
     determined by the Secretary of Defense consistent with 
     requirements of operational security and other relevant 
     operational requirements.''.

     SEC. 846. APPLICABILITY OF REQUIREMENT FOR REPORTS ON 
                   MATURITY OF TECHNOLOGY AT INITIATION OF MAJOR 
                   DEFENSE ACQUISITION PROGRAMS.

       Section 804(a) of the National Defense Authorization Act 
     for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1180) is 
     amended by striking ``, as in effect on the date of enactment 
     of this Act,'' and inserting ``(as in effect on the date of 
     the enactment of this Act), and the corresponding provision 
     of any successor to such Instruction,''.

     SEC. 847. CERTAIN WEAPONS-RELATED PROTOTYPE PROJECTS.

       (a) Extension of Authority.--Subsection (g) of section 845 
     of the National Defense Authorization Act for Fiscal Year 
     1994 (10 U.S.C. 2371 note) is amended by striking ``September 
     30, 2004'' and inserting ``September 30, 2008''.
       (b) Increased Scope of Authority.--Subsection (a) of such 
     section is amended by inserting before the period at the end 
     the following: ``, or to improvement of weapons or weapon 
     systems in use by the Armed Forces''.
       (c) Pilot Program for Transition to Follow-on Contracts.--
     Such section, as amended by subsection (a), is further 
     amended--
       (1) by redesignating subsections (e), (f), and (g) as 
     subsections (f), (g), and (h), respectively; and
       (2) by inserting after subsection (d) the following new 
     subsection (e):
       ``(e) Pilot Program for Transition to Follow-on 
     Contracts.--(1) The Secretary of Defense is authorized to 
     carry out a pilot program for follow-on contracting for the 
     production of items or processes under prototype projects 
     carried out under this section.
       ``(2) Under the pilot program--
       ``(A) a qualifying contract for the procurement of such an 
     item or process, or a qualifying subcontract under a contract 
     for the procurement of such an item or process, may be 
     treated as a contract or subcontract, respectively, for the 
     procurement of commercial items, as defined in section 4(12) 
     of the Office of Federal Procurement Policy Act (41 U.S.C. 
     403(12)); and
       ``(B) the item or process may be treated as an item or 
     process, respectively, that is developed in part with Federal 
     funds and in part at private expense for the purposes of 
     section 2320 of title 10, United States Code.
       ``(3) For the purposes of the pilot program, a qualifying 
     contract or subcontract is a contract or subcontract, 
     respectively, with a nontraditional defense contractor that--
       ``(A) does not exceed $50,000,000; and
       ``(B) is either--
       ``(i) a firm, fixed-price contract or subcontract; or
       ``(ii) a fixed-price contract or subcontract with economic 
     price adjustment.
       ``(4) The authority to conduct a pilot program under this 
     subsection shall terminate on September 30, 2008. The 
     termination of the authority shall not affect the validity of 
     contracts or subcontracts that are awarded or modified during 
     the period of the pilot program, without regard to whether 
     the contracts or subcontracts are performed during the 
     period.''.

     SEC. 848. LIMITED ACQUISITION AUTHORITY FOR COMMANDER OF 
                   UNITED STATES JOINT FORCES COMMAND.

       (a) Three-Year Authority to Delegate Acquisition 
     Authority.--(1) Chapter 6 of title 10, United States Code, is 
     amended by inserting after section 167 the following new 
     section:

     ``Sec. 167a. Unified combatant command for joint warfighting 
       experimentation: acquisition authority

       ``(a) Limited Acquisition Authority for Commander of 
     Certain Unified Combatant Command.--The Secretary of Defense 
     may delegate to the commander of the unified combatant 
     command referred to in subsection (b) authority of the 
     Secretary under chapter 137 of this title sufficient to 
     enable the commander to develop and acquire equipment 
     described in subsection (c). The exercise of authority so 
     delegated is subject to the authority, direction, and control 
     of the Secretary.
       ``(b) Command Described.--The commander to whom authority 
     is delegated under subsection (a) is the commander of the 
     unified combatant command that has the mission for joint 
     warfighting experimentation, as assigned by the Secretary of 
     Defense.
       ``(c) Equipment.--The equipment referred to in subsection 
     (a) is as follows:
       ``(1) Equipment for battle management command, control, 
     communications, and intelligence.
       ``(2) Any other equipment that the commander referred to in 
     subsection (b) determines necessary and appropriate for--
       ``(A) facilitating the use of joint forces in military 
     operations; or
       ``(B) enhancing the interoperability of equipment used by 
     the various components of joint forces.
       ``(d) Exceptions.--The authority delegated under subsection 
     (a) does not apply to the development or acquisition of a 
     system for which--
       ``(1) the total expenditure for research, development, 
     test, and evaluation is estimated to be $10,000,000 or more; 
     or
       ``(2) the total expenditure for procurement is estimated to 
     be $50,000,000 or more.
       ``(e) Internal Audits and Inspections.--The commander 
     referred to in subsection (b) shall require the inspector 
     general of that command to conduct internal audits and 
     inspections of purchasing and contracting administered by the 
     commander under the authority delegated under subsection (a).
       ``(f) Termination.--The Secretary may delegate the 
     authority referred to in subsection (a) only during fiscal 
     years 2004 through 2006, and any authority so delegated shall 
     not be in effect after September 30, 2006.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     167 the following new item:

``167a. Unified combatant command for joint warfighting 
              experimentation: acquisition authority.''.

       (b) Comptroller General Report.--The Comptroller General 
     shall review the implementation of section 167a of title 10, 
     United States Code, as added by subsection (a), and submit to 
     Congress a report on such review not later than two years 
     after the date of the enactment of this Act. The review shall 
     cover the extent to which the authority provided under such 
     section 167a has been used.
       Subtitle E--Acquisition-Related Reports and Other Matters

     SEC. 851. REPORT ON CONTRACT PAYMENTS TO SMALL BUSINESSES.

       (a) Report.--The Comptroller General shall prepare and 
     submit to the congressional defense committees a report on 
     the timeliness of contract payments made to small businesses 
     during fiscal years 2001 and 2002 by the Department of 
     Defense. The report shall include an estimate of the 
     following:
       (1) The total amount of contract payments made by the 
     Department to small businesses.
       (2) The percentage of total contract payments to small 
     businesses that were not made in a timely manner.
       (3) The reasons that contract payments to small businesses 
     were not made in a timely manner.
       (4) The amount of interest owed and paid by the Department 
     to small businesses due to contract payments not made in a 
     timely manner.
       (5) Such recommendations as the Comptroller General 
     considers appropriate to improve the process for making 
     contract payments to small businesses in a timely manner.
       (b) Definitions.--For purposes of subsection (a)--
       (1) a payment is considered not made in a timely manner if 
     it caused interest to accrue under chapter 39 of title 31, 
     United States Code (relating to prompt payment); and
       (2) the term ``small business'' means an entity that 
     qualifies as a small business concern under the Small 
     Business Act.

     SEC. 852. CONTRACTING WITH EMPLOYERS OF PERSONS WITH 
                   DISABILITIES.

       (a) Inapplicability of Randolph-Sheppard Act.--The 
     Randolph-Sheppard Act does not apply to any contract 
     described in subsection (b) for so long as the contract is in 
     effect, including for any period for which the contract is 
     extended pursuant to an option provided in the contract.
       (b) Javits-Wagner-O'Day Contracts.--Subsection (a) applies 
     to any contract for the operation of a 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--
       (1) was entered into before the date of the enactment of 
     this Act with a nonprofit agency for the blind or an agency 
     for other severely handicapped in compliance with section 3 
     of the Javits-Wagner-O'Day Act (41 U.S.C. 48); and
       (2) is in effect on such date.
       (c) Enactment of Popular Name as Short Title.--The Act 
     entitled ``An Act to authorize the operation of stands in 
     Federal buildings by blind persons, to enlarge the economic 
     opportunities of the blind, and for other purposes'', 
     approved June 20, 1936 (commonly known as the ``Randolph-
     Sheppard Act'') (20 U.S.C. 107 et seq.), is amended by adding 
     at the end the following new section:
       ``Sec. 11. This Act may be cited as the `Randolph-Sheppard 
     Act'.''.

     SEC. 853. DEMONSTRATION PROJECT FOR CONTRACTORS EMPLOYING 
                   PERSONS WITH DISABILITIES.

       (a) Authority.--The Secretary of Defense may carry out a 
     demonstration project by entering into one or more contracts 
     with an eligible contractor for the purpose of providing 
     defense contracting opportunities for severely disabled 
     individuals.
       (b) Evaluation Factor.--In evaluating an offer for a 
     contract under the demonstration program, the percentage of 
     the total workforce of the offeror consisting of severely 
     disabled individuals employed by the offeror shall be one of 
     the evaluation factors.
       (c) Definitions.--In this section:
       (1) Eligible contractor.--The term ``eligible contractor'' 
     means a business entity operated on a for-profit or nonprofit 
     basis that--
       (A) employs severely disabled individuals at a rate that 
     averages not less than 33 percent of its total workforce over 
     a period prescribed by the Secretary;
       (B) pays not less than the minimum wage prescribed pursuant 
     to section 6 of the Fair Labor

[[Page 27555]]

     Standards Act of 1938 (29 U.S.C. 206) to the employees who 
     are severely disabled individuals; and
       (C) provides for its employees health insurance and a 
     retirement plan comparable to those provided for employees by 
     business entities of similar size in its industrial sector or 
     geographic region.
       (2) Severely disabled individual.--The term ``severely 
     disabled individual'' means an individual with a disability 
     (as defined in section 3 of the Americans with Disabilities 
     Act of 1990 (42 U.S.C. 12102)) who has a severe physical or 
     mental impairment that seriously limits one or more 
     functional capacities.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

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

Sec. 901. Clarification of responsibility of military departments to 
              support combatant commands.
Sec. 902. Combatant Commander Initiative Fund.
Sec. 903. Biennial review of national military strategy by Chairman of 
              the Joint Chiefs of Staff.
Sec. 904. Report on changing roles of United States Special Operations 
              Command.
Sec. 905. Sense of Congress regarding continuation of mission and 
              functions of Army Peacekeeping Institute.
Sec. 906. Transfer to Office of Personnel Management of personnel 
              investigative functions and related personnel of the 
              Department of Defense.
Sec. 907. Defense acquisition workforce freeze for fiscal year 2004.

                      Subtitle B--Space Activities

Sec. 911. Coordination of space science and technology activities of 
              the Department of Defense.
Sec. 912. Policy regarding assured access to space for United States 
              national security payloads.
Sec. 913. Pilot program for provision of space surveillance network 
              services to non-United States Government entities.
Sec. 914. Content of biennial global positioning system report.
Sec. 915. Report on processes-related space systems.

       Subtitle C--Department of Defense Intelligence Components

Sec. 921. Redesignation of National Imagery and Mapping Agency as 
              National Geospatial-Intelligence Agency.
Sec. 922. Protection of operational files of the National Security 
              Agency.
Sec. 923. Integration of defense intelligence, surveillance, and 
              reconnaissance capabilities.
Sec. 924. Management of National Security Agency Modernization Program.
Sec. 925. Modification of obligated service requirements under National 
              Security Education Program.
Sec. 926. Authority to provide living quarters for certain students in 
              cooperative and summer education programs of the National 
              Security Agency.
Sec. 927. Commercial imagery industrial base.

                       Subtitle D--Other Matters

Sec. 931. Authority for Asia-Pacific Center for Security Studies to 
              accept gifts and donations.
Sec. 932. Repeal of rotating chairmanship of Economic Adjustment 
              Committee.
Sec. 933. Extension of certain authorities applicable to the Pentagon 
              Reservation to include a designated Pentagon continuity-
              of-Government location.

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

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

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

     SEC. 902. COMBATANT COMMANDER INITIATIVE FUND.

       (a) Redesignation of CINC Initiative Fund.--(1) The CINC 
     Initiative Fund administered under section 166a of title 10, 
     United States Code, is redesignated as the ``Combatant 
     Commander Initiative Fund''.
       (2) Section 166a of title 10, United States Code, is 
     amended--
       (A) by striking the heading for subsection (a) and 
     inserting ``Combatant Commander Initiative Fund.--``; and
       (B) by striking ``CINC Initiative Fund'' in subsections 
     (a), (c), and (d), and inserting ``Combatant Commander 
     Initiative Fund''.
       (3) Any reference to the CINC Initiative Fund in any other 
     provision of law or in any regulation, document, record, or 
     other paper of the United States shall be considered to be a 
     reference to the Combatant Commander Initiative Fund.
       (b) Authorized Activities.--Subsection (b) of section 166a 
     of title 10, United States Code, is amended by adding at the 
     end the following new paragraph:
       ``(10) Joint warfighting capabilities.''.
       (c) Increased Maximum Amounts Authorized for Use.--
     Subsection (e)(1) of such section is amended--
       (1) in subparagraph (A), by striking ``$7,000,000'' and 
     inserting ``$10,000,000'';
       (2) in subparagraph (B), by striking ``$1,000,000'' and 
     inserting ``$10,000,000''; and
       (3) in subparagraph (C), by striking ``$2,000,000'' and 
     inserting ``$5,000,000''.

     SEC. 903. BIENNIAL REVIEW OF NATIONAL MILITARY STRATEGY BY 
                   CHAIRMAN OF THE JOINT CHIEFS OF STAFF.

       (a) Biennial Review.--Section 153 of title 10, United 
     States Code, by adding at the end the following new 
     subsection:
       ``(d) Biennial Review of National Military Strategy.--(1) 
     Not later then February 15 of each even-numbered year, the 
     Chairman 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 a 
     comprehensive examination of the national military strategy. 
     Each such examination shall be conducted by the Chairman in 
     conjunction with the other members of the Joint Chiefs of 
     Staff and the commanders of the unified and specified 
     commands.
       ``(2) Each report on the examination of the national 
     military strategy under paragraph (1) shall include the 
     following:
       ``(A) Delineation of a national military strategy 
     consistent with--
       ``(i) the most recent National Security Strategy prescribed 
     by the President pursuant to section 108 of the National 
     Security Act of 1947 (50 U.S.C. 404a);
       ``(ii) the most recent annual report of the Secretary of 
     Defense submitted to the President and Congress pursuant to 
     section 113 of this title; and
       ``(iii) the most recent Quadrennial Defense Review 
     conducted by the Secretary of Defense pursuant to section 118 
     of this title.
       ``(B) A description of the strategic environment and the 
     opportunities and challenges that affect United States 
     national interests and United States national security.
       ``(C) A description of the regional threats to United 
     States national interests and United States national 
     security.
       ``(D) A description of the international threats posed by 
     terrorism, weapons of mass destruction, and asymmetric 
     challenges to United States national security.
       ``(E) Identification of United States national military 
     objectives and the relationship of those objectives to the 
     strategic environment, regional, and international threats.
       ``(F) Identification of the strategy, underlying concepts, 
     and component elements that contribute to the achievement of 
     United States national military objectives.
       ``(G) Assessment of the capabilities and adequacy of United 
     States forces (including both active and reserve components) 
     to successfully execute the national military strategy.
       ``(H) Assessment of the capabilities, adequacy, and 
     interoperability of regional allies of the United States and 
     or other friendly nations to support United States forces in 
     combat operations and other operations for extended periods 
     of time.
       ``(3)(A) As part of the assessment under this subsection, 
     the Chairman, in conjunction with the other members of the 
     Joint Chiefs of Staff and the commanders of the unified and 
     specified commands, shall undertake an assessment of the 
     nature and magnitude of the strategic and military risks 
     associated with successfully executing the missions called 
     for under the current National Military Strategy.
       ``(B) In preparing the assessment of risk, the Chairman 
     should make assumptions pertaining to the readiness of United 
     States forces (in both the active and reserve components), 
     the length of conflict and the level of intensity of combat 
     operations, and the levels of support from allies and other 
     friendly nations.
       ``(4) Before submitting a report under this subsection to 
     the Committees on Armed Services of the Senate and House of 
     Representatives, the Chairman shall provide the report to the 
     Secretary of Defense. The Secretary's assessment and comments 
     thereon (if any) shall be included with the report. If the 
     Chairman's assessment in such report in any year is that the 
     risk associated with executing the missions called for under 
     the National Military Strategy is significant, the Secretary 
     shall include with the report as submitted to those 
     committees the Secretary's plan for mitigating the risk.''.
       (b) Conforming Amendment.--Subsection (b)(1) of such 
     section is amended by striking ``each year'' and inserting 
     ``of each odd-numbered year''.

     SEC. 904. REPORT ON CHANGING ROLES OF UNITED STATES SPECIAL 
                   OPERATIONS COMMAND.

       (a) Report Required.--Not later than 180 days after the 
     date of the enactment of this Act, the Secretary of Defense 
     shall submit to the Committees on Armed Services of the 
     Senate and the House of Representatives a report on the 
     changing roles of the United States Special Operations 
     Command.
       (b) Content of Report.--(1) The report shall specifically 
     discuss in detail the following matters:
       (A) The expanded role of the United States Special 
     Operations Command in the global war on terrorism.
       (B) The reorganization of that command to function as a 
     supported combatant command for planning and executing 
     operations.
       (C) The role of that command as a supporting combatant 
     command.
       (2) The report shall also include, in addition to the 
     matters discussed pursuant to paragraph (1), a discussion of 
     the following matters:

[[Page 27556]]

       (A) The military strategy to employ the United States 
     Special Operations Command to fight the global war on 
     terrorism and how that strategy contributes to the overall 
     national security strategy with regard to the global war on 
     terrorism.
       (B) The scope of the authority granted to the commander of 
     that command to act as a supported commander and to prosecute 
     the global war on terrorism.
       (C) The operational and legal parameters within which the 
     commander of that command is to exercise command authority in 
     foreign countries when taking action against foreign and 
     United States citizens engaged in terrorist activities.
       (D) The decisionmaking procedures for authorizing, 
     planning, and conducting individual missions by that command, 
     including--
       (i) the requirement in section 167(d)(2) of title 10, 
     United States Code, that the conduct of a special operations 
     mission under the command of the commander of the United 
     States Special Operations Command be authorized by the 
     President or the Secretary of Defense; and
       (ii) procedures for consultation with Congress.
       (E) The procedures for the commander of that command to use 
     to coordinate with commanders of other combatant commands, 
     especially geographic commands.
       (F) Future organization plans and resource requirements for 
     that command conducting the global counterterrorism mission.
       (G) The effect of the changing role of that command on 
     other special operations missions, including foreign internal 
     defense, psychological operations, civil affairs, 
     unconventional warfare, counterdrug activities, and 
     humanitarian activities.
       (c) Forms of Report.--The report shall be submitted in 
     unclassified form and, as necessary, in classified form.

     SEC. 905. SENSE OF CONGRESS REGARDING CONTINUATION OF MISSION 
                   AND FUNCTIONS OF ARMY PEACEKEEPING INSTITUTE.

       It is the sense of Congress that the Secretary of Defense 
     should maintain the functions and missions of the Army 
     Peacekeeping Institute at the Army War College in Carlisle, 
     Pennsylvania, or within a joint entity of the Department of 
     Defense, such as the National Defense University or the Joint 
     Forces Command, to ensure that members of the Armed Forces 
     continue to study the strategic challenges and uses of 
     peacekeeping missions and to prepare the Armed Forces for 
     conducting such missions.

     SEC. 906. TRANSFER TO OFFICE OF PERSONNEL MANAGEMENT OF 
                   PERSONNEL INVESTIGATIVE FUNCTIONS AND RELATED 
                   PERSONNEL OF THE DEPARTMENT OF DEFENSE.

       (a) Transfer of Functions.--(1) Subject to subsection (b), 
     the Secretary of Defense may transfer to the Office of 
     Personnel Management the personnel security investigations 
     functions that, as of the date of the enactment of this Act, 
     are performed by the Defense Security Service of the 
     Department of Defense. Such a transfer may be made only with 
     the concurrence of the Director of the Office of Personnel 
     Management.
       (2) The Director of the Office of Personnel Management may 
     accept a transfer of functions under paragraph (1).
       (3) Any transfer of a function under this subsection is a 
     transfer of function within the meaning of section 3503 of 
     title 5, United States Code.
       (b) Limitation.--(1) The Secretary of Defense may not make 
     a transfer of functions under subsection (a) unless the 
     Secretary determines, and certifies in writing to the 
     Committee on Armed Services of the House of Representatives 
     and the Committee on Armed Services of the Senate, that each 
     of the conditions specified in paragraph (2) has been met. 
     Such a transfer may then be made only after a period of 30 
     days has elapsed after the date on which the certification is 
     received by those committees.
       (2) The conditions referred to in paragraph (1) are the 
     following:
       (A) That the Office of Personnel Management is fully 
     capable of carrying out high-priority investigations required 
     by the Secretary of Defense within a timeframe set by the 
     Secretary of Defense.
       (B) That the Office of Personnel Management has undertaken 
     necessary and satisfactory steps to ensure that 
     investigations performed on Department of Defense contract 
     personnel will be conducted in an expeditious manner 
     sufficient to ensure that those contract personnel are 
     available to the Department of Defense within a timeframe set 
     by the Secretary of Defense.
       (C) That the Department of Defense will retain capabilities 
     in the form of Federal employees to monitor and investigate 
     Department of Defense and contractor personnel as necessary 
     to perform counterintelligence functions and polygraph 
     activities of the Department.
       (D) That the authority to adjudicate background 
     investigations will remain with the Department of Defense and 
     that the transfer of Defense Security Service personnel to 
     the Office of Personnel Management will improve the speed and 
     efficiency of the adjudication process.
       (E) That the Department of Defense will retain within the 
     Defense Security Service sufficient personnel and 
     capabilities to improve Department of Defense industrial 
     security programs and practices.
       (c) Transfer of Personnel.--(1) If the Director of the 
     Office of Personnel Management accepts a transfer of 
     functions under subsection (a), the Secretary of Defense 
     shall also transfer to the Office of Personnel Management, 
     and the Director shall accept--
       (A) the Defense Security Service employees who perform 
     those functions immediately before the transfer of functions; 
     and
       (B) the Defense Security Service employees who, as of such 
     time, are first level supervisors of employees transferred 
     under subparagraph (A).
       (2) The Secretary may also transfer to the Office of 
     Personnel Management any Defense Security Service employees 
     (including higher level supervisors) who provide support 
     services for the performance of the functions transferred 
     under subsection (a) or for the personnel (including 
     supervisors) transferred under paragraph (1) if the 
     Director--
       (A) determines that the transfer of such additional 
     employees and the positions of such employees to the Office 
     of Personnel Management is necessary in the interest of 
     effective performance of the transferred functions; and
       (B) accepts the transfer of the additional employees.
       (3) In the case of an employee transferred to the Office of 
     Personnel Management under paragraph (1) or (2), whether a 
     full-time or part-time employee--
       (A) subsections (b) and (c) of section 5362 of title 5, 
     United States Code, relating to grade retention, shall apply 
     to the employee, except that--
       (i) the grade retention period shall be the one-year period 
     beginning on the date of the transfer; and
       (ii) paragraphs (1), (2), and (3) of such subsection (c) 
     shall not apply to the employee; and
       (B) the employee may not be separated, other than pursuant 
     to chapter 75 of title 5, United States Code, during such 
     one-year period.
       (d) Actions After Transfer.--(1) Not later than one year 
     after a transfer of functions to the Office of Personnel 
     Management under subsection (a), the Director of the Office 
     of Personnel Management, in coordination with the Secretary 
     of Defense, shall review all functions performed by personnel 
     of the Defense Security Service at the time of the transfer 
     and make a written determination regarding whether each such 
     function is inherently governmental or is otherwise 
     inappropriate for performance by contractor personnel.
       (2) A function performed by Defense Security Service 
     employees as of the date of the enactment of this Act may not 
     be converted to contractor performance by the Director of the 
     Office of Personnel Management until--
       (A) the Director reviews the function in accordance with 
     the requirements of paragraph (1) and makes a written 
     determination that the function is not inherently 
     governmental and is not otherwise inappropriate for 
     contractor performance; and
       (B) the Director conducts a public-private competition 
     regarding the performance of that function in accordance with 
     the requirements of the Office of Management and Budget 
     Circular A-76.

     SEC. 907. DEFENSE ACQUISITION WORKFORCE FREEZE FOR FISCAL 
                   YEAR 2004.

       (a) Defense Acquisition Workforce Freeze.--During fiscal 
     year 2004, the number of defense acquisition and support 
     personnel may not at any time be greater than one percent 
     above, or less than one percent below, the baseline number, 
     and any variation from the baseline number (within such one 
     percent variance) shall be only to exercise normal hiring and 
     firing flexibility during the fiscal year.
       (b) Baseline Number.--For purposes of subsection (a), the 
     baseline number is the number of defense acquisition and 
     support personnel as of October 1, 2003.
       (c) Use of Full-Time Equivalent Positions.--All 
     determinations of personnel strengths for purposes of this 
     section shall be on the basis of full-time equivalent 
     positions.
       (d) Waiver Authority.--The Secretary of Defense may waive 
     the limitation in subsection (a) upon a determination that 
     such waiver is necessary to protect a significant national 
     security interest of the United States. If the Secretary 
     makes such a determination, the Secretary shall, within 30 
     days after making the determination, notify the Committees on 
     Armed Services of the Senate and House of Representatives of 
     the determination and the reasons for the determination.
       (e) Definition.--In this section, the term ``defense 
     acquisition and support personnel'' means members of the 
     Armed Forces and civilian personnel (other than civilian 
     personnel who are employed at a maintenance depot) who are 
     assigned to, or employed in, acquisition organizations of the 
     Department of Defense (as specified in Department of Defense 
     Instruction numbered 5000.58, dated January 14, 1992), and 
     any other organization that, as determined by the Secretary, 
     has acquisition as its predominant mission.

                      Subtitle B--Space Activities

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

       (a) In General.--(1) Chapter 135 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

     ``Sec. 2272. Space science and technology strategy: 
       coordination

       ``(a) Space Science and Technology Strategy.--(1) The 
     Secretary of Defense shall develop and implement a space 
     science and technology strategy and shall review and, as 
     appropriate, revise the strategy annually. Functions of the 
     Secretary under this subsection shall be carried out jointly 
     by the Director of Defense Research and Engineering and the 
     official of the Department of Defense designated as the 
     Department of Defense Executive Agent for Space.

[[Page 27557]]

       ``(2) The strategy under paragraph (1) shall, at a minimum, 
     address the following issues:
       ``(A) Short-term and long-term goals of the space science 
     and technology programs of the Department of Defense.
       ``(B) The process for achieving the goals identified under 
     subparagraph (A), including an implementation plan for 
     achieving those goals.
       ``(C) The process for assessing progress made toward 
     achieving those goals.
       ``(3) The strategy under paragraph (1) shall be included as 
     part of the annual National Security Space Plan developed 
     pursuant to Department of Defense regulations and shall be 
     provided to Department of Defense components and science and 
     technology entities of the Department of Defense to support 
     the planning, programming, and budgeting processes of the 
     Department.
       ``(4) The strategy under paragraph (1) shall be developed 
     in consultation with the directors of research laboratories 
     of the Department of Defense, the directors of the other 
     Department of Defense research components, and the heads of 
     other organizations of the Department of Defense as 
     identified by the Director of Defense Research and 
     Engineering and the Department of Defense Executive Agent for 
     Space.
       ``(5) The strategy shall be available for review by the 
     congressional defense committees.
       ``(b) Required Coordination.--In carrying out the space 
     science and technology strategy developed under subsection 
     (a), the directors of the research laboratories of the 
     Department of Defense, the directors of the other Department 
     of Defense research components, and the heads of all other 
     appropriate organizations identified jointly by the Director 
     of Defense Research and Engineering and the Department of 
     Defense Executive Agent for Space shall each--
       ``(1) identify research projects in support of that 
     strategy that contribute directly and uniquely to the 
     development of space technology; and
       ``(2) inform the Director of Defense Research and 
     Engineering and the Department of Defense Executive Agent for 
     Space of the planned budget and planned schedule for 
     executing those projects.
       ``(c) Definitions.--In this section:
       ``(1) The term `research laboratory of the Department of 
     Defense' means any of the following:
       ``(A) The Air Force Research Laboratory.
       ``(B) The Naval Research Laboratory.
       ``(C) The Office of Naval Research.
       ``(D) The Army Research Laboratory.
       ``(2) The term `other Department of Defense research 
     component' means either of the following:
       ``(A) The Defense Advanced Research Projects Agency.
       ``(B) The National Reconnaissance Office.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by adding at the end the following new item:

``2272. Space science and technology strategy: coordination.''.

       (b) General Accounting Office Review.--(1) The Comptroller 
     General shall review and assess the space science and 
     technology strategy developed under subsection (a) of section 
     2272 of title 10, United States Code, as added by subsection 
     (a), and the effectiveness of the coordination process 
     required under subsection (b) of that section.
       (2) Not later than September 1, 2004, the Comptroller 
     General shall submit to the Committees on Armed Services of 
     the Senate and the House of Representatives a report 
     containing the findings and assessment under paragraph (1).

     SEC. 912. POLICY REGARDING ASSURED ACCESS TO SPACE FOR UNITED 
                   STATES NATIONAL SECURITY PAYLOADS.

       (a) In General.--(1) Chapter 135 of title 10, United States 
     Code, is amended by adding after section 2272, as added by 
     section 911(a)(1), the following new section:

     ``Sec. 2273. Policy regarding assured access to space: 
       national security payloads

       ``(a) Policy.--It is the policy of the United States for 
     the President to undertake actions appropriate to ensure, to 
     the maximum extent practicable, that the United States has 
     the capabilities necessary to launch and insert United States 
     national security payloads into space whenever such payloads 
     are needed in space.
       ``(b) Included Actions.--The appropriate actions referred 
     to in subsection (a) shall include, at a minimum, providing 
     resources and policy guidance to sustain--
       ``(1) the availability of at least two space launch 
     vehicles (or families of space launch vehicles) capable of 
     delivering into space any payload designated by the Secretary 
     of Defense or the Director of Central Intelligence as a 
     national security payload; and
       ``(2) a robust space launch infrastructure and industrial 
     base.
       ``(c) Coordination.--The Secretary of Defense shall, to the 
     maximum extent practicable, pursue the attainment of the 
     capabilities described in subsection (a) in coordination with 
     the Administrator of the National Aeronautics and Space 
     Administration.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding after the item 
     relating to section 2272, as added by section 911(a)(2), the 
     following new item:

``2273. Policy regarding assured access to space: national security 
              payloads.''.

     SEC. 913. PILOT PROGRAM FOR PROVISION OF SPACE SURVEILLANCE 
                   NETWORK SERVICES TO NON-UNITED STATES 
                   GOVERNMENT ENTITIES.

       (a) In General.--Chapter 135 of title 10, United States 
     Code, is amended by adding after section 2273, as added by 
     section 912(a), the following new section:

     ``Sec. 2274. Space surveillance network: pilot program for 
       provision of satellite tracking support to entities outside 
       United States Government

       ``(a) Pilot Program.--The Secretary of Defense may carry 
     out a pilot program to determine the feasibility and 
     desirability of providing to non-United States Government 
     entities space surveillance data support described in 
     subsection (b).
       ``(b) Space Surveillance Data Support.--Under such a pilot 
     program, the Secretary may provide to a non-United States 
     Government entity, subject to an agreement described in 
     subsection (d), the following:
       ``(1) Satellite tracking services from assets owned or 
     controlled by the Department of Defense, but only if the 
     Secretary determines, in the case of any such agreement, that 
     providing such services to that entity is in the national 
     security interests of the United States.
       ``(2) Space surveillance data and the analysis of space 
     surveillance data, but only if the Secretary determines, in 
     the case of any such agreement, that providing such data and 
     analysis to that entity is in the national security interests 
     of the United States.
       ``(c) Eligible Entities.--Under the pilot program, the 
     Secretary may provide space surveillance data support to non-
     United States Government entities including the following:
       ``(1) State governments.
       ``(2) Governments of political subdivisions of States.
       ``(3) United States commercial entities.
       ``(4) Governments of foreign countries.
       ``(5) Foreign commercial entities.
       ``(d) Required Agreement.--The Secretary may not provide 
     space surveillance data support to a non-United States 
     Government entity under the pilot program unless that entity 
     enters into an agreement with the Secretary under which the 
     entity--
       ``(1) agrees to pay an amount that may be charged by the 
     Secretary under subsection (e); and
       ``(2) agrees not to transfer any data or technical 
     information received under the agreement, including the 
     analysis of tracking data, to any other entity without the 
     express approval of the Secretary.
       ``(e) Rule of Construction Concerning Provision of 
     Intelligence Assets or Data.--Nothing in this section shall 
     be considered to authorize the provision of services or 
     information concerning, or derived from, United States 
     intelligence assets or data.
       ``(f) Charges.--(1) As a condition of an agreement under 
     subsection (d), the Secretary may (except as provided in 
     paragraph (2)) require the non-United States Government 
     entity entering into the agreement to pay to the Department 
     of Defense such amounts as the Secretary determines to be 
     necessary to reimburse the Department for the costs of the 
     Department of providing space surveillance data support under 
     the agreement.
       ``(2) The Secretary may not require the government of a 
     State or of a political subdivision of a State to pay any 
     amount under paragraph (1).
       ``(g) Crediting of Funds Received.--Funds received for the 
     provision of space surveillance data support pursuant to an 
     agreement under this section shall be credited to accounts of 
     the Department of Defense that are current when the funds are 
     received and that are available for the same purposes as the 
     accounts originally charged to provide such support. Funds so 
     credited shall merge with and become available for obligation 
     for the same period as the accounts to which they are 
     credited.
       ``(h) Procedures.--The Secretary shall establish procedures 
     for the conduct of the pilot program. As part of those 
     procedures, the Secretary may allow space surveillance data 
     and analysis of space surveillance data to be provided 
     through a contractor of the Department of Defense.
       ``(i) Duration of Pilot Program.--The pilot program under 
     this section shall be conducted during the three-year period 
     beginning on a date specified by the Secretary of Defense, 
     which date shall be not later than 180 days after the date of 
     the enactment of this section.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding after the item 
     relating to section 2273, as added by section 912(b), the 
     following new item:

``2274. Space surveillance network: pilot program for provision of 
              satellite tracking support to entities outside United 
              States Government.''.

     SEC. 914. CONTENT OF BIENNIAL GLOBAL POSITIONING SYSTEM 
                   REPORT.

       (a) Revised Content.--Paragraph (1) of section 2281(d) of 
     title 10, United States Code, is amended--
       (1) by striking subparagraph (C);
       (2) by redesignating subparagraph (D) as subparagraph (C);
       (3) by redesignating subparagraph (E) as subparagraph (D) 
     and in that subparagraph striking ``Any progress made 
     toward'' and inserting ``Progress and challenges in''; and
       (4) by striking subparagraph (F) and inserting the 
     following:

[[Page 27558]]

       ``(E) Progress and challenges in protecting GPS from 
     jamming, disruption, and interference.
       ``(F) Progress and challenges in developing the enhanced 
     Global Positioning System required by section 218(b) of the 
     Strom Thurmond National Defense Authorization Act for Fiscal 
     Year 1999 (Public Law 105-261; 112 Stat. 1951; 10 U.S.C. 2281 
     note).''.
       (b) Conforming Amendment.--Paragraph (2) of such section is 
     amended by inserting ``(C),'' after ``under subparagraphs''.

     SEC. 915. REPORT ON PROCESSES-RELATED SPACE SYSTEMS.

       Not later than March 15, 2004, the Secretary of Defense 
     shall submit to the Committees on Armed Services of the 
     Senate and House of Representatives a report to provide the 
     --
       (1) the Secretary's assessment of the role of the United 
     States Strategic Command in planning and requirements 
     development for space systems to support the warfighter;
       (2) the Secretary's assessment of the processes by which 
     space systems capabilities are integrated into training and 
     doctrine of the Armed Forces; and
       (3) the Secretary's recommendations for improvements in the 
     processes identified pursuant to paragraphs (1) and (2).

       Subtitle C--Department of Defense Intelligence Components

     SEC. 921. REDESIGNATION OF NATIONAL IMAGERY AND MAPPING 
                   AGENCY AS NATIONAL GEOSPATIAL-INTELLIGENCE 
                   AGENCY.

       (a) Redesignation.--The National Imagery and Mapping Agency 
     of the Department of Defense is hereby redesignated as the 
     National Geospatial-Intelligence Agency.
       (b) Definition of Geospatial Intelligence.--Section 467 of 
     title 10, United States Code, is amended by adding at the end 
     the following new paragraph:
       ``(5) The term `geospatial intelligence' means the 
     exploitation and analysis of imagery and geospatial 
     information to describe, assess, and visually depict physical 
     features and geographically referenced activities on the 
     earth. Geospatial intelligence consists of imagery, imagery 
     intelligence, and geospatial information.''.
       (c) Agency Missions.--(1) Section 442(a) of title 10, 
     United States Code, is amended--
       (A) in paragraph (1), by inserting ``geospatial 
     intelligence consisting of'' after ``provide''; and
       (B) in paragraph (2), by striking ``Imagery, intelligence, 
     and information'' and inserting ``Geospatial intelligence''.
       (2) Section 110(a) of the National Security Act of 1947 (50 
     U.S.C. 404e(a)) is amended by striking ``imagery'' and 
     inserting ``geospatial intelligence''.
       (d) Technical and Conforming Amendments to Title 10, United 
     States Code.--Title 10, United States Code, is amended as 
     follows:
       (1) The heading of chapter 22 is amended to read as 
     follows:

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

       (2) Chapter 22 is amended--
       (A) by striking ``National Imagery and Mapping Agency'' 
     each place it appears (other than in section 461(b)) and 
     inserting ``National Geospatial-Intelligence Agency'';
       (B) in section 453(b), by striking ``NIMA'' in paragraphs 
     (1) and (2) and inserting ``NGA''; and
       (C) in section 461(b)--
       (i) by striking ``The National Imagery and Mapping Agency'' 
     and inserting ``The Director of the National Geospatial-
     Intelligence Agency''; and
       (ii) by striking ``on the day before'' and all that follows 
     through the period and inserting ``on September 30, 1996.''.
       (3) Section 193 is amended--
       (A) by striking ``National Imagery and Mapping Agency'' in 
     subsections (d)(1), (d)(2), (e), and (f)(4) and inserting 
     ``National Geospatial-Intelligence Agency'';
       (B) in the heading for subsection (d), by striking 
     ``National Imagery and Mapping Agency'' and inserting 
     ``National Geospatial-Intelligence Agency''; and
       (C) in the heading for subsection (e), by striking ``NIMA'' 
     and inserting ``NGA''.
       (4) Section 201 is amended by striking ``National Imagery 
     and Mapping Agency'' in subsections (b)(2)(C) and (c)(2)(C) 
     and inserting ``National Geospatial-Intelligence Agency''.
       (5)(A) Section 424 is amended by striking ``National 
     Imagery and Mapping Agency'' in subsection (b)(3) and 
     inserting ``National Geospatial-Intelligence Agency''.
       (B)(i) The heading of such section is amended to read as 
     follows:

     ``Sec. 424. Disclosure of organizational and personnel 
       information: exemption for specified intelligence 
       agencies''.

       (ii) The item relating to that section in the table of 
     sections at the beginning of subchapter I of chapter 21 is 
     amended to read as follows:
``424. Disclosure of organizational and personnel information: 
              exemption for specified intelligence agencies.''.

       (6) Section 425(a) is amended by adding at the end the 
     following new paragraph:
       ``(5) The words `National Geospatial-Intelligence Agency', 
     the initials `NGA,' or the seal of the National Geospatial-
     Intelligence Agency.''.
       (7) Section 1614(2)(C) is amended by striking ``National 
     Imagery and Mapping Agency'' and inserting ``National 
     Geospatial-Intelligence Agency''.
       (8) The tables of chapters at the beginning of subtitle A, 
     and at the beginning of part I of subtitle A, are each 
     amended by striking ``Imagery and Mapping'' in the item 
     relating to chapter 22 and inserting ``Geospatial-
     Intelligence''.
       (e) Conforming Amendments to National Security Act of 
     1947.--The National Security Act of 1947 is amended as 
     follows:
       (1) Section 3 (50 U.S.C. 401a) is amended by striking 
     ``National Imagery and Mapping Agency'' in paragraph (4)(E) 
     and inserting ``National Geospatial- Intelligence Agency''.
       (2) Section 105 (50 U.S.C. 403-5) is amended by striking 
     ``National Imagery and Mapping Agency'' in subsections (b)(2) 
     and (d)(3) and inserting ``National Geospatial-Intelligence 
     Agency''.
       (3) Section 105A (50 U.S.C. 403-5a) is amended by striking 
     ``National Imagery and Mapping Agency'' in subsection 
     (b)(1)(C) and inserting ``National Geospatial-Intelligence 
     Agency''.
       (4) Section 105C (50 U.S.C. 403-5c) is amended--
       (A) by striking ``National Imagery and Mapping Agency'' 
     each place it appears and inserting ``National Geospatial-
     Intelligence Agency'';
       (B) by striking ``NIMA'' each place it appears and 
     inserting ``NGA''; and
       (C) by striking ``NIMA's'' in subsection (a)(6)(B)(iv)(II) 
     and inserting ``NGA's''.
       (5) Section 106 (50 U.S.C. 403-6) is amended by striking 
     ``National Imagery and Mapping Agency'' in subsection 
     (a)(2)(C) and inserting ``National Geospatial-Intelligence 
     Agency''.
       (6) Section 110 (50 U.S.C. 404e) is amended--
       (A) by striking ``National Imagery and Mapping Agency'' in 
     subsections (a), (b), and (c) and inserting ``National 
     Geospatial-Intelligence Agency''; and
       (B) by striking ``national imagery and mapping agency'' in 
     the section heading and inserting ``national geospatial-
     intelligence agency''.
       (7) The item relating to section 110 in the table of 
     contents in the first section is amended to read as follows:
``Sec. 110. National mission of National Geospatial-Intelligence 
              Agency.''.

       (f) Cross Reference Correction.--Section 442(d) of title 
     10, United States Code, is by striking ``section 120(a) of 
     the National Security Act of 1947'' and inserting ``section 
     110(a) of the National Security Act of 1947 (50 U.S.C. 
     404e(a))''.
       (g) References.--Any reference to the National Imagery and 
     Mapping Agency in any law, regulation, map, document, record, 
     or other paper of the United States shall be considered to be 
     a reference to the National Geospatial-Intelligence Agency.

     SEC. 922. PROTECTION OF OPERATIONAL FILES OF THE NATIONAL 
                   SECURITY AGENCY.

       (a) Protection of Operational Files of NSA.--Title VII of 
     the National Security Act of 1947 (50 U.S.C. 401 et seq.) is 
     amended by adding at the end the following new section:


          ``operational files of the national security agency

       ``Sec. 704. (a) Exemption of Certain Operational Files From 
     Search, Review, Publication, or Disclosure.--The Director of 
     the National Security Agency, in coordination with the 
     Director of Central Intelligence, may exempt operational 
     files of the National Security Agency from the provisions of 
     section 552 of title 5, United States Code, which require 
     publication, disclosure, search, or review in connection 
     therewith.
       ``(b) Operational Files Defined.--(1) In this section, the 
     term `operational files' means--
       ``(A) files of the Signals Intelligence Directorate of the 
     National Security Agency (and any successor organization of 
     that directorate) that document the means by which foreign 
     intelligence or counterintelligence is collected through 
     technical systems; and
       ``(B) files of the Research Associate Directorate of the 
     National Security Agency (and any successor organization of 
     that directorate) that document the means by which foreign 
     intelligence or counterintelligence is collected through 
     scientific and technical systems.
       ``(2) Files that are the sole repository of disseminated 
     intelligence, and files that have been accessioned into the 
     National Security Agency Archives (or any successor 
     organization) are not operational files.
       ``(c) Search and Review for Information.--Notwithstanding 
     subsection (a), exempted operational files shall continue to 
     be subject to search and review for information concerning 
     any of the following:
       ``(1) United States citizens or aliens lawfully admitted 
     for permanent residence who have requested information on 
     themselves pursuant to the provisions of section 552 or 552a 
     of title 5, United States Code.
       ``(2) Any special activity the existence of which is not 
     exempt from disclosure under the provisions of section 552 of 
     title 5, United States Code.
       ``(3) The specific subject matter of an investigation by 
     any of the following for any impropriety, or violation of 
     law, Executive order, or Presidential directive, in the 
     conduct of an intelligence activity:
       ``(A) The Committee on Armed Services and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives.
       ``(B) The Committee on Armed Services and the Select 
     Committee on Intelligence of the Senate.
       ``(C) The Intelligence Oversight Board.
       ``(D) The Department of Justice.
       ``(E) The Office of General Counsel of the National 
     Security Agency.
       ``(F) The Office of the Inspector General of the Department 
     of Defense.
       ``(G) The Office of the Director of the National Security 
     Agency.

[[Page 27559]]

       ``(d) Information Derived or Disseminated from Exempted 
     Operational Files.--(1) Files that are not exempted under 
     subsection (a) that contain information derived or 
     disseminated from exempted operational files shall be subject 
     to search and review.
       ``(2) The inclusion of information from exempted 
     operational files in files that are not exempted under 
     subsection (a) shall not affect the exemption under 
     subsection (a) of the originating operational files from 
     search, review, publication, or disclosure.
       ``(3) The declassification of some of the information 
     contained in exempted operational files shall not affect the 
     status of the operational file as being exempt from search, 
     review, publication, or disclosure.
       ``(4) Records from exempted operational files that have 
     been disseminated to and referenced in files that are not 
     exempted under subsection (a) and that have been returned to 
     exempted operational files for sole retention shall be 
     subject to search and review.
       ``(e) Supercedure of Other Laws.--The provisions of 
     subsection (a) may not be superseded except by a provision of 
     law that is enacted after the date of the enactment of this 
     section and that specifically cites and repeals or modifies 
     such provisions.
       ``(f) Allegation; Improper Withholding of Records; Judicial 
     Review.--(1) Except as provided in paragraph (2), whenever 
     any person who has requested agency records under section 552 
     of title 5, United States Code, alleges that the National 
     Security Agency has withheld records improperly because of 
     failure to comply with any provision of this section, 
     judicial review shall be available under the terms set forth 
     in section 552(a)(4)(B) of title 5, United States Code.
       ``(2) Judicial review shall not be available in the manner 
     provided for under paragraph (1) as follows:
       ``(A) In any case in which information specifically 
     authorized under criteria established by an Executive order 
     to be kept secret in the interests of national defense or 
     foreign relations is filed with, or produced for, the court 
     by the National Security Agency, such information shall be 
     examined ex parte, in camera by the court.
       ``(B) The court shall determine, to the fullest extent 
     practicable, the issues of fact based on sworn written 
     submissions of the parties.
       ``(C) When a complainant alleges that requested records are 
     improperly withheld because of improper placement solely in 
     exempted operational files, the complainant shall support 
     such allegation with a sworn written submission based upon 
     personal knowledge or otherwise admissible evidence.
       ``(D)(i) When a complainant alleges that requested records 
     were improperly withheld because of improper exemption of 
     operational files, the National Security Agency shall meet 
     its burden under section 552(a)(4)(B) of title 5, United 
     States Code, by demonstrating to the court by sworn written 
     submission that exempted operational files likely to contain 
     responsible records currently perform the functions set forth 
     in subsection (b).
       ``(ii) The court may not order the National Security Agency 
     to review the content of any exempted operational file or 
     files in order to make the demonstration required under 
     clause (i), unless the complainant disputes the National 
     Security Agency's showing with a sworn written submission 
     based on personal knowledge or otherwise admissible evidence.
       ``(E) In proceedings under subparagraphs (C) and (D), the 
     parties may not obtain discovery pursuant to rules 26 through 
     36 of the Federal Rules of Civil Procedure, except that 
     requests for admissions may be made pursuant to rules 26 and 
     36.
       ``(F) If the court finds under this subsection that the 
     National Security Agency has improperly withheld requested 
     records because of failure to comply with any provision of 
     this subsection, the court shall order the Agency to search 
     and review the appropriate exempted operational file or files 
     for the requested records and make such records, or portions 
     thereof, available in accordance with the provisions of 
     section 552 of title 5, United States Code, and such order 
     shall be the exclusive remedy for failure to comply with this 
     section (other than subsection (g)).
       ``(G) If at any time following the filing of a complaint 
     pursuant to this paragraph the National Security Agency 
     agrees to search the appropriate exempted operational file or 
     files for the requested records, the court shall dismiss the 
     claim based upon such complaint.
       ``(H) Any information filed with, or produced for the court 
     pursuant to subparagraphs (A) and (D) shall be coordinated 
     with the Director of Central Intelligence before submission 
     to the court.
       ``(g) Decennial Review of Exempted Operational Files.--(1) 
     Not less than once every 10 years, the Director of the 
     National Security Agency and the Director of Central 
     Intelligence shall review the exemptions in force under 
     subsection (a) to determine whether such exemptions may be 
     removed from a category of exempted files or any portion 
     thereof. The Director of Central Intelligence must approve 
     any determination to remove such exemptions.
       ``(2) The review required by paragraph (1) shall include 
     consideration of the historical value or other public 
     interest in the subject matter of a particular category of 
     files or portions thereof and the potential for declassifying 
     a significant part of the information contained therein.
       ``(3) A complainant that alleges that the National Security 
     Agency has improperly withheld records because of failure to 
     comply with this subsection may seek judicial review in the 
     district court of the United States of the district in which 
     any of the parties reside, or in the District of Columbia. In 
     such a proceeding, the court's review shall be limited to 
     determining the following:
       ``(A) Whether the National Security Agency has conducted 
     the review required by paragraph (1) before the expiration of 
     the 10-year period beginning on the date of the enactment of 
     this section or before the expiration of the 10-year period 
     beginning on the date of the most recent review.
       ``(B) Whether the National Security Agency, in fact, 
     considered the criteria set forth in paragraph (2) in 
     conducting the required review.''.
       (b) Consolidation of Current Provisions on Protection of 
     Operational Files of CIA.--Title VII of such Act is further 
     amended--
       (1) in section 701(b) (50 U.S.C. 431(b)), by striking ``For 
     purposes of this title'' and inserting ``In this section,''; 
     and
       (2) in section 702 (50 U.S.C. 432)--
       (A) by striking the section heading;
       (B) by redesignating the text of that section as subsection 
     (g) of section 701 and redesignating subsections (a), (b), 
     and (c) thereof as paragraphs (1), (2), and (3), 
     respectively;
       (C) by inserting ``Decennial Review of Exempted Operational 
     Files.--'' after the subsection designation (as designated by 
     subparagraph (B));
       (D) in paragraph (1) (as redesignated by subparagraph (B)), 
     by striking ``of section 701 of this Act'';
       (E) in paragraph (2) (as redesignated by subparagraph (B)), 
     by striking ``of subsection (a) of this section'' and 
     inserting ``paragraph (1)''; and
       (F) in paragraph (3) (as redesignated by subparagraph 
     (B))--
       (i) by striking ``with this section'' in the first sentence 
     and inserting ``with this subsection''; and
       (ii) by striking ``to determining'' in the second sentence 
     and all that follows and inserting ``to determining the 
     following:
       ``(A) Whether the Central Intelligence Agency has conducted 
     the review required by paragraph (1) before October 15, 1994, 
     or before the expiration of the 10-year period beginning on 
     the date of the most recent review.
       ``(B) Whether the Central Intelligence Agency, in fact, 
     considered the criteria set forth in paragraph (2) in 
     conducting the required review.''.
       (c) Consolidation of Current Provisions on Protection of 
     Operational Files of Certain Other Intelligence Agencies.--
     The National Security Act of 1947 (50 U.S.C. 401 et seq.) is 
     further amended--
       (1) by transferring section 105C (50 U.S.C. 403-5c), as 
     amended by section 921(e)(4), and section 105D (50 U.S.C. 
     403-5e) to title VII of that Act and inserting them after 
     section 701, as amended by subsection (b); and
       (2) by redesignating those sections, as so transferred, as 
     sections 702 and 703, respectively.
       (d) Clerical Amendments.--The National Security Act of 1947 
     is amended as follows:
       (1)(A) The heading for title VII is amended to read as 
     follows:

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

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


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

       (C) The heading for section 702, as transferred and 
     redesignated by subsection (c), is amended to read as 
     follows:


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

       (D) The heading for section 703, as transferred and 
     redesignated by subsection (c), is amended by striking the 
     first two words.
       (2) The table of contents in the first section of the 
     National Security Act of 1947 is amended--
       (A) by striking the items relating to sections 105C and 
     105D; and
       (B) by striking the items relating to title VII and 
     sections 701 and 702 and inserting the following new items:

              ``Title VII--Protection of Operational Files

``Sec. 701. Operational files of the Central Intelligence Agency.
``Sec. 702. Operational files of the National Geospatial-Intelligence 
              Agency.
``Sec. 703. Operational files of the National Reconnaissance Office.
``Sec. 704. Operational files of the National Security Agency.''.

     SEC. 923. INTEGRATION OF DEFENSE INTELLIGENCE, SURVEILLANCE, 
                   AND RECONNAISSANCE CAPABILITIES

       (a) Findings.--Congress makes the following findings:
       (1) As part of transformation efforts within the Department 
     of Defense, each of the Armed Forces is developing 
     intelligence, surveillance, and reconnaissance capabilities 
     that best support future war fighting as envisioned by the 
     leadership of the military department concerned.
       (2) Concurrently, intelligence agencies of the Department 
     of Defense outside the military departments are developing 
     transformation roadmaps to best support the future 
     decisionmaking and war fighting needs of their principal 
     customers, but are not always closely coordinating

[[Page 27560]]

     those efforts with the intelligence, surveillance, and 
     reconnaissance development efforts of the military 
     departments.
       (3) A senior official of each military department has been 
     designated as the integrator of intelligence, surveillance, 
     and reconnaissance for each of the Armed Forces in such 
     military department, but there is not currently a well-
     defined forum through which the integrators of intelligence, 
     surveillance, and reconnaissance capabilities for each of the 
     Armed Forces can routinely interact with each other and with 
     senior representatives of Department of Defense intelligence 
     agencies, as well as with other members of the intelligence 
     community, to ensure unity of effort and to preclude 
     unnecessary duplication of effort.
       (4) The current funding structure of a National Foreign 
     Intelligence Program (NFIP), Joint Military Intelligence 
     Program (JMIP), and Tactical Intelligence and Related 
     Activities Program (TIARA) may not be the best approach for 
     supporting the development of an intelligence, surveillance, 
     and reconnaissance structure that is integrated to meet the 
     national security requirements of the United States in the 
     21st century.
       (5) The position of Under Secretary of Defense for 
     Intelligence was established in 2002 by Public Law 107-314 in 
     order to facilitate resolution of the challenges to achieving 
     an integrated intelligence, surveillance, and reconnaissance 
     structure in the Department of Defense to meet such 21st 
     century requirements.
       (b) Goal.--It shall be a goal of the Department of Defense 
     to fully integrate the intelligence, surveillance, and 
     reconnaissance capabilities and coordinate the developmental 
     activities of the military departments, intelligence agencies 
     of the Department of Defense, and relevant combatant commands 
     as those departments, agencies, and commands transform their 
     intelligence, surveillance, and reconnaissance systems to 
     meet current and future needs.
       (c) ISR Integration Requirements.--(1) Subchapter I of 
     chapter 21 of title 10, United States Code, is amended by 
     adding at the end the following new section:

     ``Sec. 426. Integration of Department of Defense 
       intelligence, surveillance, and reconnaissance capabilities

       ``(a) ISR Integration Council.--(1) The Under Secretary of 
     Defense for Intelligence shall establish an Intelligence, 
     Surveillance, and Reconnaissance Integration Council--
       ``(A) to assist the Under Secretary with respect to matters 
     relating to the integration of intelligence, surveillance, 
     and reconnaissance capabilities, and coordination of related 
     developmental activities, of the military departments, 
     intelligence agencies of the Department of Defense, and 
     relevant combatant commands; and
       ``(B) otherwise to provide a means to facilitate the 
     integration of such capabilities and the coordiation of such 
     developmental activities.
       ``(2) The Council shall be composed of--
       ``(A) the senior intelligence officers of the armed forces 
     and the United States Special Operations Command;
       ``(B) the Director of Operations of the Joint Staff; and
       ``(C) the directors of the intelligence agencies of the 
     Department of Defense.
       ``(3) The Under Secretary of Defense for Intelligence shall 
     invite the participation of the Director of Central 
     Intelligence (or that Director's representative) in the 
     proceedings of the Council.
       ``(b) ISR Integration Roadmap.--(1) The Under Secretary of 
     Defense for Intelligence shall develop a comprehensive plan, 
     to be known as the `Defense Intelligence, Surveillance, and 
     Reconnaissance Integration Roadmap', to guide the development 
     and integration of the Department of Defense intelligence, 
     surveillance, and reconnaissance capabilities for the 15-year 
     period of fiscal years 2004 through 2018.
       ``(2) The Under Secretary shall develop the Defense 
     Intelligence, Surveillance, and Reconnaissance Integration 
     Roadmap in consultation with the Intelligence, Surveillance, 
     and Reconnaissance Integration Council and the Director of 
     Central Intelligence.''.
       (2) The table of sections at the beginning of such 
     subchapter is amended by adding at the end the following new 
     item:

``426. Integration of Department of Defense intelligence, surveillance, 
              and reconnaissance capabilities.''.
       (d) Report.--(1) Not later than September 30, 2004, the 
     Under Secretary of Defense for Intelligence shall submit to 
     the committees of Congress specified in paragraph (2) a 
     report on the Defense Intelligence, Surveillance, and 
     Reconnaissance Integration Roadmap developed under subsection 
     (b) of section 426 of title 10, United States Code, as added 
     by subsection (c). The report shall include the following 
     matters:
       (A) The fundamental goals established in the roadmap.
       (B) An overview of the intelligence, surveillance, and 
     reconnaissance integration activities of the military 
     departments and the intelligence agencies of the Department 
     of Defense.
       (C) An investment strategy for achieving--
       (i) an integration of Department of Defense intelligence, 
     surveillance, and reconnaissance capabilities that ensures 
     sustainment of needed tactical and operational efforts; and
       (ii) efficient investment in new intelligence, 
     surveillance, and reconnaissance capabilities.
       (D) A discussion of how intelligence gathered and analyzed 
     by the Department of Defense can enhance the role of the 
     Department of Defense in fulfilling its homeland security 
     responsibilities.
       (E) A discussion of how counterintelligence activities of 
     the Armed Forces and the Department of Defense intelligence 
     agencies can be better integrated.
       (F) Recommendations on how annual funding authorizations 
     and appropriations can be optimally structured to best 
     support the development of a fully integrated Department of 
     Defense intelligence, surveillance, and reconnaissance 
     architecture.
       (2) The committees of Congress referred to in paragraph (1) 
     are as follows:
       (A) The Committee on Armed Services, the Committee on 
     Appropriations, and the Select Committee on Intelligence of 
     the Senate.
       (B) The Committee on Armed Services, the Committee on 
     Appropriations, and the Permanent Select Committee on 
     Intelligence of the House of Representatives.

     SEC. 924. MANAGEMENT OF NATIONAL SECURITY AGENCY 
                   MODERNIZATION PROGRAM.

       (a) Management of Acquisition Programs Through USD(AT&L).--
     (1) The Secretary of Defense shall direct that, effective as 
     of the date of the enactment of this Act, acquisitions under 
     the National Security Agency Modernization Program shall be 
     directed and managed by the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics.
       (b) Applicability of Major Defense Acquisition Program 
     Authorities.--(1) Each project designated as a major defense 
     acquisition program under paragraph (2) shall be managed 
     under the laws, policies, and procedures that are applicable 
     to major defense acquisition programs (as defined in section 
     2430 of title 10, United States Code).
       (2) The Secretary of Defense (acting through the Under 
     Secretary of Defense for Acquisition, Technology, and 
     Logistics) shall designate those projects under the National 
     Security Agency Modernization Program that are to be managed 
     as major defense acquisition programs.
       (c) Milestone Decision Authority.--(1) The authority to 
     make a decision that a program is authorized to proceed from 
     one milestone stage into another (referred to as the 
     milestone decision authority) may only be exercised by the 
     Under Secretary of Defense for Acquisition, Technology, and 
     Logistics for the following:
       (A) Each project of the National Security Agency 
     Modernization Program that is to be managed as major defense 
     acquisition program, as designated under subsection (b).
       (B) Each major system under the National Security Agency 
     Modernization Program.
       (2) The limitation in paragraph (1) shall terminate on, and 
     the Under Secretary may delegate the milestone decision 
     authority referred to in paragraph (1) to the Director of the 
     National Security Agency at any time after, the date that is 
     the later of--
       (A) September 30, 2005, or
       (B) the date on which the Under Secretary submits to the 
     appropriate committees of Congress a notification described 
     in paragraph (3).
       (3) A notification described in this paragraph is a 
     notification by the Under Secretary of the Under Secretary's 
     intention to delegate the milestone decision authority 
     referred to in paragraph (1) to the Director of the National 
     Security Agency, together with a detailed discussion of the 
     justification for that delegation. Such a notification may 
     not be submitted until--
       (A) the Under Secretary has determined (after consultation 
     with the Under Secretary of Defense for Intelligence and the 
     Deputy Director of Central Intelligence for Community 
     Management) that the Director has implemented acquisition 
     management policies, procedures, and practices that are 
     sufficient to ensure that acquisitions by the National 
     Security Agency are conducted in a manner consistent with 
     sound, efficient acquisition practices;
       (B) the Under Secretary has consulted with the Under 
     Secretary of Defense for Intelligence and the Deputy Director 
     of Central Intelligence for Community Management on the 
     delegation of such milestone decision authority to the 
     Director; and
       (C) the Secretary of Defense has approved the delegation of 
     such milestone decision authority to the Director.
       (d) Projects Comprising Program.--The National Security 
     Agency Modernization Program consists of the following 
     projects of the National Security Agency:
       (1) The Trailblazer project.
       (2) The Groundbreaker project.
       (3) Each cryptological mission management project
       (4) Each other project of that Agency that--
       (A) meets either of the dollar thresholds in effect under 
     paragraph (2) of section 2430(a) of title 10, United States 
     Code; and
       (B) is determined by the Under Secretary of Defense for 
     Acquisition, Technology, and Logistics as being a major 
     project that is within, or properly should be within, the 
     National Security Agency Modernization Project.
       (e) Definitions.--In this section:
       (1) Major system.--The term ``major system'' has the 
     meaning given that term in section 2302(5) of title 10, 
     United States Code.
       (2) Appropriate committees of congress.--The term 
     ``appropriate committees of Congress'' means the following:
       (A) The Committee on Armed Services and the Select 
     Committee on Intelligence of the Senate.
       (B) The Committee on Armed Services and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives.

     SEC. 925. MODIFICATION OF OBLIGATED SERVICE REQUIREMENTS 
                   UNDER NATIONAL SECURITY EDUCATION PROGRAM.

       (a) In General.--Section 802(b)(2) of the David L. Boren 
     National Security Education

[[Page 27561]]

     Act of 1991 (50 U.S.C. 1902(b)(2)) is amended by striking 
     subparagraphs (A) and (B) and inserting the following new 
     subparagraphs (A) and (B):
       ``(A) in the case of a recipient of a scholarship, after 
     the recipient's completion of the study for which scholarship 
     assistance was provided under the program, work in a position 
     in the Department of Defense or other element of the 
     intelligence community that is certified by the Secretary as 
     appropriate to utilize the unique language and region 
     expertise acquired by the recipient pursuant to such study 
     for a period specified by the Secretary, which period shall 
     include one year of service for each year, or portion 
     thereof, for which such scholarship assistance was provided; 
     or
       ``(B) in the case of a recipient of a fellowship, after the 
     recipient's completion of the study for which the fellowship 
     assistance was provided under the program, work in a position 
     described in subparagraph (A) that is certified by the 
     Secretary as appropriate to utilize the unique language and 
     region expertise acquired by the recipient pursuant to such 
     study for a period specified by the Secretary, which period 
     shall (at the discretion of the Secretary) include not less 
     than one nor more than three years for each year, or portion 
     thereof, for which such fellowship assistance was provided; 
     and''.
       (b) Applicability.--(1) The amendment made by subsection 
     (a) shall apply with respect to service agreements entered 
     into under the David L. Boren National Security Education Act 
     of 1991 on or after the date of the enactment of this Act.
       (2) The amendment made by subsection (a) shall not affect 
     the force, validity, or terms of any service agreement 
     entered into under the David L. Boren National Security 
     Education Act of 1991 before the date of the enactment of 
     this Act that is in force as of that date.

     SEC. 926. AUTHORITY TO PROVIDE LIVING QUARTERS FOR CERTAIN 
                   STUDENTS IN COOPERATIVE AND SUMMER EDUCATION 
                   PROGRAMS OF THE NATIONAL SECURITY AGENCY.

       Section 2195 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(d)(1) The Director of the National Security Agency may 
     provide a qualifying employee of a defense laboratory of that 
     Agency with living quarters at no charge, or at a rate or 
     charge prescribed by the Director by regulation, without 
     regard to section 5911(c) of title 5.
       ``(2) In this subsection, the term `qualifying employee' 
     means a student who is employed at the National Security 
     Agency under--
       ``(A) a Student Educational Employment Program of the 
     Agency conducted under this section or any other provision of 
     law; or
       ``(B) a similar cooperative or summer education program of 
     the Agency that meets the criteria for Federal cooperative or 
     summer education programs prescribed by the Office of 
     Personnel Management.''.

     SEC. 927. COMMERCIAL IMAGERY INDUSTRIAL BASE.

       (a) Requirement.--Of the total amount authorized to be 
     appropriated for fiscal year 2004 for the acquisition, 
     processing, and licensing of imagery from commercial sources 
     (including amounts authorized to be appropriated under that 
     title for experimentation related to such imagery), not less 
     than 90 percent shall be used for the following purposes:
       (1) Acquisition of space-based imagery from commercial 
     sources.
       (2) Support for the development of next-generation 
     commercial imagery satellites.
       (3) Support for infrastructure improvements that meet 
     unique requirements related to commercial imagery.
       (b) Waiver.--(1) The Secretary of Defense may waive the 
     requirement in subsection (a) if the Secretary determines 
     that the waiver is in the national security interest of the 
     United States. Any such waiver shall be made in consultation 
     with the Director of Central Intelligence.
       (2) If the Secretary makes the waiver authorized by 
     paragraph (1), the Secretary shall, within 30 days of issuing 
     the waiver, submit to the appropriate congressional 
     committees a report that includes the following:
       (A) The Secretary's reasons for determining that the waiver 
     is in the national security interest of the United States.
       (B) The Secretary's plan for use of the amount referred to 
     in subsection (a).
       (c) Report on Department of Defense Implementation of 
     President's commercial remote sensing policy.--(1) Not later 
     than March 1, 2004, the Secretary of Defense shall submit to 
     the appropriate congressional committees a report on the 
     actions taken, and to be taken, by the Secretary to implement 
     the President's policy issued on May 13, 2003, with the title 
     ``U.S. Commercial Remote Sensing Space Policy''. The 
     Secretary shall consult with the Director of Central 
     Intelligence in preparing the report.
       (2) The report under paragraph (1) shall include an 
     assessment of the following matters:
       (A) The sufficiency for the sustainment of a viable 
     commercial imagery industrial base in the United States of--
       (i) the President's policy referred to in paragraph (1);
       (ii) the amount provided for the Department of Defense for 
     fiscal year 2004 for the acquisition of imagery from 
     commercial sources; and
       (iii) the amounts scheduled in the future-years defense 
     program (as of the submission of the report) for the 
     acquisition of imagery from commercial sources.
       (B) The extent to which the President's policy referred to 
     in paragraph (1) and Department of Defense programs relating 
     to the procurement of imagery from commercial sources are 
     sufficient to ensure that imagery is available to the 
     Department of Defense from United States commercial sources 
     to meet the needs of the Department of Defense in a timely 
     manner.
       (d) Appropriate Congressional Committees.--For the purposes 
     of this section, the term ``appropriate congressional 
     committees'' means--
       (1) the Committee on Armed Services, the Select Committee 
     on Intelligence, and the Committee on Appropriations of the 
     Senate; and
       (2) the Committee on Armed Services, the Permanent Select 
     Committee on Intelligence, and the Committee on 
     Appropriations of the House of Representatives.

                       Subtitle D--Other Matters

     SEC. 931. AUTHORITY FOR ASIA-PACIFIC CENTER FOR SECURITY 
                   STUDIES TO ACCEPT GIFTS AND DONATIONS.

       (a) Authorized Sources of Gifts and Donations.--Subsection 
     (a) of section 2611 of title 10, United States Code, is 
     amended--
       (1) in paragraph (1), by striking ``foreign gifts and 
     donations'' and inserting ``gifts and donations from sources 
     described in paragraph (2)'';
       (2) by redesignating paragraph (2) as paragraph (3); and
       (3) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) The sources from which gifts and donations may be 
     accepted under paragraph (1) are the following:
       ``(A) The government of a State or a political subdivision 
     of a State.
       ``(B) The government of a foreign country.
       ``(C) A foundation or other charitable organization, 
     including a foundation or charitable organization that is 
     organized or operates under the laws of a foreign country.
       ``(D) Any source in the private sector of the United States 
     or a foreign country.''.
       (b) Conforming Amendments.--(1) Section 2611 of such title 
     is further amended--
       (A) by striking ``Foreign'' in the headings for subsections 
     (a) and (f);
       (B) in subsection (c), by striking ``foreign''; and
       (C) in subsection (f)--
       (i) by striking ``foreign'' after ``section, a''; and
       (ii) by striking ``from a foreign'' and all that follows 
     through ``country.'' and inserting a period.
       (2) Section 184(b)(4) of such title is amended by striking 
     ``foreign''.
       (c) Clerical Amendments.-- The heading of section 2611 of 
     such title, and the item relating to such section in the 
     table of sections at the beginning of chapter 155 of such 
     title, are each amended by striking the third word after the 
     colon.
       (d) Cross Reference Correction.--Section 2612(a) of such 
     title is amended by striking ``2611(f)'' and inserting 
     ``2166(f)(4)''.

     SEC. 932. REPEAL OF ROTATING CHAIRMANSHIP OF ECONOMIC 
                   ADJUSTMENT COMMITTEE.

       Section 4004(b) of the Defense Economic Adjustment, 
     Diversification, Conversion, and Stabilization Act of 1990 
     (division D of Public Law 101-510; 10 U.S.C. 2391 note) is 
     amended--
       (1) by striking ``Until October 1, 1997, the'' and 
     inserting ``The''; and
       (2) by striking the second sentence.

     SEC. 933. EXTENSION OF CERTAIN AUTHORITIES APPLICABLE TO THE 
                   PENTAGON RESERVATION TO INCLUDE A DESIGNATED 
                   PENTAGON CONTINUITY-OF-GOVERNMENT LOCATION.

       Section 2674 of title 10, United States Code, is amended by 
     adding at the end the following new subsection:
       ``(g) For purposes of subsections (b), (c), (d), and (e), 
     the terms `Pentagon Reservation' and `National Capital 
     Region' shall be treated as including the land and physical 
     facilities at the Raven Rock Mountain Complex.''.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Transfer authority.
Sec. 1002. United States contribution to NATO common-funded budgets in 
              fiscal year 2004.
Sec. 1003. Authorization of supplemental appropriations for fiscal year 
              2003.
Sec. 1004. Authorization of supplemental appropriations for fiscal year 
              2004.
Sec. 1005. Reestablishment of authority for short-term leases of real 
              or personal property across fiscal years.
Sec. 1006. Reimbursement rate for certain airlift services provided to 
              Department of State.
Sec. 1007. Limitation on payment of facilities charges assessed by 
              Department of State.
Sec. 1008. Use of the Defense Modernization Account for life cycle cost 
              reduction initiatives.
Sec. 1009. Provisions relating to defense travel cards.

                Subtitle B--Naval Vessels and Shipyards

Sec. 1011. Repeal of requirement regarding preservation of surge 
              capability for naval surface combatants.
Sec. 1012. Enhancement of authority relating to use for experimental 
              purposes of vessels stricken from Naval Vessel Register.
Sec. 1013. Transfer of vessels stricken from the Naval Vessel Register 
              for use as artificial reefs.

[[Page 27562]]

Sec. 1014. Priority for Title XI assistance.
Sec. 1015. Support for transfers of decommissioned vessels and 
              shipboard equipment.
Sec. 1016. Advanced shipbuilding enterprise.
Sec. 1017. Report on Navy plans for basing aircraft carriers.
Sec. 1018. Limitation on disposal of obsolete naval vessel.

                    Subtitle C--Counterdrug Matters

Sec. 1021. Expansion and extension of authority to provide additional 
              support for counter-drug activities.
Sec. 1022. Authority for joint task forces to provide support to law 
              enforcement agencies conducting counter-terrorism 
              activities.
Sec. 1023. Use of funds for unified counterdrug and counterterrorism 
              campaign in Colombia.
Sec. 1024. Sense of Congress on reconsideration of decision to 
              terminate border and seaport inspection duties of 
              National Guard under National Guard drug interdiction and 
              counter-drug mission.

                          Subtitle D--Reports

Sec. 1031. Repeal and modification of various reporting requirements 
              applicable to the Department of Defense.
Sec. 1032. Plan for prompt global strike capability.
Sec. 1033. Annual report concerning dismantling of strategic nuclear 
              warheads.
Sec. 1034. Report on use of unmanned aerial vehicles for support of 
              homeland security missions.

    Subtitle E--Codifications, Definitions, and Technical Amendments

Sec. 1041. Codification and revision of defense counterintelligence 
              polygraph program authority.
Sec. 1042. General definitions applicable to facilities and operations 
              of Department of Defense.
Sec. 1043. Additional definitions for purposes of title 10, United 
              States Code.
Sec. 1044. Inclusion of annual military construction authorization 
              request in annual defense authorization request.
Sec. 1045. Technical and clerical amendments.

                       Subtitle F--Other Matters

Sec. 1051. Assessment of effects of specified statutory limitations on 
              the granting of security clearances.
Sec. 1052. Acquisition of historical artifacts through exchange of 
              obsolete or surplus property.
Sec. 1053. Conveyance of surplus T-37 aircraft to Air Force Aviation 
              Heritage Foundation, Incorporated.
Sec. 1054. Department of Defense biennial strategic plan for management 
              of electromagnetic spectrum.
Sec. 1055. Revision of Department of Defense directive relating to 
              management and use of radio frequency spectrum.
Sec. 1056. Sense of Congress on deployment of airborne chemical agent 
              monitoring systems at chemical stockpile disposal sites 
              in the United States.
Sec. 1057. Expansion of pre-September 11, 2001, fire grant program of 
              United States Fire Administration.
Sec. 1058. Review and enhancement of existing authorities for using Air 
              Force and Air National Guard Modular Airborne Fire-
              Fighting Systems and other Department of Defense assets 
              to fight wildfires.

                     Subtitle A--Financial Matters

     SEC. 1001. TRANSFER AUTHORITY.

       (a) Authority To Transfer Authorizations.--(1) Upon 
     determination by the Secretary of Defense that such action is 
     necessary in the national interest, the Secretary may 
     transfer amounts of authorizations made available to the 
     Department of Defense in this division for fiscal year 2004 
     between any such authorizations for that fiscal year (or any 
     subdivisions thereof). Amounts of authorizations so 
     transferred shall be merged with and be available for the 
     same purposes as the authorization to which transferred.
       (2) The total amount of authorizations that the Secretary 
     may transfer under the authority of this section may not 
     exceed $2,500,000,000.
       (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 2004.

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

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

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

     SEC. 1004. AUTHORIZATION OF SUPPLEMENTAL APPROPRIATIONS FOR 
                   FISCAL YEAR 2004.

       (a) Department of Defense Authorizations.--Amounts 
     authorized to be appropriated to the Department of Defense 
     for fiscal year 2004 in this Act are hereby increased, with 
     respect to any such amount, by the amount by which the 
     corresponding appropriation account of the Department of 
     Defense for fiscal year 2004 is increased by a supplemental 
     appropriation, or by a transfer of funds, pursuant to title I 
     of the Emergency Supplemental Appropriations Act for Defense 
     and for the Reconstruction of Iraq and Afghanistan, 2004.
       (b) Designation as Emergency.--Amounts by which 
     authorizations of appropriations are increased in accordance 
     with subsection (a) are designated as emergency requirements 
     pursuant to section 502 of House Concurrent Resolution 95 of 
     the 108th Congress.

     SEC. 1005. REESTABLISHMENT OF AUTHORITY FOR SHORT-TERM LEASES 
                   OF REAL OR PERSONAL PROPERTY ACROSS FISCAL 
                   YEARS.

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

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

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 141 of such title is 
     amended to read as follows:


[[Page 27563]]


``2410a. Contracts for periods crossing fiscal years: severable service 
              contracts; leases of real or personal property.''.
       (c) Effective Date.--The amendments made by this section 
     shall not apply to funds appropriated for a fiscal year 
     before fiscal year 2004.

     SEC. 1006. REIMBURSEMENT RATE FOR CERTAIN AIRLIFT SERVICES 
                   PROVIDED TO DEPARTMENT OF STATE.

       (a) Authority.--Subsection (a) of section 2642 of title 10, 
     United States Code, is amended--
       (1) by striking ``(a) Authority'' and all that follows 
     through ``the Department of Defense'' the second place it 
     appears and inserting the following:
       ``(a) Authority.--The Secretary of Defense may authorize 
     the use of the Department of Defense reimbursement rate for 
     military airlift services provided by a component of the 
     Department of Defense as follows:
       ``(1) For military airlift services provided''; and
       (2) by adding at the end the following new paragraph:
       ``(2) For military airlift services provided to the 
     Department of State for the transportation of armored motor 
     vehicles to a foreign country to meet requirements of the 
     Department of State for armored motor vehicles associated 
     with the overseas travel of the Secretary of State in that 
     country.''.
       (b) Clerical Amendments.--(1) The heading for such section 
     is amended to read as follows:

     ``Sec. 2642. Airlift services provided to certain other 
       agencies: use of Department of Defense reimbursement 
       rate''.

       (2) The item relating to such section in the table of 
     sections at the beginning of chapter 157 of such title is 
     amended to read as follows:

``2642. Airlift services provided to certain other agencies: use of 
              Department of Defense reimbursement rate.''.

     SEC. 1007. LIMITATION ON PAYMENT OF FACILITIES CHARGES 
                   ASSESSED BY DEPARTMENT OF STATE.

       (a) Costs of Goods and Services Provided to Department of 
     State.--Funds appropriated for the Department of Defense may 
     be transferred to the Department of State as remittance for a 
     fee charged to the Department of Defense by the Department of 
     State for any year for the maintenance, upgrade, or 
     construction of United States diplomatic facilities only to 
     the extent that the amount charged (when added to other 
     amounts previously so charged for that fiscal year) exceeds 
     the total amount of the unreimbursed costs incurred by the 
     Department of Defense during that year in providing goods and 
     services to the Department of State.
       (b) Effective Date.--Subsection (a) shall take effect as of 
     October 1, 2003.

     SEC. 1008. USE OF THE DEFENSE MODERNIZATION ACCOUNT FOR LIFE 
                   CYCLE COST REDUCTION INITIATIVES.

       (a) Funds Available for Defense Modernization Account.--
     Section 2216 of title 10, United States Code is amended--
       (1) by striking subsection (c);
       (2) by redesignating subsection (b) as subsection (c); and
       (3) by inserting after subsection (a) the following new 
     subsection (b):
       ``(b) Funds Available for Account.--The Defense 
     Modernization Account shall consist of the following:
       ``(1) Amounts appropriated to the Defense Modernization 
     Account for the costs of commencing projects described in 
     subsection (d)(1), and amounts reimbursed to the Defense 
     Modernization Account under subsections (c)(1)(B)(iii) out of 
     savings derived from such projects.
       ``(2) Amounts transferred to the Defense Modernization 
     Account under subsection (c).''.
       (b) Start-Up Funding.--Subsection (d) of such section is 
     amended--
       (1) by striking ``available from the Defense Modernization 
     Account pursuant to subsection (f) or (g)'' and inserting 
     ``in the Defense Modernization Account'';
       (2) by redesignating paragraphs (1) and (2) as paragraphs 
     (2) and (3), respectively; and
       (3) by inserting after ``purposes:'' the following new 
     paragraph (1):
       ``(1) For paying the costs of commencing any project that, 
     in accordance with criteria prescribed by the Secretary of 
     Defense, is undertaken by the Secretary of a military 
     department or the head of a Defense Agency or other element 
     of the Department of Defense to reduce the life cycle cost of 
     a new or existing system.''.
       (c) Reimbursement of Account Out of Savings.--(1) Paragraph 
     (1)(B) of subsection (c) of such section, as redesignated by 
     subsection (a)(2), is amended by adding at the end the 
     following new clause:
       ``(iii) Unexpired funds in appropriations accounts that are 
     available for procurement or operation and maintenance of a 
     system, if and to the extent that savings are achieved for 
     such accounts through reductions in life cycle costs of such 
     system that result from one or more projects undertaken with 
     respect to such systems with funds made available from the 
     Defense Modernization Account under subsection (b)(1).''.
       (2) Paragraph (2) of such subsection is amended by 
     inserting ``, other than funds referred to in subparagraph 
     (B)(iii) of such paragraph,'' after ``Funds referred to in 
     paragraph (1)''.
       (d) Regulations.--Subsection (h) of such section is 
     amended--
       (1) by inserting ``(1)'' after ``Comptroller.--''; and
       (2) by adding at the end the following new paragraph (2):
       ``(2) The regulations prescribed under paragraph (1) shall, 
     at a minimum, provide for--
       ``(A) the submission of proposals by the Secretaries 
     concerned or heads of Defense Agencies or other elements of 
     the Department of Defense to the Comptroller for the use of 
     Defense Modernization Account funds for purposes set forth in 
     subsection (d);
       ``(B) the use of a competitive process for the evaluation 
     of such proposals and the selection of programs, projects, 
     and activities to be funded out of the Defense Modernization 
     Account from among those proposed for such funding; and
       ``(C) the calculation of--
       ``(i) the savings to be derived from projects described in 
     subsection (d)(1) that are to be funded out of the Defense 
     Modernization Account; and
       ``(ii) the amounts to be reimbursed to the Defense 
     Modernization Account out of such savings pursuant to 
     subsection (c)(1)(B)(iii).''.
       (e) Annual Report.--Subsection (i) of such section is 
     amended--
       (1) by striking ``Quarterly Reports.--(1) Not later than 15 
     days after the end of each calendar quarter,'' and inserting 
     ``Annual Report.--(1) Not later than 15 days after the end of 
     each fiscal year,''; and
       (2) in paragraph (1), by striking ``quarter'' in 
     subparagraphs (A), (B), and (C), and inserting ``fiscal 
     year''.
       (f) Codification and Extension of Expiration of 
     Authority.--(1) Such section is further amended by adding at 
     the end the following new subsection:
       ``(k) Expiration of Authority and Account.--(1) The 
     authority under subsection (c) to transfer funds into the 
     Defense Modernization Account terminates at the close of 
     September 30, 2006.
       ``(2) Three years after the termination date specified in 
     paragraph (1), the Defense Modernization Account shall be 
     closed and any remaining balance in the account shall be 
     canceled and thereafter shall not be available for any 
     purpose.''.
       (2) Subsection (c) of section 912 of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
     110 Stat. 410; 10 U.S.C. 2216 note) is repealed.

     SEC. 1009. PROVISIONS RELATING TO DEFENSE TRAVEL CARDS.

       (a) Mandatory Disbursement of Travel Allowances Directly to 
     Travel Card Creditors.--Section 2784a(a) of title 10, United 
     States Code, is amended--
       (1) in paragraph (1), by striking ``The Secretary of 
     Defense may require'' and inserting ``The Secretary of 
     Defense shall require'';
       (2) by redesignating paragraph (2) as paragraph (3); and
       (3) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) The Secretary of Defense may waive the requirement 
     for a direct payment to a travel care issuer under paragraph 
     (1) in any case the Secretary determines appropriate.''.
       (b) Determinations of Creditworthiness for Issuance of 
     Defense Travel Card.--Section 2784a of title 10, United 
     States Code, is amended--
       (1) by redesignating subsections (d) and (e) as subsections 
     (f) and (g), respectively; and
       (2) by inserting after subsection (c) the following new 
     subsection (d):
       ``(d) Determinations of Creditworthiness for Issuance of 
     Defense Travel Card.--(1) The Secretary of Defense shall 
     evaluate the creditworthiness of an employee of the 
     Department of Defense or a member of armed forces before 
     issuing a Defense travel card to such an employee or member. 
     The evaluation may include an examination of the individual's 
     credit history in available credit records.
       ``(2) An individual may not be issued a Defense travel card 
     if the individual is found not creditworthy as a result of 
     the evaluation required under paragraph (1).''.
       (c) Disciplinary actions and assessing penalties for misuse 
     of defense travel cards.--
       (1) Requirement for regulations.--Section 2784a of title 
     10, United States Code, is further amended by inserting after 
     subsection (d) (as added by subsection (b)) the following new 
     subsection (e):
       ``(e) Regulations on Disciplinary Action.--(1) The 
     Secretary of Defense shall prescribe regulations for making 
     determinations regarding the taking of disciplinary action, 
     including assessment of penalties, against Department of 
     Defense personnel for improper, fraudulent, or abusive use of 
     Defense travel cards by such personnel.
       ``(2) The regulations prescribed under paragraph (1) 
     shall--
       ``(A) provide for appropriate adverse personnel actions or 
     other punishment to be imposed in cases in which employees of 
     the Department of Defense violate such regulations or are 
     negligent or engage in misuse, abuse, or fraud with respect 
     to a Defense travel card, including removal in appropriate 
     cases; and
       ``(B) provide that a violation of such regulations by a 
     person subject to chapter 47 of this title (the Uniform Code 
     of Military Justice) is punishable as a violation of section 
     892 of this title (article 92 of the Uniform Code of Military 
     Justice).''.
       (2) Report.--Not later than February 1, 2004, the Secretary 
     of Defense shall submit to the Committees on Armed Services 
     of the Senate and the House of Representatives a report on 
     the regulations prescribed under section 2784a(e) of title 
     10, United States Code, as added by paragraph (1). The report 
     shall include the following:

[[Page 27564]]

       (A) The regulations.
       (B) A discussion of the implementation of the regulations.
       (C) A discussion of any additional administrative action, 
     or any recommended legislation, that the Secretary considers 
     necessary to effectively take disciplinary action against and 
     penalize Department of Defense personnel for improper, 
     fraudulent, or abusive use of Defense travel cards by such 
     personnel.
       (3) Defense Travel Card Defined.--In this subsection, the 
     term ``Defense travel card'' has the meaning given such term 
     in section 2784a(f)(1) of title 10, United States Code (as 
     redesignated by subsection (b)).

                Subtitle B--Naval Vessels and Shipyards

     SEC. 1011. REPEAL OF REQUIREMENT REGARDING PRESERVATION OF 
                   SURGE CAPABILITY FOR NAVAL SURFACE COMBATANTS.

       (a) Repeal.--Section 7296 of title 10, United States Code, 
     is amended by striking subsection (b).
       (b) Clerical Amendments.--Such section is further amended--
       (1) by striking ``(3) Any notification under paragraph 
     (1)(A)'' and inserting ``(b) Content of Notification.--Any 
     notification under subsection (a)(1)(A)'';
       (2) by redesignating subparagraphs (A), (B), and (C) of 
     subsection (b) (as redesignated by paragraph (1)) as 
     paragraphs (1), (2), and (3), respectively; and
       (3) by striking ``subparagraph (B)'' in subsection (b)(3) 
     (as redesignated by paragraphs (1) and (2)) and inserting 
     ``paragraph (2)''.

     SEC. 1012. ENHANCEMENT OF AUTHORITY RELATING TO USE FOR 
                   EXPERIMENTAL PURPOSES OF VESSELS STRICKEN FROM 
                   NAVAL VESSEL REGISTER.

       (a) Environmental Remediation.--Paragraph (1) of subsection 
     (b) of section 7306a of title 10, United States Code, is 
     amended--
       (1) by inserting ``and Environmental Remediation of'' in 
     the subsection heading after ``Stripping''; and
       (2) by inserting before the period at the end the 
     following: ``and such environmental remediation of the vessel 
     as is required for the use of the vessel for experimental 
     purposes''.
       (b) Sale of Material and Equipment Stripped From Vessel.--
     Subsection (b) of such section is further amended--
       (1) by redesignating paragraph (2) as paragraph (3);
       (2) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) Material and equipment stripped from a vessel under 
     paragraph (1) may be sold by the contractor or by a sales 
     agent approved by the Secretary.''; and
       (3) in paragraph (3), as redesignated by paragraph (1), by 
     striking ``scrapping services'' and all that follows through 
     the end of such subsection and inserting ``services needed 
     for such stripping and for environmental remediation required 
     for the use of the vessel for experimental purposes. Amounts 
     received in excess of amounts needed for reimbursement of 
     those costs shall be deposited into the account from which 
     the stripping and environmental remediation expenses were 
     incurred and shall be available for stripping and 
     environmental remediation of other vessels to be used for 
     experimental purposes.''.
       (c) Clarification of Covered Experimental Purposes.--Such 
     section is further amended by adding at the end the following 
     new subsection:
       ``(c) Use for Experimental Purposes Defined.--In this 
     section, the term `use for experimental purposes', with 
     respect to a vessel, includes use of the vessel in a Navy 
     sink exercise or for target purposes.''.

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

       (a) Authority To Make Transfer.--Chapter 633 of title 10, 
     United States Code, is amended by inserting after section 
     7306a the following new section:

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

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

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

     SEC. 1014. PRIORITY FOR TITLE XI ASSISTANCE.

       (a) In General.--Section 1103 of the Merchant Marine Act, 
     1936 (46 App. U.S.C. 1273) is amended--
       (1) in subsection (i) (as added by section 3544 of this 
     Act) by striking ``Priority' and inserting ``Priority for 
     National Defense Tank Vessels''; and
       (2) by adding at the end the following:
       ``(j) Priority for Other Vessels Suitable for Service as a 
     Naval Auxiliary.--In guaranteeing and entering commitments to 
     guarantee under this section, the Secretary shall, after 
     applying subsection (i), give priority to a guarantee or 
     commitment for a vessel that is otherwise eligible for a 
     guarantee under this section and that the Secretary of 
     Defense determines--
       ``(1) is suitable for service as a naval auxiliary in time 
     of war or national emergency; and
       ``(2) meets a shortfall in sealift capacity or 
     capability.''.
       (b) Report.--Within 180 days after the date of the 
     enactment of this Act, the Secretary of Transportation and 
     the Secretary of Defense shall transmit a report to the 
     Senate Committee on Armed Services, the Senate Committee on 
     Commerce, Science, and Transportation, and the House of 
     Representatives Committee on Armed Services that--
       (1) sets forth the criteria to be used by the Secretary of 
     Defense in making, for purposes of section 1103(j) of the 
     Merchant Marine Act, 1936 (46 U.S.C. App. 1273(j)), as 
     amended by this section, the determinations described in 
     paragraphs (1) and (2) of that section; and
       (2) describes the procedure that the Secretary of Defense 
     will follow--
       (A) in reviewing applications for which priority treatment 
     is sought under section 1103(j) of that Act; and
       (B) in reporting to the Secretary of Transportation with 
     respect to such applications.

     SEC. 1015. SUPPORT FOR TRANSFERS OF DECOMMISSIONED VESSELS 
                   AND SHIPBOARD EQUIPMENT.

       (a) In General.--Chapter 633 of title 10, United States 
     Code, is amended by adding at the end the following new 
     section:

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

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

[[Page 27565]]

       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by adding at the end the 
     following new item:

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

     SEC. 1016. ADVANCED SHIPBUILDING ENTERPRISE.

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

     SEC. 1017. REPORT ON NAVY PLANS FOR BASING AIRCRAFT CARRIERS.

       (a) Findings.--Congress finds that--
       (1) the Committee on Armed Services of the Senate, in its 
     report to accompany the bill S. 2514 of the 107th Congress 
     (Senate Report 107-151, filed May 15, 2002), at page 442 of 
     that report directed that the Chief of Naval Operations 
     submit to the congressional defense committees, not later 
     than 180 days after enactment of the defense authorization 
     Act for fiscal year 2003, a report on plans of the Navy for 
     basing aircraft carriers through 2015;
       (2) the Bob Stump National Defense Authorization Act for 
     Fiscal Year 2003 (Public Law 107-314) was enacted on December 
     2, 2002; and
       (3) as of October 24, 2003, the Chief of Naval Operations 
     has not submitted the report referred to in paragraph (1).
       (b) Report on Aircraft Carrier Basing Plans.--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 plans of the Navy for basing 
     aircraft carriers through 2020.

     SEC. 1018. LIMITATION ON DISPOSAL OF OBSOLETE NAVAL VESSEL.

       The Secretary of the Navy may not dispose of the 
     decommissioned destroyer ex-Forrest Sherman (DD-931) before 
     October 1, 2004, 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. EXPANSION AND EXTENSION OF AUTHORITY TO PROVIDE 
                   ADDITIONAL SUPPORT FOR COUNTER-DRUG ACTIVITIES.

       (a) General Extension of Authority.--Subsection (a) of 
     section 1033 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1881) is 
     amended--
       (1) by inserting ``(1)'' before ``Subject to'';
       (2) by striking ``either or both'' and inserting ``any''; 
     and
       (3) by inserting after the second sentence the following 
     new paragraph:
       ``(2) The authority to provide support to a government 
     under this section expires September 30, 2006.''.
       (b) Additional Governments Eligible To Receive Support.--
     Subsection (b) of such section is amended by adding at the 
     end the following new paragraphs:
       ``(3) The Government of Afghanistan.
       ``(4) The Government of Bolivia.
       ``(5) The Government of Ecuador.
       ``(6) The Government of Pakistan.
       ``(7) The Government of Tajikistan.
       ``(8) The Government of Turkmenistan.
       ``(9) The Government of Uzbekistan.''.
       (c) Types of Support.--Subsection (c) of such section is 
     amended--
       (1) in paragraph (2), by striking ``riverine''; and
       (2) in paragraph (3), by inserting ``or upgrade'' after 
     ``maintenance and repair''.
       (d) Maximum Annual Amount of Support.--Subsection (e)(2) of 
     such section is amended by striking ``$20,000,000 during any 
     of the fiscal years 1999 through 2006'' and inserting 
     ``$20,000,000 during any of the fiscal years 1999 through 
     2003, or $40,000,000 during any of the fiscal years 2004 
     through 2006''.
       (e) Counter-Drug Plan.--(1) Subsection (h) of such section 
     is amended--
       (A) in the subsection caption, by striking ``Riverine'';
       (B) in the matter preceding paragraph (1)--
       (i) by striking ``fiscal year 1998'' and inserting ``fiscal 
     year 2004''; and
       (ii) by striking ``riverine''; and
       (C) by striking ``riverine'' each place it appears in 
     paragraphs (2), (7), (8), and (9).
       (2) Subsection (f)(2)(A) of such section is amended by 
     striking ``riverine''.
       (f) Clerical and Conforming Amendments.--(1) Subsection (b) 
     of such section is further amended
       (A) in paragraph (1), by striking ``, for fiscal years 1998 
     through 2002''; and
       (B) in paragraph (2), by striking ``, for fiscal years 1998 
     through 2006''.
       (2) The heading for such section is amended by striking 
     ``PERU AND COLOMBIA'' and inserting ``OTHER COUNTRIES''.

     SEC. 1022. AUTHORITY FOR JOINT TASK FORCES TO PROVIDE SUPPORT 
                   TO LAW ENFORCEMENT AGENCIES CONDUCTING COUNTER-
                   TERRORISM ACTIVITIES.

       (a) Authority.--A joint task force of the Department of 
     Defense that provides support to law enforcement agencies 
     conducting counter-drug activities may also provide, subject 
     to all applicable laws and regulations, support to law 
     enforcement agencies conducting counter-terrorism activities.
       (b) Conditions.--Any support provided under subsection (a) 
     may only be provided in the geographic area of responsibility 
     of the joint task force.

     SEC. 1023. USE OF FUNDS FOR UNIFIED COUNTERDRUG AND COUNTER-
                   TERRORISM CAMPAIGN IN COLOMBIA.

       (a) Authority.--(1) In fiscal year 2004, funds available to 
     the Department of Defense to provide assistance to the 
     Government of Colombia may be used by the Secretary of 
     Defense to support a unified campaign by the Government of 
     Colombia against narcotics trafficking and against activities 
     by organizations designated as terrorist organizations, such 
     as the Revolutionary Armed Forces of Colombia (FARC), the 
     National Liberation Army (ELN), and the United Self-Defense 
     Forces of Colombia (AUC).
       (2) The authority to provide assistance for a campaign 
     under this subsection includes authority to take actions to 
     protect human health and welfare in emergency circumstances, 
     including the undertaking of rescue operations.
       (b) Applicability of Certain Laws and Limitations.--The use 
     of funds pursuant to the authority in subsection (a) shall be 
     subject to the following:
       (1) Sections 556, 567, and 568 of the Foreign Operations, 
     Export Financing, and Related Programs Appropriations Act, 
     2002 (Public Law 107-115; 115 Stat. 2160, 2165, and 2166).
       (2) Section 8077 of the Department of Defense 
     Appropriations Act, 2004 (Public Law 108-87; 115 Stat. 2267).
       (3) The numerical limitations on the number of United 
     States military personnel and United States individual 
     civilian contractors in section 3204(b)(1) of the Emergency 
     Supplemental Act, 2000 (division B of Public Law 106-246; 114 
     Stat. 575), as amended by the Foreign Operations, Export 
     Financing, and Related Programs Appropriations Act, 2002 
     (Public Law 107-115; 115 Stat. 2131).
       (c) 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.
       (d) Relation to Other Authority.--The authority provided by 
     subsection (a) is in addition to any other authority in law 
     to provide assistance to the Government of Colombia.

     SEC. 1024. SENSE OF CONGRESS ON RECONSIDERATION OF DECISION 
                   TO TERMINATE BORDER AND SEAPORT INSPECTION 
                   DUTIES OF NATIONAL GUARD UNDER NATIONAL GUARD 
                   DRUG INTERDICTION AND COUNTER-DRUG MISSION.

       (a) Findings.--Congress makes the following findings:
       (1) The counter-drug inspection mission of the National 
     Guard is highly important in preventing the entry of illegal 
     narcotics into the United States.
       (2) The expertise of members of the National Guard in 
     conducting vehicle inspections at United States borders and 
     seaports has contributed to the identification and seizure of 
     illegal narcotics being smuggled into the United States.
       (3) The support provided by the National Guard to the 
     United States Customs Service and the Bureau of Border 
     Security of the Department of Homeland Security greatly 
     enhances the capability of these agencies to perform counter-
     terrorism surveillance and other border protection duties.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Secretary of Defense should reconsider the decision of 
     the Department of Defense to terminate the border inspection 
     and seaport inspection duties of the National Guard as part 
     of the drug interdiction and counter-drug mission of the 
     National Guard.

[[Page 27566]]



                          Subtitle D--Reports

     SEC. 1031. REPEAL AND MODIFICATION OF VARIOUS REPORTING 
                   REQUIREMENTS APPLICABLE TO THE DEPARTMENT OF 
                   DEFENSE.

       (a) Title 10, United States Code.--Title 10, United States 
     Code, is amended as follows:
       (1) Section 117(e) is amended by striking ``each month'' 
     and all that follows through ``subsection (d)'' and inserting 
     ``each quarter submit to the congressional defense committees 
     a report in writing containing the results of the most recent 
     joint readiness review under subsection (d)(1)(A)''.
       (2) Section 127(d) is amended to read as follows:
       ``(d) Annual Report.--Not later than December 1 each year, 
     the Secretary of Defense shall submit to the congressional 
     defense committees a report on expenditures during the 
     preceding fiscal year under subsections (a) and (b).''.
       (3) Section 127a is amended by striking subsection (d).
       (4) Section 128 is amended by striking subsection (d).
       (5) Section 226(a) is amended--
       (A) by striking ``December 15'' and inserting ``January 
     15''; and
       (B) by striking ``in the following year'' in paragraph (1) 
     and inserting ``in that year''.
       (6)(A) Section 228 is amended--
       (i) in subsection (a)--
       (I) by striking ``Monthly'' in the subsection heading and 
     inserting ``Quarterly'';
       (II) by striking ``monthly'' and inserting ``quarterly''; 
     and
       (III) by striking ``month'' and inserting ``fiscal-year 
     quarter''; and
       (ii) in subsection (c), by striking ``month'' each place it 
     appears and inserting ``quarter''.
       (B)(i) The heading of such section is amended to read as 
     follows:

     ``Sec. 228. Quarterly reports on allocation of funds within 
       operation and maintenance budget subactivities''

       (ii) The item relating to section 228 in the table of 
     sections at the beginning of chapter 9 is amended to read as 
     follows:

``228. Quarterly reports on allocation of funds within operation and 
              maintenance budget subactivities.''.

     2  (7) Section 437 is amended--
       (A) by striking the second sentence of subsection (b); and
       (B) in subsection (c)--
       (i) by striking ``report)--'' in the matter preceding 
     paragraph (1) and inserting ``report) the following:'';
       (ii) by striking ``a'' in paragraphs (1), (2), and (3) 
     after the paragraph designation and inserting ``A'';
       (iii) by striking the semicolon at the end of paragraph (1) 
     and insertinga period;
       (iv) by striking ``; and'' at the end of paragraph (2) and 
     inserting a period; and
       (v) by adding at the end the following new paragraph:
       ``(4) A description of each corporation, partnership, or 
     other legal entity that was established.''.
       (8)(A) Section 520c is amended--
       (i) by striking subsection (b);
       (ii) by striking ``(a) Provision of Meals and 
     Refreshments.--''; and
       (iii) by striking the heading for such section and 
     inserting the following:

     ``Sec. 520c. Recruiting functions: provision of meals and 
       refreshments''

       (B) The item relating to such section in the table of 
     sections at the beginning of chapter 31 is amended to read as 
     follows:

``520c. Recruiting functions: provision of meals and refreshments.''.

       (9) Section 1060 is amended by striking subsection (d).
       (10)(A) Section 1130 is amended--
       (i) in subsection (a), by striking ``and the other 
     determinations necessary to comply with subsection (b)''; and
       (ii) in subsection (b), by striking ``to the requesting'' 
     and all that follows and inserting ``to the requesting Member 
     of Congress a detailed discussion of the rationale supporting 
     the determination.''.
       (B) The heading for such section, and the item relating to 
     such section in the table of sections at the beginning of 
     chapter 57, are each amended by striking the last two words.
       (11)(A) Section 1563 is amended--
       (i) in subsection (a), by striking ``and the other 
     determinations necessary to comply with subsection (b)''; and
       (ii) in subsection (b), by striking ``notice in writing'' 
     and all that follows and inserting ``a detailed discussion of 
     the rationale supporting the determination.''.
       (B) The heading for such section, and the item relating to 
     such section in the table of sections at the beginning of 
     chapter 80, are each amended by striking the last two words.
       (12) Section 2224 is amended by striking subsection (e).
       (13) Section 2255(b) is amended--
       (A) by striking paragraph (2);
       (B) by striking ``(1)'' after ``(b) Exception.--'';
       (C) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2), respectively; and
       (D) by redesignating clauses (i), (ii), and (iii) of 
     paragraph (1), as redesignated by subparagraph (C), as 
     subparagraphs (A), (B), and (C), respectively.
       (14) Section 2282 is amended by inserting ``through 2008'' 
     after ``March 1 of each year''.
       (15) Section 2323(i) is amended by striking paragraph (3).
       (16) Section 2327(c)(1) is amended--
       (A) in subparagraph (A), by striking ``after the date on 
     which such head of an agency submits to Congress a report on 
     the contract'' and inserting ``if in the best interests of 
     the Government'';
       (B) in subparagraph (B), by striking ``A report under 
     subparagraph (A)'' and inserting ``The Secretary shall 
     maintain records of each contract entered into by reason of 
     subparagraph (A). Such records''; and
       (C) by striking subparagraph (C).
       (17) Section 2350a is amended by striking subsection (f).
       (18) Section 2350j(e)(2) is amended by inserting before the 
     period the following: ``or, if earlier, the end of the 14-day 
     period beginning on the date on which a copy of that report 
     is provided in an electronic medium pursuant to section 480 
     of this title''.
       (19) Section 2371(h) is amended by adding at the end the 
     following new paragraph:
       ``(3) No report is required under this subsection for a 
     fiscal year after fiscal year 2006.''.
       (20) Section 2374a(e) is amended by inserting ``during 
     which one or more prizes are awarded under the program under 
     subsection (a)'' in the first sentence after ``each fiscal 
     year''.
       (21) Section 2410m(c) is amended--
       (A) by striking ``Reporting Requirement.--Each year'' and 
     inserting ``Annual Report.--Not later than 60 days after the 
     end of each fiscal year'';
       (B) by inserting ``at the end of such fiscal year'' in 
     paragraph (1) before the period;
       (C) by striking ``during the year preceding the year in 
     which the report is submitted'' in paragraph (2) and 
     inserting ``under this section during that fiscal year'';
       (D) by striking ``in such preceding year'' in paragraph (3) 
     and inserting ``under this section during that fiscal year''; 
     and
       (E) by striking ``in such preceding year'' in paragraph (4) 
     and inserting ``under this section during that fiscal year''.
       (22) Section 2457 is amended by striking subsection (d).
       (23) Section 2515(d) is amended--
       (A) by striking ``Annual'' in the subsection heading and 
     inserting ``Biennial''; and
       (B) in paragraph (1)--
       (i) in the first sentence, by striking ``an annual report'' 
     and inserting ``a biennial report'';
       (ii) in the second sentence, by striking ``each year'' and 
     inserting ``each even-numbered year''; and
       (iii) in the third sentence, by striking ``during the 
     fiscal year'' and inserting ``during the two fiscal years''.
       (24) Section 2521 is amended by striking subsection (e).
       (25) Section 2541d is amended--
       (A) by striking subsection (b); and
       (B) in subsection (a), by striking ``(a)'' and all that 
     follows through ``The Secretary of Defense'' and inserting 
     ``The Secretary of Defense''.
       (26) Section 2645 is amended--
       (A) in subsection (d)--
       (i) by striking ``to Congress'' and all that follows 
     through ``notification of the loss'' in paragraph (1) and 
     inserting ``to Congress notification of the loss'';
       (ii) by striking ``loss; and'' and inserting ``loss.''; and
       (iii) by striking paragraph (2); and
       (B) by striking subsection (g).
       (27) Section 2662 is amended--
       (A) in subsection (a)--
       (i) by redesignating paragraphs (1) through (6) as 
     subparagraphs (A) through (F), respectively, and by 
     designating the sentences following subparagraph (F), as so 
     redesignated, as paragraph (2);
       (ii) in paragraph (2), as so designated, by striking 
     ``clause (1) or (2)'' and inserting ``subparagraph (A) or (B) 
     of paragraph (1)'' and by striking ``clause (5)'' and 
     inserting ``subparagraph (E)'';
       (iii) by inserting ``(1)'' before ``The Secretary'';
       (iv) by striking ``after the expiration of 30 days'' and 
     all that follows through ``is submitted'' and inserting ``the 
     Secretary submits a report, subject to paragraph (3),'';
       (v) by striking ``$500,000'' each place it appears and 
     inserting ``$750,000''; and
       (vi) by adding at the end the following new paragraphs:
       ``(3) The authority of the Secretary of a military 
     department to enter into a transaction described in paragraph 
     (1) commences only after--
       ``(A) the end of the 30-day period beginning on the first 
     day of the month with respect to which the report containing 
     the facts concerning such transaction, and all other such 
     proposed transactions for that month, is submitted under 
     paragraph (1); or
       ``(B) the end of the 14-day period beginning on the first 
     day of that month when a copy of the report is provided in an 
     electronic medium pursuant to section 480 of this title on or 
     before the first day of that month.
       ``(4) The report for a month under this subsection may not 
     be submitted later than the first day of that month.'';
       (B) in subsection (b), by striking ``more than'' and all 
     that follows through ``$500,000'' and inserting ``more than 
     $250,000, but not more than $750,000''; and
       (C) in subsection (e)--
       (i) by striking ``$500,000'' and inserting ``$750,000''; 
     and
       (ii) by striking ``the expiration'' and all that follows 
     through the period at the end and inserting the following: 
     ``the end of the 30-day period beginning on the date on which 
     a report of

[[Page 27567]]

     the facts concerning the proposed occupancy is submitted to 
     the congressional committees named in subsection (a) or, if 
     earlier, the end of the 14-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.''.
       (28) Section 2667a(c)(2) is amended--
       (A) by striking ``Not later than 45 days before'' and 
     inserting ``Before''; and
       (B) by adding at the end the following new sentence: ``The 
     Secretary may then enter into the lease only after the end of 
     the 30-day period beginning on the date on which the report 
     is submitted or, if earlier, the end of the 14-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.''.
       (29) Section 2672a is amended--
       (A) in subsection (a)(1), by striking ``he or his 
     designee'' and inserting ``the Secretary'';
       (B) in subsection (b), by striking the last sentence; and
       (C) by adding at the end the following new subsection:
       ``(c) Not later than 10 days after the date on which the 
     Secretary of a military department determines to acquire an 
     interest in land under the authority of this section, the 
     Secretary shall submit to the Committee on Armed Services of 
     the Senate and the Committee on Armed Services of the House 
     of Representatives written notice containing a description of 
     the property and interest to be acquired and the reasons for 
     the acquisition.''.
       (30) Section 2676(d) is amended by inserting before the 
     period at the end of the last sentence the following: ``or, 
     if over sooner, a period of 14 days elapses from the date on 
     which a copy of that notification is provided in an 
     electronic medium pursuant to section 480 of this title''.
       (31) Section 2680 is amended by striking subsection (e).
       (32) Section 2688(e) is amended to read as follows:
       ``(e) Quarterly Report.-- Not later than 30 days after the 
     end of each quarter of a fiscal year, the Secretary shall 
     submit to the congressional defense committees a report on 
     the conveyances made under subsection (a) during such fiscal 
     quarter. The report shall include, for each such conveyance, 
     an economic analysis (based upon accepted life-cycle costing 
     procedures approved by the Secretary of Defense) 
     demonstrating that--
       ``(1) the long-term economic benefit of the conveyance to 
     the United States exceeds the long-term economic cost of the 
     conveyance to the United States; and
       ``(2) the conveyance will reduce the long-term costs of the 
     United States for utility services provided by the utility 
     system concerned.''.
       (33) Section 2696 is amended--
       (A) in subsection (b)--
       (i) in paragraph (1), by inserting ``and Congress'' after 
     ``the Secretary concerned'' the second place it appears; and
       (ii) in paragraph (2), by inserting ``and Congress'' after 
     ``the Secretary concerned'' the first place it appears;
       (B) by striking subsection (c); and
       (C) by striking subsection (d) and inserting the following 
     new subsection (d):
       ``(d) Effect of Submission of Notice.--If the Administrator 
     of General Services submits notice under subsection (b)(1) 
     that further Federal use of a parcel of real property is 
     requested by a Federal agency, the Secretary concerned may 
     not proceed with the conveyance of the real property as 
     provided in the provision of law authorizing or requiring the 
     conveyance until the end of the 180-day period beginning on 
     the date on which the notice is submitted to Congress.''.
       (34) Section 2803(b) is amended by inserting before the 
     period at the end of the last sentence the following: ``or, 
     if earlier, the end of the seven-day period beginning on the 
     date on which a copy of the notification is provided in an 
     electronic medium pursuant to section 480 of this title''.
       (35) Section 2804(b) is amended by inserting before the 
     period at the end of the last sentence the following: ``or, 
     if earlier, the end of the 14-day period beginning on the 
     date on which a copy of the notification is provided in an 
     electronic medium pursuant to section 480 of this title''.
       (36) Section 2805(b)(2) is amended by inserting before the 
     period at the end of the last sentence the following: ``or, 
     if earlier, the end of the 14-day period beginning on the 
     date on which a copy of the notification is provided in an 
     electronic medium pursuant to section 480 of this title''.
       (37) Section 2807 is amended--
       (A) in subsection (b)--
       (i) by striking ``$500,000'' and inserting ``$1,000,000'';
       (ii) by striking ``not less than 21 days''; and
       (iii) by adding at the end the following new sentence: 
     ``The Secretary may then obligate funds for such services 
     only after the end of the 21-day period beginning on the date 
     on which the notification is received by the committees or, 
     if earlier, the end of the 14-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.''; 
     and
       (B) in subsection (c)(2), by inserting before the period at 
     the end the following: ``or, if over sooner, a period of 14 
     days has elapsed from the date on which a copy of the report 
     is provided in an electronic medium pursuant to section 480 
     of this title''.
       (38) Section 2809(f)(2) is amended--
       (A) by striking ``calendar''; and
       (B) by inserting before the period at the end the 
     following: ``or, if over sooner, a period of 14 days has 
     expired following the date on which a copy of the 
     justification and economic analysis are provided in an 
     electronic medium pursuant to section 480 of this title''.
       (39) Section 2812(c)(1)(B) is amended by inserting before 
     the period at the end the following: ``or, if over sooner, a 
     period of 14 days has expired following the date on which a 
     copy of the justification and economic analysis are provided 
     in an electronic medium pursuant to section 480 of this 
     title''.
       (40) Section 2813(c) is amended--
       (A) by striking ``the end of the 30-day period beginning on 
     the date''; and
       (B) by adding at the end the following new sentence: 
     ``After the notification is transmitted, the Secretary may 
     then enter into the contract only after the end of the 30-day 
     period beginning on the date on which the notification is 
     received by the 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.''.
       (41) Section 2825 is amended--
       (A) in subsection (b)(1)--
       (i) by striking ``(i)'' in the last sentence; and
       (ii) by striking ``, and (ii)'' and all that follows and 
     inserting a period and the following new sentence: ``If the 
     Secretary concerned makes a determination under the preceding 
     sentence with respect to an improvement, the waiver under 
     that sentence with respect to that improvement may take 
     effect only after the Secretary transmits a notice of the 
     proposed waiver, together with an economic analysis 
     demonstrating that the improvement will be cost effective, to 
     the appropriate committees of Congress and a period of 21 
     days has elapsed after the date on which the notification is 
     received by those committees or, if over sooner, a period of 
     14 days has elapsed after the date on which a copy of the 
     notice is provided in an electronic medium pursuant to 
     section 480 of this title.''; and
       (B) in subsection (c)(1)(D), by inserting before the period 
     at the end the following: ``or, if over sooner, a period of 
     14 days elapses after the date on which a copy of the notice 
     is provided in an electronic medium pursuant to section 480 
     of this title'' .
       (42) Section 2827(b)(2) 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''.
       (43) Section 2836(f)(2) is amended--
       (A) by striking ``21 calendar days'' and inserting ``21 
     days''; and
       (B) by inserting before the period at the end the 
     following: ``or, if over sooner, a period of 14 days has 
     expired following the date on which a copy of the economic 
     analysis is provided in an electronic medium pursuant to 
     section 480 of this title''.
       (44) Section 2837(c)(2) is amended by inserting before the 
     period at the end of the last sentence the following: ``or, 
     if earlier, the end of the 14-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''.
       (45) Section 2854(b) is amended by inserting before the 
     period at the end of the last sentence the following: ``or, 
     if earlier, the end of the seven-day period beginning on the 
     date on which a copy of the notification is provided in an 
     electronic medium pursuant to section 480 of this title''.
       (46) Section 2854a(c)(2) is amended--
       (A) by striking ``calendar''; and
       (B) 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 justification 
     is provided in an electronic medium pursuant to section 480 
     of this title''.
       (47) Section 2865(e)(2) is amended by inserting before the 
     period at the end of the last sentence the following: ``or, 
     if earlier, the end of the 14-day period beginning on the 
     date on which a copy of the notification is provided in an 
     electronic medium pursuant to section 480 of this title''.
       (48) Section 2866(c)(2) is amended by inserting before the 
     period at the end of the last sentence the following: ``or, 
     if earlier, the end of the 14-day period beginning on the 
     date on which a copy of the notification is provided in an 
     electronic medium pursuant to section 480 of this title''.
       (49) Section 2867(c) is amended by inserting before the 
     period at the end of the last sentence the following: ``or, 
     if earlier, the end of the 14-day period beginning on the 
     date on which a copy of the notification is provided in an 
     electronic medium pursuant to section 480 of this title''.
       (50) Section 2875(e) is amended by inserting before the 
     period at the end the following: ``or, if earlier, the end of 
     the 14-day period beginning on the date on which a copy of 
     the notice and justification is provided in an electronic 
     medium pursuant to section 480 of this title''.
       (51) Section 2883(f) is amended by inserting before the 
     period at the end the following: ``or, if earlier, the end of 
     the 14-day period beginning on the date on which a copy of 
     the notice and justification is provided in an electronic 
     medium pursuant to section 480 of this title''.
       (52) Section 2902(g) is amended--
       (A) by striking paragraph (2); and
       (B) by striking ``(1)'' after ``(g)''.
       (53) Section 4342(h) is amended by striking ``Secretary of 
     the Army'' and inserting ``Superintendent''.

[[Page 27568]]

       (54) Section 4357(c) is amended by inserting before the 
     period at the end the following: ``or, if earlier, the 
     expiration of 14 days following the date on which a copy of 
     the report is provided in an electronic medium pursuant to 
     section 480 of this title''.
       (55) Section 6954(f) is amended by striking ``Secretary of 
     the Navy'' and inserting ``Superintendent of the Naval 
     Academy''.
       (56) Section 6975(c) is amended by inserting before the 
     period at the end the following: ``or, if earlier, the 
     expiration of 14 days following the date on which a copy of 
     the report is provided in an electronic medium pursuant to 
     section 480 of this title''.
       (57) Section 7049(c) is amended--
       (A) by striking ``Certification'' in the subsection heading 
     and inserting ``Determination''; and
       (B) by striking ``, and certifies to'' and all that follows 
     through ``House of Representatives,''.
       (58) Section 9342(h) is amended by striking ``Secretary of 
     the Air Force'' and inserting ``Superintendent''.
       (59) Section 9356(c) is amended by inserting before the 
     period at the end the following: ``or, if earlier, the 
     expiration of 14 days following the date on which a copy of 
     the report is provided in an electronic medium pursuant to 
     section 480 of this title''.
       (60) Section 9514 is amended--
       (A) in subsection (c)--
       (i) by striking ``to Congress'' and all that follows 
     through ``notification of the loss'' in paragraph (1) and 
     inserting ``to Congress notification of the loss'';
       (ii) by striking ``loss; and'' and inserting ``loss.''; and
       (iii) by striking paragraph (2); and
       (B) by striking subsection (f).
       (61) Section 12302 is amended by striking subsection (d).
       (b) National Defense Authorization Act for Fiscal Year 
     1991.--Section 2921(g) of the National Defense Authorization 
     Act for Fiscal Year 1991 (Public Law 101-510; 10 U.S.C. 2687 
     note) is amended--
       (1) in paragraph (1), by striking ``Not less than 30 days 
     before'' and inserting ``Before'';
       (2) in paragraph (2), by striking ``Not less than 30 days 
     before'' and inserting ``Before''; and
       (3) by adding at the end the following new paragraph:
       ``(3) When the Secretary submits a notification of a 
     proposed agreement under paragraph (1) or (2), the Secretary 
     may then enter into the agreement described in the 
     notification only after the end of the 30-day period 
     beginning on the date on which the notification is submitted 
     or, if earlier, the end of the 14-day period beginning on the 
     date on which a copy of the notification is provided in an 
     electronic medium pursuant to section 480 of title 10, United 
     States Code.''.
       (c) National Defense Authorization Act for Fiscal Years 
     1992 and 1993.--The National Defense Authorization Act for 
     Fiscal Years 1992 and 1993 (Public Law 102-190) is amended as 
     follows:
       (1) Section 734 (10 U.S.C. 1074 note) is amended by 
     striking subsection (c).
       (2) Section 2868(a) (10 U.S.C. 2802 note) is amended by 
     striking ``The Secretary of Defense'' and all that follows 
     through ``is to be authorized'' and inserting ``Not later 
     than 30 days after the date on which a decision is made 
     selecting the site or sites for the permanent basing of a new 
     weapon system, the Secretary of Defense shall submit to 
     Congress''.
       (d) National Defense Authorization Act for Fiscal Year 
     1993.--The National Defense Authorization Act for Fiscal Year 
     1993 (Public Law 102-484) is amended as follows:
       (1) Section 324 (10 U.S.C. 2701 note) is amended--
       (A) by striking ``(a) Sense of Congress.--''; and
       (B) by striking subsection (b).
       (2) Section 1082(b)(1) (10 U.S.C. 113 note) is amended by 
     striking ``the Secretary of Defense--'' and all that follows 
     and inserting ``the Secretary of Defense determines that it 
     is in the national security interests of the United States 
     for the military departments to do so.''.
       (e) National Defense Authorization Act for Fiscal Year 
     1995.--Section 721 of the National Defense Authorization Act 
     for Fiscal Year 1995 (Public Law 103-337; 10 U.S.C. 1074 
     note) is amended by striking subsection (h).
       (f) National Defense Authorization Act for Fiscal Year 
     1997.--The National Defense Authorization Act for Fiscal Year 
     1997 (Public Law 104-201) is amended as follows:
       (1) Section 324 (10 U.S.C. 2706 note) is amended by 
     striking subsection (c).
       (2) Section 1065(b) (10 U.S.C. 113 note) is amended--
       (A) by striking ``(1)'' before ``Notwithstanding''; and
       (B) by striking paragraph (2).
       (g) Strom Thurmond National Defense Authorization Act for 
     Fiscal Year 1999.--The Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261) 
     is amended as follows:
       (1) Section 745(e) (10 U.S.C. 1071 note) is amended--
       (A) by striking ``(1)'' before ``The Secretary of 
     Defense''; and
       (B) by striking paragraph (2).
       (2) Section 1223 (22 U.S.C. 1928 note) is repealed.
       (h) National Defense Authorization Act for Fiscal Year 
     2000.--The National Defense Authorization Act for Fiscal Year 
     2000 (Public Law 106-65) is amended as follows:
       (1) Section 212 (10 U.S.C. 2501 note) is amended by 
     striking subsection (c).
       (2) Section 724 (10 U.S.C. 1092 note) is amended by 
     striking subsection (e).
       (3) Section 1039 (10 U.S.C. 113 note) is amended by 
     striking subsection (b).
       (i) Military Construction Appropriations Act, 2001.--
     Section 125 of the Military Construction Appropriations Act, 
     2001 (division A of Public Law 106-246; 114 Stat. 517), is 
     repealed.
       (j) Department of Defense Appropriations Act, 2002.--
     Section 8009 of the Department of Defense Appropriations Act, 
     2002 (division A of Public Law 107-117; 115 Stat. 2249; 10 
     U.S.C. 401 note), is amended by striking ``, and these 
     obligations shall be reported to the Congress''.

     SEC. 1032. PLAN FOR PROMPT GLOBAL STRIKE CAPABILITY.

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

     SEC. 1033. ANNUAL REPORT CONCERNING DISMANTLING OF STRATEGIC 
                   NUCLEAR WARHEADS.

       (a) Annual Report.--Concurrent with the submission of the 
     President's budget request to Congress each year, the 
     Director of Central Intelligence shall submit to the 
     committees specified in subsection (e) a report concerning 
     dismantlement of Russian strategic nuclear warheads under the 
     Moscow Treaty. Each such report shall discuss nuclear weapons 
     dismantled by Russia during the prior fiscal year and the 
     Director's projections for nuclear weapons to be dismantled 
     by Russia during the current fiscal year and the fiscal year 
     covered by the budget.
       (b) Classification.--The annual report under this section 
     shall be transmitted in an unclassified form when possible 
     and classified form as necessary.
       (c) Termination of Report Requirement.--The requirement to 
     submit an annual report under this section terminates when 
     the Moscow Treaty is no longer in effect.
       (d) Moscow Treaty Defined.--For purposes of this section, 
     the term ``Moscow Treaty'' means the Treaty Between the 
     United States of America and the Russian Federation on 
     Strategic Offensive Reductions, done at Moscow on May 24, 
     2002.
       (e) Committees Specified.--The committees to which annual 
     reports are to be submitted under this section are the 
     following:
       (1) The Committee on Armed Services, the Select Committee 
     on Intelligence, and the Committee on Foreign Relations of 
     the Senate.
       (2) The Committee on Armed Services, the Permanent Select 
     Committee on Intelligence, and the Committee on International 
     Relations of the House of Representatives.

     SEC. 1034. REPORT ON USE OF UNMANNED AERIAL VEHICLES FOR 
                   SUPPORT OF HOMELAND SECURITY MISSIONS.

       (a) Requirement for Report.--Not later than April 1, 2004, 
     the President shall submit to Congress a report on the 
     potential uses of unmanned aerial vehicles for support of the 
     performance of homeland security missions.
       (b) Content.--The report shall, at a minimum, include the 
     following matters:
       (1) An assessment of the potential for using unmanned 
     aerial vehicles for monitoring activities in remote areas 
     along the northern and southern borders of the United States.
       (2) An assessment of the potential for using long-
     endurance, land-based unmanned aerial vehicles for supporting 
     the Coast Guard in the performance of its--
       (A) homeland security missions;
       (B) drug interdiction missions; and
       (C) other maritime missions along the approximately 95,000 
     miles of inland waterways in the United States.

[[Page 27569]]

       (3) An assessment of the potential for using unmanned 
     aerial vehicles for monitoring the safety and integrity of 
     critical infrastructure within the territory of the United 
     States, including the following:
       (A) Oil and gas pipelines.
       (B) Long-distance power transmission lines.
       (C) Hydroelectric and nuclear power plants.
       (D) Dams and drinking water utilities.
       (4) An assessment of the potential for using unmanned 
     aerial vehicles for monitoring the transportation of 
     hazardous cargo.
       (5) A discussion of the safety issues involved in--
       (A) the use of unmanned aerial vehicles by agencies other 
     than the Department of Defense; and
       (B) the operation of unmanned aerial vehicles over 
     populated areas of the United States.
       (6) A discussion of--
       (A) the effects on privacy and civil liberties that could 
     result from the monitoring uses of unmanned aerial vehicles 
     operated over the territory of the United States; and
       (B) any restrictions on the domestic use of unmanned aerial 
     vehicles that should be imposed, or any other actions that 
     should be taken, to prevent any adverse effect of such a use 
     of unmanned aerial vehicles on privacy or civil liberties.
       (7) A discussion of what, if any, legislation and 
     organizational changes may be necessary to accommodate the 
     use of unmanned aerial vehicles of the Department of Defense 
     in support of the performance of homeland security missions, 
     including any amendment of section 1385 of title 18, United 
     States Code (popularly referred to as the ``Posse Comitatus 
     Act'').
       (8) An evaluation of the capabilities of manufacturers of 
     unmanned aerial vehicles to produce such vehicles at higher 
     rates if necessary to meet any increased requirements for 
     homeland security and homeland defense missions.
       (c) Referral to Committees.--The report under subsection 
     (a) shall--
       (1) upon receipt in the Senate, be referred to the 
     Committee on Armed Services of the Senate and other 
     committees, as appropriate; and
       (2) upon receipt in the House of Representatives, be 
     referred to the Committee on Armed Services of the House of 
     Representatives and other committees, as appropriate.

    Subtitle E--Codifications, Definitions, and Technical Amendments

     SEC. 1041. CODIFICATION AND REVISION OF DEFENSE 
                   COUNTERINTELLIGENCE POLYGRAPH PROGRAM 
                   AUTHORITY.

       (a) Codification.--(1) Chapter 80 of title 10, United 
     States Code, is amended by inserting after section 1564 the 
     following new section:

     ``Sec. 1564a. Counterintelligence polygraph program

       ``(a) Authority for Program.--The Secretary of Defense may 
     carry out a program for the administration of 
     counterintelligence polygraph examinations to persons 
     described in subsection (b). The program shall be based on 
     Department of Defense Directive 5210.48, dated December 24, 
     1984.
       ``(b) Persons Covered.--Except as provided in subsection 
     (c), the following persons whose duties involve access to 
     information that has been classified at the level of top 
     secret or designated as being within a special access program 
     under section 4.4(a) of Executive Order 12958 (or a successor 
     Executive order) are subject to this section:
       ``(1) Military and civilian personnel of the Department of 
     Defense.
       ``(2) Personnel of defense contractors.
       ``(3) A person assigned or detailed to the Department of 
     Defense.
       ``(4) An applicant for a position in the Department of 
     Defense.
       ``(c) Exceptions From Coverage for Certain Intelligence 
     Agencies and Functions.--This section does not apply to the 
     following persons:
       ``(1) A person assigned or detailed to the Central 
     Intelligence Agency or to an expert or consultant under a 
     contract with the Central Intelligence Agency.
       ``(2) A person who is--
       ``(A) employed by or assigned or detailed to the National 
     Security Agency;
       ``(B) an expert or consultant under contract to the 
     National Security Agency;
       ``(C) an employee of a contractor of the National Security 
     Agency; or
       ``(D) a person applying for a position in the National 
     Security Agency.
       ``(3) A person assigned to a space where sensitive 
     cryptographic information is produced, processed, or stored.
       ``(4) A person employed by, or assigned or detailed to, an 
     office within the Department of Defense for the collection of 
     specialized national foreign intelligence through 
     reconnaissance programs or a contractor of such an office.
       ``(d) Oversight.--(1) The Secretary shall establish a 
     process to monitor responsible and effective application of 
     polygraph examinations within the Department of Defense.
       ``(2) The Secretary shall make information on the use of 
     polygraphs within the Department of Defense available to the 
     congressional defense committees.
       ``(e) Polygraph Research Program.--The Secretary shall 
     carry out a continuing research program to support the 
     polygraph examination activities of the Department of 
     Defense. The program shall include--
       ``(1) an on-going evaluation of the validity of polygraph 
     techniques used by the Department;
       ``(2) research on polygraph countermeasures and anti-
     countermeasures; and
       ``(3) developmental research on polygraph techniques, 
     instrumentation, and analytic methods.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1564 the following new item:

``1564a. Counterintelligence polygraph program.''.
       (b) Conforming Repeal.--Section 1121 of the National 
     Defense Authorization Act for Fiscal Years 1988 and 1989 (10 
     U.S.C. 113 note), is repealed.

     SEC. 1042. GENERAL DEFINITIONS APPLICABLE TO FACILITIES AND 
                   OPERATIONS OF DEPARTMENT OF DEFENSE.

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

     SEC. 1043. ADDITIONAL DEFINITIONS FOR PURPOSES OF TITLE 10, 
                   UNITED STATES CODE.

       (a) General Definitions.--Section 101(a) of title 10, 
     United States Code, is amended by adding at the end the 
     following new paragraphs:
       ``(16) The term `congressional defense committees' means--
       ``(A) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       ``(B) the Committee on Armed Services and the Committee on 
     Appropriations of the House of Representatives.
       ``(17) The term `base closure law' means the following:
       ``(A) Section 2687 of this title.

[[Page 27570]]

       ``(B) 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).
       ``(C) Title II of the Defense Authorization Amendments and 
     Base Closure and Realignment Act (Public Law 100-526; 10 
     U.S.C. 2687 note).''.
       (b) References to Congressional Defense Committees.--Title 
     10, United States Code, is further amended as follows:
       (1) Section 135(e) is amended--
       (A) by striking ``(1)'';
       (B) by striking ``each congressional committee specified in 
     paragraph (2)'' and inserting ``each of the congressional 
     defense committees''; and
       (C) by striking paragraph (2).
       (2) Section 153(c) is amended--
       (A) in paragraph (1), by striking ``committees of Congress 
     named in paragraph (2)'' and inserting ``congressional 
     defense committees'';
       (B) by striking paragraph (2); and
       (C) by designating the second sentence of paragraph (1) as 
     paragraph (2) and in that paragraph (as so designated) by 
     striking ``The report'' and inserting ``Each report under 
     paragraph (1)''.
       (3) Section 181(d)(2) is amended--
       (A) by striking ``subsection:'' and all that follows 
     through `` `oversight'' and inserting ``subsection, the term 
     `oversight''; and
       (B) by striking subparagraph (B).
       (4) Section 224 is amended by striking subsection (f).
       (5) Section 228(e) is amended--
       (A) by striking ``Definitions'' and all that follows 
     through ``(1) The term'' and inserting ``O&M Budget Activity 
     Defined.--In this section, the term''; and
       (B) by striking paragraph (2).
       (6) Section 229 is amended by striking subsection (f).
       (7) Section 1107(f)(4) is amended by striking subparagraph 
     (C).
       (8) Section 2216(j) is amended by striking paragraph (3).
       (9) Section 2218(l) is amended--
       (A) by striking paragraph (4); and
       (B) by redesignating paragraph (5) as paragraph (4).
       (10) Section 2306b(l) is amended--
       (A) by striking paragraph (9); and
       (B) by redesignating paragraph (10) as paragraph (9).
       (11) Section 2308(e)(2) is amended--
       (A) by striking subparagraph (A); and
       (B) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (A) and (B), respectively.
       (12) Section 2350j is amended--
       (A) in subsection (e), by striking ``congressional 
     committees specified in subsection (g)'' in paragraphs (1) 
     and (3) and inserting ``congressional defense committees''; 
     and
       (B) by striking subsection (g).
       (13) Section 2366(e) is amended--
       (A) by striking paragraph (7); and
       (B) by redesignating paragraphs (8) and (9) as paragraphs 
     (7) and (8), respectively.
       (14) Section 2399(h) is amended--
       (A) by striking ``Definitions.--'' and all that follows 
     through ``(1) The term'' and inserting ``Operational Test and 
     Evaluation Defined.--In this section, the term'';
       (B) by striking paragraph (2);
       (C) by redesignating subparagraphs (A), (B), and (C) as 
     paragraphs (1), (2), and (3), respectively; and
       (D) by realigning those paragraphs (as so redesignated) so 
     as to be indented two ems from the left margin.
       (15) Section 2667(h) is amended by striking paragraph (1).
       (16) Section 2801(c)(4) is amended by striking ``the 
     Committee on'' the first place it appears and all that 
     follows through ``House of Representatives'' and inserting 
     ``the congressional defense committees''.
       (c) References to Base Closure Laws.--Title 10, United 
     States Code, is further amended as follows:
       (1) Section 2306c(h) is amended by striking ``Additional'' 
     and all that follows through ``(2) The term'' and inserting 
     ``Military Installation Defined.--In this section, the 
     term''.
       (2) Section 2490a(f) is amended--
       (A) by striking ``Definitions.--'' and all that follows 
     through ``(1) The term'' and inserting ``Nonappropriated Fund 
     Instrumentality Defined.--In this section, the term''; and
       (B) by striking paragraph (2).
       (3) Section 2667(h), as amended by subsection (b)(15), is 
     further amended by striking ``section:'' and all that follows 
     through ``(3) The term'' and inserting ``section, the term''.
       (4) Section 2696(e) is amended--
       (A) by striking paragraphs (1), (2), (3), and (4) and 
     inserting the following:
       ``(1) A base closure law.''; and
       (B) by redesignating paragraphs (5) and (6) as paragraphs 
     (2) and (3), respectively.
       (5) Section 2705 is amended by striking subsection (h).
       (6) Section 2871 is amended by striking paragraph (2).

     SEC. 1044. INCLUSION OF ANNUAL MILITARY CONSTRUCTION 
                   AUTHORIZATION REQUEST IN ANNUAL DEFENSE 
                   AUTHORIZATION REQUEST.

       (a) Inclusion of Military Construction Request.--Section 
     113a(b) of title 10, United States Code, is amended--
       (1) by redesignating paragraph (3) as paragraph (4); and
       (2) by inserting after paragraph (2) the following new 
     paragraph (3):
       ``(3) Authority to carry out military construction 
     projects, as required by section 2802 of this title.''.
       (b) Repeal of Separate Transmission of Request.--(1) 
     Section 2859 of such title is repealed.
       (2) The table of sections at the beginning of subchapter 
     III of chapter 169 of such title is amended by striking the 
     item relating to section 2859.

     SEC. 1045. TECHNICAL AND CLERICAL AMENDMENTS.

       (a) 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 IV of subtitle A, are amended by 
     striking ``2701'' in the item relating to chapter 160 and 
     inserting ``2700''.
       (2) Section 101(a)(9)(D) is amended by striking 
     ``Transportation'' and inserting ``Homeland Security''.
       (3) Section 1115(c)(1)(B) is amended by striking ``and 
     other than members'' and inserting ``(other than members''.
       (4) Section 2002(a)(2) is amended by striking ``Foreign 
     Service Institute'' and inserting ``George P. Schultz 
     National Foreign Affairs Training Center''.
       (5)(A) Section 2248 is repealed.
       (B) The table of sections at the beginning of subchapter I 
     of chapter 134 is amended by striking the item relating to 
     section 2248.
       (6) Section 2432(h)(1) is amended by inserting ``program'' 
     in the first sentence after ``for such''.
       (7) Section 7305(d) is amended by inserting ``such'' before 
     ``title III'' the second place it appears.
       (b) Title 37, United States Code.--Title 37, United States 
     Code, is amended as follows:
       (1) Section 323(a) is amended by striking ``1 year'' in 
     paragraphs (1) and (2) and inserting ``one year''.
       (2) Section 402 is amended--
       (A) in subsection (b)--
       (i) by striking paragraph (1);
       (ii) by redesignating paragraphs (2), (3), and (4) as 
     paragraphs (1), (2), and (3), respectively;
       (iii) in paragraph (1) (as so redesignated), by striking 
     ``On and after January 1, 2002, the'' and inserting ``The''; 
     and
       (iv) in paragraph (3) (as so redesignated), by striking 
     ``paragraph (2)'' and inserting ``paragraph (1)''; and
       (B) in subsection (d), by striking ``subsection (b)(2)'' 
     and inserting ``subsection (b)(1)''.
       (c) Floyd D. Spence National Defense Authorization Act for 
     Fiscal Year 2001.--The Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398) is amended as follows:
       (1) Section 814(g)(1) is amended by striking ``the Clinger-
     Cohen Act of 1996 (divisions D and E of Public Law 104-106)'' 
     and inserting ``subtitle III of title 40, United States 
     Code''.
       (2) Section 1308(c) (22 U.S.C. 5959) is amended--
       (A) by redesignating paragraph (7) as paragraph (8); and
       (B) by redesignating the second paragraph (6) as paragraph 
     (7).
       (d) Strom Thurmond National Defense Authorization Act for 
     Fiscal Year 1999.--Section 819(a) of the Strom Thurmond 
     National Defense Authorization Act for Fiscal Year 1999 
     (Public Law 105-261; 112 Stat. 2089) is amended by striking 
     ``section 201(c) of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 481(c)),'' and inserting 
     ``section 503 of title 40, United States Code,''.
       (e) National Defense Authorization Act for Fiscal Year 
     1997.--Section 1084(e) of the National Defense Authorization 
     Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2675) 
     is amended by striking ``98-515'' and inserting ``98-525''. 
     The amendment made by the preceding sentence shall take 
     effect as if included in Public Law 104-201.
       (f) Federal Acquisition Streamlining Act of 1994.--
     Subsection (d) of section 1004 of the Federal Acquisition 
     Streamlining Act of 1994 (Public Law 103-355; 108 Stat. 3253) 
     is amended by striking ``under--'' and all that follows 
     through the end of paragraph (2) and inserting ``under 
     chapter 11 of title 40, United States Code.''.
       (g) Armed Forces Retirement Home Act of 1991.--Section 
     1520(b)(1)(C) of the Armed Forces Retirement Home Act of 1991 
     (24 U.S.C. 420(b)(1)(C)) is amended by inserting ``Armed 
     Forces'' before ``Retirement Home Trust Fund''.
                       Subtitle F--Other Matters

     SEC. 1051. ASSESSMENT OF EFFECTS OF SPECIFIED STATUTORY 
                   LIMITATIONS ON THE GRANTING OF SECURITY 
                   CLEARANCES.

       Not later than 60 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 an 
     assessment of the effects of the provisions of section 986 of 
     title 10, United States Code (relating to limitations on 
     security clearances), on the granting (or renewal) of 
     security clearances for Department of Defense personnel and 
     defense contractor personnel. The assessment shall review the 
     effects of the disqualification factors specified in 
     subsection (c) of that section and shall include such 
     recommendations for legislation or administrative steps as 
     the Secretary considers necessary.

     SEC. 1052. ACQUISITION OF HISTORICAL ARTIFACTS THROUGH 
                   EXCHANGE OF OBSOLETE OR SURPLUS PROPERTY.

       (a) Acquisition Authorized.--The Secretary of a military 
     department may use the authority provided by section 2572 of 
     title 10, United

[[Page 27571]]

     States Code, to acquire an historical artifact that directly 
     benefits the historical collection of the Armed Forces in 
     exchange for any obsolete or surplus property held by that 
     military department, without regard to whether the property 
     is described in subsection (c) of such section.
       (b) Duration of Authority.--The authority provided by 
     subsection (a) applies during fiscal years 2004 and 2005.

     SEC. 1053. CONVEYANCE OF SURPLUS T-37 AIRCRAFT TO AIR FORCE 
                   AVIATION HERITAGE FOUNDATION, INCORPORATED.

       (a) Authority to Convey.--The Secretary of the Air Force 
     may convey to the Air Force Aviation Heritage Foundation, 
     Incorporated, of Georgia (in this section referred to as the 
     ``Foundation''), all right, title, and interest of the United 
     States in and to one surplus T-37 ``Tweet'' aircraft for the 
     sole purpose of permitting the Foundation to use the aircraft 
     in a static display. The conveyance shall be made by means of 
     a conditional deed of gift.
       (b) Condition of Aircraft.--(1) The Secretary may not 
     convey the aircraft under subsection (a) until the aircraft 
     has been demilitarized in such manner as the Secretary 
     determines necessary to ensure that the aircraft is 
     permanently unfit for flight and does not have any capability 
     for use as a platform for launching or releasing munitions or 
     any other combat capability that it was designed to have.
       (2) The Foundation shall be responsible for the costs of 
     demilitarizing the aircraft, as required by paragraph (1). 
     Demilitarization shall be carried out in a manner intended to 
     preserve the historical and display value of the aircraft.
       (c) Conditions for Conveyance.--(1) The conveyance of a T-
     37 aircraft under this section shall be subject to the 
     following conditions:
       (A) That the Foundation not convey any right, title, or 
     interest in, or transfer possession of, the aircraft to any 
     other party without the prior approval of the Secretary of 
     the Air Force.
       (B) That the Foundation not alter the aircraft to restore 
     it to flyable condition.
       (C) That if the Secretary of the Air Force determines at 
     any time that the Foundation has conveyed an ownership 
     interest in, or transferred possession of, the aircraft to 
     any other party without the prior approval of the Secretary, 
     or has failed to comply with the condition set forth in 
     subparagraph (B), all right, title, and interest in and to 
     the aircraft, including any repair or alteration of the 
     aircraft, shall revert to the United States, and the United 
     States shall have the right of immediate possession of the 
     aircraft.
       (2) The Secretary shall include the conditions under 
     paragraph (1) in the instrument of conveyance of the T-37 
     aircraft.
       (d) Conveyance at No Cost to the United States.--Any 
     conveyance of a T-37 aircraft under this section shall be 
     made at no cost to the United States. Any costs associated 
     with such conveyance, costs of determining compliance by the 
     Foundation with the conditions in subsection (b), and costs 
     of restoration and maintenance of the aircraft conveyed shall 
     be borne by the Foundation.
       (e) Additional Terms and Conditions.--The Secretary of the 
     Air Force may require such additional terms and conditions in 
     connection with the conveyance under this section as the 
     Secretary considers appropriate to protect the interests of 
     the United States.
       (f) Duration of Conveyance Authority.--The authority to 
     make the conveyance to the Foundation authorized by this 
     section expires on September 30, 2005.

     SEC. 1054. DEPARTMENT OF DEFENSE BIENNIAL STRATEGIC PLAN FOR 
                   MANAGEMENT OF ELECTROMAGNETIC SPECTRUM.

       (a) Requirement for Plan.--Chapter 23 of title 10, United 
     States Code, is amended by inserting after section 487 the 
     following new section:

     ``Sec. 488. Management of electomagnetic spectrum: biennial 
       strategic plan

       ``(a) Requirement for Strategic Plan.--Every other year, 
     and in time for submission to Congress under subsection (b), 
     the Secretary of Defense shall prepare a strategic plan for 
     the management of the electromagnetic spectrum to ensure the 
     accessibility and efficient use of that spectrum needed to 
     support the mission of the Department of Defense.
       ``(b) Submission of Plan to Congress.--The Secretary of 
     Defense shall submit to Congress the strategic plan most 
     recently prepared under subsection (a) at the same time that 
     the President submits to Congress the budget for an even-
     numbered fiscal year under section 1105(a) of title 31.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 487 the following new item:

``488. Management of electomagnetic spectrum: biennial strategic 
              plan.''.

     SEC. 1055. REVISION OF DEPARTMENT OF DEFENSE DIRECTIVE 
                   RELATING TO MANAGEMENT AND USE OF RADIO 
                   FREQUENCY SPECTRUM.

       Not later than one year after the date of the enactment of 
     this Act, the Secretary of Defense shall revise and reissue 
     Department of Defense Directive 4650.1, relating to 
     management and use of the radio frequency spectrum, last 
     issued on June 24, 1987, to update the procedures applicable 
     to Department of Defense management and use of the radio 
     frequency spectrum and to ensure the consideration of 
     requirements for usage of such spectrum by a system as early 
     as practicable in the acquisition program for such system.

     SEC. 1056. SENSE OF CONGRESS ON DEPLOYMENT OF AIRBORNE 
                   CHEMICAL AGENT MONITORING SYSTEMS AT CHEMICAL 
                   STOCKPILE DISPOSAL SITES IN THE UNITED STATES.

       (a) Findings.--The Congress makes the following findings:
       (1) Over 23,700 tons of lethal chemical agents in assembled 
     chemical weapons and bulk storage containers are stored and 
     awaiting destruction at eight chemical agent disposal 
     facilities and stockpile storage sites in the United States. 
     Some of these weapons and storage containers contain GB or VX 
     nerve agents, while others contain blister agents such as HD 
     (mustard agent).
       (2) Approximately 960,000 persons live in the vicinity of 
     the eight chemical weapons disposal facilities and stockpile 
     storage sites.
       (3) Airborne-agent chemical monitoring systems are 
     currently deployed at each of the chemical demilitarization 
     facilities and stockpile storage sites to provide continuous 
     and near-real-time monitoring of the presence of chemical 
     agents.
       (4) The National Research Council has determined that 
     monitoring levels used at the demilitarization facilities are 
     very conservative and highly protective of workers and public 
     health and safety and that the conservative monitoring levels 
     are a contributing factor in false positive alarms.
       (5) The National Research Council has expressed repeated 
     concern about relatively frequent false positive alarms and 
     the lack of real-time monitoring for airborne agents and has 
     noted the poor state of agent monitoring technology for 
     liquid waste streams and solid materials suspected of 
     possible agent contamination.
       (6) The National Research Council has concluded that, 
     although the Program Manager for Chemical Demilitarization 
     has made some efforts to develop better agent-monitoring 
     technology, results to date have been disappointing.
       (7) The National Research Council has concluded that 
     development and deployment of airborne-agent monitors with 
     shorter response time and lower false alarm rates would 
     enhance safety and reduce the tendency to discount agent 
     alarms, and has recommended that the Program Manager for 
     Chemical Demilitarization and the relevant Department of 
     Defense research and development agencies should invigorate 
     and coordinate efforts to develop chemical agent monitors 
     with improved sensitivity, specificity, and response time.
       (b) Sense of Congress.--It is the sense of Congress that 
     the Secretary of the Army--
       (1) should, in coordination with relevant Department of 
     Defense research and development agencies, invigorate and 
     coordinate efforts to develop chemical agent monitors with 
     improved sensitivity, specificity, and response time; and
       (2) should deploy improved chemical agent monitors in order 
     to ensure the maximum protection of the general public, 
     personnel involved in the chemical demilitarization program, 
     and the environment.

     SEC. 1057. EXPANSION OF PRE-SEPTEMBER 11, 2001, FIRE GRANT 
                   PROGRAM OF UNITED STATES FIRE ADMINISTRATION.

       The Federal Fire Prevention and Control Act of 1974 (15 
     U.S.C. 2201 et seq.) is amended by redesignating the second 
     section 33 and section 34 as sections 35 and 36, 
     respectively, and by inserting after the first section 33 the 
     following new section:

     ``SEC. 34. EXPANSION OF PRE-SEPTEMBER 11, 2001, FIRE GRANT 
                   PROGRAM.

       ``(a) Expanded Authority To Make Grants.--
       ``(1) Hiring grants.--(A) The Administrator shall make 
     grants directly to career, volunteer, and combination fire 
     departments, in consultation with the chief executive of the 
     State in which the applicant is located, for the purpose of 
     increasing the number of firefighters to help communities 
     meet industry minimum standards and attain 24-hour staffing 
     to provide adequate protection from fire and fire-related 
     hazards, and to fulfill traditional missions of fire 
     departments that antedate the creation of the Department of 
     Homeland Security.
       ``(B)(i) Grants made under this paragraph shall be for 4 
     years and be used for programs to hire new, additional 
     firefighters.
       ``(ii) Grantees are required to commit to retaining for at 
     least 1 year beyond the termination of their grants those 
     firefighters hired under this paragraph.
       ``(C) In awarding grants under this subsection, the 
     Administrator may give preferential consideration to 
     applications that involve a non-Federal contribution 
     exceeding the minimums under subparagraph (E).
       ``(D) The Administrator may provide technical assistance to 
     States, units of local government, Indian tribal governments, 
     and to other public entities, in furtherance of the purposes 
     of this section.
       ``(E) The portion of the costs of hiring firefighters 
     provided by a grant under this paragraph may not exceed--
       ``(i) 90 percent in the first year of the grant;
       ``(ii) 80 percent in the second year of the grant;
       ``(iii) 50 percent in the third year of the grant; and
       ``(iv) 30 percent in the fourth year of the grant.
       ``(F) Notwithstanding any other provision of law, any 
     firefighter hired with funds provided under this subsection 
     shall not be discriminated against for, or be prohibited 
     from, engaging in volunteer activities in another 
     jurisdiction during off-duty hours.
       ``(G) All grants made pursuant to this subsection shall be 
     awarded on a competitive basis through a neutral peer review 
     process.

[[Page 27572]]

       ``(H) At the beginning of the fiscal year, the 
     Administrator shall set aside 10 percent of the funds 
     appropriated for carrying out this paragraph for departments 
     with majority volunteer or all volunteer personnel. After 
     awards have been made, if less than 10 percent of the funds 
     appropriated for carrying out this paragraph are not awarded 
     to departments with majority volunteer or all volunteer 
     personnel, the Administrator shall transfer from funds 
     appropriated for carrying out this paragraph to funds 
     available for carrying out paragraph (2) an amount equal to 
     the difference between the amount that is provided to such 
     fire departments and 10 percent.
       ``(2) Recruitment and retention grants.--In addition to any 
     amounts transferred under paragraph (1)(H), the Administrator 
     shall direct at least 10 percent of the total amount of funds 
     appropriated pursuant to this section annually to a 
     competitive grant program for the recruitment and retention 
     of volunteer firefighters who are involved with or trained in 
     the operations of firefighting and emergency response. 
     Eligible entities shall include volunteer or combination fire 
     departments, and organizations on a local or statewide basis 
     that represent the interests of volunteer firefighters.
       ``(b) Applications.--(1) No grant may be made under this 
     section unless an application has been submitted to, and 
     approved by, the Administrator.
       ``(2) An application for a grant under this section shall 
     be submitted in such form, and contain such information, as 
     the Administrator may prescribe.
       ``(3) At a minimum, each application for a grant under this 
     section shall--
       ``(A) explain the applicant's inability to address the need 
     without Federal assistance;
       ``(B) in the case of a grant under subsection (a)(1), 
     explain how the applicant plans to meet the requirements of 
     subsection (a)(1)(B)(ii) and (F);
       ``(C) specify long-term plans for retaining firefighters 
     following the conclusion of Federal support provided under 
     this section; and
       ``(D) provide assurances that the applicant will, to the 
     extent practicable, seek, recruit, and hire members of racial 
     and ethnic minority groups and women in order to increase 
     their ranks within firefighting.
       ``(c) Limitation on Use of Funds.--(1) Funds made available 
     under this section to fire departments for salaries and 
     benefits to hire new, additional firefighters shall not be 
     used to supplant State or local funds, or, in the case of 
     Indian tribal governments, funds supplied by the Bureau of 
     Indian Affairs, but shall be used to increase the amount of 
     funds that would, in the absence of Federal funds received 
     under this section, be made available from State or local 
     sources, or in the case of Indian tribal governments, from 
     funds supplied by the Bureau of Indian Affairs.
       ``(2) No grant shall be awarded pursuant to this section to 
     a municipality or other recipient whose annual budget at the 
     time of the application for fire-related programs and 
     emergency response has been reduced below 80 percent of the 
     average funding level in the 3 years prior to the date of 
     enactment of this section.
       ``(3) Funds appropriated by the Congress for the activities 
     of any agency of an Indian tribal government or the Bureau of 
     Indian Affairs performing firefighting functions on any 
     Indian lands may be used to provide the non-Federal share of 
     the cost of programs or projects funded under this section.
       ``(4)(A) Total funding provided under this section over 4 
     years for hiring a firefighter may not exceed $100,000.
       ``(B) The $100,000 cap shall be adjusted annually for 
     inflation beginning in fiscal year 2005.
       ``(d) Performance Evaluation.--The Administrator may 
     require a grant recipient to submit any information the 
     Administrator considers reasonably necessary to evaluate the 
     program.
       ``(e) Sunset and Reports.--The authority under this section 
     to make grants shall lapse at the conclusion of 10 years from 
     the date of enactment of this section. Not later than 6 years 
     after the date of the enactment of this section, the 
     Administrator shall submit a report to Congress concerning 
     the experience with, and effectiveness of, such grants in 
     meeting the objectives of this section. The report may 
     include any recommendations the Administrator may have for 
     amendments to this section and related provisions of law.
       ``(f) Revocation or Suspension of Funding.--If the 
     Administrator determines that a grant recipient under this 
     section is not in substantial compliance with the terms and 
     requirements of an approved grant application submitted under 
     this section, the Administrator may revoke or suspend funding 
     of that grant, in whole or in part.
       ``(g) Access to Documents.--(1) The Administrator shall 
     have access for the purpose of audit and examination to any 
     pertinent books, documents, papers, or records of a grant 
     recipient under this section and to the pertinent books, 
     documents, papers, or records of State and local governments, 
     persons, businesses, and other entities that are involved in 
     programs, projects, or activities for which assistance is 
     provided under this section.
       ``(2) Paragraph (1) shall apply with respect to audits and 
     examinations conducted by the Comptroller General of the 
     United States or by an authorized representative of the 
     Comptroller General.
       ``(h) Definitions.--In this section, the term--
       ``(1) `firefighter' has the meaning given the term 
     `employee in fire protection activities' under section 3(y) 
     of the Fair Labor Standards Act (29 U.S.C. 203(y)); and
       ``(2) `Indian tribe' means a tribe, band, pueblo, nation, 
     or other organized group or community of Indians, including 
     an Alaska Native village (as defined in or established under 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
     seq.)), that is recognized as eligible for the special 
     programs and services provided by the United States to 
     Indians because of their status as Indians.
       ``(i) Authorization of Appropriations.--There are 
     authorized to be appropriated for the purposes of carrying 
     out this section--
       ``(1) $1,000,000,000 for fiscal year 2004;
       ``(2) $1,030,000,000 for fiscal year 2005;
       ``(3) $1,061,000,000 for fiscal year 2006;
       ``(4) $1,093,000,000 for fiscal year 2007;
       ``(5) $1,126,000,000 for fiscal year 2008;
       ``(6) $1,159,000,000 for fiscal year 2009; and
       ``(7) $1,194,000,000 for fiscal year 2010.''.

     SEC. 1058. REVIEW AND ENHANCEMENT OF EXISTING AUTHORITIES FOR 
                   USING AIR FORCE AND AIR NATIONAL GUARD MODULAR 
                   AIRBORNE FIRE-FIGHTING SYSTEMS AND OTHER 
                   DEPARTMENT OF DEFENSE ASSETS TO FIGHT 
                   WILDFIRES.

       (a) Review Required.--The Director of the Office of 
     Management and Budget shall conduct a review of existing 
     authorities regarding the use of Air Force and Air National 
     Guard Modular Airborne Fire-Fighting Systems units and other 
     Department of Defense assets to fight wildfires to ensure 
     that, in accordance with applicable legal requirements, such 
     assets are available in the most expeditious manner to fight 
     wildfires on Federal lands or non-Federal lands at the 
     request of a Federal agency or State government. In 
     conducting the review, the Director shall specifically 
     consider--
       (1) any adverse impact caused by the restrictions contained 
     in section 1535(a)(4) of title 31, United States Code, or 
     caused by the interpretation of such restrictions, on the 
     ability of the Forest Service and other Federal agencies to 
     procure such firefighting services; and
       (2) whether the authorities under the Robert T. Stafford 
     Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 
     et seq.), including section 403(c) of such Act (42 U.S.C. 
     5170b), are being properly utilized to facilitate an 
     expeditious Department of Defense response to State requests 
     under, and consistent with, such Act for firefighting 
     services.
       (b) Determination Required.--On the basis of the review, 
     the Director shall make a determination regarding whether 
     existing authorities are being used in a manner consistent 
     with using the available capabilities of Department of 
     Defense assets to fight wildfires in the most expeditious and 
     efficacious way to minimize the risk to public safety.
       (c) Expedited Economy Act Review Process.--If the Director 
     determines under subsection (b) that existing authorities are 
     adequate for the deployment of Department of Defense assets 
     to fight wildfires, the Director shall develop and implement, 
     subject to subsection (f), such modifications to the process 
     for conducting the cost comparison required by section 
     1535(a)(4) of title 31, United States Code, as the Director 
     considers appropriate to further expedite the procurement of 
     such firefighting services.
       (d) Development and Implementation of Revised Policies.--If 
     the Director determines under subsection (b) that the 
     existing authorities or their use is inadequate or can be 
     improved, the Director shall develop and implement, subject 
     to subsection (f), such regulations, policies, and 
     interagency procedures as may be necessary to improve the 
     ability of the Department of Defense to respond to a request 
     by a Federal agency or State government to assist in fighting 
     wildfires on Federal lands or non-Federal lands under section 
     1535(a) of title 31, United States Code, or the Robert T. 
     Stafford Disaster Relief and Emergency Assistance Act (42 
     U.S.C. 5121 et seq.), or both.
       (e) Reporting Requirement.--Not later than 120 days after 
     the date of the enactment of this Act, the Director shall 
     transmit to Congress a report--
       (1) containing the results of the review conducted under 
     subsection (a) and the determination made under subsection 
     (b); and
       (2) based on such determination, describing the 
     modifications proposed to be made to existing authorities 
     under subsection (c) or (d), including whether there is a 
     need for legislative changes to further improve the 
     procedures for using Department of Defense assets to fight 
     wildfires.
       (f) Delayed Implementation.--The modifications described in 
     the report prepared under subsection (e) to be made to 
     existing authorities under subsection (c) or (d) shall not 
     take effect until the end of the 30-day period beginning on 
     the date on which the report is transmitted to Congress.
                  TITLE XI--CIVILIAN PERSONNEL MATTERS

  Subtitle A--Department of Defense National Security Personnel System

Sec. 1101. Department of Defense national security personnel system.

     Subtitle B--Department of Defense Civilian Personnel Generally

Sec. 1111. Pilot program for improved civilian personnel management.
Sec. 1112. Clarification and revision of authority for demonstration 
              project relating to certain acquisition personnel 
              management policies and procedures.
Sec. 1113. Military leave for mobilized Federal civilian employees.

[[Page 27573]]

Sec. 1114. Restoration of annual leave for certain Department of 
              Defense employees.
Sec. 1115. Authority to employ civilian faculty members at the Western 
              Hemisphere Institute for Security Cooperation.
Sec. 1116. Extension of authority for experimental personnel program 
              for scientific and technical personnel.

    Subtitle C--Other Federal Government Civilian Personnel Matters

Sec. 1121. Modification of the overtime pay cap.
Sec. 1122. Common occupational and health standards for differential 
              payments as a consequence of exposure to asbestos.
Sec. 1123. Increase in annual student loan repayment authority.
Sec. 1124. Authorization for cabinet secretaries, secretaries of 
              military departments, and heads of executive agencies to 
              be paid on a biweekly basis.
Sec. 1125. Senior Executive Service and performance.
Sec. 1126. Design elements of pay-for-performance systems in 
              demonstration projects.
Sec. 1127. Federal flexible benefits plan administrative costs.
Sec. 1128. Employee surveys.
Sec. 1129. Human capital performance fund.
  Subtitle A--Department of Defense National Security Personnel System

     SEC. 1101. DEPARTMENT OF DEFENSE NATIONAL SECURITY PERSONNEL 
                   SYSTEM.

       (a) In General.--(1) Subpart I of part III of title 5, 
     United States Code, is amended by adding at the end the 
     following new chapter:

 ``CHAPTER 99--DEPARTMENT OF DEFENSE NATIONAL SECURITY PERSONNEL SYSTEM

``Sec.
``9901. Definitions.
``9902. Establishment of human resources management system.
``9903. Attracting highly qualified experts.
``9904. Special pay and benefits for certain employees outside the 
              United States.

     ``Sec. 9901. Definitions

       ``For purposes of this chapter--
       ``(1) the term `Director' means the Director of the Office 
     of Personnel Management; and
       ``(2) the term `Secretary' means the Secretary of Defense.

     ``Sec. 9902. Establishment of human resources management 
       system

       ``(a) In General.--Notwithstanding any other provision of 
     this part, the Secretary may, in regulations prescribed 
     jointly with the Director, establish, and from time to time 
     adjust, a human resources management system for some or all 
     of the organizational or functional units of the Department 
     of Defense. The human resources management system established 
     under authority of this section shall be referred to as the 
     `National Security Personnel System'.
       ``(b) System Requirements.--Any system established under 
     subsection (a) shall--
       ``(1) be flexible;
       ``(2) be contemporary;
       ``(3) not waive, modify, or otherwise affect--
       ``(A) the public employment principles of merit and fitness 
     set forth in section 2301, including the principles of hiring 
     based on merit, fair treatment without regard to political 
     affiliation or other nonmerit considerations, equal pay for 
     equal work, and protection of employees against reprisal for 
     whistleblowing;
       ``(B) any provision of section 2302, relating to prohibited 
     personnel practices;
       ``(C)(i) any provision of law referred to in section 
     2302(b)(1), (8), and (9); or
       ``(ii) any provision of law implementing any provision of 
     law referred to in section 2302(b)(1), (8), and (9) by--
       ``(I) providing for equal employment opportunity through 
     affirmative action; or
       ``(II) providing any right or remedy available to any 
     employee or applicant for employment in the public service;
       ``(D) any other provision of this part (as described in 
     subsection (d)); or
       ``(E) any rule or regulation prescribed under any provision 
     of law referred to in this paragraph;
       ``(4) ensure that employees may organize, bargain 
     collectively as provided for in this chapter, and participate 
     through labor organizations of their own choosing in 
     decisions which affect them, subject to the provisions of 
     this chapter and any exclusion from coverage or limitation on 
     negotiability established pursuant to law;
       ``(5) not be limited by any specific law or authority under 
     this title, or by any rule or regulation prescribed under 
     this title, that is waived in regulations prescribed under 
     this chapter, subject to paragraph (3); and
       ``(6) include a performance management system that 
     incorporates the following elements:
       ``(A) adherence to merit principles set forth in section 
     2301;
       ``(B) a fair, credible, and transparent employee 
     performance appraisal system;
       ``(C) a link between the performance management system and 
     the agency's strategic plan;
       ``(D) a means for ensuring employee involvement in the 
     design and implementation of the system;
       ``(E) adequate training and retraining for supervisors, 
     managers, and employees in the implementation and operation 
     of the performance management system;
       ``(F) a process for ensuring ongoing performance feedback 
     and dialogue between supervisors, managers, and employees 
     throughout the appraisal period, and setting timetables for 
     review;
       ``(G) effective safeguards to ensure that the management of 
     the system is fair and equitable and based on employee 
     performance;
       ``(H) a means for ensuring that adequate agency resources 
     are allocated for the design, implementation, and 
     administration of the performance management system; and
       ``(I) a pay-for-performance evaluation system to better 
     link individual pay to performance, and provide an equitable 
     method for appraising and compensating employees.
       ``(c) Personnel Management at Defense Laboratories.--(1) 
     The National Security Personnel System shall not apply with 
     respect to a laboratory under paragraph (2) before October 1, 
     2008, and shall apply on or after October 1, 2008, only to 
     the extent that the Secretary determines that the 
     flexibilities provided by the National Security Personnel 
     System are greater than the flexibilities provided to those 
     laboratories pursuant to section 342 of the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-337; 
     108 Stat. 2721) and section 1101 of the Strom Thurmond 
     National Defense Authorization Act for Fiscal Year 1999 (5 
     U.S.C. 3104 note), respectively.
       ``(2) The laboratories to which this subsection applies 
     are--
       ``(A) the Aviation and Missile Research Development and 
     Engineering Center;
       ``(B) the Army Research Laboratory;
       ``(C) the Medical Research and Materiel Command;
       ``(D) the Engineer Research and Development Command;
       ``(E) the Communications-Electronics Command;
       ``(F) the Soldier and Biological Chemical Command;
       ``(G) the Naval Sea Systems Command Centers;
       ``(H) the Naval Research Laboratory;
       ``(I) the Office of Naval Research; and
       ``(J) the Air Force Research Laboratory.
       ``(d) Other Nonwaivable Provisions.--The other provisions 
     of this part referred to in subsection (b)(3)(D) are (to the 
     extent not otherwise specified in this title)--
       ``(1) subparts A, B, E, G, and H of this part; and
       ``(2) chapters 41, 45, 47, 55 (except subchapter V thereof, 
     apart from section 5545b), 57, 59, 71, 72, 73, and 79, and 
     this chapter.
       ``(e) Limitations Relating to Pay.--(1) Nothing in this 
     section shall constitute authority to modify the pay of any 
     employee who serves in an Executive Schedule position under 
     subchapter II of chapter 53.
       ``(2) Except as provided for in paragraph (1), the total 
     amount in a calendar year of allowances, differentials, 
     bonuses, awards, or other similar cash payments paid under 
     this title to any employee who is paid under section 5376 or 
     5383 or under title 10 or under other comparable pay 
     authority established for payment of Department of Defense 
     senior executive or equivalent employees may not exceed the 
     total annual compensation payable to the Vice President under 
     section 104 of title 3.
       ``(3) To the maximum extent practicable, the rates of 
     compensation for civilian employees at the Department of 
     Defense shall be adjusted at the same rate, and in the same 
     proportion, as are rates of compensation for members of the 
     uniformed services.
       ``(4) To the maximum extent practicable, for fiscal years 
     2004 through 2008, the overall amount allocated for 
     compensation of the civilian employees of an organizational 
     or functional unit of the Department of Defense that is 
     included in the National Security Personnel System shall not 
     be less than the amount that would have been allocated for 
     compensation of such employees for such fiscal year if they 
     had not been converted to the National Security Personnel 
     System, based on, at a minimum--
       ``(A) the number and mix of employees in such 
     organizational or functional unit prior to the conversion of 
     such employees to the National Security Personnel System; and
       ``(B) adjusted for normal step increases and rates of 
     promotion that would have been expected, had such employees 
     remained in their previous pay schedule.
       ``(5) To the maximum extent practicable, the regulations 
     implementing the National Security Personnel System shall 
     provide a formula for calculating the overall amount to be 
     allocated for fiscal years after fiscal year 2008 for 
     compensation of the civilian employees of an organization or 
     functional unit of the Department of Defense that is included 
     in the National Security Personnel System. The formula shall 
     ensure that in the aggregate, employees are not disadvantaged 
     in terms of the overall amount of pay available as a result 
     of conversion to the National Security Personnel System, 
     while providing flexibility to accommodate changes in the 
     function of the organization, changes in the mix of employees 
     performing those functions, and other changed circumstances 
     that might impact pay levels.
       ``(f) Provisions To Ensure Collaboration With Employee 
     Representatives.--(1) In order to ensure that the authority 
     of this section is exercised in collaboration with, and in a 
     manner that ensures the participation of, employee 
     representatives in the planning, development, and 
     implementation of the National Security Personnel System, the 
     Secretary and the Director shall provide for the following:

[[Page 27574]]

       ``(A) The Secretary and the Director shall, with respect to 
     any proposed system--
       ``(i) provide to the employee representatives representing 
     any employees who might be affected a written description of 
     the proposed system or adjustment (including the reasons why 
     it is considered necessary);
       ``(ii) give such representatives at least 30 calendar days 
     (unless extraordinary circumstances require earlier action) 
     to review and make recommendations with respect to the 
     proposal; and
       ``(iii) give any recommendations received from such 
     representatives under clause (ii) full and fair consideration 
     in deciding whether or how to proceed with the proposal.
       ``(B) Following receipt of recommendations, if any, from 
     such employee representatives with respect to a proposal 
     described in subparagraph (A), the Secretary and the Director 
     shall accept such modifications to the proposal in response 
     to the recommendations as they determine advisable and shall, 
     with respect to any parts of the proposal as to which they 
     have not accepted the recommendations--
       ``(i) notify Congress of those parts of the proposal, 
     together with the recommendations of the employee 
     representatives;
       ``(ii) meet and confer for not less than 30 calendar days 
     with the employee representatives, in order to attempt to 
     reach agreement on whether or how to proceed with those parts 
     of the proposal; and
       ``(iii) at the Secretary's option, or if requested by a 
     majority of the employee representatives participating, use 
     the services of the Federal Mediation and Conciliation 
     Service during such meet and confer period to facilitate the 
     process of attempting to reach agreement.
       ``(C)(i) Any part of the proposal as to which the 
     representatives do not make a recommendation, or as to which 
     the recommendations are accepted by the Secretary and the 
     Director, may be implemented immediately.
       ``(ii) With respect to any parts of the proposal as to 
     which recommendations have been made but not accepted by the 
     Secretary and the Director, at any time after 30 calendar 
     days have elapsed since the initiation of the congressional 
     notification, consultation, and mediation procedures set 
     forth in subparagraph (B), if the Secretary, in his 
     discretion, determines that further consultation and 
     mediation is unlikely to produce agreement, the Secretary may 
     implement any or all of such parts (including any 
     modifications made in response to the recommendations as the 
     Secretary determines advisable), but only after 30 days have 
     elapsed after notifying Congress of the decision to implement 
     the part or parts involved (as so modified, if applicable).
       ``(iii) The Secretary shall notify Congress promptly of the 
     implementation of any part of the proposal and shall furnish 
     with such notice an explanation of the proposal, any changes 
     made to the proposal as a result of recommendations from the 
     employee representatives, and of the reasons why 
     implementation is appropriate under this subparagraph.
       ``(D) If a proposal described in subparagraph (A) is 
     implemented, the Secretary and the Director shall--
       ``(i) develop a method for the employee representatives to 
     participate in any further planning or development which 
     might become necessary; and
       ``(ii) give the employee representatives adequate access to 
     information to make that participation productive.
       ``(2) The Secretary may, at the Secretary's discretion, 
     engage in any and all collaboration activities described in 
     this subsection at an organizational level above the level of 
     exclusive recognition.
       ``(3) In the case of any employees who are not within a 
     unit with respect to which a labor organization is accorded 
     exclusive recognition, the Secretary and the Director may 
     develop procedures for representation by any appropriate 
     organization which represents a substantial percentage of 
     those employees or, if none, in such other manner as may be 
     appropriate, consistent with the purposes of this subsection.
       ``(4) The procedures under this subsection are the 
     exclusive procedures for the participation of employee 
     representatives in the planning, development, implementation, 
     or adjustment of the National Security Personnel System.
       ``(g) Provisions Regarding National Level Bargaining.--(1) 
     The National Security Personnel System implemented or 
     modified under this chapter may include employees of the 
     Department of Defense from any bargaining unit with respect 
     to which a labor organization has been accorded exclusive 
     recognition under chapter 71.
       ``(2) For any bargaining unit so included under paragraph 
     (1), the Secretary may bargain with a labor organization at 
     an organizational level above the level of exclusive 
     recognition. The decision to bargain at a level above the 
     level of exclusive recognition shall not be subject to review 
     or to statutory third-party dispute resolution procedures 
     outside the Department of Defense. Any such bargaining 
     shall--
       ``(A) be binding on all subordinate bargaining units of the 
     labor organization at the level of recognition and their 
     exclusive representatives, and the Department of Defense and 
     its subcomponents, without regard to levels of recognition;
       ``(B) supersede all other collective bargaining agreements 
     of the labor organization, including collective bargaining 
     agreements negotiated with an exclusive representative at the 
     level of recognition, except as otherwise determined by the 
     Secretary;
       ``(C) not be subject to further negotiations with the labor 
     organizations for any purpose, including bargaining at the 
     level of recognition, except as provided for by the 
     Secretary; and
       ``(D) be subject to review by an independent third party 
     only to the extent provided and pursuant to procedures 
     established under paragraph (6) of subsection (m).
       ``(3) The National Guard Bureau and the Army and Air Force 
     National Guard are excluded from coverage under this 
     subsection.
       ``(4) Any bargaining completed pursuant to this subsection 
     with a labor organization not otherwise having national 
     consultation rights with the Department of Defense or its 
     subcomponents shall not create any obligation on the 
     Department of Defense or its subcomponents to confer national 
     consultation rights on such a labor organization.
       ``(h) Provisions Relating to Appellate Procedures.--(1) The 
     Secretary--
       ``(A) may establish an appeals process that provides 
     employees of the Department of Defense organizational and 
     functional units that are included in the National Security 
     Personnel System fair treatment in any appeals that they 
     bring in decisions relating to their employment; and
       ``(B) shall in prescribing regulations for any such appeals 
     process--
       ``(i) ensure that employees in the National Security 
     Personnel System are afforded the protections of due process; 
     and
       ``(ii) toward that end, be required to consult with the 
     Merit Systems Protection Board before issuing any such 
     regulations.
       ``(2) Regulations implementing the appeals process may 
     establish legal standards and procedures for personnel 
     actions, including standards for applicable relief, to be 
     taken on the basis of employee misconduct or performance that 
     fails to meet expectations. Such standards shall be 
     consistent with the public employment principles of merit and 
     fitness set forth in section 2301.
       ``(3) Legal standards and precedents applied before the 
     effective date of this section by the Merit Systems 
     Protection Board and the courts under chapters 43, 75, and 77 
     of this title shall apply to employees of organizational and 
     functional units included in the National Security Personnel 
     System, unless such standards and precedents are inconsistent 
     with legal standards established under this subsection.
       ``(4) An employee who--
       ``(A) is removed, suspended for more than 14 days, 
     furloughed for 30 days or less, reduced in pay, or reduced in 
     pay band (or comparable reduction) by a final decision under 
     the appeals process established under paragraph (1);
       ``(B) is not serving under probationary period as defined 
     under regulations established under paragraph (2); and
       ``(C) would otherwise be eligible to appeal a performance-
     based or adverse action under chapter 43 or 75, as 
     applicable, to the Merit Systems Protection Board,
     shall have the right to petition the full Merit Systems 
     Protection Board for review of the record of that decision 
     pursuant to regulations established under paragraph (2). The 
     Board may dismiss any petition that, in the view of the 
     Board, does not raise substantial questions of fact or law. 
     No personnel action shall be stayed and no interim relief 
     shall be granted during the pendency of the Board's review 
     unless specifically ordered by the Board.
       ``(5) The Board may order such corrective action as the 
     Board considers appropriate only if the Board determines that 
     the decision was--
       ``(A) arbitrary, capricious, an abuse of discretion, or 
     otherwise not in accordance with law;
       ``(B) obtained without procedures required by law, rule, or 
     regulation having been followed; or
       ``(C) unsupported by substantial evidence.
       ``(6) An employee who is adversely affected by a final 
     order or decision of the Board may obtain judicial review of 
     the order or decision as provided in section 7703. The 
     Secretary of Defense, after notifying the Director, may 
     obtain judicial review of any final order or decision of the 
     Board under the same terms and conditions as provided an 
     employee.
       ``(7) Nothing in this subsection shall be construed to 
     authorize the waiver of any provision of law, including an 
     appeals provision providing a right or remedy under section 
     2302(b) (1), (8) or (9), that is not otherwise waivable under 
     subsection (a).
       ``(8) The right of an employee to petition the Merit 
     Systems Protection Board of the Department's final decision 
     on an action covered by paragraph (4) of this subsection, and 
     the right of the Merit Systems Protection Board to review 
     such action or to order corrective action pursuant to 
     paragraph (5), is provisional for 7 years after the date of 
     the enactment of this chapter, and shall become permanent 
     unless Congress acts to revise such provisions.
       ``(i) Provisions Related to Separation and Retirement 
     Incentives.--(1) The Secretary may establish a program within 
     the Department of Defense under which employees may be 
     eligible for early retirement, offered separation incentive 
     pay to separate from service voluntarily, or both. This 
     authority may be used to reduce the number of personnel 
     employed by the Department of Defense or to restructure the 
     workforce to meet mission objectives without reducing the 
     overall number of personnel. This authority is in addition 
     to, and notwithstanding, any other authorities established by 
     law or regulation for such programs.
       ``(2)(A) The Secretary may not authorize the payment of 
     voluntary separation incentive pay under paragraph (1) to 
     more than 25,000 employees in any fiscal year, except that 
     employees

[[Page 27575]]

     who receive voluntary separation incentive pay as a result of 
     a closure or realignment of a military installation under the 
     Defense Base Closure and Realignment Act of 1990 (title XXIX 
     of Public Law 101-510; 10 U.S.C. 2687 note) shall not be 
     included in that number.
       ``(B) The Secretary shall prepare a report each fiscal year 
     setting forth the number of employees who received such pay 
     as a result of a closure or realignment of a military base as 
     described under subparagraph (A).
       ``(C) The Secretary shall submit the report under 
     subparagraph (B) to the Committee on Armed Services and the 
     Committee on Governmental Affairs of the Senate, and the 
     Committee on Armed Services and the Committee on Government 
     Reform of the House of Representatives.
       ``(3) For purposes of this section, the term `employee' 
     means an employee of the Department of Defense, serving under 
     an appointment without time limitation, except that such term 
     does not include--
       ``(A) a reemployed annuitant under subchapter III of 
     chapter 83 or chapter 84, or another retirement system for 
     employees of the Federal Government;
       ``(B) an employee having a disability on the basis of which 
     such employee is or would be eligible for disability 
     retirement under any of the retirement systems referred to in 
     subparagraph (A); or
       ``(C) for purposes of eligibility for separation incentives 
     under this section, an employee who is in receipt of a 
     decision notice of involuntary separation for misconduct or 
     unacceptable performance.
       ``(4) An employee who is at least 50 years of age and has 
     completed 20 years of service, or has at least 25 years of 
     service, may, pursuant to regulations promulgated under this 
     section, apply and be retired from the Department of Defense 
     and receive benefits in accordance with chapter 83 or 84 if 
     the employee has been employed continuously within the 
     Department of Defense for more than 30 days before the date 
     on which the determination to conduct a reduction or 
     restructuring within 1 or more Department of Defense 
     components is approved.
       ``(5)(A) Separation pay shall be paid in a lump sum or in 
     installments and shall be equal to the lesser of--
       ``(i) an amount equal to the amount the employee would be 
     entitled to receive under section 5595(c), if the employee 
     were entitled to payment under such section; or
       ``(ii) $25,000.
       ``(B) Separation pay shall not be a basis for payment, and 
     shall not be included in the computation, of any other type 
     of Government benefit. Separation pay shall not be taken into 
     account for the purpose of determining the amount of any 
     severance pay to which an individual may be entitled under 
     section 5595, based on any other separation.
       ``(C) Separation pay, if paid in installments, shall cease 
     to be paid upon the recipient's acceptance of employment by 
     the Federal Government, or commencement of work under a 
     personal services contract as described in paragraph (6).
       ``(6)(A) An employee who receives separation pay under such 
     program may not be reemployed by the Department of Defense 
     for a 12-month period beginning on the effective date of the 
     employee's separation, unless this prohibition is waived by 
     the Secretary on a case-by-case basis.
       ``(B) An employee who receives separation pay under this 
     section on the basis of a separation occurring on or after 
     the date of the enactment of the Federal Workforce 
     Restructuring Act of 1994 (Public Law 103-236; 108 Stat. 111) 
     and accepts employment with the Government of the United 
     States, or who commences work through a personal services 
     contract with the United States within 5 years after the date 
     of the separation on which payment of the separation pay is 
     based, shall be required to repay the entire amount of the 
     separation pay to the Department of Defense. If the 
     employment is with an Executive agency (as defined by section 
     105) other than the Department of Defense, the Director may, 
     at the request of the head of that agency, waive the 
     repayment if the individual involved possesses unique 
     abilities and is the only qualified applicant available for 
     the position. If the employment is within the Department of 
     Defense, the Secretary may waive the repayment if the 
     individual involved is the only qualified applicant available 
     for the position. If the employment is with an entity in the 
     legislative branch, the head of the entity or the appointing 
     official may waive the repayment if the individual involved 
     possesses unique abilities and is the only qualified 
     applicant available for the position. If the employment is 
     with the judicial branch, the Director of the Administrative 
     Office of the United States Courts may waive the repayment if 
     the individual involved possesses unique abilities and is the 
     only qualified applicant available for the position.
       ``(7) Under this program, early retirement and separation 
     pay may be offered only pursuant to regulations established 
     by the Secretary, subject to such limitations or conditions 
     as the Secretary may require.
       ``(j) Provisions Relating to Reemployment.--If an annuitant 
     receiving an annuity from the Civil Service Retirement and 
     Disability Fund becomes employed in a position within the 
     Department of Defense, his annuity shall continue. An 
     annuitant so reemployed shall not be considered an employee 
     for purposes of chapter 83 or 84.
       ``(k) Additional Provisions Relating to Personnel 
     Management.--(1) Notwithstanding subsection (d), the 
     Secretary of Defense, in establishing and implementing the 
     National Security Personnel System under subsection (a), 
     shall not be limited by any provision of this title or any 
     rule or regulation prescribed under this title in 
     establishing and implementing regulations relating to--
       ``(A) the methods of establishing qualification 
     requirements for, recruitment for, and appointments to 
     positions;
       ``(B) the methods of assigning, reassigning, detailing, 
     transferring, or promoting employees; and
       ``(C) the methods of reducing overall agency staff and 
     grade levels, except that performance, veterans' preference, 
     tenure of employment, length of service, and such other 
     factors as the Secretary considers necessary and appropriate 
     shall be considered in decisions to realign or reorganize the 
     Department's workforce.
       ``(2) In implementing this subsection, the Secretary shall 
     comply with the provisions of section 2302(b)(11), regarding 
     veterans' preference requirements, as provided for in 
     subsection (b)(3).
       ``(l) Phase-In.--The Secretary may apply the National 
     Security Personnel System--
       ``(1) to an organizational or functional unit that includes 
     up to 300,000 civilian employees of the Department of 
     Defense, without having to make a determination described in 
     paragraph (2); and
       ``(2) to an organizational or functional unit that includes 
     more than 300,000 civilian employees of the Department of 
     Defense, if the Secretary determines in accordance with 
     subsection (a) that the Department has in place a performance 
     management system that meets the criteria specified in 
     subsection (b).
       ``(m) Labor Management Relations in the Department of 
     Defense.--(1) Notwithstanding section 9902(d)(2), the 
     Secretary, together with the Director, may establish and from 
     time to time adjust a labor relations system for the 
     Department of Defense to address the unique role that the 
     Department's civilian workforce plays in supporting the 
     Department's national security mission.
       ``(2) The system developed or adjusted under paragraph (1) 
     would allow for a collaborative issue-based approach to labor 
     management relations.
       ``(3) In order to ensure that the authority of this section 
     is exercised in collaboration with, and in a manner that 
     ensures the participation of, employee representatives in the 
     development and implementation of the labor management 
     relations system or adjustments to such system under this 
     section, the Secretary shall provide for the following:
       ``(A) The Secretary and the Director shall, with respect to 
     any proposed system or adjustment--
       ``(i) afford employee representatives and management the 
     opportunity to have meaningful discussions concerning the 
     development of the new system;
       ``(ii) give such representatives at least 30 calendar days 
     (unless extraordinary circumstances require earlier action) 
     to review the proposal for the system and make 
     recommendations with respect to it; and
       ``(iii) give any recommendations received from such 
     representatives under clause (ii) full and fair 
     consideration.
       ``(B) Following receipt of recommendations, if any, from 
     such employee representatives with respect to a proposal 
     described in subparagraph (A), the Secretary and the Director 
     shall accept such modifications to the proposal in response 
     to the recommendations as are determined advisable and shall, 
     with respect to any parts of the proposal as to which they 
     have not accepted the recommendations--
       ``(i) meet and confer for not less than 30 calendar days 
     with the employee representatives, in order to attempt to 
     reach agreement on whether or how to proceed with those parts 
     of the proposal; and
       ``(ii) at the Secretary's option, or if requested by a 
     majority of the employee representatives participating, use 
     the services of the Federal Mediation and Conciliation 
     Service during such meet and confer period to facilitate the 
     process of attempting to reach agreement.
       ``(C)(i) Any part of the proposal described in subparagraph 
     (A) as to which employee representatives do not make a 
     recommendation, or as to which the recommendations are 
     accepted under subparagraph (B), may be implemented 
     immediately.
       ``(ii) With respect to any parts of the proposal as to 
     which recommendations have been made but not accepted, at any 
     time after 30 calendar days have elapsed since the 
     consultation and mediation procedures set forth in 
     subparagraph (B), if the Secretary, in his discretion, 
     determines that further consultation and mediation is 
     unlikely to produce agreement, the Secretary may implement 
     any or all of such parts (including any modifications made in 
     response to the recommendations as the Secretary determines 
     advisable), but only after 30 days have elapsed after 
     notifying Congress of the decision to implement the part or 
     parts involved (as so modified, if applicable).
       ``(D) The process for collaborating with employee 
     representatives provided for under this subsection shall 
     begin no later than 60 calendar days after the date of 
     enactment of this subsection.
       ``(4) The Secretary may engage in any and all collaboration 
     activities described in this subsection at an organizational 
     level above the level of exclusive recognition.
       ``(5) The system developed or adjusted under this 
     subsection may incorporate the authority to

[[Page 27576]]

     bargain at a level above the level of exclusion recognition 
     provided for in subsection (g) of this section, but may not 
     abrogate or modify the authority provided for in that 
     subsection. Notwithstanding this subsection, the Secretary 
     may, at his discretion, implement the authority in subsection 
     (g) immediately upon enactment of this subsection.
       ``(6) The labor relations system developed or adjusted 
     under this subsection shall provide for independent third 
     party review of decisions, including defining what decisions 
     are reviewable by the third party, what third party would 
     conduct the review, and the standard or standards for that 
     review.
       ``(7) Nothing in this section, including the authority 
     provided to waive, modify, or otherwise affect provisions of 
     law not listed in subsections (b) and (c) as nonwaivable, 
     shall be construed to expand the scope of bargaining under 
     chapter 71 or this subsection with respect to any provision 
     of this title that may be waived, modified, or otherwise 
     affected under this section.
       ``(8) The labor relations system developed or adjusted 
     under this subsection shall be binding on all bargaining 
     units within the Department of Defense, all employee 
     representatives of such units, and the Department of Defense 
     and its subcomponents, and shall supersede all other 
     collective bargaining agreements for bargaining units in the 
     Department of Defense, including collective bargaining 
     agreements negotiated with employee representatives at the 
     level of recognition, except as otherwise determined by the 
     Secretary.
       ``(9) Unless it is extended or otherwise provided for in 
     law, the authority to establish, implement and adjust the 
     labor relations system developed under this subsection shall 
     expire six years after the date of enactment of this 
     subsection, at which time the provisions of chapter 71 will 
     apply.

     ``Sec. 9903. Attracting highly qualified experts

       ``(a) In General.--The Secretary may carry out a program 
     using the authority provided in subsection (b) in order to 
     attract highly qualified experts in needed occupations, as 
     determined by the Secretary.
       ``(b) Authority.--Under the program, the Secretary may--
       ``(1) appoint personnel from outside the civil service and 
     uniformed services (as such terms are defined in section 
     2101) to positions in the Department of Defense without 
     regard to any provision of this title governing the 
     appointment of employees to positions in the Department of 
     Defense;
       ``(2) prescribe the rates of basic pay for positions to 
     which employees are appointed under paragraph (1) at rates 
     not in excess of the maximum rate of basic pay authorized for 
     senior-level positions under section 5376, as increased by 
     locality-based comparability payments under section 5304, 
     notwithstanding any provision of this title governing the 
     rates of pay or classification of employees in the executive 
     branch; and
       ``(3) pay any employee appointed under paragraph (1) 
     payments in addition to basic pay within the limits 
     applicable to the employee under subsection (d).
       ``(c) Limitation on Term of Appointment.--(1) Except as 
     provided in paragraph (2), the service of an employee under 
     an appointment made pursuant to this section may not exceed 5 
     years.
       ``(2) The Secretary may, in the case of a particular 
     employee, extend the period to which service is limited under 
     paragraph (1) by up to 1 additional year if the Secretary 
     determines that such action is necessary to promote the 
     Department of Defense's national security missions.
       ``(d) Limitations on Additional Payments.--(1) The total 
     amount of the additional payments paid to an employee under 
     this section for any 12-month period may not exceed the 
     lesser of the following amounts:
       ``(A) $50,000 in fiscal year 2004, which may be adjusted 
     annually thereafter by the Secretary, with a percentage 
     increase equal to one-half of 1 percentage point less than 
     the percentage by which the Employment Cost Index, published 
     quarterly by the Bureau of Labor Statistics, for the base 
     quarter of the year before the preceding calendar year 
     exceeds the Employment Cost Index for the base quarter of the 
     second year before the preceding calendar year.
       ``(B) The amount equal to 50 percent of the employee's 
     annual rate of basic pay.

     For purposes of this paragraph, the term `base quarter' has 
     the meaning given such term by section 5302(3).
       ``(2) An employee appointed under this section is not 
     eligible for any bonus, monetary award, or other monetary 
     incentive for service except for payments authorized under 
     this section.
       ``(3) Notwithstanding any other provision of this 
     subsection or of section 5307, no additional payments may be 
     paid to an employee under this section in any calendar year 
     if, or to the extent that, the employee's total annual 
     compensation will exceed the maximum amount of total annual 
     compensation payable at the salary set in accordance with 
     section 104 of title 3.
       ``(e) Limitation on Number of Highly Qualified Experts.--
     The number of highly qualified experts appointed and retained 
     by the Secretary under subsection (b)(1) shall not exceed 
     2,500 at any time.
       ``(f) Savings Provisions.--In the event that the Secretary 
     terminates this program, in the case of an employee who, on 
     the day before the termination of the program, is serving in 
     a position pursuant to an appointment under this section--
       ``(1) the termination of the program does not terminate the 
     employee's employment in that position before the expiration 
     of the lesser of--
       ``(A) the period for which the employee was appointed; or
       ``(B) the period to which the employee's service is limited 
     under subsection (c), including any extension made under this 
     section before the termination of the program; and
       ``(2) the rate of basic pay prescribed for the position 
     under this section may not be reduced as long as the employee 
     continues to serve in the position without a break in 
     service.

     ``Sec. 9904. Special pay and benefits for certain employees 
       outside the United States

       ``The Secretary may provide to certain civilian employees 
     of the Department of Defense assigned to activities outside 
     the United States as determined by the Secretary to be in 
     support of Department of Defense activities abroad hazardous 
     to life or health or so specialized because of security 
     requirements as to be clearly distinguishable from normal 
     Government employment--
       ``(1) allowances and benefits--
       ``(A) comparable to those provided by the Secretary of 
     State to members of the Foreign Service under chapter 9 of 
     title I of the Foreign Service Act of 1980 (Public Law 96-
     465, 22 U.S.C. 4081 et seq.) or any other provision of law; 
     or
       ``(B) comparable to those provided by the Director of 
     Central Intelligence to personnel of the Central Intelligence 
     Agency; and
       ``(2) special retirement accrual benefits and disability in 
     the same manner provided for by the Central Intelligence 
     Agency Retirement Act (50 U.S.C. 2001 et seq.) and in section 
     18 of the Central Intelligence Agency Act of 1949 (50 U.S.C. 
     403r).''.
       (2) The table of chapters for part III of such title is 
     amended by adding at the end of subpart I the following new 
     item:

``99. Department of Defense National Security Personnel System..9901''.

       (b) Impact on Department of Defense Civilian Personnel.--
     (1) Any exercise of authority under chapter 99 of such title 
     (as added by subsection (a)), including under any system 
     established under such chapter, shall be in conformance with 
     the requirements of this subsection.
       (2) No other provision of this Act or of any amendment made 
     by this Act may be construed or applied in a manner so as to 
     limit, supersede, or otherwise affect the provisions of this 
     section, except to the extent that it does so by specific 
     reference to this section.
     Subtitle B--Department of Defense Civilian Personnel Generally

     SEC. 1111. PILOT PROGRAM FOR IMPROVED CIVILIAN PERSONNEL 
                   MANAGEMENT.

       (a) Pilot Program.--The Secretary of Defense may carry out 
     a pilot program using an automated workforce management 
     system to demonstrate improved efficiency in the performance 
     of civilian personnel management. The automated workforce 
     management system used for the pilot program shall be capable 
     of automating the following workforce management functions:
       (1) Job definition.
       (2) Position management.
       (3) Recruitment.
       (4) Staffing.
       (5) Performance management.
       (b) Authorities Under Pilot Program.--Under the pilot 
     program, the Secretary of Defense shall provide the Secretary 
     of each military department with the authority for the 
     following:
       (1) To use an automated workforce management system for the 
     civilian workforce of that military department to assess the 
     potential of such a system to do the following:
       (A) Substantially reduce hiring cycle times.
       (B) Lower labor costs.
       (C) Increase efficiency.
       (D) Improve performance management.
       (E) Provide better management reporting.
       (F) Enable that system to make operational new personnel 
     management flexibilities granted under the civilian personnel 
     transformation program.
       (2) Identify at least one regional civilian personnel 
     center (or equivalent) in that military department for 
     participation in the pilot program.
       (c) Duration of Pilot Program.--The Secretary of Defense 
     may carry out the pilot program under this section at each 
     selected regional civilian personnel center for a period of 
     two years beginning not later than March 1, 2004.

     SEC. 1112. CLARIFICATION AND REVISION OF AUTHORITY FOR 
                   DEMONSTRATION PROJECT RELATING TO CERTAIN 
                   ACQUISITION PERSONNEL MANAGEMENT POLICIES AND 
                   PROCEDURES.

       Section 4308 of the National Defense Authorization Act for 
     Fiscal Year 1996 (10 U.S.C. 1701 note) is amended--
       (1) in subsection (b), by striking paragraph (3) and 
     inserting the following:
       ``(3) Conditions.--Paragraph (2) shall not apply with 
     respect to a demonstration project unless--
       ``(A) for each organization or team participating in the 
     demonstration project--
       ``(i) at least one-third of the workforce participating in 
     the demonstration project consists of members of the 
     acquisition workforce; and
       ``(ii) at least two-thirds of the workforce participating 
     in the demonstration project consists of members of the 
     acquisition workforce and supporting personnel assigned to 
     work directly with the acquisition workforce; and
       ``(B) the demonstration project commences before October 1, 
     2007.'';
       (2) in subsection (d), by striking ``95,000'' and inserting 
     ``120,000'';

[[Page 27577]]

       (3) by redesignating subsection (e) as subsection (f); and
       (4) by inserting after subsection (d) the following:
       ``(e) Effect of Reorganizations.--The applicability of 
     paragraph (2) of subsection (b) to an organization or team 
     shall not terminate by reason that the organization or team, 
     after having satisfied the conditions in paragraph (3) of 
     such subsection when it began to participate in a 
     demonstration project under this section, ceases to meet one 
     or both of the conditions set forth in subparagraph (A) of 
     such paragraph (3) as a result of a reorganization, 
     restructuring, realignment, consolidation, or other 
     organizational change.''.

     SEC. 1113. MILITARY LEAVE FOR MOBILIZED FEDERAL CIVILIAN 
                   EMPLOYEES.

       (a) In General.--Subsection (b) of section 6323 of title 5, 
     United States Code, is amended--
       (1) in paragraph (2)--
       (A) by redesignating subparagraphs (A) and (B) as clauses 
     (i) and (ii), respectively, and at the end of clause (ii), as 
     so redesignated, by inserting ``or''; and
       (B) by inserting ``(A)'' after ``(2)''; and
       (2) by inserting the following before the text beginning 
     with ``is entitled'':
       ``(B) performs full-time military service as a result of a 
     call or order to active duty in support of a contingency 
     operation as defined in section 101(a)(13) of title 10;''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall apply to military service performed on or after the 
     date of the enactment of this Act.

     SEC. 1114. RESTORATION OF ANNUAL LEAVE FOR CERTAIN DEPARTMENT 
                   OF DEFENSE EMPLOYEES.

       (a) Restoration of Annual Leave.--During the period October 
     1, 1992, through December 31, 1997, all employees 
     transferring from a closing or realigning Department of 
     Defense installation or activity as defined under section 
     6304(d)(3) of title 5, United States Code, to another 
     Department of Defense installation or activity--
       (1) may be deemed eligible by the Secretary of Defense for 
     automatic restoration of forfeited annual leave under section 
     6304(d)(3) of title 5, United States Code, during the year of 
     transfer; and
       (2) may be deemed by the Secretary of Defense to have used 
     all forfeited annual leave properly restored under section 
     6304(d)(3) of title 5, United States Code, within the 
     appropriate time limits, only if such restored annual leave 
     was used by the employee or paid to the employee in the form 
     of a lump sum payment under section 5551(a) of title 5, 
     United States Code, by the last day of the 2001 leave year.
       (b) Payment of Restored Annual Leave.--(1) On or after 
     September 23, 1996, all employees transferring from a closing 
     or realigning Department of Defense installation or activity 
     as defined under section 6304(d)(3)(A) of title 5, United 
     States Code, to another Department of Defense installation or 
     activity who, upon transfer, were entitled to payment of a 
     lump sum payment under section 5551(c) of title 5, United 
     States Code, for forfeited annual leave properly restored 
     under section 6304(d)(3) of title 5, United States Code--
       (A) may be paid only for any such restored annual leave 
     currently remaining to their credit at the hourly rate 
     payable on the date of transfer with appropriate back pay 
     interest; and
       (B) shall be deemed paid for all such restored annual leave 
     to which that employee was entitled to payment upon transfer, 
     but subsequently used or was otherwise paid for upon 
     separation.
       (2) This subsection shall take effect on the date of the 
     enactment of this Act.

     SEC. 1115. AUTHORITY TO EMPLOY CIVILIAN FACULTY MEMBERS AT 
                   THE WESTERN HEMISPHERE INSTITUTE FOR SECURITY 
                   COOPERATION.

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

     SEC. 1116. EXTENSION OF AUTHORITY FOR EXPERIMENTAL PERSONNEL 
                   PROGRAM FOR SCIENTIFIC AND TECHNICAL PERSONNEL.

       (a) Extension of Program.--Subsection (e)(1) of section 
     1101 of the Strom Thurmond National Defense Authorization Act 
     for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 2139; 5 
     U.S.C. 3104 note) is amended by striking ``October 16, 2005'' 
     and inserting ``September 30, 2008''.
       (b) Commensurate Extension of Requirement for Annual 
     Report.--Subsection (g) of such section is amended by 
     striking ``2006'' and inserting ``2009''.
    Subtitle C--Other Federal Government Civilian Personnel Matters

     SEC. 1121. MODIFICATION OF THE OVERTIME PAY CAP.

       Section 5542(a)(2) of title 5, United States Code, is 
     amended--
       (1) by inserting ``the greater of'' before ``one and one-
     half''; and
       (2) by inserting ``or the hourly rate of basic pay of the 
     employee'' after ``law)'' the second place it appears.

     SEC. 1122. COMMON OCCUPATIONAL AND HEALTH STANDARDS FOR 
                   DIFFERENTIAL PAYMENTS AS A CONSEQUENCE OF 
                   EXPOSURE TO ASBESTOS.

       (a) Prevailing Rate Systems.--Section 5343(c)(4) of title 
     5, United States Code, is amended by inserting before the 
     semicolon at the end the following: ``, and for any hardship 
     or hazard related to asbestos, such differentials shall be 
     determined by applying occupational safety and health 
     standards consistent with the permissible exposure limit 
     promulgated by the Secretary of Labor under the Occupational 
     Safety and Health Act of 1970''.
       (b) General Schedule Pay Rates.--Section 5545(d) of such 
     title is amended by inserting before the period at the end of 
     the first sentence the following: ``, and for any hardship or 
     hazard related to asbestos, such differentials shall be 
     determined by applying occupational safety and health 
     standards consistent with the permissible exposure limit 
     promulgated by the Secretary of Labor under the Occupational 
     Safety and Health Act of 1970''.
       (c) Applicability.--Subject to any vested constitutional 
     property rights, any administrative or judicial determination 
     after the date of enactment of this Act concerning backpay 
     for a differential established under sections 5343(c)(4) or 
     5545(d) of such title shall be based on occupational safety 
     and health standards described in the amendments made by 
     subsections (a) and (b).

     SEC. 1123. INCREASE IN ANNUAL STUDENT LOAN REPAYMENT 
                   AUTHORITY.

       (a) Increase.--Section 5379(b)(2)(A) of title 5, United 
     States Code, is amended by striking ``$6,000'' and inserting 
     ``$10,000''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on January 1, 2004.

     SEC. 1124. AUTHORIZATION FOR CABINET SECRETARIES, SECRETARIES 
                   OF MILITARY DEPARTMENTS, AND HEADS OF EXECUTIVE 
                   AGENCIES TO BE PAID ON A BIWEEKLY BASIS.

       (a) Authorization.--Section 5504 of title 5, United States 
     Code, is amended--
       (1) by redesignating subsection (c) as subsection (d);
       (2) by striking the last sentence of both subsection (a) 
     and subsection (b); and
       (3) by inserting after subsection (b) the following:
       ``(c) For the purposes of this section:
       ``(1) The term `employee' means--
       ``(A) an employee in or under an Executive agency;
       ``(B) an employee in or under the Office of the Architect 
     of the Capitol, the Botanic Garden, and the Library of 
     Congress, for whom a basic administrative workweek is 
     established under section 6101(a)(5) of this title; and
       ``(C) an individual employed by the government of the 
     District of Columbia.
       ``(2) The term `employee' does not include--
       ``(A) an employee on the Isthmus of Panama in the service 
     of the Panama Canal Commission; or
       ``(B) an employee or individual excluded from the 
     definition of employee in section 5541(2) of this title other 
     than an employee or individual excluded by clauses (ii), 
     (iii), and (xiv) through (xvii) of such section.
       ``(3) Notwithstanding paragraph (2), an individual who 
     otherwise would be excluded from the definition of employee 
     shall be deemed to be an employee for purposes of this 
     section if the individual's employing agency so elects, under 
     guidelines in regulations promulgated by the Office of 
     Personnel Management under subsection (d)(2).''.
       (b) Guidelines.--Subsection (d) of section 5504 of such 
     title, as redesignated by subsection (a), is amended--
       (1) by inserting ``(1)'' after ``(d)''; and
       (2) by adding at the end the following new paragraph:
       ``(2) The Office of Personnel Management shall provide 
     guidelines by regulation for exemptions to be made by the 
     heads of agencies under subsection (c)(3). Such guidelines 
     shall provide for such exemptions only under exceptional 
     circumstances.''.

     SEC. 1125. SENIOR EXECUTIVE SERVICE AND PERFORMANCE.

       (a) Senior Executive Pay.--Chapter 53 of title 5, United 
     States Code, is amended--
       (1) in section 5304--
       (A) in subsection (g)(2)--
       (i) in subparagraph (A) by striking ``subparagraphs (A)-
     (E)'' and inserting ``subparagraphs (A)-(D)''; and
       (ii) in subparagraph (B) by striking ``subsection 
     (h)(1)(F)'' and inserting ``subsection (h)(1)(D)'';
       (B) in subsection (h)(1)--
       (i) by striking subparagraphs (B) and (C);
       (ii) by redesignating subparagraphs (D), (E), and (F) as 
     subparagraphs (B), (C), and (D), respectively;
       (iii) in clause (ii) by striking ``or'' at the end;
       (iv) in clause (iii) by striking the period and inserting a 
     semicolon; and
       (v) by adding at the end the following new clauses:
       ``(iv) a Senior Executive Service position under section 
     3132;
       ``(v) a position in the Federal Bureau of Investigation and 
     Drug Enforcement Administration Senior Executive Service 
     under section 3151; or
       ``(vi) a position in a system equivalent to the system in 
     clause (iv), as determined by the President's Pay Agent 
     designated under subsection (d).''; and
       (C) in subsection (h)(2)(B)--
       (i) in clause (i)--

       (I) by striking ``subparagraphs (A) through (E)'' and 
     inserting ``subparagraphs (A) through (C)''; and
       (II) by striking ``clause (i) or (ii)'' and inserting 
     ``clause (i), (ii), (iii), (iv), (v), or (vii)''; and

       (ii) in clause (ii)--

[[Page 27578]]

       (I) by striking ``paragraph (1)(F)'' and inserting 
     ``paragraph (1)(D)''; and
       (II) by striking ``clause (i) or (ii)'' and inserting 
     ``clause (i), (ii), (iii), (iv), (v), or (vi)'';

       (2) by amending section 5382 to read as follows:

     ``Sec. 5382. Establishment of rates of pay for the Senior 
       Executive Service

       ``(a) Subject to regulations prescribed by the Office of 
     Personnel Management, there shall be established a range of 
     rates of basic pay for the Senior Executive Service, and each 
     senior executive shall be paid at one of the rates within the 
     range, based on individual performance, contribution to the 
     agency's performance, or both, as determined under a rigorous 
     performance management system. The lowest rate of the range 
     shall not be less than the minimum rate of basic pay payable 
     under section 5376, and the highest rate, for any position 
     under this system or an equivalent system as determined by 
     the President's Pay Agent designated under section 5304(d), 
     shall not exceed the rate for level III of the Executive 
     Schedule. The payment of the rates shall not be subject to 
     the pay limitation of section 5306(e) or 5373.
       ``(b) Notwithstanding the provisions of subsection (a), the 
     applicable maximum shall be level II of the Executive 
     Schedule for any agency that is certified under section 5307 
     as having a performance appraisal system which, as designed 
     and applied, makes meaningful distinctions based on relative 
     performance.
       ``(c) No employee may suffer a reduction in pay by reason 
     of transfer from an agency with an applicable maximum rate of 
     pay prescribed under subsection (b) to an agency with an 
     applicable maximum rate of pay prescribed under subsection 
     (a).''; and
       (3) in section 5383--
       (A) in subsection (a) by striking ``which of the rates 
     established under section 5382 of this title'' and inserting 
     ``which of the rates within a range established under section 
     5382''; and
       (B) in subsection (c) by striking ``for any pay adjustment 
     under section 5382 of this title'' and inserting ``as 
     provided in regulations prescribed by the Office under 
     section 5385''.
       (b) Post-Employment Restrictions.--(1) Clause (ii) of 
     section 207(c)(2)(A) of title 18, United States Code is 
     amended to read as follows:
       ``(ii) employed in a position which is not referred to in 
     clause (i) and for which that person is paid at a rate of 
     basic pay which is equal to or greater than 86.5 percent of 
     the rate of basic pay for level II of the Executive Schedule, 
     or, for a period of 2 years following the enactment of the 
     National Defense Authorization Act for Fiscal Year 2004, a 
     person who, on the day prior to the enactment of that Act, 
     was employed in a position which is not referred to in clause 
     (i) and for which the rate of basic pay, exclusive of any 
     locality-based pay adjustment under section 5304 or section 
     5304a of title 5, was equal to or greater than the rate of 
     basic pay payable for level 5 of the Senior Executive Service 
     on the day prior to the enactment of that Act,''.
       (2) Subchapter I of chapter 73 of title 5, United States 
     Code, is amended by inserting at the end the following new 
     section:

     ``Sec. 7302. Post-employment notification

       ``(a) Not later than the effective date of the amendments 
     made by section 1106 of the National Defense Authorization 
     Act for Fiscal Year 2004, or 180 days after the date of 
     enactment of that Act, whichever is later, the Office of 
     Personnel Management shall, in consultation with the Attorney 
     General and the Office of Government Ethics, promulgate 
     regulations requiring that each Executive branch agency 
     notify any employee of that agency who is subject to the 
     provisions of section 207(c)(1) of title 18, as a result of 
     the amendment to section 207(c)(2)(A)(ii) of that title by 
     that Act.
       ``(b) The regulations shall require that notice be given 
     before, or as part of, the action that affects the employee's 
     coverage under section 207(c)(1) of title 18, by virtue of 
     the provisions of section 207(c)(2)(A)(ii) of that title, and 
     again when employment or service in the covered position is 
     terminated.''.
       (3) The table of sections for chapter 73 of title 5, United 
     States Code, is amended by adding after the item relating to 
     section 7301 the following:

``7302. Post-employment notification.''.

       (c) Effective Date and Applicability.--(1) The amendments 
     made by this section shall take effect on the first day of 
     the first pay period beginning on or after the first January 
     1 following the date of enactment of this section.
       (2) The amendments made by subsection (a) may not result in 
     a reduction in the rate of basic pay for any senior executive 
     during the first year after the effective date of those 
     amendments.
       (3) For the purposes of paragraph (2), the rate of basic 
     pay for a senior executive shall be deemed to be the rate of 
     basic pay set for the senior executive under section 5383 of 
     title 5, United States Code, plus applicable locality pay 
     paid to that senior executive, as of the date of enactment of 
     this Act.
       (4) Until otherwise provided by law, or except as otherwise 
     provided by this section, any reference in a provision of law 
     to a rate of basic pay that is above the minimum payable and 
     below the maximum payable to a member of the Senior Executive 
     Service shall be considered a reference to the rate of basic 
     pay payable for level IV of the Executive Schedule.

     SEC. 1126. DESIGN ELEMENTS OF PAY-FOR-PERFORMANCE SYSTEMS IN 
                   DEMONSTRATION PROJECTS.

       A pay-for-performance system may not be initiated under 
     chapter 47 of title 5, United States Code, after the date of 
     enactment of this Act, unless it incorporates the following 
     elements:
       (1) Adherence to merit principles set forth in section 2301 
     of such title.
       (2) A fair, credible, and transparent employee performance 
     appraisal system.
       (3) A link between elements of the pay-for-performance 
     system, the employee performance appraisal system, and the 
     agency's strategic plan.
       (4) A means for ensuring employee involvement in the design 
     and implementation of the system.
       (5) Adequate training and retraining for supervisors, 
     managers, and employees in the implementation and operation 
     of the pay-for-performance system.
       (6) A process for ensuring ongoing performance feedback and 
     dialogue between supervisors, managers, and employees 
     throughout the appraisal period, and setting timetables for 
     review.
       (7) Effective safeguards to ensure that the management of 
     the system is fair and equitable and based on employee 
     performance.
       (8) A means for ensuring that adequate agency resources are 
     allocated for the design, implementation, and administration 
     of the pay-for-performance system.

     SEC. 1127. FEDERAL FLEXIBLE BENEFITS PLAN ADMINISTRATIVE 
                   COSTS.

       (a) In General.--Notwithstanding any other provision of 
     law, an agency or other employing entity of the Government 
     which provides or plans to provide a flexible spending 
     account option for its employees shall not impose any fee 
     with respect to any of its employees in order to defray the 
     administrative costs associated therewith.
       (b) Offset of Administrative Costs.--Each such agency or 
     employing entity that offers a flexible spending account 
     option under a program established or administered by the 
     Office of Personnel Management shall periodically forward to 
     such Office, or entity designated by such Office, the amount 
     necessary to offset the administrative costs of such program 
     which are attributable to such agency.
       (c) Reports.--(1) The Office shall submit a report to the 
     Committee on Government Reform of the House of 
     Representatives and the Committee on Governmental Affairs of 
     the Senate no later than March 31, 2004, specifying the 
     administrative costs associated with the Governmentwide 
     program (referred to in subsection (b)) for fiscal year 2003, 
     as well as the projected administrative costs of such program 
     for each of the 5 fiscal years thereafter.
       (2) At the end of each of the first 3 calendar years in 
     which an agency or other employing entity offers a flexible 
     spending account option under this section, such agency or 
     entity shall submit a report to the Office of Management and 
     Budget showing the amount of its employment tax savings in 
     such year which are attributable to such option, net of 
     administrative fees paid under subsection (b).

     SEC. 1128. EMPLOYEE SURVEYS.

       (a) In General.--Each agency shall conduct an annual survey 
     of its employees (including survey questions unique to the 
     agency and questions prescribed under subsection (b)) to 
     assess--
       (1) leadership and management practices that contribute to 
     agency performance; and
       (2) employee satisfaction with--
       (A) leadership policies and practices;
       (B) work environment;
       (C) rewards and recognition for professional accomplishment 
     and personal contributions to achieving organizational 
     mission;
       (D) opportunity for professional development and growth; 
     and
       (E) opportunity to contribute to achieving organizational 
     mission.
       (b) Regulations.--The Office of Personnel Management shall 
     issue regulations prescribing survey questions that should 
     appear on all agency surveys under subsection (a) in order to 
     allow a comparison across agencies.
       (c) Availability of Results.--The results of the agency 
     surveys under subsection (a) shall be made available to the 
     public and posted on the website of the agency involved, 
     unless the head of such agency determines that doing so would 
     jeopardize or negatively impact national security.
       (d) Agency defined.--For purposes of this section, the term 
     ``agency'' means an Executive agency (as defined by section 
     105 of title 5, United States Code).

     SEC. 1129. HUMAN CAPITAL PERFORMANCE FUND.

       (a) In General.--Subpart D of part III of title 5, United 
     States Code, is amended by inserting after chapter 53 the 
     following:

              ``CHAPTER 54--HUMAN CAPITAL PERFORMANCE FUND

  ``Sec.
  ``5401. Purpose.
  ``5402. Definitions.
  ``5403. Human Capital Performance Fund.
  ``5404. Human capital performance payments.
  ``5405. Regulations.
  ``5406. Agency plan.
  ``5407. Nature of payment.
  ``5408. Appropriations.

     ``Sec. 5401. Purpose

       ``The purpose of this chapter is to promote, through the 
     creation of a Human Capital Performance Fund, greater 
     performance in the Federal Government. Monies from the Fund 
     will be used to reward agencies' highest performing and most 
     valuable employees. This Fund will offer Federal managers a 
     new tool to recognize employee performance that is critical 
     to the achievement of agency missions.

[[Page 27579]]



     ``Sec. 5402. Definitions

       ``For the purpose of this chapter--
       ``(1) `agency' means an Executive agency under section 105, 
     but does not include the General Accounting Office;
       ``(2) `employee' includes--
       ``(A) an individual paid under a statutory pay system 
     defined in section 5302(1);
       ``(B) a prevailing rate employee, as defined in section 
     5342(a)(2); and
       ``(C) a category of employees included by the Office of 
     Personnel Management following the review of an agency plan 
     under section 5403(b)(1);
     but does not include--
       ``(i) an individual paid at an annual rate of basic pay for 
     a level of the Executive Schedule, under subchapter II of 
     chapter 53, or at a rate provided for one of those levels 
     under another provision of law;
       ``(ii) a member of the Senior Executive Service paid under 
     subchapter VIII of chapter 53, or an equivalent system;
       ``(iii) an administrative law judge paid under section 
     5372;
       ``(iv) a contract appeals board member paid under section 
     5372a;
       ``(v) an administrative appeals judge paid under section 
     5372b; and
       ``(vi) an individual in a position which is excepted from 
     the competitive service because of its confidential, policy-
     determining, policy-making, or policy-advocating character; 
     and
       ``(3) `Office' means the Office of Personnel Management.

     ``Sec. 5403. Human Capital Performance Fund

       ``(a) There is hereby established the Human Capital 
     Performance Fund, to be administered by the Office for the 
     purpose of this chapter.
       ``(b)(1)(A) An agency shall submit a plan as described in 
     section 5406 to be eligible for consideration by the Office 
     for an allocation under this section. An allocation shall be 
     made only upon approval by the Office of an agency's plan.
       ``(B)(i) After the reduction for training required under 
     section 5408, ninety percent of the remaining amount 
     appropriated to the Fund may be allocated by the Office to 
     the agencies. Of the amount to be allocated, an agency's pro 
     rata distribution may not exceed its pro rata share of 
     Executive branch payroll.
       ``(ii) If the Office does not allocate an agency's full pro 
     rata share, the undistributed amount remaining from that 
     share will become available for distribution to other 
     agencies, as provided in subparagraph (C).
       ``(C)(i) After the reduction for training under section 
     5408, ten percent of the remaining amount appropriated to the 
     Fund, as well as the amount of the pro rata share not 
     distributed because of an agency's failure to submit a 
     satisfactory plan, shall be allocated among agencies with 
     exceptionally high-quality plans.
       ``(ii) An agency with an exceptionally high-quality plan is 
     eligible to receive an additional distribution in addition to 
     its full pro rata distribution.
       ``(2) Each agency is required to provide to the Office such 
     payroll information as the Office specifies necessary to 
     determine the Executive branch payroll.

     ``Sec. 5404. Human capital performance payments

       ``(a)(1) Notwithstanding any other provision of law, the 
     Office may authorize an agency to provide human capital 
     performance payments to individual employees based on 
     exceptional performance contributing to the achievement of 
     the agency mission.
       ``(2) The number of employees in an agency receiving 
     payments from the Fund, in any year, shall not be more than 
     the number equal to 15 percent of the agency's average total 
     civilian full- and part-time permanent employment for the 
     previous fiscal year.
       ``(b)(1) A human capital performance payment provided to an 
     individual employee from the Fund, in any year, shall not 
     exceed 10 percent of the employee's rate of basic pay.
       ``(2) The aggregate of an employee's rate of basic pay, 
     adjusted by any locality-based comparability payments, and 
     human capital performance pay, as defined by regulation, may 
     not exceed the rate of basic pay for Executive Level IV in 
     any year.
       ``(3) Any human capital performance payment provided to an 
     employee from the Fund is in addition to any annual pay 
     adjustment (under section 5303 or any similar provision of 
     law) and any locality-based comparability payment that may 
     apply.
       ``(c) No monies from the Human Capital Performance Fund may 
     be used to pay for a new position, for other performance-
     related payments, or for recruitment or retention incentives 
     paid under sections 5753 and 5754.
       ``(d)(1) An agency may finance initial human capital 
     performance payments using monies from the Human Capital 
     Performance Fund, as available.
       ``(2) In subsequent years, continuation of previously 
     awarded human capital performance payments shall be financed 
     from other agency funds available for salaries and expenses.

     ``Sec. 5405. Regulations

       ``The Office shall issue such regulations as it determines 
     to be necessary for the administration of this chapter, 
     including the administration of the Fund. The Office's 
     regulations shall include criteria governing--
       ``(1) an agency plan under section 5406;
       ``(2) the allocation of monies from the Fund to agencies;
       ``(3) the nature, extent, duration, and adjustment of, and 
     approval processes for, payments to individual employees 
     under this chapter;
       ``(4) the relationship to this chapter of agency 
     performance management systems;
       ``(5) training of supervisors, managers, and other 
     individuals involved in the process of making performance 
     distinctions; and
       ``(6) the circumstances under which funds may be allocated 
     by the Office to an agency in amounts below or in excess of 
     the agency's pro rata share.

     ``Sec. 5406. Agency plan

       ``(a) To be eligible for consideration by the Office for an 
     allocation under this section, an agency shall--
       ``(1) develop a plan that incorporates the following 
     elements:
       ``(A) adherence to merit principles set forth in section 
     2301;
       ``(B) a fair, credible, and transparent employee 
     performance appraisal system;
       ``(C) a link between the pay-for-performance system, the 
     employee performance appraisal system, and the agency's 
     strategic plan;
       ``(D) a means for ensuring employee involvement in the 
     design and implementation of the system;
       ``(E) adequate training and retraining for supervisors, 
     managers, and employees in the implementation and operation 
     of the pay-for-performance system;
       ``(F) a process for ensuring ongoing performance feedback 
     and dialogue between supervisors, managers, and employees 
     throughout the appraisal period, and setting timetables for 
     review;
       ``(G) effective safeguards to ensure that the management of 
     the system is fair and equitable and based on employee 
     performance; and
       ``(H) a means for ensuring that adequate agency resources 
     are allocated for the design, implementation, and 
     administration of the pay-for-performance system;
       ``(2) upon approval, receive an allocation of funding from 
     the Office;
       ``(3) make payments to individual employees in accordance 
     with the agency's approved plan; and
       ``(4) provide such information to the Office regarding 
     payments made and use of funds received under this section as 
     the Office may specify.
       ``(b) The Office, in consultation with the Chief Human 
     Capital Officers Council, shall review and approve an 
     agency's plan before the agency is eligible to receive an 
     allocation of funding from the Office.
       ``(c) The Chief Human Capital Officers Council shall 
     include in its annual report to Congress under section 
     1303(d) of the Homeland Security Act of 2002 an evaluation of 
     the formulation and implementation of agency performance 
     management systems.

     ``Sec. 5407. Nature of payment

       ``Any payment to an employee under this section shall be 
     part of the employee's basic pay for the purposes of 
     subchapter III of chapter 83, and chapters 84 and 87, and for 
     such other purposes (other than chapter 75) as the Office 
     shall determine by regulation.

     ``Sec. 5408. Appropriations

       ``There is authorized to be appropriated $500,000,000 for 
     fiscal year 2004, and, for each subsequent fiscal year, such 
     sums as may be necessary to carry out the provisions of this 
     chapter. In the first year of implementation, up to 10 
     percent of the amount appropriated to the Fund shall be 
     available to participating agencies to train supervisors, 
     managers, and other individuals involved in the appraisal 
     process on using performance management systems to make 
     meaningful distinctions in employee performance and on the 
     use of the Fund.''.
       (b) Clerical Amendment.--The table of chapters for part III 
     of title 5, United States Code, is amended by inserting after 
     the item relating to chapter 53 the following:

   ``54. Human Capital Performance Fund.......................  5401''.
              TITLE XII--MATTERS RELATING TO OTHER NATIONS

                  Subtitle A--Matters Relating to Iraq

Sec. 1201. Medical assistance to Iraqi children injured during 
              Operation Iraqi Freedom.
Sec. 1202. Report on the conduct of Operation Iraqi Freedom.
Sec. 1203. Report on Department of Defense security and reconstruction 
              activities in Iraq.
Sec. 1204. Report on acquisition by Iraq of advanced weapons.
Sec. 1205. Sense of Congress on use of small businesses, minority-owned 
              businesses, and women-owned businesses in efforts to 
              rebuild Iraq.

           Subtitle B--Matters Relating to Export Protections

Sec. 1211. Review of export protections for military superiority 
              resources.
Sec. 1212. Report on Department of Defense costs relating to national 
              security controls on satellite exports.

        Subtitle C--Administrative Requirements and Authorities

Sec. 1221. Authority to use funds for payment of costs of attendance of 
              foreign visitors under Regional Defense Counterterrorism 
              Fellowship Program.
Sec. 1222. Recognition of superior noncombat achievements or 
              performance by members of friendly foreign forces and 
              other foreign nationals.

[[Page 27580]]

Sec. 1223. Expansion of authority to waive charges for costs of 
              attendance at George C. Marshall European Center for 
              Security Studies.
Sec. 1224. Authority for check cashing and currency exchange services 
              to be provided to foreign military members participating 
              in certain activities with United States forces.
Sec. 1225. Depot maintenance and repair work on certain types of 
              trainer aircraft to be transferred to foreign countries 
              as excess aircraft.

       Subtitle D--Other Reports and Sense of Congress Statements

Sec. 1231. Annual report on the NATO Prague Capabilities Commitment and 
              the NATO Response Force.
Sec. 1232. Report on actions that could be taken regarding countries 
              that initiate certain legal actions against United States 
              officials or members of the Armed Forces.
Sec. 1233. Sense of Congress on redeployment of United States forces in 
              Europe.
Sec. 1234. Sense of Congress concerning Navy port calls in Israel.
                  Subtitle A--Matters Relating to Iraq

     SEC. 1201. MEDICAL ASSISTANCE TO IRAQI CHILDREN INJURED 
                   DURING OPERATION IRAQI FREEDOM.

       (a) Assistance.--Subject to subsections (c) and (d), the 
     Secretary of Defense shall, to the maximum extent 
     practicable, provide all necessary health care and related 
     support to provide needed medical assistance to Iraqi 
     children who, as determined by the Secretary of Defense, were 
     injured during and as a result of Operation Iraqi Freedom. 
     Such assistance shall be provided in an expeditious manner.
       (b) Related Support.--Related support under subsection (a) 
     includes transportation on aeromedical evacuation aircraft of 
     the Department of Defense on a space-available basis.
       (c) Limitations Relating to Medical Care.--Assistance may 
     be provided to a child under subsection (a)--
       (1) only if adequate treatment from other sources in Iraq 
     or neighboring countries is not available; and
       (2) only after completion of an evaluation by a physician 
     or other appropriate medical personnel of the United States 
     Armed Forces.
       (d) Limitation Relating to United States Military 
     Operations.--Assistance may be provided to a child under 
     subsection (a) only if the provision of such assistance would 
     not adversely affect military operations of the United 
     States.

     SEC. 1202. REPORT ON THE CONDUCT OF OPERATION IRAQI FREEDOM.

       (a) Report Required.--(1) Not later than March 31, 2004, 
     the Secretary of Defense shall submit to the congressional 
     defense committees and the Permanent Select Committee on 
     Intelligence of the House of Representatives and the Select 
     Committee on Intelligence of the Senate a report on the 
     preparation for and conduct of military operations under 
     Operation Iraqi Freedom from March 19, 2003, to May 1, 2003.
       (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 officers and 
     officials as the Secretary considers appropriate.
       (b) Content.--The report shall include a discussion, with a 
     particular emphasis on accomplishments and shortcomings and 
     on near-term and long-term corrective actions to address 
     those shortcomings, of the following:
       (1) The military objectives of the international coalition 
     conducting Operation Iraqi Freedom, the military strategy 
     selected to achieve the objectives, and an assessment of the 
     execution of the military strategy.
       (2) The deployment process, including the adaptability of 
     the process to unforeseen contingencies and changing 
     requirements.
       (3) The effectiveness of the reserve component forces used 
     in Operation Iraqi Freedom, including the reserve component 
     mobilization process, the timeliness of mobilization 
     notification, training, operational effectiveness in theater, 
     and subsequent demobilization.
       (4) The use and performance of major items of United States 
     military equipment, weapon systems, and munitions (including 
     items classified under special access procedures and items 
     drawn from prepositioned stocks) and any expected effects of 
     the experience with the use and performance of those items on 
     the doctrinal and tactical employment of such items and on 
     plans for continuing the acquisition of such items.
       (5) The effectiveness of joint air operations, including 
     the doctrine for the employment of close air support in the 
     varied environments of Operation Iraqi Freedom, and the 
     effectiveness of attack helicopter operations.
       (6) The use of special operations forces, including 
     operational and intelligence uses classified under special 
     access procedures.
       (7) The scope of logistics support, including support from 
     other nations.
       (8) The incidence of accidental fratricide, together with a 
     discussion of the effectiveness of the tracking of friendly 
     forces and of the combat identification systems in mitigating 
     friendly fire incidents.
       (9) The adequacy of spectrum and bandwidth to transmit all 
     necessary information to operational forces and assets, 
     including unmanned aerial vehicles, ground vehicles, and 
     individual soldiers.
       (10) The effectiveness of information operations, including 
     the effectiveness of Commando Solo and other psychological 
     operations assets, in achieving established objectives, 
     together with a description of technological and other 
     restrictions on the use of psychological operations 
     capabilities.
       (11) The adequacy of United States and coalition 
     intelligence and counterintelligence systems and personnel, 
     including contributions regarding bomb damage assessments and 
     particularly including United States tactical intelligence 
     and related activities (TIARA) programs and the Joint 
     Military Intelligence Program (JMIP), as well as the adequacy 
     of such support to facilitate searches for weapons of mass 
     destruction.
       (12) The rapid insertion and integration, if any, of 
     developmental but mission-essential equipment during all 
     phases of the operation.
       (13) The most critical lessons learned that could lead to 
     long-term doctrinal, organizational, and technological 
     changes (including new equipment, weapons systems, and 
     munitions) and the probable effects that an implementation of 
     those changes would have on current visions, goals, and plans 
     for transformation of the Armed Forces and for joint and 
     combined operations.
       (14) The role of the law of armed conflict in the planning 
     and execution of military operations by United States forces 
     and the other coalition forces and the effects on operations 
     of Iraqi compliance or noncompliance with the law of armed 
     conflict.
       (15) The policies and procedures relating to the media, 
     including the use of embedded media.
       (16) The results of a study, carried out by the Secretary 
     of Defense, regarding the availability of family support 
     services provided for the dependents of members of the 
     National Guard and other reserve components of the Armed 
     Forces who are called or ordered to active duty.
       (17) The direct and indirect cost of military operations, 
     including an assessment of the total incremental expenditures 
     made by the Department of Defense as a result of Operation 
     Iraqi Freedom.
       (c) Forms of Report.--The report shall be submitted in 
     unclassified form with a classified annex, if necessary.

     SEC. 1203. REPORT ON DEPARTMENT OF DEFENSE SECURITY AND 
                   RECONSTRUCTION ACTIVITIES IN IRAQ.

       (a) Report Required.--Not later than 90 days after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     submit to Congress a report on the security and 
     reconstruction activities of the Department of Defense in 
     Iraq.
       (b) Report Elements.--The report shall discuss the range of 
     infrastructure reconstruction, civil administration, 
     humanitarian assistance, interim governance, and political 
     development activities undertaken in Iraq by officials of the 
     Department and by those civilians reporting to the Secretary 
     of Defense and the missions undertaken in Iraq by United 
     States military forces. In particular, the report shall 
     include a discussion of the following:
       (1) The evolution of the organizational structure of the 
     civilian groups reporting to the Secretary, including the 
     Office of Reconstruction and Humanitarian Assistance and the 
     Office of the Coalition Provisional Authority, on issues of 
     Iraqi administration and reconstruction and the factors 
     influencing that evolution.
       (2) The relationship of the Department of Defense with 
     other United States departments and agencies involved in 
     administration and reconstruction planning and execution in 
     Iraq.
       (3) The relationship of Department of Defense entities, 
     including the Office of Reconstruction and Humanitarian 
     Assistance and the Office of the Coalition Provisional 
     Authority, with intergovernmental and nongovernmental 
     organizations contributing to the reconstruction and 
     governance efforts.
       (4) Progress made to the date of the report in--
       (A) rebuilding Iraqi infrastructure;
       (B) providing for the humanitarian needs of the Iraqi 
     people;
       (C) reconstituting the Iraqi governmental bureaucracy and 
     its provision of services;
       (D) developing mechanisms of fully transitioning Iraq to 
     representative self-government; and
       (E) recruiting, training, and fielding Iraqi police and 
     military forces.
       (5) Progress made to the date of the report by Department 
     of Defense civilians and military personnel in accounting for 
     any Iraqi weapons of mass destruction and associated weapons 
     capabilities.
       (6) Progress made to the date of the report by United 
     States military personnel in providing security in Iraq and 
     in transferring security functions to a reconstituted Iraqi 
     police force and military.
       (7) The Secretary's assessment of the scope of the ongoing 
     needed commitment of United States military forces and of the 
     remaining tasks to be completed by Department of Defense 
     civilian personnel in the governance and reconstruction 
     areas, including an estimate of the total expenditures the 
     Department of Defense expects to make for security and 
     reconstruction activities in Iraq.
       (8) The Secretary's assessment of the effect that the 
     United States military presence in Iraq will have on 
     replacement and unit rotation policies, including the overall 
     effect on global United States military deployments.

     SEC. 1204. REPORT ON ACQUISITION BY IRAQ OF ADVANCED WEAPONS.

       (a) Report.--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 and Foreign Relations of 
     the Senate and the Committees on Armed Services and 
     International Relations of the House of Representatives a 
     report on the acquisition by

[[Page 27581]]

     Iraq of weapons of mass destruction and associated delivery 
     systems and the acquisition by Iraq of advanced conventional 
     weapons.
       (b) Matters To Be Included.--The report shall include the 
     following:
       (1) A description of any materials, technology, and know-
     how that Iraq was able to obtain for its nuclear, chemical, 
     biological, ballistic missile, and unmanned aerial vehicle 
     programs, and advanced conventional weapons programs, from 
     1979 through April 2003 from entities (including Iraqi 
     citizens) outside of Iraq, as well as a description of how 
     Iraq obtained these capabilities from those entities.
       (2) An assessment of the degree to which United States, 
     foreign, and multilateral export control regimes prevented 
     acquisition by Iraq of weapons of mass destruction-related 
     technology and materials and advanced conventional weapons 
     and delivery systems since the commencement of international 
     inspections in Iraq.
       (3) An assessment of the effectiveness of United Nations 
     sanctions at halting the flow of militarily-useful contraband 
     to Iraq from 1991 until the end of Operation Iraqi Freedom.
       (4) An assessment of how Iraq was able to evade 
     International Atomic Energy Agency and United Nations 
     inspections regarding chemical, nuclear, biological, and 
     missile weapons and related capabilities.
       (5) Identification and a catalog of the entities and 
     countries that transferred militarily useful contraband and 
     items described pursuant to paragraph (1) to Iraq between 
     1991 and the end of major combat operations of Operation 
     Iraqi Freedom on May 1, 2003, and the nature of that 
     contraband and of those items.
       (c) Form of Report.--The report shall be submitted in 
     unclassified form with a classified annex, if necessary.

     SEC. 1205. SENSE OF CONGRESS ON USE OF SMALL BUSINESSES, 
                   MINORITY-OWNED BUSINESSES, AND WOMEN-OWNED 
                   BUSINESSES IN EFFORTS TO REBUILD IRAQ.

       It is the sense of Congress that the Secretary of Defense 
     should ensure that outreach procedures are in place to 
     provide information to small businesses, minority-owned 
     businesses, and women-owned businesses regarding Department 
     of Defense requirements and contract opportunities for the 
     rebuilding of Iraq.
           Subtitle B--Matters Relating to Export Protections

     SEC. 1211. REVIEW OF EXPORT PROTECTIONS FOR MILITARY 
                   SUPERIORITY RESOURCES.

       (a) Review Required.--The Secretary of Defense shall carry 
     out a review--
       (1) to identify goods or technology (as defined in section 
     16 of the Export Administration Act of 1979 (50 U.S.C. App. 
     2415)) that, if obtained by a potential adversary, could 
     significantly undermine the military superiority or 
     qualitative military advantage of the United States over 
     potential adversaries or otherwise contribute to the 
     acquisition of weapons of mass destruction and their delivery 
     systems; and
       (2) to determine whether any of the items or technologies 
     identified under paragraph (1) are not currently controlled 
     for export purposes on either the Commerce Control List or 
     the United States Munitions List.
       (b) Annual Reports.--(1) Not later than March 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 an unclassified report, with a 
     classified annex as necessary, on the results of the review 
     under subsection (a).
       (2) For each of the next two years after the submission of 
     the report under paragraph (1), the Secretary shall submit to 
     those committees an update on that report. Such updates shall 
     be submitted not later than March 1, 2005, and not later than 
     March 1, 2006.

     SEC. 1212. REPORT ON DEPARTMENT OF DEFENSE COSTS RELATING TO 
                   NATIONAL SECURITY CONTROLS ON SATELLITE 
                   EXPORTS.

       (a) Study.--The Inspector General of the Department of 
     Defense shall conduct a study of the costs incurred by the 
     Department of Defense for each fiscal year from fiscal year 
     1999 through fiscal year 2003 relating to national security 
     controls on satellite exports. As part of such study, the 
     Inspector General shall identify for each such fiscal year 
     the amounts expended by the Department of Defense (1) for the 
     monitoring of launches of satellites and related items in a 
     foreign country pursuant to section 1514 of the Strom 
     Thurmond National Defense Authorization Act for Fiscal Year 
     1999 (Public Law 105-261; 22 U.S.C. 2778 note), and (2) in 
     connection with applications for licenses for the export of 
     satellites and related items (as that term is defined in 
     section 1516 of that Act).
       (b) Report.--Not later than April 1, 2004, the Inspector 
     General shall submit to the Committees on Armed Services of 
     the Senate and the House of Representatives a report on the 
     study under subsection (a). The report shall include the 
     following:
       (1) An identification and assessment of the costs referred 
     to in subsection (a), shown in the aggregate and separately, 
     by fiscal year and by clauses (1) and (2) of that subsection.
       (2) A review of the costs referred to in clause (1) of 
     subsection (a) for which the Department of Defense has been 
     reimbursed by the person or entity receiving the satellite 
     launch monitoring services involved, including the extent to 
     which indirect costs were included in such reimbursement.
        Subtitle C--Administrative Requirements and Authorities

     SEC. 1221. AUTHORITY TO USE FUNDS FOR PAYMENT OF COSTS OF 
                   ATTENDANCE OF FOREIGN VISITORS UNDER REGIONAL 
                   DEFENSE COUNTERTERRORISM FELLOWSHIP PROGRAM.

       (a) Authority To Use Funds.--(1) Subchapter I of chapter 
     134 of title 10, United States Code, is amended by adding at 
     the end the following new section:

     ``Sec. 2249c. Authority to use appropriated funds for costs 
       of attendance of foreign visitors under Regional Defense 
       Counterterrorism Fellowship Program

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

``2249c. Authority to use appropriated funds for costs of attendance of 
              foreign visitors under Regional Defense Counterterrorism 
              Fellowship Program.''.

       (b) Notification of Congress.--Not later than December 1, 
     2003, the Secretary of Defense shall--
       (1) prescribe the final regulations for carrying out 
     section 2249c of title 10, United States Code, as added by 
     subsection (a); and
       (2) notify the congressional defense committees of the 
     prescription of such regulations.

     SEC. 1222. RECOGNITION OF SUPERIOR NONCOMBAT ACHIEVEMENTS OR 
                   PERFORMANCE BY MEMBERS OF FRIENDLY FOREIGN 
                   FORCES AND OTHER FOREIGN NATIONALS.

       (a) Authority.--Chapter 53 of title 10, United States Code, 
     is amended by inserting after section 1051a the following new 
     section:

     ``Sec. 1051b. Bilateral or regional cooperation programs: 
       awards and mementos to recognize superior noncombat 
       achievements or performance

       ``(a) General Authority.--The Secretary of Defense may 
     present awards and mementos purchased with funds appropriated 
     for operation and maintenance of the armed forces to 
     recognize superior noncombat achievements or performance by 
     members of friendly foreign forces and other foreign 
     nationals that significantly enhance or support the National 
     Security Strategy of the United States.
       ``(b) Activities That May Be Recognized.--Activities that 
     may be recognized under subsection (a) include superior 
     achievement or performance that--
       ``(1) plays a crucial role in shaping the international 
     security environment in ways that protect and promote United 
     States interests;
       ``(2) supports or enhances United States overseas presence 
     and peacetime engagement activities, including defense 
     cooperation initiatives, security assistance training and 
     programs, and training and exercises with the armed forces;
       ``(3) helps to deter aggression and coercion, build 
     coalitions, and promote regional stability; or
       ``(4) serves as a role model for appropriate conduct by 
     military forces in emerging democracies.
       ``(c) Limitation.--Expenditures for the purchase or 
     production of mementos for award under this section may not 
     exceed the minimal value in effect under section 7342(a)(5) 
     of title 5.''.
       (b) Clerical Amendment.--The table of sections at the 
     beginning of such chapter is amended by inserting after the 
     item relating to section 1051a the following new item:

``1051b. Bilateral or regional cooperation programs: awards and 
              mementos to recognize superior noncombat achievements or 
              performance.''.

[[Page 27582]]



     SEC. 1223. EXPANSION OF AUTHORITY TO WAIVE CHARGES FOR COSTS 
                   OF ATTENDANCE AT GEORGE C. MARSHALL EUROPEAN 
                   CENTER FOR SECURITY STUDIES.

       Section 1306(b)(1) of the National Defense Authorization 
     Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2892) 
     is amended by striking ``of cooperation partner states of the 
     North Atlantic Council or the Partnership for Peace'' and 
     inserting ``from states located in Europe or the territory of 
     the former Soviet Union''.

     SEC. 1224. AUTHORITY FOR CHECK CASHING AND CURRENCY EXCHANGE 
                   SERVICES TO BE PROVIDED TO FOREIGN MILITARY 
                   MEMBERS PARTICIPATING IN CERTAIN ACTIVITIES 
                   WITH UNITED STATES FORCES.

       (a) Authority.--Subsection (b) of section 3342 of title 31, 
     United States Code, is amended by adding at the end the 
     following new paragraph:
       ``(8) A member of the military forces of an allied or 
     coalition nation who is participating in a combined 
     operation, combined exercise, or combined humanitarian or 
     peacekeeping mission with the Armed Forces of the United 
     States, but--
       ``(A) only if--
       ``(i) such disbursing official action for members of the 
     military forces of that nation is approved by the senior 
     United States military commander assigned to that operation, 
     exercise, or mission; and
       ``(ii) that nation has guaranteed payment for any 
     deficiency resulting from such disbursing official action; 
     and
       ``(B) in the case of negotiable instruments, only for a 
     negotiable instrument drawn on a financial institution 
     located in the United States or on a foreign branch of such 
     an institution.''.
       (b) Technical Amendments.--That subsection is further 
     amended--
       (1) by striking ``only for--'' in the matter preceding 
     paragraph (1) and inserting ``only for the following:'';
       (2) by striking ``an'' at the beginning of paragraph (1) 
     and inserting ``An'';
       (3) by striking ``personnel'' in paragraphs (2) and (6) and 
     inserting ``Personnel'';
       (4) by striking ``a'' at the beginning of paragraphs (3), 
     (4), (5), and (7) and inserting ``A'';
       (5) by striking the semicolon at the end of paragraphs (1) 
     through (5) and inserting a period;
       (6) by striking ``; or'' at the end of paragraph (6) and 
     inserting a period; and
       (7) by striking ``1752(1))'' in paragraph (7) and inserting 
     ``1752(1)))''.

     SEC. 1225. DEPOT MAINTENANCE AND REPAIR WORK ON CERTAIN TYPES 
                   OF TRAINER AIRCRAFT TO BE TRANSFERRED TO 
                   FOREIGN COUNTRIES AS EXCESS AIRCRAFT.

       (a) Depot Maintenance and Repair Work Before Transfer.--
     Before an excess trainer aircraft of a type specified in 
     subsection (b) is transferred to a foreign country for the 
     purpose of flight operations by that country, the Secretary 
     of Defense shall make all reasonable efforts to ensure that 
     the aircraft receives necessary depot maintenance and repair 
     work and that such work is performed in the United States.
       (b) Covered Types of Aircraft.--Subsection (a) applies to 
     the following types of trainer aircraft:
       (1) T-2 Buckeye aircraft.
       (2) T-37 Tweet aircraft.
       (c) Work To Be Performed at no Cost to DOD.--Any work 
     referred to in subsection (a) shall be performed at no cost 
     to the Department of Defense.
       Subtitle D--Other Reports and Sense of Congress Statements

     SEC. 1231. ANNUAL REPORT ON THE NATO PRAGUE CAPABILITIES 
                   COMMITMENT AND THE NATO RESPONSE FORCE.

       (a) Findings.--Congress makes the following findings:
       (1) At the meeting of the North Atlantic Council held in 
     Prague in November 2002, the heads of states and governments 
     of the North Atlantic Treaty Organization (NATO) launched a 
     Prague Capabilities Commitment and decided to create a NATO 
     Response Force.
       (2) The Prague Capabilities Commitment is part of the 
     continuing NATO effort to improve and develop new military 
     capabilities for modern warfare in a high-threat environment. 
     As part of this commitment, individual NATO allies have made 
     firm and specific political commitments to improve their 
     capabilities in the areas of--
       (A) chemical, biological, radiological, and nuclear 
     defense;
       (B) intelligence, surveillance, and target acquisition;
       (C) air-to-ground surveillance;
       (D) command, control, and communications;
       (E) combat effectiveness, including precision guided 
     munitions and suppression of enemy air defenses;
       (F) strategic air and sea lift;
       (G) air-to-air refueling; and
       (H) deployable combat support and combat service support 
     units.
       (3) The NATO Response Force is envisioned to be a 
     technologically advanced, flexible, deployable, 
     interoperable, and sustainable force that includes land, sea, 
     and air elements ready to move quickly to wherever needed, as 
     determined by the North Atlantic Council. The NATO Response 
     Force is also intended to be a catalyst for focusing and 
     promoting improvements in NATO's military capabilities. It is 
     expected to have initial operational capability by October 
     2004, and full operational capability by October 2006.
       (b) Annual Report.--(1) Not later than January 31 of each 
     year through 2008, the Secretary of Defense shall submit to 
     the congressional committees specified in paragraph (5) a 
     report, to be prepared in consultation with the Secretary of 
     State, on implementation of the Prague Capabilities 
     Commitment and development of the NATO Response Force by the 
     member nations of the North Atlantic Treaty Organization 
     (NATO).
       (2) The annual report under this subsection shall include 
     the following matters:
       (A) A description of the actions taken by NATO as a whole 
     and by each member nation of NATO other than the United 
     States to further the Prague Capabilities Commitment, 
     including any actions taken to improve capability shortfalls 
     in the areas identified for improvement.
       (B) A description of the actions taken by NATO as a whole 
     and by each member nation of NATO, including the United 
     States, to create the NATO Response Force.
       (C) A discussion of the relationship between NATO's efforts 
     to improve capabilities through the Prague Capabilities 
     Commitment and those of the European Union to enhance 
     European capabilities through the European Capabilities 
     Action Plan, including the extent to which they are mutually 
     reinforcing.
       (D) A discussion of NATO decisionmaking on the 
     implementation of the Prague Capabilities Commitment and the 
     development of the NATO Response Force, including--
       (i) an assessment of whether the Prague Capabilities 
     Commitment and the NATO Response Force are the sole 
     jurisdiction of the Defense Planning Committee, the North 
     Atlantic Council, or the Military Committee;
       (ii) a description of the circumstances which led to the 
     defense, military, security, and nuclear decisions of NATO on 
     matters such as the Prague Capabilities Commitment and the 
     NATO Response Force being made in bodies other than the 
     Defense Planning Committee;
       (iii) a description of the extent to which any member that 
     does not participate in the integrated military structure of 
     NATO contributes to each of the component committees of NATO, 
     including any and all committees relevant to the Prague 
     Capabilities Commitment and the NATO Response Force;
       (iv) a description of the extent to which any member that 
     does not participate in the integrated military structure of 
     NATO participates in deliberations and decisions of NATO on 
     resource policy, contribution ceilings, infrastructure, force 
     structure, modernization, threat assessments, training, 
     exercises, deployments, and other issues related to the 
     Prague Capabilities Commitment or the NATO Response Force;
       (v) a description and assessment of the impediments, if 
     any, that would preclude or limit NATO from conducting 
     deliberations and making decisions on matters such as the 
     Prague Capabilities Commitment or the NATO Response Force 
     solely in the Defense Planning Committee; and
       (vi) the recommendations of the Secretary of Defense on 
     streamlining defense, military, and security decisionmaking 
     within NATO relating to the Prague Capabilities Commitment, 
     the NATO Response Force, and other matters, including an 
     assessment of the feasibility and advisability of the greater 
     utilization of the Defense Planning Committee for such 
     purposes.
       (3) In the case of a report under this subsection after the 
     first such report, the information submitted in such report 
     under any of clauses (i) through (vi) of subparagraph (D) of 
     paragraph (2) may consist solely of an update of any 
     information previously submitted under that clause in a 
     preceding report under this subsection.
       (4) Each report under this subsection shall be submitted in 
     unclassified form, but may also be submitted in classified 
     form if necessary.
       (5) The committees specified in this paragraph are--
       (A) the Committee on Armed Services and the Committee on 
     Foreign Relations of the Senate; and
       (B) the Committee on Armed Services and the Committee on 
     International Relations of the House of Representatives.

     SEC. 1232. REPORT ON ACTIONS THAT COULD BE TAKEN REGARDING 
                   COUNTRIES THAT INITIATE CERTAIN LEGAL ACTIONS 
                   AGAINST UNITED STATES OFFICIALS OR MEMBERS OF 
                   THE ARMED FORCES.

       (a) Finding.--Congress finds that actions for or on behalf 
     of a foreign government that constitute attempts to commence 
     legal proceedings against, or attempts to compel the 
     appearance of or production of documents from, any current or 
     former official or employee of the United States or member of 
     the Armed Forces of the United States relating to the 
     performance of official duties, other than pursuant to a 
     status of forces agreement or other international agreement 
     to which the United States is a party, may have a negative 
     effect on the ability of the United States to take necessary 
     and timely military action.
       (b) Report.--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 appropriate steps that could be taken 
     by the Department of Defense (such as restrictions on 
     military travel, limitations on military support and exchange 
     programs, and consideration of relocating, or limiting 
     funding for, United States or allied military commands, 
     headquarters, or

[[Page 27583]]

     organizations) to respond to an action by a foreign 
     government described in subsection (a).

     SEC. 1233. SENSE OF CONGRESS ON REDEPLOYMENT OF UNITED STATES 
                   FORCES IN EUROPE.

       (a) Findings.--Congress makes the following findings:
       (1) In March 1999, in its initial round of expansion, the 
     North Atlantic Treaty Organization (NATO) admitted Poland, 
     the Czech Republic, and Hungary to the Alliance.
       (2) At the Prague Summit on November 21-22, 2002, the NATO 
     heads of state and government invited the countries of 
     Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia, and 
     Slovenia to join the Alliance.
       (3) The countries admitted in the initial round of 
     expansion referred to in paragraph (1) and the seven new 
     invitee nations referred to in paragraph (2) will in 
     combination significantly alter the nature of the Alliance.
       (4) During the first 50 years of the Alliance, NATO 
     materially contributed to the security and stability of 
     Western Europe, bringing peace and prosperity to the member 
     nations.
       (5) The expansion of NATO is an opportunity to assist the 
     invitee nations in gaining the capabilities to ensure peace, 
     prosperity, and democracy for themselves during the next 50 
     years of the Alliance.
       (6) The military structure and mission of NATO has changed, 
     no longer being focused on the threat of a Soviet invasion, 
     but evolving to handle new threats and new missions in the 
     area of crisis management, peacekeeping, and peace-support in 
     and beyond the Euro-Atlantic area of operations.
       (b) Sense of Congress.--In light of the findings in 
     subsection (a), it is the sense of Congress that--
       (1) the expansion of the North Atlantic Treaty Organization 
     Alliance and the evolution of the military mission of that 
     Alliance requires a fundamental reevaluation of the current 
     posture of United States forces stationed in Europe; and
       (2) the Secretary of Defense, in consultation with the 
     Secretary of State, should--
       (A) initiate a reevaluation referred to in paragraph (1); 
     and
       (B) in carrying out such a reevaluation, consider a 
     military posture that takes maximum advantage of basing and 
     training opportunities in the newly admitted and invitee 
     states referred to in paragraphs (1) and (2), respectively, 
     of subsection (a).

     SEC. 1234. SENSE OF CONGRESS CONCERNING NAVY PORT CALLS IN 
                   ISRAEL.

       It is the sense of Congress that--
       (1) the United States has invested significant amounts of 
     funds in expanding the capacity and security of the port of 
     Haifa, Israel, and the United States Navy should be able to 
     implement the necessary force protection measures that would 
     enable it to take advantage of the repair, replenishment, and 
     communications links available at that port;
       (2) the Secretary of Defense and the Secretary of the Navy 
     should conclude discussions with the Government of Israel and 
     the Israel Defense Forces to establish appropriate and 
     effective arrangements to ensure the safety of United States 
     Navy vessels and personnel during port visits to Haifa, 
     Israel; and
       (3) upon such arrangements being made, the United States 
     Navy should consider resumption of regular port visits to 
     Haifa, Israel.
  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. Limitation on use of funds until certain permits obtained.
Sec. 1304. Limitation on use of funds for biological research in the 
              former Soviet Union.
Sec. 1305. Requirement for on-site managers.
Sec. 1306. Temporary authority to waive limitation on funding for 
              chemical weapons destruction facility in Russia.
Sec. 1307. Annual certifications on use of facilities being constructed 
              for Cooperative Threat Reduction projects or activities.
Sec. 1308. Authority to use Cooperative Threat Reduction funds outside 
              the former Soviet Union.

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

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

     SEC. 1302. FUNDING ALLOCATIONS.

       (a) Funding for Specific Purposes.--Of the $450,800,000 
     authorized to be appropriated to the Department of Defense 
     for fiscal year 2004 in section 301(19) for Cooperative 
     Threat Reduction programs, the following amounts may be 
     obligated for the purposes specified:
       (1) For strategic offensive arms elimination in Russia, 
     $57,600,000.
       (2) For strategic nuclear arms elimination in Ukraine, 
     $3,900,000.
       (3) For nuclear weapons transportation security in Russia, 
     $23,200,000.
       (4) For nuclear weapons storage security in Russia, 
     $48,000,000.
       (5) For activities designated as Other Assessments/
     Administrative Support, $13,100,000.
       (6) For defense and military contacts, $11,100,000.
       (7) For chemical weapons destruction in Russia, 
     $200,300,000.
       (8) For biological weapons proliferation prevention in the 
     former Soviet Union, $54,200,000.
       (9) For weapons of mass destruction proliferation 
     prevention in the states of the former Soviet Union, 
     $39,400,000.
       (b) Report on Obligation or Expenditure of Funds for Other 
     Purposes.--No fiscal year 2004 Cooperative Threat Reduction 
     funds may be obligated or expended for a purpose other than a 
     purpose listed in paragraphs (1) through (9) of subsection 
     (a) until 30 days after the date that the Secretary of 
     Defense submits to Congress a report on the purpose for which 
     the funds will be obligated or expended and the amount of 
     funds to be obligated or expended. Nothing in the preceding 
     sentence shall be construed as authorizing the obligation or 
     expenditure of fiscal year 2004 Cooperative Threat Reduction 
     funds for a purpose for which the obligation or expenditure 
     of such funds is specifically prohibited under this title or 
     any other provision of law.
       (c) Limited Authority To Vary Individual Amounts.--(1) 
     Subject to paragraphs (2) and (3), in any case in which the 
     Secretary of Defense determines that it is necessary to do so 
     in the national interest, the Secretary may obligate amounts 
     appropriated for fiscal year 2004 for a purpose listed in any 
     of the paragraphs in subsection (a) in excess of the 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. LIMITATION ON USE OF FUNDS UNTIL CERTAIN PERMITS 
                   OBTAINED.

       (a) In General.--The Secretary of Defense shall seek to 
     obtain all the permits required to complete each phase of 
     construction of a project under Cooperative Threat Reduction 
     programs before obligating significant amounts of funding for 
     that phase of the project.
       (b) Use of Funds for New Construction Projects.--Except as 
     provided in subsection (e), with respect to a new 
     construction project to be carried out by the Department of 
     Defense under Cooperative Threat Reduction programs, not more 
     than 40 percent of the total costs of the project may be 
     obligated from Cooperative Threat Reduction funds for any 
     fiscal year until the Secretary of Defense--
       (1) determines the number and type of permits that may be 
     required for the lifetime of the project in the proposed 
     location or locations of the project; and
       (2) obtains from the state in which the project is to be 
     located any permits that may be required to begin 
     construction.
       (c) Identification of Required Permits for Ongoing 
     Incomplete Construction Projects.--With respect to an 
     incomplete construction project carried out by the Department 
     of Defense under Cooperative Threat Reduction programs, the 
     Secretary shall identify all the permits that are required 
     for the lifetime of the project not later than 120 days after 
     the date of the enactment of this Act.
       (d) Use of Funds for Certain Incomplete Construction 
     Projects.--Except as provided in subsection (e), with respect 
     to an incomplete construction project carried out by the 
     Department of Defense under Cooperative Threat Reduction 
     programs for which construction has not yet commenced as of 
     the date of the enactment of this Act, not more than 40 
     percent of the total costs of the project may be obligated 
     from Cooperative Threat Reduction funds for any fiscal year 
     until the Secretary obtains from the state in which the 
     project is located the permits required to commence 
     construction on the project.
       (e) Exception to Limitations on Use of Funds.--The 
     limitation in subsection (b) or (d) on the obligation of 
     funds for a construction project otherwise covered by such 
     subsection shall not apply with respect to the obligation of 
     funds for a particular project if the Secretary--
       (1) determines that it is necessary in the national 
     interest to obligate funds for such project; and
       (2) submits to the congressional defense committees a 
     notification of the intent to obligate funds for such 
     project, together with a complete discussion of the 
     justification for doing so.
       (f) Definitions.--In this section, with respect to a 
     project under Cooperative Threat Reduction programs:

[[Page 27584]]

       (1) Incomplete construction project.--The term ``incomplete 
     construction project'' means a construction project for which 
     funds have been obligated or expended before the date of the 
     enactment of this Act and which is not completed as of such 
     date.
       (2) New construction project.--The term ``new construction 
     project'' means a construction project for which no funds 
     have been obligated or expended as of the date of the 
     enactment of this Act.
       (3) Permit.--The term ``permit'' means any local or 
     national permit for development, general construction, 
     environmental, land use, or other purposes that is required 
     for purposes of major construction in a state of the former 
     Soviet Union in which the construction project is being or is 
     proposed to be carried out.

     SEC. 1304. LIMITATION ON USE OF FUNDS FOR BIOLOGICAL RESEARCH 
                   IN THE FORMER SOVIET UNION.

       (a) Limitation on Use of Funds.--Except as provided in 
     subsection (b), none of the funds authorized to be 
     appropriated pursuant to section 1302 for biological weapons 
     proliferation prevention may be obligated to begin any 
     collaborative biodefense research or bioattack early warning 
     and preparedness project under a Cooperative Threat Reduction 
     program at a facility in a state of the former Soviet Union 
     until the Secretary of Defense notifies Congress that the 
     Secretary--
       (1) has determined, through access to the facility, that no 
     offensive biological weapons research prohibited by 
     international law is being conducted at the facility; and
       (2) has determined that appropriate security measures have 
     begun to be, or will be, put in place at the facility to 
     prevent theft of dangerous pathogens from the facility.
       (b) Availability of Funds for Determinations.--Of the funds 
     referred to in subsection (a) that are available for projects 
     referred to in that subsection, up to 25 percent of such 
     funds may be obligated and expended for purposes of making 
     determinations referred to in that subsection.
       (c) Facility Defined.--In this section, the term 
     ``facility'' means the buildings and areas at a location in 
     which Cooperative Threat Reduction program work is actually 
     being conducted.

     SEC. 1305. REQUIREMENT FOR ON-SITE MANAGERS.

       (a) On-Site Manager Requirement.--Before obligating any 
     Cooperative Threat Reduction funds for a project described in 
     subsection (b), the Secretary of Defense shall appoint one 
     on-site manager for that project. The manager shall be 
     appointed from among employees of the Federal Government.
       (b) Projects Covered.--Subsection (a) applies to a 
     project--
       (1) to be located in a state of the former Soviet Union;
       (2) which involves dismantlement, destruction, or storage 
     facilities, or construction of a facility; and
       (3) with respect to which the total contribution by the 
     Department of Defense is expected to exceed $50,000,000.
       (c) Duties of On-Site Manager.--The on-site manager 
     appointed under subsection (a) shall--
       (1) develop, in cooperation with representatives from 
     governments of countries participating in the project, a list 
     of those steps or activities critical to achieving the 
     project's disarmament or nonproliferation goals;
       (2) establish a schedule for completing those steps or 
     activities;
       (3) meet with all participants to seek assurances that 
     those steps or activities are being completed on schedule; 
     and
       (4) suspend United States participation in a project when a 
     non-United States participant fails to complete a scheduled 
     step or activity on time, unless directed by the Secretary of 
     Defense to resume United States participation.
       (d) Authority to Manage More Than One Project.--(1) Subject 
     to paragraph (2), an employee of the Federal Government may 
     serve as on-site manager for more than one project, including 
     projects at different locations.
       (2) If such an employee serves as on-site manager for more 
     than one project in a fiscal year, the total cost of the 
     projects for that fiscal year may not exceed $150,000,000.
       (e) Steps or Activities.--Steps or activities referred to 
     in subsection (c)(1) are those activities that, if not 
     completed, will prevent a project from achieving its 
     disarmament or nonproliferation goals, including, at a 
     minimum, the following:
       (1) Identification and acquisition of permits (as defined 
     in section 1303).
       (2) Verification that the items, substances, or 
     capabilities to be dismantled, secured, or otherwise modified 
     are available for dismantlement, securing, or modification.
       (3) Timely provision of financial, personnel, management, 
     transportation, and other resources.
       (f) Notification to Congress.--In any case in which the 
     Secretary of Defense directs an on-site manager to resume 
     United States participation in a project under subsection 
     (c)(4), the Secretary shall concurrently notify Congress of 
     such direction.
       (g) Effective Date.--This section shall take effect six 
     months after the date of the enactment of this Act.

     SEC. 1306. TEMPORARY AUTHORITY TO WAIVE LIMITATION ON FUNDING 
                   FOR CHEMICAL WEAPONS DESTRUCTION FACILITY IN 
                   RUSSIA.

       (a) Temporary Authority.--The conditions described in 
     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 to the obligation and expenditure of funds 
     available for obligation during fiscal year 2004 for the 
     planning, design, or construction of a chemical weapons 
     destruction facility in Russia if the President submits to 
     Congress a written certification that includes--
       (1) a statement as to why the waiver of the conditions is 
     important to the national security interests of the United 
     States;
       (2) a full and complete justification for the waiver of the 
     conditions; and
       (3) a plan to promote a full and accurate disclosure by 
     Russia regarding the size, content, status, and location of 
     its chemical weapons stockpile.
       (b) Expiration.--The authority in subsection (a) shall 
     expire on September 30, 2004.

     SEC. 1307. ANNUAL CERTIFICATIONS ON USE OF FACILITIES BEING 
                   CONSTRUCTED FOR COOPERATIVE THREAT REDUCTION 
                   PROJECTS OR ACTIVITIES.

       (a) Certification on Use of Facilities Being Constructed.--
     Not later than the first Monday of February each year, the 
     Secretary of Defense shall submit to the congressional 
     defense committees a certification for each facility for a 
     Cooperative Threat Reduction project or activity for which 
     construction occurred during the preceding fiscal year on 
     matters as follows:
       (1) Whether or not such facility will be used for its 
     intended purpose by the government of the state of the former 
     Soviet Union in which the facility is constructed.
       (2) Whether or not the government of such state remains 
     committed to the use of such facility for its intended 
     purpose.
       (3) Whether those actions needed to ensure security at the 
     facility, including secure transportation of any materials, 
     substances, or weapons to, from, or within the facility, have 
     been taken.
       (b) Applicability.--Subsection (a) shall apply to--
       (1) any facility the construction of which commences on or 
     after the date of the enactment of this Act; and
       (2) any facility the construction of which is ongoing as of 
     that date.

     SEC. 1308. AUTHORITY TO USE COOPERATIVE THREAT REDUCTION 
                   FUNDS OUTSIDE THE FORMER SOVIET UNION.

       (a) Authority.--Subject to the provisions of this section, 
     the President may obligate and expend Cooperative Threat 
     Reduction funds for a fiscal year, and any Cooperative Threat 
     Reduction funds for a fiscal year before such fiscal year 
     that remain available for obligation, for a proliferation 
     threat reduction project or activity outside the states of 
     the former Soviet Union if the President determines each of 
     the following:
       (1) That such project or activity will--
       (A)(i) assist the United States in the resolution of a 
     critical emerging proliferation threat; or
       (ii) permit the United States to take advantage of 
     opportunities to achieve long-standing nonproliferation 
     goals; and
       (B) be completed in a short period of time.
       (2) That the Department of Defense is the entity of the 
     Federal Government that is most capable of carrying out such 
     project or activity.
       (b) Scope of Authority.--The authority in subsection (a) to 
     obligate and expend funds for a project or activity includes 
     authority to provide equipment, goods, and services for such 
     project or activity utilizing such funds, but does not 
     include authority to provide cash directly to such project or 
     activity.
       (c) Limitation on Total Amount of Obligation.--The amount 
     that may be obligated in a fiscal year under the authority in 
     subsection (a) may not exceed $50,000,000.
       (d) Limitation on Availability of Funds.--(1) The President 
     may not obligate funds for a project or activity under the 
     authority in subsection (a) until the President makes each 
     determination specified in that subsection with respect to 
     such project or activity.
       (2) Not later than 10 days after obligating funds under the 
     authority in subsection (a) for a project or activity, the 
     President shall notify Congress in writing of the 
     determinations made under paragraph (1) with respect to such 
     project or activity, together with--
       (A) a justification for such determinations; and
       (B) a description of the scope and duration of such project 
     or activity.
       (e) Additional Limitations and Requirements.--Except as 
     otherwise provided in subsections (a) and (b), the exercise 
     of the authority in subsection (a) shall be subject to any 
     requirement or limitation under another provision of law as 
     follows:
       (1) Any requirement for prior notice or other reports to 
     Congress on the use of Cooperative Threat Reduction funds or 
     on Cooperative Threat Reduction projects or activities.
       (2) Any limitation on the obligation or expenditure of 
     Cooperative Threat Reduction funds.
       (3) Any limitation on Cooperative Threat Reduction projects 
     or activities.
                 TITLE XIV--SERVICES ACQUISITION REFORM

Sec. 1401. Short title.

             Subtitle A--Acquisition Workforce and Training

Sec. 1411. Definition of acquisition.
Sec. 1412. Acquisition workforce training fund.
Sec. 1413. Acquisition workforce recruitment program.
Sec. 1414. Architectural and engineering acquisition workforce.

[[Page 27585]]

        Subtitle B--Adaptation of Business Acquisition Practices

          Part I--Adaptation of Business Management Practices

Sec. 1421. Chief Acquisition Officers.
Sec. 1422. Chief Acquisition Officers Council.
Sec. 1423. Statutory and regulatory review.

                Part II--Other Acquisition Improvements

Sec. 1426. Extension of authority to carry out franchise fund programs.
Sec. 1427. Improvements in contracting for architectural and 
              engineering services.
Sec. 1428. Authorization of telecommuting for Federal contractors.

              Subtitle C--Acquisitions of Commercial Items

Sec. 1431. Additional incentive for use of performance-based 
              contracting for services.
Sec. 1432. Authorization of additional commercial contract types.
Sec. 1433. Clarification of commercial services definition.

                       Subtitle D--Other Matters

Sec. 1441. Authority to enter into certain transactions for defense 
              against or recovery from terrorism or nuclear, 
              biological, chemical, or radiological attack.
Sec. 1442. Public disclosure of noncompetitive contracting for the 
              reconstruction of infrastructure in Iraq.
Sec. 1443. Special emergency procurement authority.

     SEC. 1401. SHORT TITLE.

       This title may be cited as the ``Services Acquisition 
     Reform Act of 2003''.
             Subtitle A--Acquisition Workforce and Training

     SEC. 1411. DEFINITION OF ACQUISITION.

       Section 4 of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 403) is amended by adding at the end the 
     following:
       ``(16) The term `acquisition'--
       ``(A) means the process of acquiring, with appropriated 
     funds, by contract for purchase or lease, property or 
     services (including construction) that support the missions 
     and goals of an executive agency, from the point at which the 
     requirements of the executive agency are established in 
     consultation with the chief acquisition officer of the 
     executive agency; and
       ``(B) includes--
       ``(i) the process of acquiring property or services that 
     are already in existence, or that must be created, developed, 
     demonstrated, and evaluated;
       ``(ii) the description of requirements to satisfy agency 
     needs;
       ``(iii) solicitation and selection of sources;
       ``(iv) award of contracts;
       ``(v) contract performance;
       ``(vi) contract financing:
       ``(vii) management and measurement of contract performance 
     through final delivery and payment; and
       ``(viii) technical and management functions directly 
     related to the process of fulfilling agency requirements by 
     contract.''.

     SEC. 1412. ACQUISITION WORKFORCE TRAINING FUND.

       (a) Purposes.--The purposes of this section are to ensure 
     that the Federal acquisition workforce--
       (1) adapts to fundamental changes in the nature of Federal 
     Government acquisition of property and services associated 
     with the changing roles of the Federal Government; and
       (2) acquires new skills and a new perspective to enable it 
     to contribute effectively in the changing environment of the 
     21st century.
       (b) Establishment of Fund.--Section 37 of the Office of 
     Federal Procurement Policy Act (41 U.S.C. 433) is amended by 
     adding at the end of subsection (h) the following new 
     paragraph:
       ``(3) Acquisition workforce training fund.--(A) The 
     Administrator of General Services shall establish an 
     acquisition workforce training fund. The Administrator shall 
     manage the fund through the Federal Acquisition Institute to 
     support the training of the acquisition workforce of the 
     executive agencies other than the Department of Defense. The 
     Administrator shall consult with the Administrator for 
     Federal Procurement Policy in managing the fund.
       ``(B) There shall be credited to the acquisition workforce 
     training fund 5 percent of the fees collected by executive 
     agencies (other than the Department of Defense) under the 
     following contracts:
       ``(i) Governmentwide task and delivery-order contracts 
     entered into under sections 303H and 303I of the Federal 
     Property and Administrative Services Act of 1949 (41 U.S.C. 
     253h and 253i).
       ``(ii) Governmentwide contracts for the acquisition of 
     information technology as defined in section 11101 of title 
     40, United States Code, and multiagency acquisition contracts 
     for such technology authorized by section 11314 of such 
     title.
       ``(iii) Multiple-award schedule contracts entered into by 
     the Administrator of General Services.
       ``(C) The head of an executive agency that administers a 
     contract described in subparagraph (B) shall remit to the 
     General Services Administration the amount required to be 
     credited to the fund with respect to such contract at the end 
     of each quarter of the fiscal year.
       ``(D) The Administrator of General Services, through the 
     Office of Federal Acquisition Policy, shall ensure that funds 
     collected for training under this section are not used for 
     any purpose other than the purpose specified in subparagraph 
     (A).
       ``(E) Amounts credited to the fund shall be in addition to 
     funds requested and appropriated for education and training 
     referred to in paragraph (1).
       ``(F) Amounts credited to the fund shall remain available 
     to be expended only in the fiscal year for which credited and 
     the two succeeding fiscal years.
       ``(G) This paragraph shall cease to be effective five years 
     after the date of the enactment of the National Defense 
     Authorization Act for Fiscal Year 2004.''.
       (c) Exception.--This section and the amendments made by 
     this section shall not apply to the acquisition workforce of 
     the Department of Defense. Fees charged to the Department of 
     Defense under contracts covered by section 37(h)(3) of the 
     Office of Federal Procurement Policy Act, as added by 
     subsection (b), shall be reduced by 5 percent to reflect the 
     Department's nonparticipation in the acquisition workforce 
     training fund established by such section.

     SEC. 1413. ACQUISITION WORKFORCE RECRUITMENT PROGRAM.

       (a) Determination of Shortage Category Positions.--For 
     purposes of sections 3304, 5333, and 5753 of title 5, United 
     States Code, the head of a department or agency of the United 
     States (other than the Secretary of Defense) may determine, 
     under regulations prescribed by the Office of Personnel 
     Management, that certain Federal acquisition positions (as 
     described in section 37(g)(1)(A) of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 433(g)(1)(A)) are shortage 
     category positions in order to use the authorities in those 
     sections to recruit and appoint highly qualified persons 
     directly to such positions in the department or agency.
       (b) Termination of Authority.--The head of a department or 
     agency may not appoint a person to a position of employment 
     under this section after September 30, 2007.
       (c) Report.--Not later than March 31, 2007, the Director of 
     the Office of Personnel Management, in consultation with the 
     Administrator for Federal Procurement Policy, shall submit to 
     Congress a report on the implementation of this section. The 
     report shall include--
       (1) a list of the departments and agencies that exercised 
     the authority provided in this section, and whether the 
     exercise of the authority was carried out in accordance with 
     the regulations prescribed by the Office of Personnel 
     Management;
       (2) the Director's assessment of the efficacy of the 
     exercise of the authority provided in this section in 
     attracting employees with unusually high qualifications to 
     the acquisition workforce; and
       (3) any recommendations considered appropriate by the 
     Director on whether the authority to carry out the program 
     should be extended.

     SEC. 1414. ARCHITECTURAL AND ENGINEERING ACQUISITION 
                   WORKFORCE.

       The Administrator for Federal Procurement Policy, in 
     consultation with the Secretary of Defense, the Administrator 
     of General Services, and the Director of the Office of 
     Personnel Management, shall develop and implement a plan to 
     ensure that the Federal Government maintains the necessary 
     capability with respect to the acquisition of architectural 
     and engineering services to--
       (1) ensure that Federal Government employees have the 
     expertise to determine agency requirements for such services;
       (2) establish priorities and programs (including 
     acquisition plans);
       (3) establish professional standards;
       (4) develop scopes of work; and
       (5) award and administer contracts for such services.
        Subtitle B--Adaptation of Business Acquisition Practices

          PART I--ADAPTATION OF BUSINESS MANAGEMENT PRACTICES

     SEC. 1421. CHIEF ACQUISITION OFFICERS.

       (a) Appointment of Chief Acquisition Officers.--(1) Section 
     16 of the Office of Federal Procurement Policy Act (41 U.S.C. 
     414) is amended to read as follows:

     ``SEC. 16. CHIEF ACQUISITION OFFICERS AND SENIOR PROCUREMENT 
                   EXECUTIVES.

       ``(a) Establishment of Agency Chief Acquisition Officers.--
     (1) The head of each executive agency described in section 
     901(b)(1) (other than the Department of Defense) or section 
     901(b)(2)(C) of title 31, United States Code, with a Chief 
     Financial Officer appointed or designated under section 
     901(a) of such title shall appoint or designate a non-career 
     employee as Chief Acquisition Officer for the agency, who 
     shall--
       ``(A) have acquisition management as that official's 
     primary duty; and
       ``(B) advise and assist the head of the executive agency 
     and other agency officials to ensure that the mission of the 
     executive agency is achieved through the management of the 
     agency's acquisition activities.
       ``(b) Authority and Functions of Agency Chief Acquisition 
     Officers.--The functions of each Chief Acquisition Officer 
     shall include--
       ``(1) monitoring the performance of acquisition activities 
     and acquisition programs of the executive agency, evaluating 
     the performance of those programs on the basis of applicable 
     performance measurements, and advising the head of the 
     executive agency regarding the appropriate business strategy 
     to achieve the mission of the executive agency;
       ``(2) increasing the use of full and open competition in 
     the acquisition of property and services by the executive 
     agency by establishing

[[Page 27586]]

     policies, procedures, and practices that ensure that the 
     executive agency receives a sufficient number of sealed bids 
     or competitive proposals from responsible sources to fulfill 
     the Government's requirements (including performance and 
     delivery schedules) at the lowest cost or best value 
     considering the nature of the property or service procured;
       ``(3) increasing appropriate use of performance-based 
     contracting and performance specifications;
       ``(4) making acquisition decisions consistent with all 
     applicable laws and establishing clear lines of authority, 
     accountability, and responsibility for acquisition 
     decisionmaking within the executive agency;
       ``(5) managing the direction of acquisition policy for the 
     executive agency, including implementation of the unique 
     acquisition policies, regulations, and standards of the 
     executive agency;
       ``(6) developing and maintaining an acquisition career 
     management program in the executive agency to ensure that 
     there is an adequate professional workforce; and
       ``(7) as part of the strategic planning and performance 
     evaluation process required under section 306 of title 5, 
     United States Code, and sections 1105(a)(28), 1115, 1116, and 
     9703 of title 31, United States Code--
       ``(A) assessing the requirements established for agency 
     personnel regarding knowledge and skill in acquisition 
     resources management and the adequacy of such requirements 
     for facilitating the achievement of the performance goals 
     established for acquisition management;
       ``(B) in order to rectify any deficiency in meeting such 
     requirements, developing strategies and specific plans for 
     hiring, training, and professional development; and
       ``(C) reporting to the head of the executive agency on the 
     progress made in improving acquisition management capability.
       ``(c) Senior Procurement Executive.--(1) The head of each 
     executive agency shall designate a senior procurement 
     executive who shall be responsible for management direction 
     of the procurement system of the executive agency, including 
     implementation of the unique procurement policies, 
     regulations, and standards of the executive agency.
       ``(2) In the case of an executive agency for which a Chief 
     Acquisition Officer has been appointed or designated under 
     subsection (a), the head of such executive agency shall 
     either--
       ``(A) designate the Chief Acquisition Officer as the senior 
     procurement executive for the executive agency; or
       ``(B) ensure that the senior procurement executive 
     designated for the executive agency under paragraph (1) 
     reports directly to the Chief Acquisition Officer without 
     intervening authority.''.
       (2) The item relating to section 16 in the table of 
     contents in section 1(b) of such Act is amended to read as 
     follows:

``Sec. 16. Chief Acquisition Officers and senior procurement 
              executives.''.
       (b) Technical Correction.--Section 1115(a) of title 31, 
     United States Code, is amended by striking ``section 
     1105(a)(29)'' and inserting ``section 1105(a)(28)''.

     SEC. 1422. CHIEF ACQUISITION OFFICERS COUNCIL.

       (a) Establishment of Council.--The Office of Federal 
     Procurement Policy Act (41 U.S.C. 403 et seq.) is amended by 
     inserting after section 16 the following new section:

     ``SEC. 16A. CHIEF ACQUISITION OFFICERS COUNCIL.

       ``(a) Establishment.--There is established in the executive 
     branch a Chief Acquisition Officers Council.
       ``(b) Membership.--The members of the Council shall be as 
     follows:
       ``(1) The Deputy Director for Management of the Office of 
     Management and Budget, who shall act as Chairman of the 
     Council.
       ``(2) The Administrator for Federal Procurement Policy.
       ``(3) The Under Secretary of Defense for Acquisition, 
     Technology, and Logistics.
       ``(4) The chief acquisition officer of each executive 
     agency that is required to have a chief acquisition officer 
     under section 16 and the senior procurement executive of each 
     military department.
       ``(5) Any other senior agency officer of each executive 
     agency, appointed by the head of the agency in consultation 
     with the Chairman, who can effectively assist the Council in 
     performing the functions set forth in subsection (e) and 
     supporting the associated range of acquisition activities.
       ``(c) Leadership; Support.--(1) The Administrator for 
     Federal Procurement Policy shall lead the activities of the 
     Council on behalf of the Deputy Director for Management.
       ``(2)(A) The Vice Chairman of the Council shall be selected 
     by the Council from among its members.
       ``(B) The Vice Chairman shall serve a 1-year term, and may 
     serve multiple terms.
       ``(3) The Administrator of General Services shall provide 
     administrative and other support for the Council.
       ``(d) Principal Forum.--The Council is designated the 
     principal interagency forum for monitoring and improving the 
     Federal acquisition system.
       ``(e) Functions.--The Council shall perform functions that 
     include the following:
       ``(1) Develop recommendations for the Director of the 
     Office of Management and Budget on Federal acquisition 
     policies and requirements.
       ``(2) Share experiences, ideas, best practices, and 
     innovative approaches related to Federal acquisition.
       ``(3) Assist the Administrator in the identification, 
     development, and coordination of multiagency projects and 
     other innovative initiatives to improve Federal acquisition.
       ``(4) Promote effective business practices that ensure the 
     timely delivery of best value products to the Federal 
     Government and achieve appropriate public policy objectives.
       ``(5) Further integrity, fairness, competition, openness, 
     and efficiency in the Federal acquisition system.
       ``(6) Work with the Office of Personnel Management to 
     assess and address the hiring, training, and professional 
     development needs of the Federal Government related to 
     acquisition.
       ``(7) Work with the Administrator and the Federal 
     Acquisition Regulatory Council to promote the business 
     practices referred to in paragraph (4) and other results of 
     the functions carried out under this subsection.''.
       (b) Clerical Amendment.--The table of contents in section 
     1(b) of such Act is amended by inserting after the item 
     relating to section 16 the following new item:

``Sec. 16A. Chief Acquisition Officers Council.''.

     SEC. 1423. STATUTORY AND REGULATORY REVIEW.

       (a) Establishment.--Not later than 90 days after the date 
     of the enactment of this Act, the Administrator for Federal 
     Procurement Policy shall establish an advisory panel to 
     review laws and regulations regarding the use of commercial 
     practices, performance-based contracting, the performance of 
     acquisition functions across agency lines of responsibility, 
     and the use of Governmentwide contracts.
       (b) Membership.--The panel shall be composed of at least 
     nine individuals who are recognized experts in acquisition 
     law and Government acquisition policy. In making appointments 
     to the panel, the Administrator shall--
       (1) consult with the Secretary of Defense, the 
     Administrator of General Services, the Committees on Armed 
     Services and Government Reform of the House of 
     Representatives, and the Committees on Armed Services and 
     Governmental Affairs of the Senate; and
       (2) ensure that the members of the panel reflect the 
     diverse experiences in both the public and private sectors, 
     including academia.
       (c) Duties.--The panel shall--
       (1) review all Federal acquisition laws and regulations, 
     and, to the extent practicable, government-wide acquisition 
     policies, with a view toward ensuring effective and 
     appropriate use of commercial practices and performance-based 
     contracting; and
       (2) make any recommendations for the modification of such 
     laws, regulations, or policies that are considered necessary 
     as a result of such review--
       (A) to protect the best interests of the Federal 
     Government;
       (B) to ensure the continuing financial and ethical 
     integrity of acquisitions by the Federal Government; and
       (C) to amend or eliminate any provisions in such laws, 
     regulations, or policies that are unnecessary for the 
     effective, efficient, and fair award and administration of 
     contracts for the acquisition by the Federal Government of 
     goods and services.
       (d) Report.--Not later than one year after the 
     establishment of the panel, the panel shall submit to the 
     Administrator and to the Committees on Armed Services and 
     Government Reform of the House of Representatives and the 
     Committees on Armed Services and Governmental Affairs of the 
     Senate a report containing a detailed statement of the 
     findings, conclusions, and recommendations of the panel.

                PART II--OTHER ACQUISITION IMPROVEMENTS

     SEC. 1426. EXTENSION OF AUTHORITY TO CARRY OUT FRANCHISE FUND 
                   PROGRAMS.

       Section 403(f) of the Federal Financial Management Act of 
     1994 (Public Law 103-356; 31 U.S.C. 501 note) is amended by 
     striking ``October 1, 2003'' and inserting ``December 31, 
     2004''.

     SEC. 1427. IMPROVEMENTS IN CONTRACTING FOR ARCHITECTURAL AND 
                   ENGINEERING SERVICES.

       (a) Title 10.--Section 2855(b) of title 10, United States 
     Code, is amended in paragraph (2), by striking ``$85,000'' 
     and inserting ``$300,000''.
       (b) Architectural and Engineering Services.--Architectural 
     and engineering services (as defined in section 1102 of title 
     40, United States Code) shall not be offered under multiple-
     award schedule contracts entered into by the Administrator of 
     General Services or under Governmentwide task and delivery 
     order contracts entered into under sections 2304a and 2304b 
     of title 10, United States Code, or sections 303H and 303I of 
     the Federal Property and Administrative Services Act of 1949 
     (41 U.S.C. 253h and 253i) unless such services--
       (1) are performed under the direct supervision of a 
     professional architect or engineer licensed, registered, or 
     certified in the State, territory (including the Commonwealth 
     of Puerto Rico), possession, or Federal District in which the 
     services are to be performed; and
       (2) are awarded in accordance with the selection procedures 
     set forth in chapter 11 of title 40, United States Code.

     SEC. 1428. AUTHORIZATION OF TELECOMMUTING FOR FEDERAL 
                   CONTRACTORS.

       (a) Amendment to the Federal Acquisition Regulation.--Not 
     later than 180 days after the date of the enactment of this 
     Act, the Federal Acquisition Regulatory Council shall amend 
     the Federal Acquisition Regulation issued in accordance with 
     sections 6 and 25 of the Office of

[[Page 27587]]

     Federal Procurement Policy Act (41 U.S.C. 405 and 421) to 
     permit telecommuting by employees of Federal Government 
     contractors in the performance of contracts entered into with 
     executive agencies.
       (b) Content of Amendment.--The regulation issued pursuant 
     to subsection (a) shall, at a minimum, provide that 
     solicitations for the acquisition of property or services may 
     not set forth any requirement or evaluation criteria that 
     would--
       (1) render an offeror ineligible to enter into a contract 
     on the basis of the inclusion of a plan of the offeror to 
     permit the offeror's employees to telecommute, unless the 
     contracting officer concerned first determines that the 
     requirements of the agency, including security requirements, 
     cannot be met if the telecommuting is permitted and documents 
     in writing the basis for that determination; or
       (2) reduce the scoring of an offer on the basis of the 
     inclusion in the offer of a plan of the offeror to permit the 
     offeror's employees to telecommute, unless the contracting 
     officer concerned first determines that the requirements of 
     the agency, including security requirements, would be 
     adversely impacted if telecommuting is permitted and 
     documents in writing the basis for that determination.
       (c) Definition.--In this section, the term ``executive 
     agency'' has the meaning given that term in section 4(1) of 
     the Office of Federal Procurement Policy Act (41 U.S.C. 
     403(1)).
              Subtitle C--Acquisitions of Commercial Items

     SEC. 1431. ADDITIONAL INCENTIVE FOR USE OF PERFORMANCE-BASED 
                   CONTRACTING FOR SERVICES.

       (a) In General.--The Office of Federal Procurement Policy 
     Act (41 U.S.C. 403 et seq.) is amended by adding at the end 
     the following new section:

     ``SEC. 41. INCENTIVES FOR EFFICIENT PERFORMANCE OF SERVICES 
                   CONTRACTS.

       ``(a) Incentive for Use of Performance-Based Services 
     Contracts.-- A performance-based contract for the procurement 
     of services entered into by an executive agency or a 
     performance-based task order for services issued by an 
     executive agency may be treated as a contract for the 
     procurement of commercial items if--
       ``(1) the value of the contract or task order is estimated 
     not to exceed $25,000,000;
       ``(2) the contract or task order sets forth specifically 
     each task to be performed and, for each task--
       ``(A) defines the task in measurable, mission-related 
     terms;
       ``(B) identifies the specific end products or output to be 
     achieved; and
       ``(C) contains firm, fixed prices for specific tasks to be 
     performed or outcomes to be achieved; and
       ``(3) the source of the services provides similar services 
     to the general public under terms and conditions similar to 
     those offered to the Federal Government.
       ``(b) Regulations.--The regulations implementing this 
     section shall require agencies to collect and maintain 
     reliable data sufficient to identify the contracts or task 
     orders treated as contracts for commercial items using the 
     authority of this section. The data may be collected using 
     the Federal Procurement Data System or other reporting 
     mechanism.
       ``(c) Report.--Not later than two years after the date of 
     the enactment of this section, the Director of the Office of 
     Management and Budget shall prepare and submit to the 
     Committees on Governmental Affairs and on Armed Services of 
     the Senate and the Committees on Government Reform and on 
     Armed Services of the House of Representatives a report on 
     the contracts or task orders treated as contracts for 
     commercial items using the authority of this section. The 
     report shall include data on the use of such authority both 
     government-wide and for each department and agency.
       ``(d) Expiration.--The authority under this section shall 
     expire 10 years after the date of the enactment of this 
     section.''.
       (b) Center of Excellence in Service Contracting.--Not later 
     than 180 days after the date of the enactment of this Act, 
     the Administrator for Federal Procurement Policy shall 
     establish a center of excellence in contracting for services. 
     The center of excellence shall assist the acquisition 
     community by identifying, and serving as a clearinghouse for, 
     best practices in contracting for services in the public and 
     private sectors.
       (c) Repeal of Superseded Provision.--Subsection (b) of 
     section 821 of the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398; 114 Stat. 1654A-218; 10 U.S.C. 2302 
     note) is repealed.
       (d) Clerical and Technical Amendments.--(1) The table of 
     contents in section 1(b) of such Act is amended by striking 
     the last item and inserting the following:

``Sec. 40. Protection of constitutional rights of contractors.
``Sec. 41. Incentives for efficient performance of services 
              contracts.''.
       (2) The section before section 41 of such Act (as added by 
     subsection (a)) is redesignated as section 40.

     SEC. 1432. AUTHORIZATION OF ADDITIONAL COMMERCIAL CONTRACT 
                   TYPES.

       Section 8002(d) of the Federal Acquisition Streamlining Act 
     of 1994 (Public Law 103-355; 108 Stat. 3387; 41 U.S.C. 264 
     note) is amended--
       (1) by redesignating paragraph (1) as subparagraph (A) and 
     in that subparagraph by striking ``and'';
       (2) by redesignating paragraph (2) as subparagraph (B) and 
     in that subparagraph by striking the period at the end and 
     inserting ``; and'';
       (3) by adding after subparagraph (B) (as so redesignated) 
     the following new subparagraph:
       ``(C) subject to paragraph (2), authority for use of a 
     time-and-materials contract or a labor-hour contract for the 
     procurement of commercial services that are commonly sold to 
     the general public through such contracts and are purchased 
     by the procuring agency on a competitive basis.'';
       (4) by striking ``Use of Firm, Fixed Price Contracts.--
     The'' and inserting ``Provisions Relating to Types of 
     Contracts for Commercial Items.--(1)''; and
       (5) by adding at the end the following new paragraphs:
       ``(2) A time-and-materials contract or a labor-hour 
     contract may be used pursuant to the authority referred to in 
     paragraph (1)(C)--
       ``(A) only for a procurement of commercial services in a 
     category of commercial services described in paragraph (3); 
     and--
       ``(B) only if the contracting officer for such 
     procurement--
       ``(i) executes a determination and findings that no other 
     contract type is suitable;
       ``(ii) includes in the contract a ceiling price that the 
     contractor exceeds at its own risk; and
       ``(iii) authorizes any subsequent change in the ceiling 
     price only upon a determination, documented in the contract 
     file, that it is in the best interest of the procuring agency 
     to change such ceiling price.
       ``(3) The categories of commercial services referred to in 
     paragraph (2) are as follows:
       ``(A) Commercial services procured for support of a 
     commercial item, as described in section 4(12)(E) of the 
     Office of Federal Procurement Policy Act (41 U.S.C. 
     403(12)(E)).
       ``(B) Any other category of commercial services that is 
     designated by the Administrator for Federal Procurement 
     Policy in the Federal Acquisition Regulation for the purposes 
     of this paragraph on the basis that--
       ``(i) the commercial services in such category are of a 
     type of commercial services that are commonly sold to the 
     general public through use of time-and-materials or labor-
     hour contracts; and
       `(ii) it would be in the best interests of the Federal 
     Government to authorize use of time-and-materials or labor-
     hour contracts for purchases of the commercial services in 
     such category.''.

     SEC. 1433. CLARIFICATION OF COMMERCIAL SERVICES DEFINITION.

       Section 4 of the Office of Federal Procurement Policy Act 
     (41 U.S.C. 403) is amended in paragraph (12)(F) by inserting 
     ``or specific outcomes to be achieved'' after ``performed''.
                       Subtitle D--Other Matters

     SEC. 1441. AUTHORITY TO ENTER INTO CERTAIN TRANSACTIONS FOR 
                   DEFENSE AGAINST OR RECOVERY FROM TERRORISM OR 
                   NUCLEAR, BIOLOGICAL, CHEMICAL, OR RADIOLOGICAL 
                   ATTACK.

       (a) Authority.--
       (1) In general.--The head of an executive agency who 
     engages in basic research, applied research, advanced 
     research, and development projects that--
       (A) are necessary to the responsibilities of such 
     official's executive agency in the field of research and 
     development, and
       (B) have the potential to facilitate defense against or 
     recovery from terrorism or nuclear, biological, chemical, or 
     radiological attack,
     may exercise the same authority (subject to the same 
     restrictions and conditions) with respect to such research 
     and projects as the Secretary of Defense may exercise under 
     section 2371 of title 10, United States Code, except for 
     subsections (b) and (f) of such section 2371.
       (2) Prototype projects.--The head of an executive agency 
     may, under the authority of paragraph (1), carry out 
     prototype projects that meet the requirements of 
     subparagraphs (A) and (B) of paragraph (1) in accordance with 
     the requirements and conditions provided for carrying out 
     prototype projects under section 845 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160; 
     10 U.S.C. 2371 note), including that, to the maximum extent 
     practicable, competitive procedures shall be used when 
     entering into agreements to carry out projects under 
     subsection (a) of that section and that the period of 
     authority to carry out projects under such subsection (a) 
     terminates as provided in subsection (g) of that section.
       (3) Application of requirements and conditions.--In 
     applying the requirements and conditions of section 845 of 
     the National Defense Authorization Act for Fiscal Year 1994 
     under this subsection--
       (A) subsection (c) of that section shall apply with respect 
     to prototype projects carried out under this paragraph; and
       (B) the Director of the Office of Management and Budget 
     shall perform the functions of the Secretary of Defense under 
     subsection (d) of that section.
       (4) Applicability to selected executive agencies.--
       (A) OMB authorization required.--The head of an executive 
     agency may exercise authority under this subsection for a 
     project only if authorized by the Director of the Office of 
     Management and Budget to use the authority for such project.
       (B) Relationship to authority of department of homeland 
     security.--The authority under this subsection shall not 
     apply to the Secretary of Homeland Security while section 831 
     of

[[Page 27588]]

     the Homeland Security Act of 2002 (Public Law 107-296; 116 
     Stat. 2224) is in effect.
       (b) Annual Report.--The annual report of the head of an 
     executive agency that is required under subsection (h) of 
     section 2371 of title 10, United States Code, as applied to 
     the head of the executive agency by subsection (a), shall be 
     submitted to the Committee on Governmental Affairs of the 
     Senate and the Committee on Government Reform of the House of 
     Representatives.
       (c) Regulations.--The Director of the Office of Management 
     and Budget shall prescribe regulations to carry out this 
     section. No transaction may be conducted under the authority 
     of this section before the date on which such regulations 
     take effect.
       (d) Termination of Authority.--The authority to carry out 
     transactions under subsection (a) shall terminate on 
     September 30, 2008.

     SEC. 1442. PUBLIC DISCLOSURE OF NONCOMPETITIVE CONTRACTING 
                   FOR THE RECONSTRUCTION OF INFRASTRUCTURE IN 
                   IRAQ.

       (a) Disclosure Required.--
       (1) Publication and public availability.--The head of an 
     executive agency of the United States that enters into a 
     contract for the repair, maintenance, or construction of 
     infrastructure in Iraq without full and open competition 
     shall publish in the Federal Register or Commerce Business 
     Daily and otherwise make available to the public, not later 
     than 30 days after the date on which the contract is entered 
     into, the following information:
       (A) The amount of the contract.
       (B) A brief description of the scope of the contract.
       (C) A discussion of how the executive agency identified, 
     and solicited offers from, potential contractors to perform 
     the contract, together with a list of the potential 
     contractors that were issued solicitations for the offers.
       (D) The justification and approval documents on which was 
     based the determination to use procedures other than 
     procedures that provide for full and open competition.
       (2) Inapplicability to contracts after fiscal year 2005.--
     Paragraph (1) does not apply to a contract entered into after 
     September 30, 2005.
       (b) Classified Information.--
       (1) Authority to withhold.--The head of an executive agency 
     may--
       (A) withhold from publication and disclosure under 
     subsection (a) any document that is classified for restricted 
     access in accordance with an Executive order in the interest 
     of national defense or foreign policy; and
       (B) redact any part so classified that is in a document not 
     so classified before publication and disclosure of the 
     document under subsection (a).
       (2) Availability to congress.--In any case in which the 
     head of an executive agency withholds information under 
     paragraph (1), the head of such executive agency shall make 
     available an unredacted version of the document containing 
     that information to the chairman and ranking member of each 
     of the following committees of Congress:
       (A) The Committee on Governmental Affairs of the Senate and 
     the Committee on Government Reform of the House of 
     Representatives.
       (B) The Committees on Appropriations of the Senate and 
     House of Representatives.
       (C) Each committee that the head of the executive agency 
     determines has legislative jurisdiction for the operations of 
     such department or agency to which the information relates.
       (c) Fiscal Year 2003 Contracts.--This section shall apply 
     to contracts entered into on or after October 1, 2002, except 
     that, in the case of a contract entered into before the date 
     of the enactment of this Act, subsection (a) shall be applied 
     as if the contract had been entered into on the date of the 
     enactment of this Act.
       (d) Relationship to Other Disclosure Laws.--Nothing in this 
     section shall be construed as affecting obligations to 
     disclose United States Government information under any other 
     provision of law.
       (e) Definitions.--In this section, the terms ``executive 
     agency'' and ``full and open competition'' have the meanings 
     given such terms in section 4 of the Office of Federal 
     Procurement Policy Act (41 U.S.C. 403).

     SEC. 1443. SPECIAL EMERGENCY PROCUREMENT AUTHORITY.

       (a) Permanent Authority.--(1) The Office of Federal 
     Procurement Policy Act (41 U.S.C. 403 et seq.) is amended by 
     inserting after section 32 the following new section:

     ``SEC. 32A. SPECIAL EMERGENCY PROCUREMENT AUTHORITY.

       ``(a) Applicability.--The authorities provided in this 
     section apply with respect to any procurement of property or 
     services by or for an executive agency that, as determined by 
     the head of such executive agency, are to be used--
       ``(1) in support of a contingency operation; or
       ``(2) to facilitate the defense against or recovery from 
     nuclear, biological, chemical, or radiological attack against 
     the United States.
       ``(b) Increased Thresholds.--For a procurement to which 
     this section applies under subsection (a)--
       ``(1) the amount specified in subsections (c), (d), and (f) 
     of section 32 shall be deemed to be $15,000; and
       ``(2) the term `simplified acquisition threshold' means--
       ``(A) $250,000 in the case of any contract to be awarded 
     and performed, or purchase to be made, inside the United 
     States; and
       ``(B) $500,000 in the case of any contract to be awarded 
     and performed, or purchase to be made, outside the United 
     States.
       ``(c) Increased Limitation on Use of Simplified Acquisition 
     Procedures.--For a procurement to which this section applies 
     under subsection (a), the $5,000,000 limitation in the 
     following provisions of law shall be deemed to be 
     $10,000,000:
       ``(1) Section 31(a)(2) of this Act.
       ``(2) Section 2304(g)(1)(B) of title 10, United States 
     Code.
       ``(3) Section 303(g)(1)(B) of the Federal Property and 
     Administrative Services Act of 1949 (41 U.S.C. 253(g)(1)(B)).
       ``(d) Commercial Items Authority.--(1) The head of an 
     executive agency carrying out a procurement of property or a 
     service to which this section applies under subsection (a)(2) 
     may treat such property or service as a commercial item for 
     the purpose of carrying out such procurement.
       ``(2) A contract in an amount greater than $15,000,000 that 
     is awarded on a sole source basis for an item or service 
     treated as a commercial item under paragraph (1) shall not be 
     exempt from--
       ``(A) cost accounting standards promulgated pursuant to 
     section 26 of this Act; or
       ``(B) cost or pricing data requirements (commonly referred 
     to as truth in negotiating) under section 2306a of title 10, 
     United States Code, and section 304A of title III of the 
     Federal Property and Administrative Services Act of 1949 (41 
     U.S.C. 254b).
       ``(e) Contingency Operation Defined.--In this section, the 
     term `contingency operation' has the meaning given such term 
     in section 101(a)(13) of title 10, United States Code.''.
       (2) The table of contents in section 1(b) of such Act is 
     amended by inserting after the item relating to section 32 
     the following new item:

``Sec. 32A. Special emergency procurement authority.''.

       (b) Continuation 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, 2004'' 
     and inserting ``January 1, 2006''.
           TITLE XV--VETERANS' DISABILITY BENEFITS COMMISSION
Sec. 1501. Establishment of commission.
Sec. 1502. Duties of the commission.
Sec. 1503. Report.
Sec. 1504. Powers of the commission.
Sec. 1505. Personnel matters.
Sec. 1506. Termination of commission.
Sec. 1507. Funding.

     SEC. 1501. ESTABLISHMENT OF COMMISSION.

       (a) Establishment of Commission.--There is hereby 
     established a commission to be known as the Veterans' 
     Disability Benefits Commission (hereinafter in this title 
     referred to as the ``commission'').
       (b) Membership.--(1) The commission shall be composed of 13 
     members, appointed as follows:
       (A) Two members appointed by the Speaker of the House of 
     Representatives, at least one of whom shall be a veteran who 
     was awarded a decoration specified in paragraph (2).
       (B) Two members appointed by the minority leader of the 
     House of Representatives, at least one of whom shall be a 
     veteran who was awarded a decoration specified in paragraph 
     (2).
       (C) Two members appointed by the majority leader of the 
     Senate, at least one of whom shall be a veteran who was 
     awarded a decoration specified in paragraph (2).
       (D) Two members appointed by the minority leader of the 
     Senate, at least one of whom shall be a veteran who was 
     awarded a decoration specified in paragraph (2).
       (E) Five members appointed by the President, at least three 
     of whom shall be veterans who were awarded a decoration 
     specified in paragraph (2).
       (2) A decoration specified in this paragraph is any of the 
     following:
       (A) The Medal of Honor.
       (B) The Distinguished Service Cross, the Navy Cross, or the 
     Air Force Cross.
       (C) The Silver Star.
       (3) A vacancy in the Commission shall be filled in the 
     manner in which the original appointment was made.
       (4) The appointment of members of the commission under this 
     subsection shall be made not later than 60 days after the 
     date of the enactment of this Act.
       (c) Period of Appointment.--Members of the commission shall 
     be appointed for the life of the commission. A vacancy in the 
     commission shall not affect its powers.
       (d) Initial Meeting.--The commission shall hold its first 
     meeting not later than 30 days after the date on which a 
     majority of the members of the commission have been 
     appointed.
       (e) Meetings.--The commission shall meet at the call of the 
     chairman.
       (f) Quorum.--A majority of the members of the commission 
     shall constitute a quorum, but a lesser number may hold 
     hearings.
       (g) Chairman.--The President shall designate a member of 
     the commission to be chairman of the commission.

     SEC. 1502. DUTIES OF THE COMMISSION.

       (a) Study.--The commission shall carry out a study of the 
     benefits under the laws of the United States that are 
     provided to compensate and assist veterans and their 
     survivors for disabilities and deaths attributable to 
     military service.
       (b) Scope of Study.--In carrying out the study, the 
     commission shall examine and make recommendations concerning 
     the following:
       (1) The appropriateness of such benefits under the laws in 
     effect on the date of the enactment of this Act.

[[Page 27589]]

       (2) The appropriateness of the level of such benefits.
       (3) The appropriate standard or standards for determining 
     whether a disability or death of a veteran should be 
     compensated.
       (c) Contents of Study.--The study to be carried out by the 
     commission under this section shall be a comprehensive 
     evaluation and assessment of the benefits provided under the 
     laws of the United States to compensate veterans and their 
     survivors for disability or death attributable to military 
     service, together with any related issues that the commission 
     determines are relevant to the purposes of the study. The 
     study shall include an evaluation and assessment of the 
     following:
       (1) The laws and regulations which determine eligibility 
     for disability and death benefits, and other assistance for 
     veterans and their survivors.
       (2) The rates of such compensation, including the 
     appropriateness of a schedule for rating disabilities based 
     on average impairment of earning capacity.
       (3) Comparable disability benefits provided to individuals 
     by the Federal Government, State governments, and the private 
     sector.
       (d) Consultation With Institute of Medicine.--In carrying 
     out the study under this section, the commission shall 
     consult with the Institute of Medicine of the National 
     Academy of Sciences with respect to the medical aspects of 
     contemporary disability compensation policies.

     SEC. 1503. REPORT.

       Not later than 15 months after the date on which the 
     commission first meets, the commission shall submit to the 
     President and Congress a report on the study. The report 
     shall include the following:
       (1) The findings and conclusions of the commission, 
     including its findings and conclusions with respect to the 
     matters referred to in section 1502(c).
       (2) The recommendations of the commission for revising the 
     benefits provided by the United States to veterans and their 
     survivors for disability and death attributable to military 
     service.
       (3) Other information and recommendations with respect to 
     such benefits as the commission considers appropriate.

     SEC. 1504. POWERS OF THE COMMISSION.

       (a) Hearings.--The commission may hold such hearings, sit 
     and act at such times and places, take such testimony, and 
     receive such evidence as the commission considers advisable 
     to carry out the purposes of this title.
       (b) Information From Federal Agencies.--In addition to the 
     information referred to in section 1502(c), the commission 
     may secure directly from any Federal department or agency 
     such information as the commission considers necessary to 
     carry out the provisions of this title. Upon request of the 
     chairman of the commission, the head of such department or 
     agency shall furnish such information to the commission.
       (c) Postal Services.--The commission may use the United 
     States mails in the same manner and under the same conditions 
     as other departments and agencies of the Federal Government.
       (d) Gifts.--The commission may accept, use, and dispose of 
     gifts or donations of services or property.

     SEC. 1505. PERSONNEL MATTERS.

       (a) Compensation of Members.--Each member of the commission 
     who is not an officer or employee of the United States shall 
     be compensated at a rate equal to the daily equivalent of the 
     annual rate of basic pay prescribed for level IV of the 
     Executive Schedule under section 5315 of title 5, United 
     States Code, for each day (including travel time) during 
     which the member is engaged in the performance of the duties 
     of the commission. All members of the commission who are 
     officers or employees of the United States shall serve 
     without compensation in addition to that received for their 
     services as officers or employees of the United States.
       (b) Travel Expenses.--The members of the commission shall 
     be allowed travel expenses, including per diem in lieu of 
     subsistence, at rates authorized for employees of agencies 
     under subchapter I of chapter 57 of title 5, United States 
     Code, while away from their homes or regular places of 
     business in the performance of services for the commission.
       (c) Staff.--(1) The chairman of the commission may, without 
     regard to the civil service laws and regulations, appoint an 
     executive director and such other personnel as may be 
     necessary to enable the commission to perform its duties. The 
     appointment of an executive director shall be subject to 
     approval by the commission.
       (2) The chairman of the commission may fix the compensation 
     of the executive director and other personnel without regard 
     to the provisions of chapter 51 and subchapter III of chapter 
     53 of title 5, United States Code, relating to classification 
     of positions and General Schedule pay rates, except that the 
     rate of pay for the executive director and other personnel 
     may not exceed the rate payable for level V of the Executive 
     Schedule under section 5316 of such title.
       (d) Detail of Government Employees.--Upon request of the 
     chairman of the commission, the head of any Federal 
     department or agency may detail, on a nonreimbursable basis, 
     any personnel of that department or agency to the commission 
     to assist it in carrying out its duties.
       (e) Procurement of Temporary and Intermittent Services.--
     The chairman of the commission may procure temporary and 
     intermittent services under section 3109(b) of title 5, 
     United States Code, at rates for individuals which do not 
     exceed the daily equivalent of the annual rate of basic pay 
     prescribed for level V of the Executive Schedule under 
     section 5316 of such title.

     SEC. 1506. TERMINATION OF COMMISSION.

       The commission shall terminate 60 days after the date on 
     which the commission submits its report under section 1503.

     SEC. 1507. FUNDING.

       (a) In General.--The Secretary of Veterans Affairs shall, 
     upon the request of the chairman of the commission, make 
     available to the commission such amounts as the commission 
     may require to carry out its duties under this title.
       (b) Availability.--Any sums made available to the 
     commission under subsection (a) shall remain available, 
     without fiscal year limitation, until the termination of the 
     commission.
             TITLE XVI--DEFENSE BIOMEDICAL COUNTERMEASURES
Sec. 1601. Research and development of defense biomedical 
              countermeasures.
Sec. 1602. Procurement of defense biomedical countermeasures.
Sec. 1603. Authorization for medical products for use in emergencies.

     SEC. 1601. RESEARCH AND DEVELOPMENT OF DEFENSE BIOMEDICAL 
                   COUNTERMEASURES.

       (a) In General.--The Secretary of Defense (in this section 
     referred to as the ``Secretary'') shall carry out a program 
     to accelerate the research, development and procurement of 
     biomedical countermeasures, including but not limited to 
     therapeutics and vaccines, for the protection of the Armed 
     Forces from attack by one or more biological, chemical, 
     radiological, or nuclear agents.
       (b) Interagency Cooperation.--(1) In carrying out the 
     program under subsection (a), the Secretary may enter into 
     interagency agreements and other collaborative undertakings 
     with other Federal agencies.
       (2) The Secretary, through regular, structured, and close 
     consultation with the Secretary of Health and Human Services 
     and the Secretary of Homeland Security, shall ensure that the 
     activities of the Department of Defense in carrying out the 
     program are coordinated with, complement, and do not 
     unnecessarily duplicate activities of the Department of 
     Health and Human Services or the Department of Homeland 
     Security.
       (c) Expedited Procurement Authority.--(1) For any 
     procurement of property or services for use (as determined by 
     the Secretary) in performing, administering, or supporting 
     biomedical countermeasures research and development, the 
     Secretary may, when appropriate, use streamlined acquisition 
     procedures and other expedited procurement procedures 
     authorized in--
       (A) section 32A of the Office of Federal Procurement Policy 
     Act, as added by section 1443 of this Act; and
       (B) section 2371 of title 10, United States Code, and 
     section 845 of the National Defense Authorization Act for 
     Fiscal Year 1994 (Public Law 103-160; 10 U.S.C. 2371 note).
       (2) Notwithstanding paragraph (1) and the provisions of law 
     referred to in such paragraph, each of the following 
     provisions shall apply to the procurements described in this 
     subsection to the same extent that such provisions would 
     apply to such procurements in the absence of paragraph (1) :
       (A) Chapter 37 of title 40, United States Code (relating to 
     contract work hours and safety standards).
       (B) Subsections (a) and (b) of section 7 of the Anti-
     Kickback Act of 1986 (41 U.S.C. 57(a) and (b)).
       (C) Section 2313 of title 10, United States Code (relating 
     to the examination of contractor records).
       (3) The Secretary shall institute appropriate internal 
     controls for use of the authority under paragraph (1), 
     including requirements for documenting the justification for 
     each use of such authority.
       (d) Department of Defense Facilities Authority.--(1) If the 
     Secretary determines that it is necessary to acquire, lease, 
     construct, or improve laboratories, research facilities, and 
     other real property of the Department of Defense in order to 
     carry out the program under this section, the Secretary may 
     do so using the procedures set forth in paragraphs (2), (3), 
     (4), and (5).
       (2) The Secretary shall use existing construction 
     authorities provided by subchapter I of chapter 169 of title 
     10, United States Code to the maximum extent possible.
       (3)(A) If the Secretary determines that use of authorities 
     in paragraph (2) would prevent the Department from meeting a 
     specific facility requirement for the program, the Secretary 
     shall submit to the congressional defense committees advance 
     notification, which shall include the following:
       (i) Certification by the Secretary that use of existing 
     construction authorities would prevent the Department from 
     meeting the specific facility requirement.
       (ii) A detailed explanation of the reasons why existing 
     authorities cannot be used.
       (iii) A justification of the facility requirement.
       (iv) Construction project data and estimated cost.
       (v) Identification of the source or sources of the funds 
     proposed to be expended.
       (B) The facility project may be carried out only after the 
     end of the 21-day period beginning on the date the 
     notification is received by the congressional defense 
     committees.
       (4) If the Secretary determines (A) that the facility is 
     vital to national security or to the protection of health, 
     safety, or the quality of the

[[Page 27590]]

     environment, and (B) the requirement for the facility is so 
     urgent that the advance notification in paragraph (3) and the 
     subsequent 21-day deferral of the facility project would 
     threaten the life, health, or safety of personnel, or would 
     otherwise jeopardize national security, the Secretary may 
     obligate funds for the facility and notify the congressional 
     defense committees within seven days after the date on which 
     appropriated funds are obligated with the information 
     required in paragraph (3).
       (5) The Secretary shall submit to the congressional defense 
     committees a quarterly report detailing any use of the 
     authority provided by paragraph (4), including costs incurred 
     or to be incurred by the United States as a result of the use 
     of the authority.
       (6) Nothing in this section shall be construed to authorize 
     the Secretary to acquire, construct, lease, or improve a 
     facility having general utility beyond the specific purposes 
     of the program.
       (7) In this subsection, the term ``facility'' has the 
     meaning given the term in section 2801(c) of title 10, United 
     States Code.
       (e) Authority for Personal Services Contracts.--(1) Subject 
     to paragraph (2), the authority provided by section 1091 of 
     title 10, United States Code, for personal services contracts 
     to carry out health care responsibilities in medical 
     treatment facilities of the Department of Defense shall also 
     be available, subject to the same terms and conditions, for 
     personal services contracts to carry out research and 
     development activities under this section. The number of 
     individuals whose personal services are obtained under this 
     subsection may not exceed 30 at any time.
       (2) The authority provided by such section 1091 may not be 
     used for a personal services contract unless the contracting 
     officer for the contract ensures that--
       (A) the services to be procured are urgent or unique; and
       (B) it would not be practicable for the Department of 
     Defense to obtain such services by other measures.
       (f) Streamlined Personnel Authority.--(1) The Secretary may 
     appoint highly qualified experts, including scientific and 
     technical personnel, to carry out research and development 
     under this section in accordance with the authorities 
     provided in section 342 of the National Defense Authorization 
     Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 
     2721), section 1101 of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261), 
     and section 1101 of this Act.
       (2) The Secretary may use the authority under paragraph (1) 
     only upon a determination by the Secretary that use of such 
     authority is necessary to accelerate the research and 
     development under the program.
       (3) The Secretary shall institute appropriate internal 
     controls for each use of the authority under paragraph (1).

     SEC. 1602. PROCUREMENT OF DEFENSE BIOMEDICAL COUNTERMEASURES.

       (a) Determination of Material Threats.--(1) The Secretary 
     of Defense (in this section referred to as the ``Secretary'') 
     shall on an ongoing basis--
       (A) assess current and emerging threats of use of 
     biological, chemical, radiological, and nuclear agents; and
       (B) identify, on the basis of such assessment, those agents 
     that present a material risk of use against the Armed Forces.
       (2) The Secretary shall on an ongoing basis--
       (A) assess the potential consequences to the health of 
     members of the Armed Forces of use against the Armed Forces 
     of the agents identified under paragraph (1)(B); and
       (B) identify, on the basis of such assessment, those agents 
     for which countermeasures are necessary to protect the health 
     of members of the Armed Forces.
       (b) Assessment of Availability and Appropriateness of 
     Countermeasures.--The Secretary shall on an ongoing basis 
     assess the availability and appropriateness of specific 
     countermeasures to address specific threats identified under 
     subsection (a).
       (c) Secretary's Determination of Countermeasures 
     Appropriate for Procurement.--(1) The Secretary, in 
     accordance with paragraph (2), shall on an ongoing basis 
     identify specific countermeasures that the Secretary 
     determines to be appropriate for procurement for the 
     Department of Defense stockpile of biomedical 
     countermeasures.
       (2) The Secretary may not identify a specific 
     countermeasure under paragraph (1) unless the Secretary 
     determines that--
       (A) the countermeasure is a qualified countermeasure; and
       (B) it is reasonable to expect that producing and 
     delivering, within 5 years, the quantity of that 
     countermeasure required to meet the needs of the Department 
     (as determined by the Secretary) is feasible.
       (d) Interagency Cooperation.--(1) Activities of the 
     Secretary under this section shall be carried out in regular, 
     structured, and close consultation and coordination with the 
     Secretaries of Homeland Security and Health and Human 
     Services, including the activities described in subsections 
     (a), (b), and (c) and those activities with respect to 
     interagency agreements described in paragraph (2).
       (2) The Secretary may enter into an interagency agreement 
     with the Secretaries of Homeland Security and Health and 
     Human Services to provide for acquisition by the Secretary of 
     Defense for use by the Armed Forces of biomedical 
     countermeasures procured for the Strategic National Stockpile 
     by the Secretary of Health and Human Services. The Secretary 
     may transfer such funds to the Secretary of Health and Human 
     Services as are necessary to carry out such agreements 
     (including administrative costs of the Secretary of Health 
     and Human Services), and the Secretary of Health and Human 
     Services may expend any such transferred funds to procure 
     such countermeasures for use by the Armed Forces, or to 
     replenish the stockpile. The Secretaries are authorized to 
     establish such terms and conditions for such agreements as 
     the Secretaries determine to be in the public interest. The 
     transfer authority provided under this paragraph is in 
     addition to any other transfer authority available to the 
     Secretary.
       (e) Definitions.--In this section:
       (1) The term ``qualified countermeasure'' means a 
     biomedical countermeasure--
       (A) that is approved under section 505(a) of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 355) or licensed 
     under section 351 of the Public Health Service Act (42 U.S.C. 
     262), or that is approved under section 515 or cleared under 
     section 510(k) of the Federal Food, Drug, and Cosmetic Act 
     (21 U.S.C. 360e and 360) for use as such a countermeasure to 
     a biological, chemical, radiological, or nuclear agent 
     identified as a material threat under subsection (a); or
       (B) with respect to which the Secretary of Health and Human 
     Services makes a determination that sufficient and 
     satisfactory clinical experience or research data (including 
     data, if available, from preclinical and clinical trials) 
     exists to support a reasonable conclusion that the product 
     will qualify for such approval or licensing for use as such a 
     countermeasure.
       (2) The term ``biomedical countermeasure'' means a drug (as 
     defined in section 201(g)(1) of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 321(g)(1))), device (as defined in 
     section 201(h) of the Federal Food, Drug, and Cosmetic Act 
     (21 U.S.C. 321(h))), or biological product (as defined in 
     section 351(i) of the Public Health Service Act (42 U.S.C. 
     262(i)) that is--
       (A) used to treat, identify, or prevent harm from any 
     biological, chemical, radiological, or nuclear agent that may 
     cause a military health emergency affecting the Armed Forces; 
     or
       (B) used to treat, identify, or prevent harm from a 
     condition that may result in adverse health consequences or 
     death and may be caused by administering a drug or biological 
     product that is used as described in subparagraph (A).
       (3) The term ``Strategic National Stockpile'' means the 
     stockpile established under section 121(a) of the Public 
     Health and Bioterrorism Preparedness and Response Act of 2002 
     (42 U.S.C. 300hh-12(a)).
       (f) Funding.--Of the amount authorized to be appropriated 
     for the Department of Defense and available within the 
     transfer authority established under section 1001 of this Act 
     for fiscal year 2004 and for each fiscal year thereafter, 
     such sums are authorized as may be necessary for the costs 
     incurred by the Secretary in the procurement of 
     countermeasures under this section.

     SEC. 1603. AUTHORIZATION FOR MEDICAL PRODUCTS FOR USE IN 
                   EMERGENCIES.

       (a) In General.--Subchapter E of chapter V of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 360bbb et seq.) is 
     amended by adding at the end the following section:

     ``SEC. 564. AUTHORIZATION FOR MEDICAL PRODUCTS FOR USE IN 
                   EMERGENCIES.

       ``(a) In General.--
       ``(1) Emergency uses.--Notwithstanding sections 505, 
     510(k), and 515 of this Act and section 351 of the Public 
     Health Service Act, and subject to the provisions of this 
     section, the Secretary may authorize the introduction into 
     interstate commerce, during the effective period of a 
     declaration under subsection (b), of a drug, device, or 
     biological product intended for use in an actual or potential 
     emergency (referred to in this section as an `emergency 
     use').
       ``(2) Approval status of product.--An authorization under 
     paragraph (1) may authorize an emergency use of a product 
     that--
       ``(A) is not approved, licensed, or cleared for commercial 
     distribution under a provision of law referred to in such 
     paragraph (referred to in this section as an `unapproved 
     product'); or
       ``(B) is approved, licensed, or cleared under such a 
     provision, but which use is not under such provision an 
     approved, licensed, or cleared use of the product (referred 
     to in this section as an `unapproved use of an approved 
     product').
       ``(3) Relation to other uses.--An emergency use authorized 
     under paragraph (1) for a product is in addition to any other 
     use that is authorized for the product under a provision of 
     law referred to in such paragraph.
       ``(4) Definitions.--For purposes of this section:
       ``(A) The term `biological product' has the meaning given 
     such term in section 351 of the Public Health Service Act.
       ``(B) The term `emergency use' has the meaning indicated 
     for such term in paragraph (1).
       ``(C) The term `product' means a drug, device, or 
     biological product.
       ``(D) The term `unapproved product' has the meaning 
     indicated for such term in paragraph (2)(A).
       ``(E) The term `unapproved use of an approved product' has 
     the meaning indicated for such term in paragraph (2)(B).
       ``(b) Declaration of Emergency.--
       ``(1) In general.--The Secretary may declare an emergency 
     justifying the authorization under this subsection for a 
     product on the basis of a determination by the Secretary of 
     Defense that there is a military emergency, or a significant 
     potential for a military emergency, involving a heightened 
     risk to United States military

[[Page 27591]]

     forces of attack with a specified biological, chemical, 
     radiological, or nuclear agent or agents.
       ``(2) Termination of declaration.--
       ``(A) In general.--A declaration under this subsection 
     shall terminate upon the earlier of--
       ``(i) a determination by the Secretary, in consultation 
     with the Secretary of Defense, that the circumstances 
     described in paragraph (1) have ceased to exist; or
       ``(ii) the expiration of the one-year period beginning on 
     the date on which the declaration is made.
       ``(B) Renewal.--Notwithstanding subparagraph (A), the 
     Secretary may renew a declaration under this subsection, and 
     this paragraph shall apply to any such renewal.
       ``(C) Disposition of product.--If an authorization under 
     this section with respect to an unapproved product ceases to 
     be effective as a result of a termination under subparagraph 
     (A) of this paragraph, the Secretary shall consult with the 
     manufacturer of such product with respect to the appropriate 
     disposition of the product.
       ``(3) Advance notice of termination.--The Secretary shall 
     provide advance notice that a declaration under this 
     subsection will be terminated. The period of advance notice 
     shall be a period reasonably determined to provide--
       ``(A) in the case of an unapproved product, a sufficient 
     period for disposition of the product, including the return 
     of such product (except such quantities of product as are 
     necessary to provide for continued use consistent with 
     subsection (f)(2)) to the manufacturer (in the case of a 
     manufacturer that chooses to have such product returned); and
       ``(B) in the case of an unapproved use of an approved 
     product, a sufficient period for the disposition of any 
     labeling, or any information under subsection (e)(2)(B)(ii), 
     as the case may be, that was provided with respect to the 
     emergency use involved.
       ``(4) Publication.--The Secretary shall promptly publish in 
     the Federal Register each declaration, determination, advance 
     notice of termination, and renewal under this subsection.
       ``(c) Criteria for Issuance of Authorization.--The 
     Secretary may issue an authorization under this section with 
     respect to the emergency use of a product only if, after 
     consultation with the Director of the National Institutes of 
     Health and the Director of the Centers for Disease Control 
     and Prevention (to the extent feasible and appropriate given 
     the circumstances of the emergency involved), the Secretary 
     concludes--
       ``(1) that an agent specified in a declaration under 
     subsection (b) can cause a serious or life-threatening 
     disease or condition;
       ``(2) that, based on the totality of scientific evidence 
     available to the Secretary, including data from adequate and 
     well-controlled clinical trials, if available, it is 
     reasonable to believe that--
       ``(A) the product may be effective in diagnosing, treating, 
     or preventing--
       ``(i) such disease or condition; or
       ``(ii) a serious or life-threatening disease or condition 
     caused by a product authorized under this section, approved 
     or cleared under this Act, or licensed under section 351 of 
     the Public Health Service Act, for diagnosing, treating, or 
     preventing such a disease or condition caused by such an 
     agent; and
       ``(B) the known and potential benefits of the product, when 
     used to diagnose, prevent, or treat such disease or 
     condition, outweigh the known and potential risks of the 
     product;
       ``(3) that there is no adequate, approved, and available 
     alternative to the product for diagnosing, preventing, or 
     treating such disease or condition; and
       ``(4) that such other criteria as the Secretary may by 
     regulation prescribe are satisfied.
       ``(d) Scope of Authorization.--An authorization of a 
     product under this section shall state--
       ``(1) each disease or condition that the product may be 
     used to diagnose, prevent, or treat within the scope of the 
     authorization;
       ``(2) the Secretary's conclusions, made under subsection 
     (c)(2)(B), that the known and potential benefits of the 
     product, when used to diagnose, prevent, or treat such 
     disease or condition, outweigh the known and potential risks 
     of the product; and
       ``(3) the Secretary's conclusions, made under subsection 
     (c), concerning the safety and potential effectiveness of the 
     product in diagnosing, preventing, or treating such diseases 
     or conditions, including an assessment of the available 
     scientific evidence.
       ``(e) Conditions of Authorization.--
       ``(1) Unapproved product.--
       ``(A) Required conditions.--With respect to the emergency 
     use of an unapproved product, the Secretary, to the extent 
     practicable given the circumstances of the emergency, shall, 
     for a person who carries out any activity for which the 
     authorization is issued, establish such conditions on an 
     authorization under this section as the Secretary finds 
     necessary or appropriate to protect the public health, 
     including the following:
       ``(i) Appropriate conditions designed to ensure that health 
     care professionals administering the product are informed--

       ``(I) that the Secretary has authorized the emergency use 
     of the product;
       ``(II) of the significant known and potential benefits and 
     risks of the emergency use of the product, and of the extent 
     to which such benefits and risks are unknown; and
       ``(III) of the alternatives to the product that are 
     available, and of their benefits and risks.

       ``(ii) Appropriate conditions designed to ensure that 
     individuals to whom the product is administered are 
     informed--

       ``(I) that the Secretary has authorized the emergency use 
     of the product;
       ``(II) of the significant known and potential benefits and 
     risks of such use, and of the extent to which such benefits 
     and risks are unknown; and
       ``(III) of the option to accept or refuse administration of 
     the product, of the consequences, if any, of refusing 
     administration of the product, and of the alternatives to the 
     product that are available and of their benefits and risks.

       ``(iii) Appropriate conditions for the monitoring and 
     reporting of adverse events associated with the emergency use 
     of the product.
       ``(iv) For manufacturers of the product, appropriate 
     conditions concerning recordkeeping and reporting, including 
     records access by the Secretary, with respect to the 
     emergency use of the product.
       ``(B) Authority for additional conditions.--With respect to 
     the emergency use of an unapproved product, the Secretary 
     may, for a person who carries out any activity for which the 
     authorization is issued, establish such conditions on an 
     authorization under this section as the Secretary finds 
     necessary or appropriate to protect the public health, 
     including the following:
       ``(i) Appropriate conditions on which entities may 
     distribute the product with respect to the emergency use of 
     the product (including limitation to distribution by 
     government entities), and on how distribution is to be 
     performed.
       ``(ii) Appropriate conditions on who may administer the 
     product with respect to the emergency use of the product, and 
     on the categories of individuals to whom, and the 
     circumstances under which, the product may be administered 
     with respect to such use.
       ``(iii) Appropriate conditions with respect to the 
     collection and analysis of information, during the period 
     when the authorization is in effect, concerning the safety 
     and effectiveness of the product with respect to the 
     emergency use of such product.
       ``(iv) For persons other than manufacturers of the product, 
     appropriate conditions concerning recordkeeping and 
     reporting, including records access by the Secretary, with 
     respect to the emergency use of the product.
       ``(2) Unapproved use.--With respect to the emergency use of 
     a product that is an unapproved use of an approved product:
       ``(A) For a manufacturer of the product who carries out any 
     activity for which the authorization is issued, the Secretary 
     shall, to the extent practicable given the circumstances of 
     the emergency, establish conditions described in clauses (i) 
     and (ii) of paragraph (1)(A), and may establish conditions 
     described in clauses (iii) and (iv) of such paragraph.
       ``(B)(i) If the authorization under this section regarding 
     the emergency use authorizes a change in the labeling of the 
     product, but the manufacturer of the product chooses not to 
     make such change, such authorization may not authorize 
     distributors of the product or any other person to alter or 
     obscure the labeling provided by the manufacturer.
       ``(ii) In the circumstances described in clause (i), for a 
     person who does not manufacture the product and who chooses 
     to act under this clause, an authorization under this section 
     regarding the emergency use shall, to the extent practicable 
     given the circumstances of the emergency, authorize such 
     person to provide appropriate information with respect to 
     such product in addition to the labeling provided by the 
     manufacturer, subject to compliance with clause (i). While 
     the authorization under this section is effective, such 
     additional information shall not be considered labeling for 
     purposes of section 502.
       ``(C) The Secretary may establish with respect to the 
     distribution and administration of the product for the 
     unapproved use conditions no more restrictive than those 
     established by the Secretary with respect to the distribution 
     and administration of the product for the approved use.
       ``(3) Good manufacturing practice.--With respect to the 
     emergency use of a product for which an authorization under 
     this section is issued (whether an unapproved product or an 
     unapproved use of an approved product), the Secretary may 
     waive or limit, to the extent appropriate given the 
     circumstances of the emergency, requirements regarding 
     current good manufacturing practice otherwise applicable to 
     the manufacture, processing, packing, or holding of products 
     subject to regulation under this Act, including such 
     requirements established under section 501.
       ``(4) Advertising.--The Secretary may establish conditions 
     on advertisements and other promotional descriptive printed 
     matter that relate to the emergency use of a product for 
     which an authorization under this section is issued (whether 
     an unapproved product or an unapproved use of an approved 
     product), including, as appropriate--
       ``(A) with respect to drugs and biological products, 
     requirements applicable to prescription drugs pursuant to 
     section 502(n); or
       ``(B) with respect to devices, requirements applicable to 
     restricted devices pursuant to section 502(r).
       ``(f) Duration of Authorization.--
       ``(1) In general.--Except as provided in paragraph (2), an 
     authorization under this section shall be effective until the 
     earlier of the termination of the declaration under 
     subsection (b) or a revocation under subsection (g).
       ``(2) Continued use after end of effective period.--
     Notwithstanding the termination of the declaration under 
     subsection (b) or a revocation under subsection (g), an 
     authorization

[[Page 27592]]

     shall continue to be effective to provide for continued use 
     of an unapproved product with respect to a patient to whom it 
     was administered during the period described by paragraph 
     (1), to the extent found necessary by such patient's 
     attending physician.
       ``(g) Revocation of Authorization.--
       ``(1) Review.--The Secretary shall periodically review the 
     circumstances and the appropriateness of an authorization 
     under this section.
       ``(2) Revocation.--The Secretary may revoke an 
     authorization under this section if the criteria under 
     subsection (c) for issuance of such authorization are no 
     longer met or other circumstances make such revocation 
     appropriate to protect the public health or safety.
       ``(h) Publication; Confidential Information.--
       ``(1) Publication.--The Secretary shall promptly publish in 
     the Federal Register a notice of each authorization, and each 
     termination or revocation of an authorization under this 
     section, and an explanation of the reasons therefor (which 
     may include a summary of data or information that has been 
     submitted to the Secretary in an application under section 
     505(i) or section 520(g), even if such summary may indirectly 
     reveal the existence of such application).
       ``(2) Confidential information.--Nothing in this section 
     alters or amends section 1905 of title 18, United States 
     Code, or section 552(b)(4) of title 5 of such Code.
       ``(i) Actions Committed to Agency Discretion.--Actions 
     under the authority of this section by the Secretary or by 
     the Secretary of Defense are committed to agency discretion.
       ``(j) Rules of Construction.--The following applies with 
     respect to this section:
       ``(1) Nothing in this section impairs the authority of the 
     President as Commander in Chief of the Armed Forces of the 
     United States under article II, section 2 of the United 
     States Constitution.
       ``(2) Nothing in this section impairs the authority of the 
     Secretary of Defense with respect to the Department of 
     Defense, including the armed forces, under other provisions 
     of Federal law.
       ``(3) Nothing in this section (including any exercise of 
     authority by a manufacturer under subsection (e)(2)) impairs 
     the authority of the United States to use or manage 
     quantities of a product that are owned or controlled by the 
     United States (including quantities in the stockpile 
     maintained under section 319F-2 of the Public Health Service 
     Act).
       ``(k) Relation to Other Provisions.--If a product is the 
     subject of an authorization under this section, the use of 
     such product within the scope of the authorization shall not 
     be considered to constitute a clinical investigation for 
     purposes of section 505(i), section 520(g), or any other 
     provision of this Act or section 351 of the Public Health 
     Service Act.
       ``(l) Option To Carry Out Authorized Activities.--Nothing 
     in this section provides the Secretary any authority to 
     require any person to carry out any activity that becomes 
     lawful pursuant to an authorization under this section, and 
     no person is required to inform the Secretary that the person 
     will not be carrying out such activity, except that a 
     manufacturer of a sole-source unapproved product authorized 
     for emergency use shall report to the Secretary within a 
     reasonable period of time after the issuance by the Secretary 
     of such authorization if such manufacturer does not intend to 
     carry out any activity under the authorization. This section 
     only has legal effect on a person who carries out an activity 
     for which an authorization under this section is issued. This 
     section does not modify or affect activities carried out 
     pursuant to other provisions of this Act or section 351 of 
     the Public Health Service Act. Nothing in this subsection may 
     be construed as restricting the Secretary from imposing 
     conditions on persons who carry out any activity pursuant to 
     an authorization under this section.''.
       (b) Emergency Use Products.--(1) Chapter 55 of title 10, 
     United States Code, is amended by inserting after section 
     1107 the following new section:

     ``Sec. 1107a. Emergency use products

       ``(a) Waiver by the President.--In the case of the 
     administration of a product authorized for emergency use 
     under section 564 of the Federal Food, Drug, and Cosmetic Act 
     to members of the armed forces, the condition described in 
     section 564(e)(1)(A)(ii)(III) of such Act and required under 
     paragraph (1)(A) or (2)(A) of such section 564(e), designed 
     to ensure that individuals are informed of an option to 
     accept or refuse administration of a product, may be waived 
     only by the President only if the President determines, in 
     writing, that complying with such requirement is not 
     feasible, is contrary to the best interests of the members 
     affected, or is not in the interests of national security.
       ``(b) Provision of information.--If the President, under 
     subsection (a), waives the condition described in section 
     564(e)(1)(A)(ii)(III) of the Federal Food, Drug, and Cosmetic 
     Act, and if the Secretary of Defense, in consultation with 
     the Secretary of Health and Human Services, makes a 
     determination that it is not feasible based on time 
     limitations for the information described in section 
     564(e)(1)(A)(ii)(I) or (II) of such Act and required under 
     paragraph (1)(A) or (2)(A) of such section 564(e), to be 
     provided to a member of the armed forces prior to the 
     administration of the product, such information shall be 
     provided to such member of the armed forces (or next-of-kin 
     in the case of the death of a member) to whom the product was 
     administered as soon as possible, but not later than 30 days, 
     after such administration. The authority provided for in this 
     subsection may not be delegated. Information concerning the 
     administration of the product shall be recorded in the 
     medical record of the member.
       ``(c) Applicability of Other Provisions.--In the case of an 
     authorization by the Secretary of Health and Human Services 
     under section 564(a)(1) of the Federal Food, Drug, and 
     Cosmetic Act based on a determination by the Secretary of 
     Defense under section 564(b)(1)(B) of such Act, subsections 
     (a) through (f) of section 1107 shall not apply to the use of 
     a product that is the subject of such authorization, within 
     the scope of such authorization and while such authorization 
     is effective.''.
       (2) The table of sections at the beginning of such chapter 
     is amended by inserting after the item relating to section 
     1107 the following new item:

``1107a. Emergency use products.''.

       (c) Enforcement.--Section 301(d) of the Federal Food, Drug, 
     and Cosmetic Act (21 U.S.C. 331(d)) is amended by striking 
     ``section 404 or 505'' and inserting ``section 404, 505, or 
     564''. Section 301(e) of such Act is amended by inserting 
     ``564,'' after ``504,'' the first place such term appears, 
     and by striking ``or 519'' and inserting ``519, or 564''.
       (d) Termination.--This section shall not be in effect (and 
     the law shall read as if this section were never enacted) as 
     of the date on which, following enactment of the Project 
     Bioshield Act of 2003, the President submits to Congress a 
     notification that the Project Bioshield Act of 2003 provides 
     an effective emergency use authority with respect to members 
     of the Armed Forces.
TITLE XVII--NATURALIZATION AND OTHER IMMIGRATION BENEFITS FOR MILITARY 
                         PERSONNEL AND FAMILIES

Sec. 1701. Requirements for naturalization through service in the Armed 
              Forces of the United States.
Sec. 1702. Naturalization benefits for members of the Selected Reserve 
              of the Ready Reserve.
Sec. 1703. Extension of posthumous benefits to surviving spouses, 
              children, and parents.
Sec. 1704. Expedited process for granting posthumous citizenship to 
              members of the Armed Forces.
Sec. 1705. Effective date.

     SEC. 1701. REQUIREMENTS FOR NATURALIZATION THROUGH SERVICE IN 
                   THE ARMED FORCES OF THE UNITED STATES.

       (a) Reduction of Period for Required Service.--Section 
     328(a) of the Immigration and Nationality Act (8 U.S.C. 
     1439(a)) is amended by striking ``three years,'' and 
     inserting ``one year,''.
       (b) Prohibition on Imposition of Fees Relating to 
     Naturalization.--Title III of the Immigration and Nationality 
     Act (8 U.S.C. 1401 et seq.) is amended--
       (1) in section 328(b)--
       (A) in paragraph (3)--
       (i) by striking ``honorable. The'' and inserting 
     ``honorable (the''; and
       (ii) by striking ``discharge.'' and inserting ``discharge); 
     and''; and
       (B) by adding at the end the following:
       ``(4) notwithstanding any other provision of law, no fee 
     shall be charged or collected from the applicant for filing 
     the application, or for the issuance of a certificate of 
     naturalization upon being granted citizenship, and no clerk 
     of any State court shall charge or collect any fee for such 
     services unless the laws of the State require such charge to 
     be made, in which case nothing more than the portion of the 
     fee required to be paid to the State shall be charged or 
     collected.''; and
       (2) in section 329(b)--
       (A) in paragraph (2), by striking ``and'' at the end;
       (B) in paragraph (3), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(4) notwithstanding any other provision of law, no fee 
     shall be charged or collected from the applicant for filing a 
     petition for naturalization or for the issuance of a 
     certificate of naturalization upon citizenship being granted 
     to the applicant, and no clerk of any State court shall 
     charge or collect any fee for such services unless the laws 
     of the State require such charge to be made, in which case 
     nothing more than the portion of the fee required to be paid 
     to the State shall be charged or collected.''.
       (c) Revocation of Citizenship for Separation From Military 
     Service Under Other Than Honorable Conditions.--
       (1) In general.--Title III of the Immigration and 
     Nationality Act (8 U.S.C. 1401 et seq.) is amended--
       (A) by adding at the end of section 328 the following:
       ``(f) Citizenship granted pursuant to this section may be 
     revoked in accordance with section 340 if the person is 
     separated from the Armed Forces under other than honorable 
     conditions before the person has served honorably for a 
     period or periods aggregating five years. Such ground for 
     revocation shall be in addition to any other provided by law, 
     including the grounds described in section 340. The fact that 
     the naturalized person was separated from the service under 
     other than honorable conditions shall be proved by a duly 
     authenticated certification from the executive department 
     under

[[Page 27593]]

     which the person was serving at the time of separation. Any 
     period or periods of service shall be proved by duly 
     authenticated copies of the records of the executive 
     departments having custody of the records of such service.''; 
     and
       (B) by amending section 329(c) to read as follows:
       ``(c) Citizenship granted pursuant to this section may be 
     revoked in accordance with section 340 if the person is 
     separated from the Armed Forces under other than honorable 
     conditions before the person has served honorably for a 
     period or periods aggregating five years. Such ground for 
     revocation shall be in addition to any other provided by law, 
     including the grounds described in section 340. The fact that 
     the naturalized person was separated from the service under 
     other than honorable conditions shall be proved by a duly 
     authenticated certification from the executive department 
     under which the person was serving at the time of separation. 
     Any period or periods of service shall be proved by duly 
     authenticated copies of the records of the executive 
     departments having custody of the records of such service.''.
       (2) Effective date.--The amendments made by paragraph (1) 
     shall apply to citizenship granted on or after the date of 
     the enactment of this Act.
       (d) Naturalization Proceedings Overseas for Members of the 
     Armed Forces.--Notwithstanding any other provision of law, 
     the Secretary of Homeland Security, the Secretary of State, 
     and the Secretary of Defense shall ensure that any 
     applications, interviews, filings, oaths, ceremonies, or 
     other proceedings under title III of the Immigration and 
     Nationality Act (8 U.S.C. 1401 et seq.) relating to 
     naturalization of members of the Armed Forces are available 
     through United States embassies, consulates, and as 
     practicable, United States military installations overseas.
       (e) Finalization of Naturalization Proceedings for Members 
     of the Armed Forces.--Not later than 90 days after the date 
     of the enactment of this Act, the Secretary of Defense shall 
     prescribe a policy that facilitates the opportunity for a 
     member of the Armed Forces to finalize naturalization for 
     which the member has applied. The policy shall include, for 
     such purpose, the following:
       (1) A high priority for grant of emergency leave.
       (2) A high priority for transportation on aircraft of, or 
     chartered by, the Armed Forces.
       (f) Technical and Conforming Amendment.--Section 328(b)(3) 
     of the Immigration and Nationality Act (8 U.S.C. 1439(b)(3)) 
     is amended by striking ``Attorney General'' and inserting 
     ``Secretary of Homeland Security''.

     SEC. 1702. NATURALIZATION BENEFITS FOR MEMBERS OF THE 
                   SELECTED RESERVE OF THE READY RESERVE.

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

     SEC. 1703. EXTENSION OF POSTHUMOUS BENEFITS TO SURVIVING 
                   SPOUSES, CHILDREN, AND PARENTS.

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

[[Page 27594]]

     `United States citizen' and `citizen spouse' include a person 
     granted posthumous citizenship under section 329A.''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall apply with respect to persons granted posthumous 
     citizenship under section 329A of the Immigration and 
     Nationality Act (8 U.S.C. 1440-1) due to death on or after 
     September 11, 2001.
       (g) Benefits to Survivors; Technical Amendment.--Section 
     329A of the Immigration and Nationality Act (8 U.S.C. 1440-1) 
     is amended--
       (1) by striking subsection (e); and
       (2) by striking ``Attorney General'' each place that term 
     appears and inserting ``Secretary of Homeland Security''.
       (h) Technical and Conforming Amendments.--Section 319(d) of 
     the Immigration and Nationality Act (8 U.S.C. 1430(d)) is 
     amended--
       (1) by inserting ``, child, or parent'' after ``surviving 
     spouse'';
       (2) by inserting ``, parent, or child'' after ``whose 
     citizen spouse''; and
       (3) by striking ``who was living'' and inserting ``who, in 
     the case of a surviving spouse, was living''.

     SEC. 1704. EXPEDITED PROCESS FOR GRANTING POSTHUMOUS 
                   CITIZENSHIP TO MEMBERS OF THE ARMED FORCES.

       Section 329A of the Immigration and Nationality Act (8 
     U.S.C. 1440-1) is amended--
       (1) by striking subsection (c) and inserting the following:
       ``(c) Requests for Posthumous Citizenship.--
       ``(1) In general.--A request for the granting of posthumous 
     citizenship to a person described in subsection (b) may be 
     filed on behalf of that person--
       ``(A) upon locating the next-of-kin, and if so requested by 
     the next-of-kin, by the Secretary of Defense or the 
     Secretary's designee with the Bureau of Citizenship and 
     Immigration Services in the Department of Homeland Security 
     immediately upon the death of that person; or
       ``(B) by the next-of-kin.
       ``(2) Approval.--The Director of the Bureau of Citizenship 
     and Immigration Services shall approve a request for 
     posthumous citizenship filed by the next-of-kin in accordance 
     with paragraph (1)(B) if--
       ``(A) the request is filed not later than 2 years after--
       ``(i) the date of enactment of this section; or
       ``(ii) the date of the person's death;
     whichever date is later;
       ``(B) the request is accompanied by a duly authenticated 
     certificate from the executive department under which the 
     person served which states that the person satisfied the 
     requirements of paragraphs (1) and (2) of subsection (b); and
       ``(C) the Director finds that the person satisfied the 
     requirement of subsection (b)(3).''; and
       (2) by striking subsection (d) and inserting the following:
       ``(d) Documentation of Posthumous Citizenship.--If the 
     Director of the Bureau of Citizenship and Immigration 
     Services approves the request referred to in subsection (c), 
     the Director shall send to the next-of-kin of the person who 
     is granted citizenship, a suitable document which states that 
     the United States considers the person to have been a citizen 
     of the United States at the time of the person's death.''.

     SEC. 1705. EFFECTIVE DATE.

       (a) In General.--Except as provided in subsection (b), this 
     title and the amendments made by this title shall take effect 
     as if enacted on September 11, 2001.
       (b) Exception.--The amendments made by sections 1701(b) 
     (relating to naturalization fees) and 1701(d) (relating to 
     naturalization proceedings overseas) shall take effect on 
     October 1, 2004.
            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

     SEC. 2001. SHORT TITLE.

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

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Termination or modification of authority to carry out 
              certain fiscal year 2003 projects.
Sec. 2106. Modification of authority to carry out certain fiscal year 
              2002 projects.
Sec. 2107. Termination or modification of authority to carry out 
              certain fiscal year 2001 projects.

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

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


                     Army: Inside the United States
------------------------------------------------------------------------
                                    Installation or
             State                      location             Amount
------------------------------------------------------------------------
Alabama........................  Redstone Arsenal.....        $5,500,000
Alaska.........................  Fort Richardson......        $2,500,000
                                 Fort Wainwright......      $138,800,000
Colorado.......................  Fort Carson..........        $2,150,000
Georgia........................  Fort Benning.........       $34,500,000
                                 Fort Gordon..........        $4,350,000
                                 Fort Stewart/Hunter        $113,500,000
                                  Army Air Field......
Hawaii.........................  Helemano Military            $1,400,000
                                  Reservation.........
                                 Schofield Barracks...      $128,100,000
Kansas.........................  Fort Leavenworth.....      $115,000,000
                                 Fort Riley...........       $40,000,000
Kentucky.......................  Fort Knox............       $13,500,000
Louisiana......................  Fort Polk............       $72,000,000
Maryland.......................  Fort Meade...........        $9,600,000
Massachusetts..................  Soldier Systems              $5,500,000
                                  Center, Natick......
New Jersey.....................  Naval Air Engineering        $2,250,000
                                  Center, Lakehurst...
                                 Picatinny Arsenal....        $8,000,000
New York.......................  Fort Drum............      $130,700,000
North Carolina.................  Fort Bragg...........      $125,400,000
Oklahoma.......................  Fort Sill............        $5,500,000
Texas..........................  Fort Bliss...........        $5,400,000
                                 Fort Hood............       $49,800,000
Virginia.......................  Fort Belvoir.........        $7,000,000
                                 Fort Lee.............        $3,850,000
                                 Fort Myer............        $9,000,000
Washington.....................  Fort Lewis...........        $3,900,000
                                                       -----------------
                                   Total..............    $1,037,200,000
------------------------------------------------------------------------

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


                     Army: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Germany........................  Grafenwoehr............     $76,000,000

[[Page 27595]]

 
                                 Vilseck................     $31,000,000
Italy..........................  Aviano Air Base........     $28,500,000
                                 Livorno................     $22,000,000
Korea..........................  Camp Humphreys.........     $65,000,000
Kwajalein......................  Kwajalein..............      $9,400,000
                                                         ---------------
                                 Total..................    $231,900,000
------------------------------------------------------------------------

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


                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
          State or Country            Installation or location          Purpose                   Amount
----------------------------------------------------------------------------------------------------------------
Alaska..............................  Fort Wainwright.........  140 Units..............              $64,000,000
Arizona.............................  Fort Huachuca...........  220 Units..............              $41,000,000
Kansas..............................  Fort Riley..............   62 Units..............              $16,700,000
Kentucky............................  Fort Knox...............  178 Units..............              $41,000,000
New Mexico..........................  White Sands Missile        58 Units..............              $14,600,000
                                       Range..................
Oklahoma............................  Fort Sill...............  120 Units..............              $25,373,000
Virginia............................  Fort Lee................   90 Units..............              $18,000,000
                                                                                        ------------------------
                                                                  Total:...............             $220,673,000
----------------------------------------------------------------------------------------------------------------

       (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 $34,488,000.

     SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2104(a)(5)(A), the Secretary of 
     the Army may improve existing military family housing units 
     in an amount not to exceed $130,430,000.

     SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2003, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Army in the total amount of $2,874,856,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2101(a), $825,200,000.
       (2) For military construction projects outside the United 
     States authorized by section 2101(b), $213,000,000.
       (3) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $32,606,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $126,833,000.
       (5) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $383,591,000.
       (B) For support of military family housing (including the 
     functions described in section 2833 of title 10, United 
     States Code), $1,043,026,000.
       (6) For the construction of phase 3 of Saddle Access Road, 
     Pohakoula Training Facility, Hawaii, authorized by section 
     2101(a) 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-389)), as 
     amended by section 2107 of this Act, $17,000,000.
       (7) For the construction of phase 4 of a barracks complex, 
     Butner Road, at Fort Bragg, North Carolina, authorized by 
     section 2101(a) 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-389), 
     as amended by section 2107 of this Act, $38,000,000.
       (8) For the construction of phase 3 of a barracks complex, 
     D Street, at Fort Richardson, Alaska, authorized by section 
     2101(a) of the Military Construction Authorization Act for 
     Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat. 
     1280), as amended by section 2106 of this Act, $33,000,000.
       (9) For the construction of phase 3 of a barracks complex, 
     17th and B Streets, at Fort Lewis, Washington, authorized by 
     section 2101(a) of the Military Construction Authorization 
     Act for Fiscal Year 2002 (division B of Public Law 107-107; 
     115 Stat. 1280), $48,000,000.
       (10) For the construction of phase 2 of a barracks complex, 
     Capron Road, at Schofield Barracks, Hawaii, authorized by 
     section 2101(a) of the Military Construction Authorization 
     Act for Fiscal Year 2003 (division B of Public Law 107-314; 
     116 Stat. 2681), $49,000,000.
       (11) For the construction of phase 2 of a combined arms 
     collective training facility at Fort Riley, 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), as amended by section 2105 of 
     this Act, $13,600,000.
       (12) For the construction of phase 2 of a barracks complex, 
     Range Road, at Fort Campbell, Kentucky, 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), $49,000,000.
       (13) For the construction of phase 2 of a consolidated 
     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), $13,000,000.
       (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 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) $32,000,000 (the balance of the amount authorized under 
     section 2101(a) for construction of a barracks, Fort Stewart/
     Hunter Army Airfield, Georgia).
       (3) $87,000,000 (the balance of the amount authorized under 
     section 2101(a) for construction of the Lewis and Clark 
     Instructional Facility, Fort Leavenworth, Kansas).
       (4) $43,000,000 (the balance of the amount authorized under 
     section 2101(a) for construction of a barracks complex, 
     Wheeler Army Airfield, Fort Drum, New York).
       (5) $50,000,000 (the balance of the amount authorized under 
     section 2101(a) for construction of a barracks complex, 
     Bastogne Drive, Fort Bragg, North Carolina).
       (6) $18,900,000 (the balance of the amount authorized under 
     section 2101(b) for construction of a barracks complex, 
     Vilseck, Germany).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (13) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by $10,000,000, 
     which represents corrections to Department of the Army 
     estimates for military family housing support.

     SEC. 2105. TERMINATION OR MODIFICATION OF AUTHORITY TO CARRY 
                   OUT CERTAIN FISCAL YEAR 2003 PROJECTS.

       (a) Modification of Inside the United States Project.--The 
     table in subsection (a) of section 2101 of the Military 
     Construction Authorization Act for Fiscal Year 2003 (division 
     B of Public Law 107-314; 116 Stat. 2681) is amended--
       (1) in the item relating to Fort Riley, Kansas, by striking 
     ``$81,095,000'' in the amount column and inserting 
     ``$81,495,000''; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$1,156,167,000''.
       (b) Termination of Outside the United States Projects.--(1) 
     The table in subsection (b) of such section is amended--
       (A) by striking the item relating to Area Support Group, 
     Bamberg, Germany;

[[Page 27596]]

       (B) by striking the item relating to Coleman Barracks, 
     Germany;
       (C) by striking the item relating to Darmstadt, Germany;
       (D) by striking the item relating to Mannheim, Germany;
       (E) by striking the item relating to Schweinfurt, Germany;
       (F) by striking the item relating to Camp Castle, Korea;
       (G) by striking the item relating to Camp Hovey, Korea;
       (H) by striking the item relating to K16 Airfield, Korea; 
     and
       (I) by striking the amount identified as the total in the 
     amount column and inserting ``$216,266,000''.
       (2) The authorization to carry out a military construction 
     project at Camp Bonifas, Korea, provided by section 130 of 
     the Military Construction Appropriation Act, 2003 (Public Law 
     107-249; 116 Stat. 1586), using funds originally appropriated 
     for a military construction project at Camp Kyle, Korea, is 
     hereby rescinded.
       (c) Termination of Family Housing Project Outside the 
     United States.--The table in section 2102(a) of the Military 
     Construction Authorization Act for Fiscal Year 2003 (116 
     Stat. 2683) is amended--
       (1) by striking the item relating to Yongsan, Korea; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$23,852,000''.
       (d) Improvements to Military Family Housing Units.--Section 
     2103 of that Act (116 Stat. 2683) is amended by striking 
     ``$239,751,000'' and inserting ``$178,400,000''.
       (e) Conforming Amendments.--Section 2104 of that Act (116 
     Stat. 2683) is amended--
       (1) subsection (a)--
       (A) in the matter preceding paragraph (1), by striking 
     ``$3,104,176,000'' and inserting ``$2,901,875,000'';
       (B) in paragraph (2), by striking ``$354,116,000'' and 
     inserting ``$216,266,000''; and
       (C) in paragraph (6)(A), by striking ``$282,356,000'' and 
     inserting ``$217,905,000''; and
       (2) in subsection (b)(4), by striking ``$13,200,000'' and 
     inserting ``$13,600,000''.

     SEC. 2106. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2002 PROJECTS.

       (a) Modification of Inside the United States Project.--The 
     table in section 2101(a) of the Military Construction 
     Authorization Act for Fiscal Year 2002 (division B of Public 
     Law 107-107; 115 Stat. 1281), as amended by section 2105 of 
     the Military Construction Authorization Act for Fiscal Year 
     2003 (division B of Public Law 107-314; 116 Stat. 2685), is 
     further amended--
       (1) in the item relating to Fort Richardson, Alaska, by 
     striking ``$115,000,000'' in the amount column and inserting 
     ``$117,000,000''; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$1,364,750,000''.
       (b) Modification of Outside the United States Projects.--
     The table in section 2101(b) of the Military Construction 
     Authorization Act for Fiscal Year 2002 (115 Stat. 1282) is 
     amended--
       (1) in the item relating to Camp Hovey, Korea, by striking 
     ``$35,750,000'' in the amount column and inserting 
     ``$24,980,000'';
       (2) in the item relating to Camp Stanley, Korea, by 
     striking ``$28,000,000'' in the amount column and inserting 
     ``$14,770,000''; and
       (3) by striking the amount identified as the total in the 
     amount column and inserting ``$236,343,000''.
       (c) Conforming Amendments.--Section 2104 of that Act (115 
     Stat. 1283) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by striking 
     ``$3,155,594,000'' and inserting ``$3,131,594,000''; and
       (B) in paragraph (2), by striking ``$260,343,000'' and 
     inserting ``$236,343,000''; and
       (2) in subsection (b)(2), by striking ``$52,000,000'' and 
     inserting ``$54,000,000''.

     SEC. 2107. TERMINATION OR MODIFICATION OF AUTHORITY TO CARRY 
                   OUT CERTAIN FISCAL YEAR 2001 PROJECTS.

       (a) Modification of Inside the United States Projects.--The 
     table in section 2101(a) 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-389)), as amended by section 2105(a) of the 
     Military Construction Authorization Act for Fiscal Year 2002 
     (division B of Public Law 107-107; 115 Stat. 1285), is 
     further amended--
       (1) in the item relating to Pohakoula Training Facility, 
     Hawaii, by striking ``$32,000,000'' in the amount column and 
     inserting ``$42,000,000'';
       (2) in the item relating to Fort Bragg, North Carolina, by 
     striking ``$222,200,000'' in the amount column and inserting 
     ``$255,200,000''; and
       (3) by striking the amount identified as the total in the 
     amount column and inserting ``$669,374,000''.
       (b) Termination of Outside the United States Project.--The 
     table in section 2101(b) of the Military Construction 
     Authorization Act for Fiscal Year 2001 (114 Stat. 1654A-390), 
     as amended by section 2106 of the Military Construction 
     Authorization Act for Fiscal Year 2003 (division B of Public 
     Law 107-314; 116 Stat. 2685), is further amended--
       (1) by striking the item relating to Camp Stanley, Korea; 
     and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$100,350,000''.
       (c) Conforming Amendments.--Section 2104 of the Military 
     Construction Authorization Act for Fiscal Year 2001 (114 
     Stat. 1654A-391), as amended by section 2105(b) of the 
     Military Construction Authorization Act for Fiscal Year 2002 
     (division B of Public Law 107-107; 115 Stat. 1285), is 
     further amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by striking 
     ``$1,935,744,000'' and inserting ``$1,916,244,000''; and
       (B) in paragraph (2), by striking ``$119,850,000'' and 
     inserting ``$100,350,000''; and
       (2) in subsection (b)--
       (A) in paragraph (5), by striking ``$104,000,000'' and 
     inserting ``$137,000,000''; and
       (B) in paragraph (7), by striking ``$20,000,000'' and 
     inserting ``$30,000,000''.
                            TITLE XXI--NAVY
Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Termination of authority to carry out certain fiscal year 
              2003 projects.
Sec. 2206. Termination or modification of authority to carry out 
              certain fiscal year 2002 projects.

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


                     Navy: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                      location              Amount
------------------------------------------------------------------------
Arizona........................  Marine Corps Air            $22,230,000
                                  Station, Yuma.
California.....................  Marine Corps Air-           $42,090,000
                                  Ground Task Force
                                  Training Center,
                                  Twentynine Palms.....
                                 Marine Corps Air             $7,640,000
                                  Station, Miramar.....
                                 Marine Corps Base,          $73,580,000
                                  Camp Pendleton.......
                                 Naval Air Facility,         $18,940,000
                                  San Clemente Island..
                                 Naval Air Station,          $34,510,000
                                  Lemoore..............
                                 Naval Air Station,          $49,240,000
                                  North Island.........
                                 Naval Air Warfare            $6,150,000
                                  Center, Point Mugu,
                                  San Nicholas Island..
                                 Naval Postgraduate          $42,560,000
                                  School, Monterey.....
                                 Naval Station, San          $49,710,000
                                  Diego.
Connecticut....................  Naval Submarine Base,        $3,120,000
                                  New London...........
District of Columbia...........  Marine Corps Barracks.       $1,550,000
Florida........................  Blount Island              $115,711,000
                                  (Jacksonville).
                                 Naval Air Station,           $9,190,000
                                  Jacksonville.........
                                 Naval Air Station,           $4,830,000
                                  Whiting Field, Milton
                                 Naval Surface Warfare        $9,550,000
                                  Center, Coastal
                                  Systems Station,
                                  Panama City..........
Georgia........................  Strategic Weapons           $11,510,000
                                  Facility Atlantic,
                                  Kings Bay............
Hawaii.........................  Fleet and Industrial        $32,180,000
                                  Supply Center, Pearl
                                  Harbor...............
                                 Naval Magazine,              $6,320,000
                                  Lualualei.
                                 Naval Shipyard, Pearl        $7,010,000
                                  Harbor.
Illinois.......................  Naval Training Center,     $137,120,000
                                  Great Lakes..........
Indiana........................  Naval Surface Warfare       $11,400,000
                                  Center, Crane........

[[Page 27597]]

 
Maryland.......................  Naval Air Warfare           $28,270,000
                                  Center, Patuxent
                                  River................
                                 Naval Surface Warfare       $14,850,000
                                  Center, Indian Head..
Mississippi....................  Naval Air Station,           $4,570,000
                                  Meridian.
New Jersey.....................  Naval Air Warfare           $20,681,000
                                  Center, Lakehurst....
                                 Naval Weapons Station,     $123,720,000
                                  Earle.
North Carolina.................  Marine Corps Air             $6,240,000
                                  Station, New River...
                                 Marine Corps Base,          $29,450,000
                                  Camp Lejeune.........
Rhode Island...................  Naval Station, Newport      $18,690,000
                                 Naval Undersea Warfare      $10,890,000
                                  Center, Newport......
South Carolina.................  Naval Weapons Station,       $2,350,000
                                  Charleston...........
Texas..........................  Naval Air Station,           $5,400,000
                                  Corpus Christi.
                                 Naval Station,               $7,070,000
                                  Ingleside.
Virginia.......................  Henderson Hall,              $1,970,000
                                  Arlington.
                                 Marine Corps Combat         $18,120,000
                                  Development Command,
                                  Quantico.............
                                 Naval Air Station,          $10,000,000
                                  Oceana.
                                 Naval Amphibious Base,       $3,810,000
                                  Little Creek.........
                                 Naval Space Command         $24,020,000
                                  Center, Dahlgren.....
                                 Naval Station, Norfolk     $182,240,000
                                 Norfolk Naval               $17,770,000
                                  Shipyard, Portsmouth.
Washington.....................  Naval Air Station,           $4,650,000
                                  Whidbey Island.......
                                 Naval Magazine, Indian       $2,240,000
                                  Island.
                                 Naval Shipyard, Puget        $6,020,000
                                  Sound.
                                 Naval Submarine Base,       $33,820,000
                                  Bangor.
                                 Strategic Weapons            $6,530,000
                                  Facility Pacific,
                                  Bangor...............
Various Locations..............  Various Locations,          $56,360,000
                                  CONUS.
                                                        ----------------
                                   Total...............   $1,335,872,000
------------------------------------------------------------------------

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


                     Navy: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Bahrain........................  Naval Support Activity,     $18,030,000
                                  Bahrain...............
Guam...........................  Commander, United            $1,700,000
                                  States Naval Forces,
                                  Marianas..............
Italy..........................  Naval Air Station,          $34,070,000
                                  Sigonella.............
                                 Naval Support Activity,     $39,020,000
                                  La Maddalena..........
                                                         ---------------
                                   Total................     $92,820,000
------------------------------------------------------------------------

     SEC. 2202. FAMILY HOUSING.

       (a) Construction and Acquisition.--Using amounts 
     appropriated pursuant to the authorization of appropriations 
     in section 2204(a)(5)(A), the Secretary of the Navy may 
     construct or acquire family housing units (including land 
     acquisition and supporting facilities) at the installations, 
     for the purposes, and in the amounts set forth in the 
     following table:


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

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

     SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

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

     SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2003, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Navy in the total amount of $2,267,729,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2201(a), $1,001,092,000.
       (2) For military construction projects outside the United 
     States authorized by section 2201(b), $92,820,000.
       (3) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $14,585,000.
       (4) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $71,001,000.
       (5) For military family housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $184,193,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $845,078,000.
       (6) For construction of a bachelors enlisted quarters 
     shipboard ashore at Naval Shipyard Norfolk, Virginia, 
     authorized by section 2201(a) of the Military Construction 
     Authorization Act for Fiscal Year 2003 (division B of Public 
     Law 107-314; 116 Stat. 2687), $46,730,000.
       (7) For construction of phase III of a combined propulsion 
     and explosives lab at Naval Air

[[Page 27598]]

     Warfare Center, China Lake, California, authorized by section 
     2201(a) of the Military Construction Authorization Act for 
     Fiscal Year 2002 (division B of Public Law 107-107; 115 Stat. 
     1289), as amended by section 2206 of this Act, $12,230,000.
       (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) and (2) of subsection (a).
       (2) $25,690,000 (the balance of the amount authorized under 
     section 2101(a) for construction of a tertiary sewage 
     treatment facility, Marine Corp Base, Camp Pendleton, 
     California).
       (3) $58,190,000 (the balance of the amount authorized under 
     section 2101(a) for construction of a battle station training 
     facility, Naval Training Center, Great Lakes, Illinois).
       (4) $96,980,000 (the balance of the amount authorized under 
     section 2101(a) for construction of a general purpose 
     berthing pier, Naval Weapons Station Earle, New Jersey).
       (5) $118,170,000 (the balance of the amount authorized 
     under section 2101(a) for construction of the Pier 11 
     replacement, Naval Station, Norfolk, Virginia).
       (6) $28,750,000 (the balance of the amount authorized under 
     section 2101(a) for construction of outlying landing field 
     facilities, various locations in the continental United 
     States).
       (c) Adjustment.--The total amount authorized to be 
     appropriated pursuant to paragraphs (1) through (7) of 
     subsection (a) is the sum of the amounts authorized to be 
     appropriated in such paragraphs, reduced by $10,000,000, 
     which represents corrections to Department of the Navy 
     estimates for military family housing support.

     SEC. 2205. TERMINATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2003 PROJECTS.

       (a) Termination of Inside the United States Projects.--The 
     table in subsection (a) of section 2201 of the Military 
     Construction Authorization Act for Fiscal Year 2003 (division 
     B of Public Law 107-314; 116 Stat. 2686) is amended--
       (1) by striking the item relating to Naval Air Warfare 
     Center, China Lake, California;
       (2) by striking the item relating to Marine Corps Air 
     Station, Cherry Point, North Carolina; and
       (3) by striking the amount identified as the total in the 
     amount column and inserting ``$1,068,223,000''.
       (b) Termination of Outside the United States Projects.--The 
     table in subsection (b) of such section is amended--
       (1) by striking the item relating to Naval Support 
     Activity, Joint Headquarters Command, Larissa, Greece;
       (2) by striking the item relating to Naval Air Station, 
     Keflavik, Iceland; and
       (3) by striking the amount identified as the total in the 
     amount column and inserting ``$129,100,000''.
       (c) Termination of Military Family Housing Project.--The 
     table in section 2202(a) of that Act (116 Stat. 2688) is 
     amended--
       (1) by striking the item relating to the Joint Maritime 
     Facility, St. Mawgan, United Kingdom; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$210,195,000''.
       (d) Conforming Amendments.--Section 2204 of that Act (116 
     Stat. 2688) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by striking 
     ``$2,576,381,000'' and inserting ``$2,530,097,000'';
       (B) in paragraph (1), by striking ``$1,025,598,000'' and 
     inserting ``$1,009,458,000'';
       (C) in paragraph (2), by striking ``$148,250,000'' and 
     inserting ``$126,530,000'';
       (D) in paragraph (5)(A), by striking ``$379,468,000'' and 
     inserting ``$360,944,000''; and
       (E) by adding at the end the following new paragraph:
       ``(7) For construction of phase II of a combined propulsion 
     and explosives lab at Naval Air Warfare Center, China Lake, 
     California, authorized by section 2201(a) of the Military 
     Construction Authorization Act for Fiscal Year 2002 (division 
     B of Public Law 107-107; 115 Stat. 1289), as amended by 
     section 2206 of the Military Construction Authorization Act 
     for Fiscal Year 2004, $10,100,000.''; and
       (2) in subsection (c), by striking ``through (6)'' and 
     inserting ``through (7)''.

     SEC. 2206. TERMINATION OR MODIFICATION OF AUTHORITY TO CARRY 
                   OUT CERTAIN FISCAL YEAR 2002 PROJECTS.

       (a) Modification of Inside the United States Project.--The 
     table in section 2201(a) of the Military Construction 
     Authorization Act for Fiscal Year 2002 (division B of Public 
     Law 107-107; 115 Stat. 1286), as amended by section 2205 of 
     the Bob Stump National Defense Authorization Act for Fiscal 
     Year 2003 (Public Law 108-314; 116 Stat. 2689), is amended--
       (1) in the item relating to Naval Air Warfare Center, China 
     Lake, California, by striking ``$30,200,000'' in the amount 
     column and inserting ``$32,391,000''; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$1,061,221,000''.
       (b) Termination of Outside the United States Project.--The 
     table in section 2201(b) of the Military Construction 
     Authorization Act for Fiscal Year 2002 (division B of Public 
     Law 107-107; 115 Stat. 1287) is amended--
       (1) by striking the item relating to Naval Support 
     Activity, Joint Headquarters Command, Larissa, Greece; and
       (2) by striking the amount identified as the total in the 
     amount column and inserting ``$35,430,000''.
       (c) Conforming Amendments.--Section 2204 of that Act (115 
     Stat. 1288) is amended--
       (1) in subsection (a)--
       (A) in the matter preceding paragraph (1), by striking 
     ``$2,366,742,000'' and inserting ``$2,354,502,000''; and
       (B) in paragraph (2), by striking ``$47,670,000'' and 
     inserting ``$35,430,000''; and
       (2) in subsection (b)(3), by striking ``$20,100,000'' and 
     inserting ``$22,291,000''.
                         TITLE XXIII--AIR FORCE

Sec. 2301. Authorized Air Force construction and land acquisition 
              projects.
Sec. 2302. Family housing.
Sec. 2303. Improvements to military family housing units.
Sec. 2304. Authorization of appropriations, Air Force.
Sec. 2305. Termination or modification of authority to carry out 
              certain fiscal year 2003 projects.

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


                   Air Force: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             State                       location             Amount
------------------------------------------------------------------------
Alabama........................  Maxwell Air Force Base.     $26,000,000
Alaska.........................  Eielson Air Force Base.     $49,061,000
                                 Elmendorf Air Force          $2,000,000
                                  Base.
Arizona........................  Davis-Monthan Air Force     $10,062,000
                                  Base..................
                                 Luke Air Force Base....     $14,300,000
Arkansas.......................  Little Rock Air Force        $3,695,000
                                  Base.
California.....................  Beale Air Force Base...     $22,750,000
                                 Edwards Air Force Base.     $26,744,000
                                 Los Angeles Air Force        $5,000,000
                                  Base.
Colorado.......................  Buckley Air Force Base.      $7,019,000
                                 Peterson Air Force Base     $10,200,000
Florida........................  Hurlburt Field.........     $27,200,000
                                 Tyndall Air Force Base.     $15,820,000
Georgia........................  Robins Air Force Base..     $37,164,000
Hawaii.........................  Hickam Air Force Base..     $80,096,000
Idaho..........................  Mountain Home Air Force     $15,245,000
                                  Base..................
Illinois.......................  Scott Air Force Base...      $1,900,000
Mississippi....................  Columbus Air Force Base      $7,700,000
                                 Keesler Air Force Base.      $2,900,000
Missouri.......................  Whiteman Air Force Base     $11,600,000
Nevada.........................  Nellis Air Force Base..     $11,800,000
New Jersey.....................  McGuire Air Force Base.     $11,861,000
New Mexico.....................  Cannon Air Force Base..      $9,000,000

[[Page 27599]]

 
                                 Kirtland Air Force Base     $11,247,000
                                 Tularosa Radar Test          $3,600,000
                                  Site.
North Carolina.................  Pope Air Force Base....     $24,499,000
                                 Seymour Johnson Air         $22,622,000
                                  Force Base............
North Dakota...................  Minot Air Force Base...     $12,690,000
Ohio...........................  Wright-Patterson Air        $21,100,000
                                  Force Base............
Oklahoma.......................  Altus Air Force Base...      $1,167,000
                                 Tinker Air Force Base..     $19,444,000
                                 Vance Air Force Base...     $15,000,000
South Carolina.................  Charleston Air Force         $9,042,000
                                  Base.
                                 Shaw Air Force Base....      $8,500,000
South Dakota...................  Ellsworth Air Force          $9,300,000
                                  Base.
Texas..........................  Goodfellow Air Force        $20,335,000
                                  Base.
                                 Lackland Air Force Base     $57,360,000
                                 Laughlin Air Force Base     $12,400,000
                                 Randolph Air Force Base     $13,600,000
                                 Sheppard Air Force Base     $38,167,000
Utah...........................  Hill Air Force Base....     $21,748,000
Virginia.......................  Langley Air Force Base.     $25,474,000
Washington.....................  McChord Air Force Base.     $19,000,000
                                                         ---------------
                                 Total..................    $775,412,000
------------------------------------------------------------------------

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


                  Air Force: Outside the United States
------------------------------------------------------------------------
                                     Installation or
            Country                      location             Amount
------------------------------------------------------------------------
Germany........................  Ramstein Air Base......     $35,616,000
                                 Spangdahlem Air Base...      $5,411,000
Italy..........................  Aviano Air Base........     $14,025,000
Korea..........................  Kunsan Air Base........      $7,059,000
                                 Osan Air Base..........     $16,638,000
Portugal.......................  Lajes Field, Azores....      $4,086,000
United Kingdom.................  Royal Air Force,            $42,487,000
                                  Lakenheath.
                                 Royal Air Force,            $10,558,000
                                  Mildenhall.
Wake Island....................  Wake Island............     $24,000,000
                                                         ---------------
                                   Total................    $159,880,000
------------------------------------------------------------------------

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


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

     SEC. 2302. FAMILY HOUSING.

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


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

[[Page 27600]]

 
Portugal............................  Lajes Field, Azores.....   42 Units..............              $13,428,000
United Kingdom......................  Royal Air Force,           89 Units..............              $23,640,000
                                       Lakenheath.............
                                                                                        ------------------------
                                                                  Total................             $399,598,000
----------------------------------------------------------------------------------------------------------------

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

     SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2304(a)(6)(A), the Secretary of 
     the Air Force may improve existing military family housing 
     units in an amount not to exceed $227,979,000.

     SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2003, for military construction, land acquisition, and 
     military family housing functions of the Department of the 
     Air Force in the total amount of $2,550,890,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2301(a), $766,932,000.
       (2) For military construction projects outside the United 
     States authorized by section 2301(b), $159,880,000.
       (3) For military construction projects at unspecified 
     worldwide locations authorized by section 2301(c), 
     $28,981,000.
       (4) For unspecified minor construction projects authorized 
     by section 2805 of title 10, United States Code, $16,180,000.
       (5) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $95,778,000.
       (6) For military housing functions:
       (A) For construction and acquisition, planning and design, 
     and improvement of military family housing and facilities, 
     $657,065,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $826,074,000.
       (b) Limitation on Total Cost of Construction Projects.--
     Notwithstanding the cost variations authorized by section 
     2853 of title 10, United States Code, and any other cost 
     variation authorized by law, the total cost of all projects 
     carried out under section 2301 of this Act may not exceed the 
     total amount authorized to be appropriated under paragraphs 
     (1), (2), and (3) of subsection (a).
       (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 $10,000,000, 
     which represents corrections to Department of the Air Force 
     estimates for military family housing support.

     SEC. 2305. TERMINATION OR MODIFICATION OF AUTHORITY TO CARRY 
                   OUT CERTAIN FISCAL YEAR 2003 PROJECTS.

       (a) Termination of Classified Location Project.--Section 
     2301(c) of the Military Construction Authorization Act for 
     Fiscal Year 2003 (division B of Public Law 107-314; 116 Stat. 
     2691) is amended by striking ``$24,993,000'' both places it 
     appears and inserting ``$1,993,000''.
       (b) Improvements to Military Family Housing Units.--Section 
     2303 of that Act (116 Stat. 2693) is amended by striking 
     ``$226,068,000'' and inserting ``$206,721,000''.
       (c) Conforming Amendments.--Section 2304(a) of that Act 
     (116 Stat. 2693) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``$2,633,738,000'' and inserting ``$2,591,391,000'';
       (2) in paragraph (3), by striking ``$24,993,000'' and 
     inserting ``$1,993,000''; and
       (3) in paragraph (6)(A), by striking ``$689,824,000'' and 
     inserting ``$670,477,000''.
                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
              acquisition projects.
Sec. 2402. Family housing.
Sec. 2403. Improvements to military family housing units.
Sec. 2404. Energy conservation projects.
Sec. 2405. Authorization of appropriations, Defense Agencies.
Sec. 2406. Termination of authority to carry out certain fiscal year 
              2003 projects.

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

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


               Defense Agencies: Inside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Defense Education Activity.....  Marine Corps Base, Camp     $15,259,000
                                  Lejeune, North
                                  Carolina..............
Defense Logistics Agency.......  Defense Distribution        $27,700,000
                                  Depot, New Cumberland,
                                  Pennsylvania..........
                                 Eglin Air Force Base,        $4,800,000
                                  Florida...............
                                 Eielson Air Force Base,     $17,000,000
                                  Alaska................
                                 Hickam Air Force Base,      $14,100,000
                                  Hawaii................
                                 Hurlburt Field, Florida      $4,100,000
                                 Offutt Air Force Base,      $13,400,000
                                  Nebraska..............
                                 Langley Air Force Base,     $13,000,000
                                  Virginia..............
                                 Laughlin Air Force           $4,688,000
                                  Base, Texas...........
                                 McChord Air Force Base,      $8,100,000
                                  Washington............
                                 Naval Air Station,           $9,200,000
                                  Kingsville, Texas.....
                                 Nellis Air Force Base,      $12,800,000
                                  Nevada................
Missile Defense Agency.........  Redstone Arsenal,           $20,000,000
                                  Alabama...............
National Security Agency.......  Fort Meade, Maryland...      $1,842,000
Special Operations Command.....  Dam Neck, Virginia.....     $15,281,000
                                 Fort Bragg, North           $36,300,000
                                  Carolina.
                                 Fort Campbell, Kentucky      $7,800,000
                                 Harrisburg                   $3,000,000
                                  International Airport,
                                  Pennsylvania..........
                                 Hurlburt Field, Florida      $6,000,000
                                 MacDill Air Force Base,     $25,500,000
                                  Florida...............
                                 Naval Amphibious Base,       $2,800,000
                                  Coronado, California..
TRICARE Management Activity....  Fort Hood, Texas.......      $9,400,000
                                 Naval Station,              $15,714,000
                                  Anacostia, District of
                                  Columbia..............
                                 Naval Submarine Base,        $6,700,000
                                  New London,
                                  Connecticut...........
                                 United States Air Force     $22,100,000
                                  Academy, Colorado.....
                                 Walter Reed Medical          $9,000,000
                                  Center, District of
                                  Columbia..............
Washington Headquarters          Arlington, Virginia....     $38,086,000
 Services......................
                                                         ---------------
                                   Total................    $363,670,000
------------------------------------------------------------------------



[[Page 27601]]

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


               Defense Agencies: Outside the United States
------------------------------------------------------------------------
                                     Installation or
             Agency                      location             Amount
------------------------------------------------------------------------
Defense Education Activity.....  Sigonella, Italy.......     $30,234,000
                                 Vicenza, Italy.........     $16,374,000
TRICARE Management Activity....  Anderson Air Force          $26,000,000
                                  Base, Guam............
                                                         ---------------
                                   Total................     $72,608,000
------------------------------------------------------------------------

     SEC. 2402. FAMILY HOUSING.

       Using amounts appropriated pursuant to the authorization of 
     appropriations in section 2405(a)(8)(A), the Secretary of 
     Defense may carry out architectural and engineering services 
     and construction design activities with respect to the 
     construction or improvement of military family housing units 
     in an amount not to exceed $300,000.

     SEC. 2403. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

       Subject to section 2825 of title 10, United States Code, 
     and using amounts appropriated pursuant to the authorization 
     of appropriations in section 2405(a)(8)(A), the Secretary of 
     Defense may improve existing military family housing units in 
     an amount not to exceed $50,000.

     SEC. 2404. ENERGY CONSERVATION PROJECTS.

       Using amounts appropriated pursuant to the authorization of 
     appropriations in section 2405(a)(6), the Secretary of 
     Defense may carry out energy conservation projects under 
     section 2865 of title 10, United States Code, in the amount 
     of $50,000,000.

     SEC. 2405. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

       (a) In General.--Funds are hereby authorized to be 
     appropriated for fiscal years beginning after September 30, 
     2003, for military construction, land acquisition, and 
     military family housing functions of the Department of 
     Defense (other than the military departments) in the total 
     amount of $1,222,388,000, as follows:
       (1) For military construction projects inside the United 
     States authorized by section 2401(a), $361,470,000.
       (2) For military construction projects outside the United 
     States authorized by section 2401(b), $55,243,000.
       (3) For unspecified minor construction projects under 
     section 2805 of title 10, United States Code, $15,553,000.
       (4) For contingency construction projects of the Secretary 
     of Defense under section 2804 of title 10, United States 
     Code, $8,960,000.
       (5) For architectural and engineering services and 
     construction design under section 2807 of title 10, United 
     States Code, $65,130,000.
       (6) For energy conservation projects authorized by section 
     2404, $50,000,000.
       (7) For base closure and realignment activities as 
     authorized by the Defense Base Closure and Realignment Act of 
     1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
     2687 note), $370,427,000.
       (8) For military family housing functions:
       (A) For planning, design, and improvement of military 
     family housing and facilities, $350,000.
       (B) For support of military family housing (including 
     functions described in section 2833 of title 10, United 
     States Code), $49,440,000.
       (C) For credit to the Department of Defense Family Housing 
     Improvement Fund established by section 2883(a)(1) of title 
     10, United States Code, $300,000.
       (9) For construction of the Defense Threat Reduction Center 
     at Fort Belvoir, Virginia, authorized by section 2401(a) of 
     the Military Construction Authorization Act for Fiscal Year 
     2003 (division B of Public Law 107-314; 116 Stat. 2695), 
     $25,700,000.
       (10) For the construction of phase 5 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), $88,388,000.
       (11) For the construction of phase 6 of an ammunition 
     demilitarization facility at Newport Army Ammunition Plant, 
     Indiana, authorized by section 2401(a) of the Military 
     Construction Authorization Act for Fiscal Year 1999 (division 
     B of Public Law 105-261; 112 Stat. 2193), as amended by 
     section 2406 of the Military Construction Authorization Act 
     for Fiscal Year 2003 (division B of Public Law 107-314; 116 
     Stat. 2698), $15,207,000.
       (12) For the construction of phase 4 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 for Fiscal Year 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), $16,220,000.
       (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 
     total amount authorized to be appropriated under paragraphs 
     (1) and (2) of subsection (a).

     SEC. 2406. TERMINATION OF AUTHORITY TO CARRY OUT CERTAIN 
                   FISCAL YEAR 2003 PROJECTS.

       (a) Termination.--The table in section 2401(b) of the 
     Military Construction Authorization Act for Fiscal Year 2003 
     (division B of Public Law 107-314; 116 Stat. 2695) is 
     amended--
       (1) in the matter relating to Department of Defense 
     Dependents Schools--
       (A) by striking the item relating to Seoul, Korea; and
       (B) by striking the item relating to Spangdahlem Air Base, 
     Germany;
       (2) in the matter relating to TRICARE Management Activity, 
     by striking the item relating to Spangdahlem Air Base, 
     Germany; and
       (3) by striking the amount identified as the total in the 
     amount column and inserting ``$134,274,000''.
       (b) Conforming Amendments.--Section 2404(a) of that Act 
     (116 Stat. 2696) is amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``$1,434,795,000'' and inserting ``$1,362,486,000''; and
       (2) in paragraph (2), by striking ``$206,583,000'' and 
     inserting ``$134,274,000''.
   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

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

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

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

     SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

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

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

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

       There are authorized to be appropriated for fiscal years 
     beginning after September 30, 2003, for the costs of 
     acquisition, architectural and engineering services, and 
     construction of facilities for the Guard and Reserve Forces, 
     and for contributions 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, 
     $311,592,000; and
       (B) for the Army Reserve, $88,451,000.
       (2) For the Department of the Navy, for the Naval and 
     Marine Corps Reserve, $45,498,000.
       (3) For the Department of the Air Force--
       (A) for the Air National Guard of the United States, 
     $222,908,000; and
       (B) for the Air Force Reserve, $62,032,000.
        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

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

[[Page 27602]]



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

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

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

       (a) Extension of Certain Projects.--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 2601 of that Act, shall remain in 
     effect until October 1, 2004, or the date of the enactment of 
     an Act authorizing funds for military construction for fiscal 
     year 2005, whichever is later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:


                                  Army: Extension of 2001 Project Authorization
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
South Carolina........................  Fort Jackson.............  New Construction--Family             $250,000
                                                                    Housing (1 Unit)............
----------------------------------------------------------------------------------------------------------------



                          Army National Guard: Extension of 2001 Project Authorizations
----------------------------------------------------------------------------------------------------------------
                 State                   Installation or location             Project                 Amount
----------------------------------------------------------------------------------------------------------------
Arizona...............................  Papago Park..............  Add/Alter Readiness Center...      $2,265,000
Pennsylvania..........................  Mansfield................  Readiness Center.............      $3,100,000
----------------------------------------------------------------------------------------------------------------

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

       (a) Extension.--Notwithstanding section 2701 of the 
     Military Construction Authorization Act for Fiscal Year 2000 
     (division B of Public Law 106-65; 113 Stat. 841), the 
     authorizations set forth in the tables in subsection (b), as 
     provided in section 2302 or 2601 of that Act and extended by 
     section 2702 of the Military Construction Authorization Act 
     for Fiscal Year 2003 (division B of Public Law 107-314; 116 
     Stat. 2700), shall remain in effect until October 1, 2004, or 
     the date of the enactment of an Act authorizing funds for 
     military construction for fiscal year 2005, whichever is 
     later.
       (b) Tables.--The tables referred to in subsection (a) are 
     as follows:


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



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

                    TITLE XXVIII--GENERAL PROVISIONS

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

Sec. 2801. Modification of general definitions relating to military 
              construction.
Sec. 2802. Increase in maximum amount of authorized annual emergency 
              construction.
Sec. 2803. Increase in number of family housing units in Italy 
              authorized for lease by the Navy.
Sec. 2804. Increase in authorized maximum lease term for family housing 
              and other facilities in certain foreign countries.
Sec. 2805. Conveyance of property at military installations closed or 
              realigned to support military construction.
Sec. 2806. Inapplicability of space limitations to military 
              unaccompanied housing units acquired or constructed under 
              alternative authority.
Sec. 2807. Additional material for reports on housing privatization 
              program.
Sec. 2808. Temporary, limited authority to use operation and 
              maintenance funds for construction projects outside the 
              United States.
Sec. 2809. Report on military construction requirements to support new 
              homeland defense missions of the Armed Forces.

        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Enhancement of authority to acquire low-cost interests in 
              land.
Sec. 2812. Retention and availability of amounts realized from energy 
              cost savings.
Sec. 2813. Acceptance of in-kind consideration for easements.

                Subtitle C--Base Closure and Realignment

Sec. 2821. Consideration of public-access-road issues related to base 
              closure, realignment, or placement in inactive status.
Sec. 2822. Consideration of surge requirements in 2005 round of base 
              realignments and closures.

                      Subtitle D--Land Conveyances

                        Part I--Army Conveyances

Sec. 2831. Termination of lease and conveyance of Army Reserve 
              facility, Conway, Arkansas.
Sec. 2832. Land conveyance, Fort Campbell, Kentucky and Tennessee.
Sec. 2833. Land conveyance, Fort Knox, Kentucky.
Sec. 2834. Army National Guard Armory, Pierce City, Missouri.
Sec. 2835. Land exchange, Fort Belvoir, Virginia.

                       Part II--Navy Conveyances

Sec. 2841. Land conveyance, Navy property, Dixon, California.
Sec. 2842. Land conveyance, Marine Corps Logistics Base, Albany, 
              Georgia.
Sec. 2843. Land exchange, Naval and Marine Corps Reserve Center, 
              Portland, Oregon.

[[Page 27603]]

Sec. 2844. Land conveyance, Naval Reserve Center, Orange, Texas.
Sec. 2845. Land conveyance, Puget Sound Naval Shipyard, Bremerton, 
              Washington.

                    Part III--Air Force Conveyances

Sec. 2851. Land exchange, March Air Reserve Base, California.
Sec. 2852. Actions to quiet title, Fallin Waters Subdivision, Eglin Air 
              Force Base, Florida.
Sec. 2853. Modification of land conveyance, Eglin Air Force Base, 
              Florida.

                       Part IV--Other Conveyances

Sec. 2861. Land conveyance, Air Force and Army Exchange Service 
              property, Dallas, Texas.
Sec. 2862. Land conveyance, Umnak Island, Alaska.

                       Subtitle E--Other Matters

Sec. 2871. Authority to accept guarantees with gifts in development of 
              Marine Corps Heritage Center, Marine Corps Base, 
              Quantico, Virginia.
Sec. 2872. Redesignation of Yuma Training Range Complex as Bob Stump 
              Training Range Complex.
Sec. 2873. Feasibility study regarding conveyance of Louisiana Army 
              Ammunition Plant, Doyline, Louisiana.
 Subtitle A--Military Construction Program and Military Family Housing 
                                Changes

     SEC. 2801. MODIFICATION OF GENERAL DEFINITIONS RELATING TO 
                   MILITARY CONSTRUCTION.

       (a) Military Construction.--Subsection (a) of section 2801 
     of title 10, United States Code, is amended by inserting 
     before the period the following: ``, whether to satisfy 
     temporary or permanent requirements''.
       (b) Military Installation.--Subsection (c)(2) of such 
     section is amended by inserting before the period the 
     following: ``, without regard to the duration of operational 
     control''.

     SEC. 2802. INCREASE IN MAXIMUM AMOUNT OF AUTHORIZED ANNUAL 
                   EMERGENCY CONSTRUCTION.

       Section 2803(c)(1) of title 10, United States Code, is 
     amended by striking ``$30,000,000'' and inserting 
     ``$45,000,000''.

     SEC. 2803. INCREASE IN NUMBER OF FAMILY HOUSING UNITS IN 
                   ITALY AUTHORIZED FOR LEASE BY THE NAVY.

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

     SEC. 2804. INCREASE IN AUTHORIZED MAXIMUM LEASE TERM FOR 
                   FAMILY HOUSING AND OTHER FACILITIES IN CERTAIN 
                   FOREIGN COUNTRIES.

       (a) Lease of Military Family Housing.--Section 2828(d)(1) 
     of title 10, United States Code, is amended by striking ``ten 
     years,'' and inserting ``10 years, or 15 years in the case of 
     leases in Korea,''.
       (b) Lease of Other Facilities.--Section 2675 of such title 
     is amended by inserting after ``five years,'' the following: 
     ``or 15 years in the case of a lease in Korea,''.

     SEC. 2805. CONVEYANCE OF PROPERTY AT MILITARY INSTALLATIONS 
                   CLOSED OR REALIGNED TO SUPPORT MILITARY 
                   CONSTRUCTION.

       (a) In General.--(1) Subchapter III of chapter 169 of title 
     10, United States Code, is amended by adding at the end the 
     following new section:

     ``Sec. 2869. Conveyance of property at military installations 
       closed or realigned to support military construction

       ``(a) Conveyance Authorized; Consideration.--The Secretary 
     concerned may enter into an agreement to convey real 
     property, including any improvements thereon, located on a 
     military installation that is closed or realigned under a 
     base closure law to any person who agrees, in exchange for 
     the real property--
       ``(1) to carry out a military construction project or land 
     acquisition; or
       ``(2) to transfer to the Secretary concerned housing that 
     is constructed or provided by the person and located at or 
     near a military installation at which there is a shortage of 
     suitable military family housing, military unaccompanied 
     housing, or both.
       ``(b) Conditions on Conveyance Authority.--The fair market 
     value of the military construction, military family housing, 
     or military unaccompanied housing to be obtained by the 
     Secretary concerned under subsection (a) in exchange for the 
     conveyance of real property by the Secretary under such 
     subsection shall be at least equal to the fair market value 
     of the conveyed real property, as determined by the 
     Secretary. If the fair market value of the military 
     construction, military family housing, or military 
     unaccompanied housing is less than the fair market value of 
     the real property to be conveyed, the recipient of the 
     property shall pay to the United States an amount equal to 
     the difference in the fair market values.
       ``(c) Pilot Program for Use of Authority.--(1) To the 
     maximum extent practicable, the Secretary of each military 
     department shall use the conveyance authority provided by 
     subsection (a) at least once before December 31, 2004, for 
     the purposes specified in such subsection.
       ``(2) The value of the consideration received by the 
     Secretary concerned in a conveyance carried out under this 
     subsection shall not be less than $1,000,000.
       ``(3) In the case of the report required under subsection 
     (f) to be submitted in 2005, the Secretary of Defense shall 
     include the following:
       ``(A) A description of the conveyances carried out or 
     proposed under this subsection.
       ``(B) A description of the procedures utilized to enter 
     into any agreements for the conveyance of property under this 
     subsection.
       ``(C) An assessment of the utility of such procedures for 
     the disposal of property at military installations closed or 
     realigned under the base closure laws, and for securing 
     services described in subsection (a), including an assessment 
     of any time saved and cost-savings achieved as a result of 
     the use of the conveyance authority provided by this section.
       ``(D) An assessment of private sector interest in the use 
     of the conveyance authority provided by this section.
       ``(E) A description of the projects for which the Secretary 
     concerned considered using the conveyance authority provided 
     by this section, but did not do so, and an explanation of the 
     decision.
       ``(d) Advance Notice of Use of Authority.--(1) Notice of 
     the proposed use of the conveyance authority provided by 
     subsection (a) shall be provided in such manner as the 
     Secretary of Defense may prescribe, including publication in 
     the Federal Register and otherwise. When real property 
     located at a military installation closed or realigned under 
     the base closure laws is to be conveyed by means of a public 
     sale, the Secretary concerned may notify prospective 
     purchasers that consideration for the property may be 
     provided in the manner authorized by such subsection.
       ``(2) The Secretary concerned may not enter into an 
     agreement under subsection (a) for the conveyance of real 
     property until--
       ``(A) the Secretary submits to Congress notice of the 
     conveyance, including the military construction activities, 
     military family housing, or military unaccompanied housing to 
     be obtained in exchange for the conveyance; and
       ``(B) a period of 14 days expires beginning on the date on 
     which the notice is submitted.
       ``(e) Deposit of Funds.--The Secretary concerned may 
     deposit funds received under subsection (b) in the Department 
     of Defense housing funds established under section 2883(a) of 
     this title.
       ``(f) Annual Report.--In 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 include a report detailing the 
     following:
       ``(1) The extent to which the Secretaries concerned used 
     the authority provided by subsection (a) during the preceding 
     fiscal year to convey real property in exchange for military 
     construction and military housing, including the total value 
     of the real property that was actually conveyed during such 
     fiscal year using such authority and the total value of the 
     military construction and military housing services obtained 
     in exchange.
       ``(2) The plans for the use of such authority for the 
     current fiscal year, the fiscal year covered by the budget, 
     and the period covered by the current future-years defense 
     program under section 221 of this title.
       ``(3) The current inventory of unconveyed lands at military 
     installations closed or realigned under a base closure law.
       ``(g) Description of Property.--The exact acreage and legal 
     description of real property conveyed under subsection (a) 
     shall be determined by surveys satisfactory to the Secretary 
     concerned.
       ``(h) Additional Terms and Conditions.--The Secretary 
     concerned may require such additional terms and conditions in 
     connection with a conveyance under subsection (a) as the 
     Secretary considers appropriate to protect the interests of 
     the United States.''.
       (2) The table of sections at the beginning of such 
     subchapter is amended by adding at the end the following new 
     item:

``2869. Conveyance of property at military installations closed or 
              realigned to support military construction.''.

       (b) Exception to Requirement for Authorization of Number of 
     Housing Units.--Section 2822(b) of such title is amended by 
     adding at the end the following new paragraph:
       ``(6) Housing units constructed or provided under section 
     2869 of this title.''.
       (c) Conforming Amendment to Department of Defense Housing 
     Funds.--Section 2883(c) of such title is amended--
       (1) in paragraph (1), by adding at the end the following 
     new subparagraph:
       ``(F) Any amounts that the Secretary concerned transfers to 
     that Fund pursuant to section 2869 of this title.''; and
       (2) in paragraph (2), by adding at the end the following 
     new subparagraph:
       ``(F) Any amounts that the Secretary concerned transfers to 
     that Fund pursuant to section 2869 of this title.''.
       (d) Conforming Repeals to Base Closure Laws.--(1) Section 
     204(e) of the Defense Authorization Amendments and Base 
     Closure and Realignment Act (Public Law 100-526; 10 U.S.C. 
     2687 note) is repealed.
       (2) Section 2905(f) of the Defense Base Closure and 
     Realignment Act of 1990 (part A of title XXIX of Public Law 
     101-510; 10 U.S.C. 2687 note) is repealed.

     SEC. 2806. INAPPLICABILITY OF SPACE LIMITATIONS TO MILITARY 
                   UNACCOMPANIED HOUSING UNITS ACQUIRED OR 
                   CONSTRUCTED UNDER ALTERNATIVE AUTHORITY.

       Section 2880(b)(2) of title 10, United States Code, is 
     amended by striking ``unless the unit is located on a 
     military installation''.

[[Page 27604]]



     SEC. 2807. ADDITIONAL MATERIAL FOR REPORTS ON HOUSING 
                   PRIVATIZATION PROGRAM.

       (a) Reports on Specific Projects.--Subsection (a) of 
     section 2884 of title 10, United States Code, is amended--
       (1) by designating the second sentence of paragraph (2) as 
     paragraph (4); and
       (2) by inserting after the first sentence in paragraph (2) 
     the following new paragraph:
       ``(3)(A) In the case of a contract described in paragraph 
     (1) proposed to be entered into with a private party, the 
     report shall specify whether the contract will or may include 
     a guarantee (including the making of mortgage or rental 
     payments) by the Secretary to the private party in the event 
     of--
       ``(i) the closure or realignment of the installation for 
     which housing will be provided under the contract;
       ``(ii) a reduction in force of units stationed at such 
     installation; or
       ``(iii) the extended deployment of units stationed at such 
     installation.
       ``(B) If the contract will or may include such a guarantee, 
     the report shall also--
       ``(i) describe the nature of the guarantee; and
       ``(ii) assess the extent and likelihood, if any, of the 
     liability of the United States with respect to the 
     guarantee.''.
       (b) Annual Reports.--Subsection (b) of such section is 
     amended--
       (1) in paragraph (2), by inserting before the period at the 
     end the following: ``, and such recommendations as the 
     Secretary considers necessary for improving the extent and 
     effectiveness of the use of such authorities in the future''; 
     and
       (2) by striking paragraph (3) and inserting the following 
     new paragraphs:
       ``(3) A review of activities of the Secretary under this 
     subchapter during such preceding fiscal year, shown for 
     military family housing, military unaccompanied housing, dual 
     military family housing and military unaccompanied housing, 
     and ancillary supporting facilities.
       ``(4) If a contract for the acquisition or construction of 
     military family housing, military unaccompanied housing, or 
     dual military family housing and military unaccompanied 
     housing entered into during the preceding fiscal year did not 
     include the acquisition or construction of the types of 
     ancillary supporting facilities specifically referred to in 
     section 2871(1) of this title, a explanation of the reasons 
     why such ancillary supporting facilities were not included.
       ``(5) A description of the Secretary's plans for housing 
     privatization activities under this subchapter (A) during the 
     fiscal year for which the budget is submitted, and (B) during 
     the period covered by the then-current future-years defense 
     plan under section 221 of this title.''.

     SEC. 2808. TEMPORARY, LIMITED AUTHORITY TO USE OPERATION AND 
                   MAINTENANCE FUNDS FOR CONSTRUCTION PROJECTS 
                   OUTSIDE THE UNITED STATES.

       (a) Temporary Authority.--During fiscal year 2004, the 
     Secretary of Defense may use this section as authority to 
     obligate appropriated funds available for operation and 
     maintenance to carry out a construction project outside the 
     United States that the Secretary determines meets each of the 
     following conditions:
       (1) The construction is necessary to meet urgent military 
     operational requirements of a temporary nature involving the 
     use of the Armed Forces in support of a declaration of war, 
     the declaration by the President of a national emergency 
     under section 201 of the National Emergencies Act (50 U.S.C. 
     1621), or a contingency operation.
       (2) The construction is not carried out at a military 
     installation where the United States is reasonably expected 
     to have a long-term presence.
       (3) The United States has no intention of using the 
     construction after the operational requirements have been 
     satisfied.
       (4) The level of construction is the minimum necessary to 
     meet the temporary operational requirements.
       (b) Notification of Obligation of Funds.--Within seven days 
     after the date on which appropriated funds available for 
     operation and maintenance are first obligated for a 
     construction project under subsection (a), the Secretary of 
     Defense shall submit to the congressional committees 
     specified in subsection (f) notice of the obligation of the 
     funds and the construction project. The notice shall include 
     the following:
       (1) Certification that the conditions specified in 
     subsection (a) are satisfied with regard to the construction 
     project.
       (2) A description of the purpose for which appropriated 
     funds available for operation and maintenance are being 
     obligated.
       (3) All relevant documentation detailing the construction 
     project.
       (4) An estimate of the total amount obligated for the 
     construction.
       (c) Limitation on Use of Authority.--(1) The total cost of 
     the construction projects carried out under the authority of 
     this section using, in whole or in part, appropriated funds 
     available for operation and maintenance shall not exceed 
     $200,000,000 in fiscal year 2004.
       (2) The Secretary of Defense may waive the limitation 
     imposed by paragraph (1) if the Secretary determines that the 
     obligation of operation and maintenance funds for 
     construction projects in excess of the amount specified in 
     such subsection is vital to the national security.
       (3) Not later than five days after the date on which a 
     waiver is granted under paragraph (2), the Secretary of 
     Defense shall submit to the congressional committees 
     specified in subsection (f) notice containing the reasons for 
     the waiver.
       (d) Quarterly Report.--Not later than 30 days after the end 
     of each fiscal-year quarter of fiscal year 2004, the 
     Secretary of Defense shall submit to the congressional 
     committees specified in subsection (f) a report on the 
     worldwide obligation and expenditure during that quarter of 
     appropriated funds available for operation and maintenance 
     for construction projects.
       (e) Relation to Other Authorities.--The temporary authority 
     provided by this section, and the limited authority provided 
     by section 2805(c) of title 10, United States Code, to use 
     appropriated funds available for operation and maintenance to 
     carry out a construction project are the only authorities 
     available to the Secretary of Defense and the Secretaries of 
     the military departments to use appropriated funds available 
     for operation and maintenance to carry out construction 
     projects.
       (f) Congressional committees.--The congressional committees 
     referred to in this section are the following:
       (1) The Committee on Armed Services and the Subcommittees 
     on Defense and Military Construction of the Committee on 
     Appropriations of the Senate.
       (2) The Committee on Armed Services and the Subcommittees 
     on Defense and Military Construction of the Committee on 
     Appropriations of the House of Representatives.

     SEC. 2809. REPORT ON MILITARY CONSTRUCTION REQUIREMENTS TO 
                   SUPPORT NEW HOMELAND DEFENSE MISSIONS OF THE 
                   ARMED FORCES.

       Not later than February 15, 2004, the Secretary of Defense 
     shall submit to Congress a report describing all military 
     construction projects carried out to support new homeland 
     defense missions of the Armed Forces undertaken since 
     September 11, 2001, and containing an assessment of the 
     military construction requirements anticipated to be 
     necessary during fiscal years 2005, 2006, and 2007 to support 
     such missions.
        Subtitle B--Real Property and Facilities Administration

     SEC. 2811. ENHANCEMENT OF AUTHORITY TO ACQUIRE LOW-COST 
                   INTERESTS IN LAND.

       (a) Increase in Acquisition Threshold.--Section 2672 of 
     title 10, United States Code, is amended--
       (1) by redesignating subsections (a)(2) and (b) as 
     subsections (b) and (c), respectively;
       (2) in subsection (a)--
       (A) in paragraph (1)(B), by striking ``$500,000'' and 
     inserting ``$750,000''; and
       (B) by inserting after paragraph (1) the following new 
     paragraph (2):
       ``(2) The Secretary of a military department may acquire 
     any interest in land that--
       ``(A) the Secretary determines is needed solely to correct 
     a deficiency that is life-threatening, health-threatening, or 
     safety-threatening; and
       ``(B) does not cost more than $1,500,000, exclusive of 
     administrative costs and the amounts of any deficiency 
     judgments.''; and
       (3) in subsection (b), as so redesignated, by striking 
     ``$500,000'' and inserting ``$750,000, in the case of an 
     acquisition under subsection (a)(1), or $1,500,000, in the 
     case of an acquisition under subsection (a)(2)''.
       (b) Clerical Amendments.--(1) Such section is further 
     amended--
       (A) in subsection (a), by inserting ``Acquisition 
     Authority.--'' before ``(1)'';
       (B) in subsection (b), as redesignated by subsection 
     (a)(1), by inserting ``Acquisition of Multiple Parcels.--'' 
     before ``This section''; and
       (C) in subsection (c), as redesignated by subsection 
     (a)(1), by inserting ``Survey and Acquisition Methods.--'' 
     before ``The authority''.
       (2) The heading of such section is amended to read as 
     follows:

     ``Sec. 2672. Authority to acquire low-cost interests in 
       land''.

       (3) The item relating to section 2672 in the table of 
     sections at the beginning of chapter 159 of such title is 
     amended to read as follows:

``2672. Authority to acquire low-cost interests in land.''.

     SEC. 2812. RETENTION AND AVAILABILITY OF AMOUNTS REALIZED 
                   FROM ENERGY COST SAVINGS.

       (a) In General.--Section 2865(b) of title 10, United States 
     Code, is amended--
       (1) in paragraph (1), by striking ``Two-thirds of the 
     portion of the funds appropriated'' and inserting ``An amount 
     of the funds appropriated'';
       (2) in paragraph (2), by striking ``The Secretary'' and 
     inserting ``The Secretary of Defense''; and
       (3) by adding at the end the following new paragraph:
       ``(4) The Secretary of Defense shall include in the budget 
     material submitted to Congress in connection with the 
     submission of the budget for a fiscal year pursuant to 
     section 1105 of title 31 a separate statement of the amounts 
     available for obligation under this subsection in such fiscal 
     year.''.
       (b) Effective Date.--The amendment made by subsection 
     (a)(1) shall not apply to funds appropriated for a fiscal 
     year before fiscal year 2004.

     SEC. 2813. ACCEPTANCE OF IN-KIND CONSIDERATION FOR EASEMENTS.

       (a) Easements for Rights-of-Way.--Section 2668(e) of title 
     10, United States Code, is amended--
       (1) by striking ``Subsection (d)'' and inserting 
     ``Subsections (c) and (d)'';
       (2) by inserting ``in-kind consideration and'' before 
     ``proceeds''; and
       (3) by striking ``subsection applies to'' and inserting 
     ``subsections apply to in-kind consideration and''.

[[Page 27605]]

       (b) Easements for Utility Lines.--Section 2669(e) of such 
     title is amended--
       (1) by striking ``Subsection (d)'' and inserting 
     ``Subsections (c) and (d)'';
       (2) by inserting ``in-kind consideration and'' before 
     ``proceeds''; and
       (3) by striking ``subsection applies to'' and inserting 
     ``subsections apply to in-kind consideration and''.
                Subtitle C--Base Closure and Realignment

     SEC. 2821. CONSIDERATION OF PUBLIC-ACCESS-ROAD ISSUES RELATED 
                   TO BASE CLOSURE, REALIGNMENT, OR PLACEMENT IN 
                   INACTIVE STATUS.

       Section 2905(b)(2) 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 adding at the end 
     the following new subparagraph:
       ``(E) If a military installation to be closed, realigned, 
     or placed in an inactive status under this part includes a 
     road used for public access through, into, or around the 
     installation, the Secretary of Defense shall consult with the 
     Governor of the State and the heads of the local governments 
     concerned for the purpose of considering the continued 
     availability of the road for public use after the 
     installation is closed, realigned, or placed in an inactive 
     status.''.

     SEC. 2822. CONSIDERATION OF SURGE REQUIREMENTS IN 2005 ROUND 
                   OF BASE REALIGNMENTS AND CLOSURES.

       (a) Determination of Surge Requirements.--The Secretary of 
     Defense shall assess the probable threats to national 
     security and, as part of such assessment, determine the 
     potential, prudent, surge requirements to meet those threats.
       (b) Use of Determination.--The Secretary shall use the 
     surge requirements determination made under subsection (a) in 
     the base realignment and closure process under 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 amended 
     by title XXX of the National Defense Authorization Act for 
     Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1342).
                      Subtitle D--Land Conveyances

                        PART I--ARMY CONVEYANCES

     SEC. 2831. TERMINATION OF LEASE AND CONVEYANCE OF ARMY 
                   RESERVE FACILITY, CONWAY, ARKANSAS.

       (a) Termination of Lease.--Upon the completion of the 
     replacement facility authorized for the Army Reserve facility 
     located in Conway, Arkansas, the Secretary of the Army may 
     terminate the 99-year lease between the Secretary and the 
     University of Central Arkansas for the property on which the 
     old facility is located.
       (b) Conveyance of Facility.--As part of the termination of 
     the lease under subsection (a), the Secretary may convey, 
     without consideration, to the University of Central Arkansas 
     all right, title, and interest of the United States in and to 
     the Army Reserve facility located on the leased property.
       (c) Assumption of Liability.--The University of Central 
     Arkansas shall expressly accept any and all liability 
     pertaining to the physical condition of the Army Reserve 
     facility conveyed under subsection (b) and shall hold the 
     United States harmless from any and all liability arising 
     from the facility's physical condition.

     SEC. 2832. LAND CONVEYANCE, FORT CAMPBELL, KENTUCKY AND 
                   TENNESSEE.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey to the department of transportation of the State of 
     Tennessee all right, title, and interest of the United States 
     in and to a parcel of real property (right-of-way), including 
     any improvements thereon, located at Fort Campbell, Kentucky 
     and Tennessee, for the purpose of realigning and upgrading 
     United States Highway 79 from a two-lane highway to a four-
     lane highway.
       (b) Consideration.--(1) As consideration for the conveyance 
     under subsection (a), the department of transportation of the 
     State of Tennessee shall pay from any source (including 
     Federal funds made available to the State from the Highway 
     Trust Fund) all of the costs of the Secretary incurred--
       (A) to convey the property, including costs related to the 
     preparation of documents under the National Environmental 
     Policy Act of 1969 (42 U.S.C. 4321 et seq.), surveys 
     (including all surveys required under subsection (c)), 
     cultural reviews, and administrative oversight;
       (B) to relocate a cemetery to permit the highway 
     realignment and upgrading;
       (C) to acquire approximately 200 acres of mission-essential 
     replacement property required to support the training mission 
     at Fort Campbell; and
       (D) to dispose of residual Federal property located south 
     of the realigned highway.
       (2) The Secretary of the Army may accept funds under this 
     subsection from the State of Tennessee or transferred by the 
     Secretary of Transportation at the request of the State from 
     Federal-aid highway funds made available to the State to pay 
     costs described in paragraph (1) and credit them to the 
     appropriate Department of the Army accounts for the purpose 
     of paying such costs.
       (3) All funds made available from the Highway Trust Fund to 
     pay costs described in paragraph (1) shall be provided 
     subject to the requirements of section 120(b) of title 23, 
     United States Code, relating to the Federal share payable on 
     account of a project or activity.
       (4) All funds accepted by the Secretary under this 
     subsection shall remain available until expended.
       (c) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under subsection 
     (a) or acquired and disposed of under section (b) shall be 
     determined by surveys satisfactory to the Secretary.
       (d) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2833. LAND CONVEYANCE, FORT KNOX, KENTUCKY.

       (a) Conveyance Authorized.--The Secretary of the Army may 
     convey, without consideration, to the Department of Veterans 
     Affairs of the Commonwealth of Kentucky (in this section 
     referred to as the ``Department'') all right, title, and 
     interest of the United States in and to a parcel of real 
     property, including any improvements thereon, consisting of 
     approximately 93 acres at Fort Knox, Kentucky, for the 
     purpose of permitting the Department to establish and operate 
     a State-run cemetery for veterans of the Armed Forces.
       (b) Reimbursement for Costs of Conveyance.--(1) The 
     Department shall reimburse the Secretary for any costs 
     incurred by the Secretary in making the conveyance under 
     subsection (a), including costs related to environmental 
     documentation and other administrative costs. This paragraph 
     does not apply to costs associated with the environmental 
     remediation of the property to be conveyed.
       (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.
       (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.
       (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. 2834. ARMY NATIONAL GUARD ARMORY, PIERCE CITY, MISSOURI.

       (a) Contribution Authorized.--The Secretary of the Army may 
     make a contribution under section 18233(a) of title 10, 
     United States Code, for a facility for a new Army National 
     Guard armory in Pierce City, Missouri, in excess of the 
     contribution otherwise authorized by section 18236(b)(2) of 
     such title, if the Secretary determines that--
       (1) there is a compelling and immediate need for the 
     construction of the facility;
       (2) the requirement for the facility was unanticipated and 
     results from a natural disaster;
       (3) failure to construct the facility immediately would 
     have an adverse impact on the mission of the unit assigned to 
     the facility; and
       (4) the real property for the facility will be provided by 
     the State of Missouri.
       (b) Limitation.--The amount of the additional contribution 
     provided pursuant to subsection (a), which would otherwise be 
     required by section 18236(b)(2) of title 10, United States 
     Code, from the State of Missouri for the construction of the 
     facility, may not exceed the amount specified in section 
     18233a(a)(1) of such title.
       (c) Authority to Accept Real Property From State.--The 
     Secretary may accept from the State of Missouri the donation 
     of real property, in addition to the real property required 
     to be contributed by the State under subsection (a)(4), that 
     is acceptable to the Secretary and has a market value not in 
     excess of the amount of the additional contribution provided 
     pursuant to subsection (a).

     SEC. 2835. LAND EXCHANGE, FORT BELVOIR, VIRGINIA.

       (a) Land Exchange Authorized.--Upon receipt of the 
     consideration referred to in subsection (b), the Secretary of 
     the Army may convey to the Fairfax County Park Authority of 
     Fairfax County, Virginia (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 12 acres at 
     Fort Belvoir, Virginia.
       (b) Consideration.--As consideration for the conveyance of 
     the property under subsection (a), the Authority shall convey 
     to the United States all right, title, and interest of the 
     Authority in and to a parcel of real property acceptable to 
     the Secretary. The Secretary shall have administrative 
     jurisdiction over the real property received under this 
     subsection.
       (c) Costs of Conveyance.--(1) The Secretary may collect 
     funds from the Authority to cover costs incurred or to be 
     incurred by the Secretary to carry out a conveyance under 
     this section, 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 collected under paragraph (1) to cover costs 
     previously incurred by the Secretary shall be credited to the 
     fund or account that was used to cover the costs. Amounts so 
     credited

[[Page 27606]]

     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 parcels of real property 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.

                       PART II--NAVY CONVEYANCES

     SEC. 2841. LAND CONVEYANCE, NAVY PROPERTY, DIXON, CALIFORNIA.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey, without consideration, to the Housing Authority of 
     the City of Dixon, California, (in this section referred to 
     as the ``Housing Authority''), all right, title, and interest 
     of the United States in and to a parcel of real property, 
     including improvements thereon, that consists of 
     approximately 40.41 acres located at 7290 Radio Station Road 
     in Dixon, California, and is currently used by the Housing 
     Authority as the site for the Fred H. Rehman Dixon Migrant 
     Center for the purpose of permitting the Housing Authority to 
     continue to provide suitable housing and support services to 
     migrant workers.
       (b) Payment of Costs of Conveyance.--(1) The Secretary 
     shall require the Housing Authority to cover costs to be 
     incurred by the Secretary after the date of the enactment of 
     this Act, or to reimburse the Secretary for costs incurred by 
     the Secretary after such date, to carry out the conveyance 
     under subsection (a), including any survey costs, costs 
     related to environmental documentation, and other 
     administrative costs related to the conveyance. If amounts 
     are collected from the Housing 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 Housing 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 available for the same 
     purposes, and subject to the same conditions and limitations, 
     as amounts in such fund or account.
       (c) Exemption From Federal Screening.--The conveyance 
     authorized by subsection (a) is exempt from the requirement 
     to screen the property for other Federal use pursuant to 
     sections 2693 and 2696 of title 10, United States Code.
       (d) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under subsection 
     (a) shall be determined by a survey satisfactory to the 
     Secretary.
       (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. 2842. LAND CONVEYANCE, MARINE CORPS LOGISTICS BASE, 
                   ALBANY, GEORGIA.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey through negotiated sale to the Preferred Development 
     Group Corporation, a corporation incorporated in the State of 
     Georgia and authorized to do business in the State of Georgia 
     (in this section referred to as the ``Corporation''), all 
     right, title, and interest of the United States in and to a 
     parcel of real property, including any improvements thereon, 
     consisting of approximately 10.44 acres located at Turner 
     Field Road and McAdams Road in Albany, Georgia, for the 
     purpose of permitting the Corporation to use the property for 
     economic development.
       (b) Conditions of Conveyance.--The conveyance under 
     subsection (a) shall be subject to the following conditions:
       (1) That the Corporation accept the real property in its 
     condition at the time of the conveyance, commonly known as 
     conveyance ``as is''.
       (2) That the Corporation bear all costs related to the use 
     and redevelopment of the real property.
       (c) Consideration.--(1) As consideration for the conveyance 
     under subsection (a), the Corporation shall pay to the United 
     States an amount, determined pursuant to negotiations between 
     the Secretary and the Corporation and based upon the fair 
     market value of the property (as determined pursuant to an 
     appraisal acceptable to the Secretary), that is appropriate 
     for the property.
       (2) The consideration received under this subsection shall 
     be deposited in the Department of Defense Base Closure 
     Account 1990 established by section 2906 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).
       (d) Payment of Costs of Conveyance.--(1) The Secretary may 
     require the Corporation 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 
     Corporation 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 Corporation.
       (2) Amounts received as reimbursement under paragraph (1) 
     shall be credited to the fund or account that was used to 
     cover the costs incurred by the Secretary in carrying out the 
     conveyance. Amounts so credited shall be merged with amounts 
     in such fund or account, and shall be available for the same 
     purposes, and subject to the same conditions and limitations, 
     as amounts in such fund or account.
       (e) Exemption From Federal Screening.--The conveyance under 
     subsection (a) is exempt from the requirement to screen the 
     property for other Federal use pursuant to sections 2693 and 
     2696 of title 10, United States Code.
       (f) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (g) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

     SEC. 2843. LAND EXCHANGE, NAVAL AND MARINE CORPS RESERVE 
                   CENTER, PORTLAND, OREGON.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey to the United Parcel Service, Inc. (in this section 
     referred to as ``UPS''), all right, title, and interest of 
     the United States in and to a parcel of real property, 
     including improvements thereon, consisting of approximately 
     14 acres in Portland, Oregon, and comprising the Naval and 
     Marine Corps Reserve Center for the purpose of facilitating 
     the expansion of the UPS main distribution complex in 
     Portland.
       (b) Property Received in Exchange.--(1) As consideration 
     for the conveyance under subsection (a), UPS shall--
       (A) convey to the United States a parcel of real property 
     determined to be suitable by the Secretary; and
       (B) design, construct, and convey to the United States such 
     replacement facilities on that property as the Secretary 
     considers appropriate.
       (2) The value of the real property and replacement 
     facilities received by the Secretary under this subsection 
     shall be at least equal to the fair market value of the real 
     property conveyed under subsection (a), as determined by the 
     Secretary.
       (c) Payment of Costs of Conveyance.--(1) The Secretary may 
     require UPS to cover costs to be incurred by the Secretary, 
     or to reimburse the Secretary for costs incurred by the 
     Secretary, to carry out the conveyance under subsection (a), 
     including survey costs, costs related to environmental 
     documentation, relocation expenses incurred under subsection 
     (b), and other administrative costs related to the 
     conveyance. If amounts are collected from UPS 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 UPS.
       (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) Condition of Conveyance.--The Secretary may not make 
     the conveyance authorized by subsection (a) until the 
     Secretary determines that the replacement facilities required 
     by subsection (b) are suitable and available for the 
     relocation of the operations of the Naval and Marine Corps 
     Reserve Center.
       (e) Exemption From Federal Screening.--The conveyance 
     authorized by subsection (a) is exempt from the requirement 
     to screen the property for other Federal use pursuant to 
     sections 2693 and 2696 of title 10, United States Code.
       (f) Description of Property.--The exact acreage and legal 
     description of the property to be conveyed under this section 
     shall be determined by surveys satisfactory to the Secretary.
       (g) 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. 2844. LAND CONVEYANCE, NAVAL RESERVE CENTER, ORANGE, 
                   TEXAS.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey to the City of Orange, Texas (in this section referred 
     to as the ``City''), all right, title, and interest of the 
     United States in and to a parcel of unimproved real property 
     consisting of approximately 2.5 acres at Naval Reserve 
     Center, Orange, Texas, for the purpose of permitting the City 
     to use the property for road construction, economic 
     development, and other public purposes.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), the City shall provide the United 
     States, whether by cash payment, in-kind contribution, or a 
     combination thereof, an amount that is not less than the fair 
     market value, as determined by the Secretary, of the property 
     conveyed under such subsection.
       (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 conveyance under 
     subsection (a), including survey costs, costs related to 
     environmental documentation, and

[[Page 27607]]

     other administrative costs related to the conveyance. 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 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 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) Exemption From Federal Screening.--The conveyance 
     authorized by subsection (a) is exempt from the requirement 
     to screen the property for other Federal use pursuant to 
     sections 2693 and 2696 of title 10, United States Code.
       (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.

     SEC. 2845. LAND CONVEYANCE, PUGET SOUND NAVAL SHIPYARD, 
                   BREMERTON, WASHINGTON.

       (a) Conveyance Authorized.--The Secretary of the Navy may 
     convey to the City of Bremerton, Washington (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 2.8 acres at the eastern end of the Puget Sound 
     Naval Shipyard, Bremerton, Washington, immediately adjacent 
     to the Bremerton Transportation Center.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), the City, directly or through an 
     agreement with another entity, shall replace administrative 
     space on the parcel to be conveyed by renovating for new 
     occupancy approximately 7,500 square feet of existing space 
     in Building 433 at Naval Station, Bremerton, Washington, at 
     no cost to the United States, in accordance with plans and 
     specifications acceptable to the Secretary. In lieu of any 
     portion of such renovation, the Secretary may accept other 
     facility alteration or repair of not less than equal value.
       (c) Payment of Costs of Conveyance.--(1) The Secretary 
     shall 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 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 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 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) Environmental Conditions.--The Secretary may use funds 
     available in the Environmental Restoration Account, Navy to 
     carry out the environmental remediation of the real property 
     to be conveyed under subsection (a). Such environmental 
     remediation shall be conducted in a manner consistent with 
     section 120 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 U.S.C. 9620), 
     including the requirement to consider the anticipated future 
     land use of the parcel.
       (e) Exemption From Federal Screening.--The conveyance 
     authorized by subsection (a) is exempt from the requirement 
     to screen the property for other Federal use pursuant to 
     sections 2693 and 2696 of title 10, United States Code.
       (f) Description of Property.--The exact acreage and legal 
     description of the real property to be conveyed under 
     subsection (a) shall be determined by a survey satisfactory 
     to the Secretary.
       (g) Additional Terms and Conditions.--The Secretary may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Secretary 
     considers appropriate to protect the interests of the United 
     States.

                    PART III--AIR FORCE CONVEYANCES

     SEC. 2851. LAND EXCHANGE, MARCH AIR RESERVE BASE, CALIFORNIA.

       (a) Exchange Authorized.--(1) The Secretary of the Army may 
     convey to the March Joint Powers Authority of Moreno Valley, 
     California (in this section referred to as the ``JPA''), all 
     right, title, and interest of the United States in and to 
     five parcels of real property, including any improvements 
     thereon, located at March Air Reserve Base, California 
     (former March Air Force Base), and consisting of 
     approximately 36.74 total acres.
       (2) The Secretary of the Navy may convey to JPA all right, 
     title, and interest of the United States in and to two 
     parcels of real property, including any improvements thereon, 
     located at March Air Reserve Base and consisting of 
     approximately 10.181 total acres.
       (b) Consideration.--As consideration for the conveyances 
     under subsection (a), JPA shall release any interest it may 
     have in two contiguous parcels of real property located at 
     March Air Reserve Base and consisting of approximately 20 
     acres and 28 acres, respectively.
       (c) Transfer of Jurisdiction.--The Secretary of the Air 
     Force shall transfer, without reimbursement, to the 
     administrative jurisdiction of the Secretary of the Army the 
     parcels of real property described in subsection (b).
       (d) Description of Property.--The exact acreage and legal 
     description of the parcels of real property to be conveyed 
     under this section shall be determined by surveys 
     satisfactory to the Secretaries concerned.
       (e) Additional Terms and Conditions.--The Secretaries 
     concerned may require such additional terms and conditions in 
     connection with the conveyances under this section as the 
     Secretaries consider appropriate to protect the interests of 
     the United States.

     SEC. 2852. ACTIONS TO QUIET TITLE, FALLIN WATERS SUBDIVISION, 
                   EGLIN AIR FORCE BASE, FLORIDA.

       (a) Authority to Quiet Title.--(1) Notwithstanding the 
     restoration provisions under the heading ``quartermaster 
     corps'' in the Second Deficiency Appropriation Act, 1940 (Act 
     of June 27, 1940; chapter 437; 54 Stat. 655), the Secretary 
     of the Air Force may take appropriate action to quiet title 
     to tracts of land referred to in paragraph (2) on, at, 
     adjacent to, adjoining, or near Eglin Air Force Base, 
     Florida. The Secretary may take such action in order to 
     resolve encroachments upon private property by the United 
     States and upon property of the United States by private 
     parties, which resulted from reliance on inaccurate surveys.
       (2) The tracts of land referred to in paragraph (1) are 
     generally described as south of United States Highway 98 and 
     bisecting the north/south section line of sections 13 and 14, 
     township 2 south, range 25 west, located in the platted 
     subdivision of Fallin Waters, Okaloosa County, Florida. The 
     exact acreage and legal description of such tracts of land 
     shall be determined by a survey satisfactory to the 
     Secretary.
       (b) Authorized Actions.--In carrying out subsection (a), 
     appropriate action by the Secretary may include any of the 
     following:
       (1) Disclaiming, on behalf of the United States, any intent 
     by the United States to acquire by prescription any property 
     at or in the vicinity of Eglin Air Force Base.
       (2) Disposing of tracts of land owned by the United States.
       (3) Acquiring tracts of land by purchase, by donation, or 
     by exchange for tracts of land owned by the United States at 
     or adjacent to Eglin Air Force Base.
       (c) Acreage Limitations.--Individual tracts of land 
     acquired or conveyed by the Secretary under paragraph (2) or 
     (3) of subsection (b) may not exceed .10 acres. The total 
     acreage so acquired may not exceed two acres.
       (d) Consideration.--Any conveyance by the Secretary under 
     this section may be made, at the discretion of the Secretary, 
     without consideration, or by exchange for tracts of land 
     adjoining Eglin Air Force Base in possession of private 
     parties who mistakenly believed that they had acquired title 
     to such tracts.

     SEC. 2853. MODIFICATION OF LAND CONVEYANCE, EGLIN AIR FORCE 
                   BASE, FLORIDA.

       (a) Modification.--Public Law 91-347 (84 Stat. 447) is 
     amended--
       (1) in the first section, by inserting ``or for other 
     public purposes'' before the period at the end; and
       (2) in section 3(1)--
       (A) by inserting ``or for other public purposes'' after 
     ``schools''; and
       (B) by striking ``such purpose'' and inserting ``such a 
     purpose''.
       (b) Alteration of Legal Instrument.--The Secretary of the 
     Air Force shall execute and file in the appropriate office an 
     amended deed or other appropriate instrument effectuating the 
     modification of the reversionary interest retained by the 
     United States in connection with the conveyance made pursuant 
     to Public Law 91-347.

                       PART IV--OTHER CONVEYANCES

     SEC. 2861. LAND CONVEYANCE, AIR FORCE AND ARMY EXCHANGE 
                   SERVICE PROPERTY, DALLAS, TEXAS.

       (a) Conveyance Authorized.--The Secretary of Defense may 
     authorize the Army and Air Force Exchange Service, a 
     nonappropriated fund instrumentality of the United States, to 
     convey, by sale, all right, title, and interest of the United 
     States in and to a parcel of real property, including any 
     improvements thereon, consisting of approximately 7.5 acres 
     located at 1515 Roundtable Drive in Dallas, Texas.
       (b) Consideration.--As consideration for the conveyance 
     under subsection (a), the purchaser shall pay the United 
     States, in a single lump sum payment, an amount equal to the 
     fair market value of the real property, determined pursuant 
     to an appraisal acceptable to the Secretary.
       (c) Treatment of Consideration.--Section 574(a) of title 
     40, United States Code, shall apply to the consideration 
     received under subsection (b), except that in the application 
     of such section, all of the proceeds shall be credited to the 
     Army and Air Force Exchange Service.
       (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 purchaser.

[[Page 27608]]

       (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. 2862. LAND CONVEYANCE, UMNAK ISLAND, ALASKA.

       (a) Definitions.--In this section--
       (1) The term ``Aleut Corporation'' means the regional 
     corporation established under the Alaska Native Claims 
     Settlement Act (43 U.S.C. 1601 et seq.) for the region in 
     which the Native Village of Nikolski, Alaska, is located.
       (2) The term ``Chaluka Corporation'' means the village 
     corporation established under the Alaska Native Claims 
     Settlement Act (43 U.S.C. 1601 et seq.) for the Native 
     Village of Nikolski, Alaska.
       (3) The term ``former Nikolski Radio Relay Site'' means the 
     portions of Tracts A, B, and C of Public Land Order 2374 that 
     are surveyed as Tracts 37, 37A, 38, 39, 39A, and 40 of 
     township 83 south, range 136 west, Seward meridian, Alaska, 
     and Tract B of United States Survey 4904, Alaska, except--
       (A) lots 1, 2, 5, 6, and 9 of Tract B of Amended United 
     States Survey 4904; and
       (B) the Nikolski powerhouse land.
       (4) The term ``Nikolski powerhouse land'' means the parcel 
     of land upon which is located the power generation building 
     for supplying power to the Native Village of Nikolski, the 
     boundaries of which are described generally as follows:
       (A) Beginning at the point at which the southerly boundary 
     of Tract 39 of township 83 south, range 136 west, Seward 
     meridian, Alaska, intersects the easterly boundary of the 
     road that connects the Native Village of Nikolski and the 
     airfield at Nikolski.
       (B) Then meandering in a northeasterly direction along the 
     easterly boundary of that road until the road intersects the 
     westerly boundary of the road that connects Umnak Lake and 
     the airfield.
       (C) Then meandering in a southerly direction along the 
     western boundary of that Umnak Lake road until that western 
     boundary intersects the southern boundary of such Tract 39.
       (D) Then proceeding eastward along the southern boundary of 
     such Tract 39 to the beginning point.
       (5) The term ``Phase I lands'' means Tract 39 of township 
     83 south, range 136 west, Seward meridian, excluding the 
     Nikolski powerhouse land.
       (6) The term ``Phase II lands'' means the portion of the 
     former Nikolski Radio Relay Site not conveyed as Phase I 
     lands.
       (7) The term ``Public Land Order 2374'' refers to the 
     Public Land Order issued in 1961 under which the Department 
     of the Interior withdrew public domain lands in the vicinity 
     of the Native Village of Nikolski on Umnak Island, Alaska, 
     for use by the Department of the Air Force as a radio relay 
     site.
       (b) Offer of Conveyance.--Subject to the requirements of 
     this section, the Chaluka Corporation is hereby offered 
     ownership of the surface estate in the former Nikolski Radio 
     Relay Site on Umnak Island, Alaska, and the Aleut Corporation 
     is hereby offered the subsurface estate of the former 
     Nikolski Radio Relay Site, in exchange for relinquishment by 
     the Chaluka Corporation and the Aleut Corporation of lot 1, 
     section 14, township 81 south, range 133 west, Seward 
     meridian, Alaska.
       (c) Acceptance and Relinquishment.--(1) The Secretary of 
     the Interior shall convey the former Nikolski Radio Relay 
     Site as provided in subsection (d), if the Chaluka 
     Corporation takes the actions specified in paragraph (2) and 
     the Aleut Corporation takes the actions specified in 
     paragraph (3).
       (2) As a condition for conveyance under subsection (d), the 
     Chaluka Corporation shall notify the Secretary of the 
     Interior, within 180 days after the date of the enactment of 
     this Act, that, by means of a legally binding resolution of 
     its board of directors (accompanied by the written legal 
     opinion of counsel as to the legal sufficiency of the board 
     of directors' action), the Chaluka Corporation--
       (A) accepts the offer under subsection (b);
       (B) confirms that the area surveyed by the Bureau of Land 
     Management for the purpose of fulfilling the Chaluka 
     Corporation's final entitlements under section 12(a) and (b) 
     of the Alaska Native Claims Settlement Act (43 U.S.C. 1611(a) 
     and (b)), identified as Group Survey Number 773, accurately 
     represents the Chaluka Corporation's final, irrevocable 
     Alaska Native Claims Settlement Act priorities and 
     entitlements, unless any tract in Group Survey Number 773 is 
     ultimately not conveyed as the result of an appeal; and
       (C) relinquishes lot 1, section 14, township 81 south, 
     range 133 west, Seward meridian, Alaska, which will be 
     charged against the Chaluka Corporation's final entitlement 
     under section 12(b) of the Alaska Native Claims Settlement 
     Act (43 U.S.C. 1611(b)).
       (3) As a condition for the conveyance under subsection (d), 
     the Aleut Corporation shall notify the Secretary of the 
     Interior, within 180 days after the date of the enactment of 
     this Act, that, by means of a legally binding resolution of 
     its board of directors (accompanied by the written legal 
     opinion of counsel as to the legal sufficiency of the board 
     of directors' action), the Aleut Corporation--
       (A) accepts the offer under subsection (b); and
       (B) relinquishes all rights to lot 1, section 14, township 
     81 south, range 133 west, Seward meridian, Alaska.
       (d) Conveyance.--(1) Upon receipt from the Chaluka 
     Corporation and from the Aleut Corporation of their 
     acceptances and relinquishments under subsection (c), the 
     Secretary of the Interior shall convey to the Chaluka 
     Corporation the surface estate, and to the Aleut Corporation 
     the subsurface estate, of--
       (A) Phase I lands as soon as practicable; and
       (B) each parcel of Phase II lands upon completion by the 
     Department of the Air Force of environmental restoration of 
     Phase II lands in accordance with applicable law.
       (2) Upon conveyance of a parcel of land under this section, 
     the Secretary of the Interior shall terminate the 
     corresponding portion of Public Land Order 2374 relating to 
     that parcel. Upon conveyance of all Phase I and Phase II 
     lands under this section, the Secretary of the Interior shall 
     terminate all remaining portions of Public Land Order 2374 as 
     it pertains to Umnak Island, Alaska.
       (e) Environmental Restoration.--Nothing in this section 
     affects the requirements and responsibilities of the United 
     States under section 120(h) of the Comprehensive 
     Environmental Response, Compensation, and Liability Act of 
     1980 (42 U.S.C. 9620(h)) or other applicable law. If a 
     hazardous substance, as that term is defined in section 101 
     of such Act (42 U.S.C. 9601), is discovered on the Phase I 
     lands subsequent to transfer, but the hazardous substance was 
     present on the lands before transfer and the presence of the 
     hazardous substance on the lands was not the result of 
     actions by the Chaluka Corporation or the Aleut Corporation, 
     the United States shall perform such response action as is 
     required by such Act with regard to that hazardous substance.
       (f) Treatment as ANCSA Lands.--The conveyances made under 
     subsection (d) shall be considered to be conveyances under 
     the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
     seq.), and are subject to the provisions of that Act, except 
     paragraphs (3) and (4) of section 14(c) and section 17(b)(3) 
     (43 U.S.C. 1613(c) and 1616(b)(3)).
       (g) Conveyance of Excluded Tract B Lots.--The Secretary of 
     the Interior shall convey, without consideration, an estate 
     in fee simple in--
       (1) each of lots 1, 2, 5, 6, and 9 of Tract B of Amended 
     United States Survey 4904 that is the subject of an Aleutian 
     Housing Authority mutual help occupancy agreement, to the 
     Aleutian Housing Authority; and
       (2) the remainder of such lots to the occupants of such 
     lots as of the date of the enactment of this Act.
       (h) Conveyance of Nikolski Powerhouse Land.--The Secretary 
     of the Interior shall convey, without consideration, an 
     estate in fee simple in the Nikolski powerhouse land--
       (1) to the Indian Reorganization Act Tribal Government for 
     the Native Village of Nikolski, upon completion of the 
     environmental restoration referred to in subsection (k)(2), 
     if after the restoration the powerhouse continues to be 
     located on the Nikolski powerhouse land; or
       (2) the surface estate to the Chaluka Corporation and the 
     subsurface estate to the Aleut Corporation, if after the 
     restoration, the Nikolski powerhouse is no longer located on 
     the Nikolski powerhouse land.
       (i) Access.--(1) As a condition of the conveyance of land 
     under subsection (d), the Chaluka Corporation shall permit 
     the United States, and its agents, employees, and 
     contractors, to have unrestricted access to the airfield at 
     Nikolski in perpetuity for site investigation, restoration, 
     remediation, and environmental monitoring of the former 
     Nikolski Radio Relay Site and reasonable access to that 
     airfield, and to other land conveyed under this section, for 
     any activity associated with management of lands owned by the 
     United States and for other governmental purposes without 
     cost to the United States.
       (2) The surface estate conveyed under subsection (d) shall 
     be subject to the public's right of access over Hill and 
     Beach Streets, located on Tract B of United States Survey 
     4904.
       (j) Survey Requirements.--The Bureau of Land Management is 
     not required to conduct additional on-the-ground surveys as a 
     result of conveyances under this section. The patent to the 
     Chaluka Corporation may be based on protracted section lines 
     and lotting where relinquishment under subsection (c)(2)(C) 
     results in a change to the Chaluka Corporation's final 
     boundaries. No additional monumentation is required to 
     complete those final boundaries.
       (k) Authorization of Appropriations; Transfer of Funds.--
     (1) There are authorized to be appropriated to the Department 
     of the Interior and other appropriate agencies such sums as 
     are necessary to carry out this section.
       (2) Using the funds identified for Nikolski Power House 
     Clean-up under Budget Activity 4 on page 116 of the 
     Conference Report to accompany H.R. 2658 of the 108th 
     Congress (House Report 108-283), the Secretary of the Air 
     Force shall make a direct lump sum payment, in an amount 
     equal to $1,700,000, to the fund for pollution cleanup 
     managed by the Alaska Energy Authority for the purpose of 
     assisting the Authority to perform environmental restoration 
     of the Nikolski powerhouse land.
       (l) Termination.--This section (other than subsection (g)) 
     shall cease to be effective if--
       (1) either the Chaluka Corporation or the Aleut Corporation 
     affirmatively rejects the offer under subsection (b); or
       (2) the legally binding resolutions required by paragraphs 
     (2) and (3) of subsection (c) are not submitted to the 
     Secretary of the Interior before the end of the 180-day 
     period specified in such paragraphs.

[[Page 27609]]


                       Subtitle E--Other Matters

     SEC. 2871. AUTHORITY TO ACCEPT GUARANTEES WITH GIFTS IN 
                   DEVELOPMENT OF MARINE CORPS HERITAGE CENTER, 
                   MARINE CORPS BASE, QUANTICO, VIRGINIA.

       Section 2884 of the Military Construction Authorization Act 
     for Fiscal Year 2001 (division B of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted into law by Public Law 106-398; 114 Stat. 1654A-440)) 
     is amended--
       (1) by redesignating subsection (f) as subsection (g); and
       (2) by inserting after subsection (e) the following new 
     subsection (f):
       ``(f) Acceptance of Guarantees With Gifts.--(1) The 
     authority available to the Secretary under section 6975 of 
     title 10, United States Code, to accept a qualified guarantee 
     for purposes of projects at the Naval Academy shall be 
     available to the Secretary for the project to develop the 
     Marine Corps Heritage Center.
       ``(2) The authority available to the Secretary under this 
     subsection shall expire on December 31, 2006.''.

     SEC. 2872. REDESIGNATION OF YUMA TRAINING RANGE COMPLEX AS 
                   BOB STUMP TRAINING RANGE COMPLEX.

       The military aviation training facility located in 
     southwestern Arizona and southeastern California and known as 
     the Yuma Training Range Complex shall be known and designated 
     as the ``Bob Stump Training Range Complex''. Any reference to 
     such training range complex in any law, regulation, map, 
     document, record, or other paper of the United States shall 
     be considered to be a reference to the Bob Stump Training 
     Range Complex.

     SEC. 2873. FEASIBILITY STUDY REGARDING CONVEYANCE OF 
                   LOUISIANA ARMY AMMUNITION PLANT, DOYLINE, 
                   LOUISIANA.

       (a) Study Required.--The Secretary of the Army shall 
     conduct a study of--
       (1) the feasibility of using the conveyance of the 
     Louisiana Army Ammunition Plant in Doyline, Louisiana, as a 
     model for a public-private partnership for the utilization 
     and development of the Plant and similar parcels of real 
     property; and
       (2) the costs and benefits to the United States of such a 
     conveyance.
       (b) Elements of Study.--In conducting the study, the 
     Secretary shall consider the following:
       (1) The feasibility and advisability of entering into 
     negotiations with the State of Louisiana or the Louisiana 
     National Guard for the conveyance of the Louisiana Army 
     Ammunition Plant.
       (2) The means by which the conveyance of the Plant could--
       (A) facilitate the execution by the Department of Defense 
     of its national security mission; and
       (B) facilitate the continued use of the Plant by the 
     Louisiana National Guard and the execution by the Louisiana 
     National Guard of its national security mission.
       (3) The evidence presented by the State of Louisiana of the 
     means by which the conveyance of the Plant could benefit 
     current and potential private sector and governmental tenants 
     of the Plant and facilitate the contribution of such tenants 
     to economic development in Northwestern Louisiana.
       (4) The amount and type of consideration that is 
     appropriate for the conveyance of the Plant.
       (5) The evidence presented by the State of Louisiana of the 
     extent to which the conveyance of the Plant to a public-
     private partnership will contribute to economic growth in the 
     State of Louisiana, and in Northwestern Louisiana in 
     particular.
       (6) The value of any mineral rights in the lands of the 
     Plant.
       (7) The costs and benefits to the United States of sharing 
     revenues and rents paid by current and potential tenants of 
     the Plant as a result of the Armament Retooling and 
     Manufacturing Support Program.
       (c) Report.--Not later than 180 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 
     containing the results of the study and any other matters in 
     light of the study that the Secretary considers appropriate.
 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.
Sec. 3105. Energy supply.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Termination of requirement for annual updates of long-term 
              plan for nuclear weapons stockpile life extension 
              program.
Sec. 3112. Department of Energy project review groups not subject to 
              Federal Advisory Committee Act by reason of inclusion of 
              employees of Department of Energy management and 
              operating contractors.
Sec. 3113. Readiness posture for resumption by the United States of 
              underground nuclear weapons tests.
Sec. 3114. Technical base and facilities maintenance and 
              recapitalization activities.
Sec. 3115. Continuation of processing, treatment, and disposition of 
              legacy nuclear materials.
Sec. 3116. Repeal of prohibition on research and development of low-
              yield nuclear weapons.
Sec. 3117. Requirement for specific authorization of Congress for 
              commencement of engineering development phase or 
              subsequent phase of Robust Nuclear Earth Penetrator.

                   Subtitle C--Proliferation Matters

Sec. 3121. Semiannual financial reports on defense nuclear 
              nonproliferation programs.
Sec. 3122. Report on reduction of excessive unobligated or unexpended 
              balances for defense nuclear nonproliferation activities.
Sec. 3123. Study and report relating to weapons-grade uranium and 
              plutonium of the independent states of the former Soviet 
              Union.
Sec. 3124. Authority to use international nuclear materials protection 
              and cooperation program funds outside the former Soviet 
              Union.
Sec. 3125. Requirement for on-site managers.

                       Subtitle D--Other Matters

Sec. 3131. Performance of personnel security investigations of certain 
              Department of Energy and Nuclear Regulatory Commission 
              employees in sensitive programs.
Sec. 3132. Policy of Department of Energy regarding future defense 
              environmental management matters.
Sec. 3133. Inclusion in 2005 stockpile stewardship plan of certain 
              information relating to stockpile stewardship criteria.
Sec. 3134. Progress reports on Energy Employees Occupational Illness 
              Compensation Program.
Sec. 3135. Report on integration activities of Department of Defense 
              and Department of Energy with respect to Robust Nuclear 
              Earth Penetrator.

       Subtitle E--Consolidation of National Security Provisions

Sec. 3141. Transfer and consolidation of recurring and general 
              provisions on Department of Energy national security 
              programs.
         Subtitle A--National Security Programs Authorizations

     SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated to the Department of Energy for 
     fiscal year 2004 for the activities of the National Nuclear 
     Security Administration in carrying out programs necessary 
     for national security in the amount of $8,877,347,000, to be 
     allocated as follows:
       (1) For weapons activities, $6,434,772,000.
       (2) For defense nuclear nonproliferation activities, 
     $1,332,195,000.
       (3) For naval reactors, $768,400,000.
       (4) For the Office of the Administrator for Nuclear 
     Security, $341,980,000.
       (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 04-D-101, test capabilities revitalization, Sandia 
     National Laboratories, Albuquerque, New Mexico, $36,450,000.
       Project 04-D-102, exterior communications infrastructure 
     modernization, Sandia National Laboratories, Albuquerque, New 
     Mexico, $20,000,000.
       Project 04-D-103, project engineering and design, various 
     locations, $2,000,000.
       Project 04-D-125, chemistry and metallurgy facility 
     replacement project, Los Alamos National Laboratory, Los 
     Alamos, New Mexico, $20,500,000.
       Project 04-D-126, Building 12-44 production cells upgrade, 
     Pantex plant, Amarillo, Texas, $8,780,000.
       Project 04-D-127, cleaning and loading modifications, 
     Savannah River Site, Aiken, South Carolina, $2,750,000.
       Project 04-D-128, TA-18 Mission relocation project, Los 
     Alamos National Laboratory, Los Alamos, New Mexico, 
     $8,820,000.
       Project 04-D-203, facilities and infrastructure 
     recapitalization program, project engineering and design, 
     various locations, $3,719,000.
       Project 03-D-102, SM-43 replacement, Los Alamos National 
     Laboratory, Los Alamos, New Mexico, $38,000,000.

     SEC. 3102. DEFENSE ENVIRONMENTAL MANAGEMENT.

       (a) Authorization of Appropriations.--Funds are hereby 
     authorized to be appropriated to the Department of Energy for 
     fiscal year 2004 for environmental management activities in 
     carrying out programs necessary for national security in the 
     amount of $6,809,814,000, to be allocated as follows:
       (1) For defense site acceleration completion, 
     $5,814,635,000.
       (2) For defense environmental services, $995,179,000.
       (b) Authorization of New Plant Projects.--From funds 
     referred to in subsection

[[Page 27610]]

     (a) that are available for carrying out plant projects, the 
     Secretary of Energy may carry out, for defense site 
     acceleration completion, the following new plant projects:
       Project 04-D-408, glass waste storage building #2, Savannah 
     River Site, Aiken, South Carolina, $20,259,000.
       Project 04-D-414, project engineering and design, various 
     locations, $23,500,000.
       Project 04-D-423, 3013 container surveillance capability in 
     235-F, Savannah River Site, Aiken, South Carolina, 
     $1,134,000.

     SEC. 3103. OTHER DEFENSE ACTIVITIES.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2004 for other defense 
     activities in carrying out programs necessary for national 
     security in the amount of $489,059,000.

     SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2004 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 $392,500,000.

     SEC. 3105. ENERGY SUPPLY.

       Funds are hereby authorized to be appropriated to the 
     Department of Energy for fiscal year 2004 for energy supply 
     activities in carrying out programs necessary for national 
     security in the amount of $110,473,000.
   Subtitle B--Program Authorizations, Restrictions, and Limitations

     SEC. 3111. TERMINATION OF REQUIREMENT FOR ANNUAL UPDATES OF 
                   LONG-TERM PLAN FOR NUCLEAR WEAPONS STOCKPILE 
                   LIFE EXTENSION PROGRAM.

       Effective December 31, 2004, section 3133 of the National 
     Defense Authorization Act for Fiscal Year 2000 (Public Law 
     106-65; 113 Stat. 926; 42 U.S.C. 2121 note), as transferred 
     and redesignated as section 4204 of the Atomic Energy Defense 
     Act by section 3141(e)(5) of this Act, is further amended by 
     striking subsections (c) through (f).

     SEC. 3112. DEPARTMENT OF ENERGY PROJECT REVIEW GROUPS NOT 
                   SUBJECT TO FEDERAL ADVISORY COMMITTEE ACT BY 
                   REASON OF INCLUSION OF EMPLOYEES OF DEPARTMENT 
                   OF ENERGY MANAGEMENT AND OPERATING CONTRACTORS.

       An officer or employee of a management and operating 
     contractor of the Department of Energy, when serving as a 
     member of a group reviewing or advising on matters related to 
     any one or more management and operating contracts of the 
     Department, shall be treated as an officer or employee of the 
     Department for purposes of determining whether the group is 
     an advisory committee within the meaning of section 3 of the 
     Federal Advisory Committee Act (5 U.S.C. App.).

     SEC. 3113. READINESS POSTURE FOR RESUMPTION BY THE UNITED 
                   STATES OF UNDERGROUND NUCLEAR WEAPONS TESTS.

       (a) Readiness Posture Required.--Commencing not later than 
     October 1, 2006, the Secretary of Energy shall achieve, and 
     thereafter maintain, a readiness posture of not more than 18 
     months for resumption by the United States of underground 
     tests of nuclear weapons.
       (b) Description of Requirement.--For purposes of this 
     section, a readiness posture of not more than 18 months for 
     resumption by the United States of underground tests of 
     nuclear weapons is achieved when the Department of Energy has 
     the capability to resume such tests, if directed by the 
     President to resume such tests, not later than 18 months 
     after the date on which the President so directs.

     SEC. 3114. TECHNICAL BASE AND FACILITIES MAINTENANCE AND 
                   RECAPITALIZATION ACTIVITIES.

       (a) Deadline for Inclusion of Projects in Facilities and 
     Infrastructure Recapitalization Program.--(1) The 
     Administrator for Nuclear Security shall complete the 
     selection of projects for inclusion in the Facilities and 
     Infrastructure Recapitalization Program of the National 
     Nuclear Security Administration not later than December 31, 
     2004.
       (2) No project may be included in the Facilities and 
     Infrastructure Recapitalization Program after December 31, 
     2004, unless such project has been selected for inclusion in 
     that program as of that date.
       (b) Termination of Facilities and Infrastructure 
     Recapitalization Program.--The Administrator shall terminate 
     the Facilities and Infrastructure Recapitalization Program 
     not later than September 30, 2011.
       (c) Readiness in Technical Base and Facilities Program.--
     (1) Not later than September 30, 2004, the Administrator 
     shall submit to the congressional defense committees a report 
     setting forth guidelines on the conduct of the Readiness in 
     Technical Base and Facilities program of the National Nuclear 
     Security Administration.
       (2) Such guidelines shall include the following:
       (A) Criteria for the inclusion of projects in the program, 
     and for establishing priorities among projects included in 
     the program.
       (B) Mechanisms for the management of facilities under the 
     program, including maintenance activities referred to in 
     subparagraph (C).
       (C) A description of the scope of maintenance activities 
     under the program, including recurring maintenance, 
     construction of facilities, recapitalization of facilities, 
     and decontamination and decommissioning of facilities.
       (3) Such guidelines shall ensure that the maintenance 
     activities referred to in paragraph (2)(C) are carried out in 
     a timely and efficient manner designed to avoid maintenance 
     backlogs.
       (d) Operations of Facilities Program.--(1) The 
     Administrator shall continue the Operations of Facilities 
     program of the National Nuclear Security Administration as a 
     subprogram within the Readiness in Technical Base and 
     Facilities program.
       (2) The Deputy Administrator for Defense Programs shall 
     designate a single manager to be responsible for overseeing 
     the operations of the Operations of Facilities subprogram 
     within the Readiness in Technical Base and Facilities 
     program.
       (3) For fiscal year 2005, and for each fiscal year 
     thereafter, the Secretary of Energy shall submit to the 
     congressional defense committees, together with the budget 
     justification materials submitted to Congress in support of 
     the National Nuclear Security Administration budget for that 
     fiscal year (as submitted with the budget of the President 
     under section 1105(a) of title 31, United States Code), a 
     separate statement of the amounts requested for such fiscal 
     year for each element of the Operations of Facilities 
     subprogram, as follows:
       (A) Maintenance.
       (B) Facilities management and support.
       (C) Utilities.
       (D) Environment, safety, and health.
       (E) Each other element of the subprogram.

     SEC. 3115. CONTINUATION OF PROCESSING, TREATMENT, AND 
                   DISPOSITION OF LEGACY NUCLEAR MATERIALS.

       (a) Continuation of H-Canyon Facility.--Subsection (a) of 
     section 3137 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-460) is amended--
       (1) by striking ``F-canyon and H-canyon facilities'' and 
     inserting ``H-canyon facility''; and
       (2) by striking ``such facilities'' and inserting ``such 
     facility''.
       (b) Modification of Limitation on Use of Funds for 
     Decommissioning F-Canyon Facility.--Subsection (b) of such 
     section is amended--
       (1) by striking ``and the Defense Nuclear Facilities Safety 
     Board'' and all that follows through ``House of 
     Representatives'' and inserting ``submits to the Committee on 
     Armed Services of the Senate and the Committee on Armed 
     Services of the House of Representatives, and the Defense 
     Nuclear Facilities Safety Board,''; and
       (2) by striking ``the following:'' and all that follows and 
     inserting ``a report setting forth--
       ``(1) an assessment whether or not all materials present in 
     the F-canyon facility as of the date of the report that 
     required stabilization have been safely stabilized as of that 
     date;
       ``(2) an assessment whether or not the requirements 
     applicable to the F-canyon facility to meet the future needs 
     of the United States for fissile materials disposition can be 
     met through full use of the H-canyon facility at the Savannah 
     River Site; and
       ``(3) if it appears that one or more of the requirements 
     described in paragraph (2) cannot be met through full use of 
     the H-canyon facility--
       ``(A) an identification by the Secretary of each such 
     requirement that cannot be met through full use of the H-
     canyon facility; and
       ``(B) for each requirement so identified, the reasons why 
     such requirement cannot be met through full use of the H-
     canyon facility and a description of the alternative 
     capability for fissile materials disposition that is needed 
     to meet such requirement.''.
       (c) Repeal of Superseded Plan Requirement.--Subsection (c) 
     of such section is repealed.

     SEC. 3116. REPEAL OF PROHIBITION ON RESEARCH AND DEVELOPMENT 
                   OF LOW-YIELD NUCLEAR WEAPONS.

       (a) Repeal.--Section 3136 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160; 
     107 Stat. 1946; 42 U.S.C. 2121 note) is repealed.
       (b) Construction.--Nothing in the repeal made by subsection 
     (a) shall be construed as authorizing the testing, 
     acquisition, or deployment of a low-yield nuclear weapon.
       (c) Limitation.--The Secretary of Energy may not commence 
     the engineering development phase, or any subsequent phase, 
     of a low-yield nuclear weapon unless specifically authorized 
     by Congress.
       (d) Report.--(1) Not later than March 1, 2004, the 
     Secretary of State, the Secretary of Defense and the 
     Secretary of Energy shall jointly submit to Congress a report 
     assessing whether or not the repeal of section 3136 of the 
     National Defense Authorization Act for Fiscal Year 1994 will 
     affect the ability of the United States to achieve its 
     nonproliferation objectives and whether or not any changes in 
     programs and activities would be required to achieve those 
     objectives.
       (2) The report shall be submitted in unclassified form, but 
     may include a classified annex if necessary.

     SEC. 3117. REQUIREMENT FOR SPECIFIC AUTHORIZATION OF CONGRESS 
                   FOR COMMENCEMENT OF ENGINEERING DEVELOPMENT 
                   PHASE OR SUBSEQUENT PHASE OF ROBUST NUCLEAR 
                   EARTH PENETRATOR.

       The Secretary of Energy may not commence the engineering 
     development phase (phase 6.3) of the nuclear weapons 
     development process, or any subsequent phase, of a Robust 
     Nuclear Earth Penetrator weapon unless specifically 
     authorized by Congress.

[[Page 27611]]


                   Subtitle C--Proliferation Matters

     SEC. 3121. SEMIANNUAL FINANCIAL REPORTS ON DEFENSE NUCLEAR 
                   NONPROLIFERATION PROGRAMS.

       (a) In General.--Subtitle D of the National Nuclear 
     Security Administration Act is amended by inserting after 
     section 3253 (50 U.S.C. 2453) the following new section:

     ``SEC. 3254. SEMIANNUAL FINANCIAL REPORTS ON DEFENSE NUCLEAR 
                   NONPROLIFERATION PROGRAMS.

       ``(a) Semiannual Reports Required.--The Administrator shall 
     submit to the Committees on Armed Services of the Senate and 
     the House of Representatives a semiannual report on the 
     amounts available for the defense nuclear nonproliferation 
     programs of the Administration. Each such report shall cover 
     a half of a fiscal year (in this section referred to as a 
     `fiscal half') and shall be submitted not later than 30 days 
     after the end of that fiscal half.
       ``(b) Contents.--Each report for a fiscal half shall, for 
     each such defense nuclear nonproliferation program for which 
     amounts are available for the fiscal year that includes that 
     fiscal half, set forth the following:
       ``(1) The aggregate amount available for such program as of 
     the beginning of such fiscal half and, within such amount, 
     the uncommitted balances, the unobligated balances, and the 
     unexpended balances.
       ``(2) The aggregate amount newly made available for such 
     program during such fiscal half and, within such amount, the 
     amount made available by appropriations, by transfers, by 
     reprogrammings, and by other means.
       ``(3) The aggregate amount available for such program as of 
     the end of such fiscal half and, within such amount, the 
     uncommitted balances, the unobligated balances, and the 
     unexpended balances.''.
       (b) First Report.--The first report required to be 
     submitted by section 3254 of the National Nuclear Security 
     Administration Act (as added by subsection (a)) shall be the 
     report covering the first half of fiscal year 2004.

     SEC. 3122. REPORT ON REDUCTION OF EXCESSIVE UNOBLIGATED OR 
                   UNEXPENDED BALANCES FOR DEFENSE NUCLEAR 
                   NONPROLIFERATION ACTIVITIES.

       (a) Contingent Requirement for Report.--If as of September 
     30, 2004, the aggregate amount unobligated, or obligated but 
     not expended, for defense nuclear nonproliferation activities 
     from amounts appropriated for such activities in fiscal year 
     2004 exceeds an amount equal to 20 percent of the aggregate 
     amount appropriated for such activities in fiscal year 2004, 
     the Administrator for Nuclear Security shall submit to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives a report containing an aggressive plan to 
     provide for the timely expenditure of amounts remaining 
     unobligated, or obligated but not expended.
       (b) Submittal Date.--If required to be submitted under 
     subsection (a), the submittal date for the report under that 
     subsection shall be November 30, 2004.

     SEC. 3123. STUDY AND REPORT RELATING TO WEAPONS-GRADE URANIUM 
                   AND PLUTONIUM OF THE INDEPENDENT STATES OF THE 
                   FORMER SOVIET UNION.

       (a) Study Required.--The Secretary of Energy shall carry 
     out a study on the feasibility, costs, and benefits of--
       (1) purchasing, from the independent states of the former 
     Soviet Union, weapons-grade uranium and plutonium excess to 
     the defense needs of those states; and
       (2) safeguarding the uranium and plutonium so purchased 
     until rendered unusable for nuclear weapons.
       (b) Report.--Not later than one year after the date of the 
     enactment of this Act, the Secretary shall submit to Congress 
     a report on the results of the study required by subsection 
     (a).

     SEC. 3124. AUTHORITY TO USE INTERNATIONAL NUCLEAR MATERIALS 
                   PROTECTION AND COOPERATION PROGRAM FUNDS 
                   OUTSIDE THE FORMER SOVIET UNION.

       (a) Authority.--Subject to the provisions of this section, 
     the President may obligate and expend international nuclear 
     materials protection and cooperation program funds for a 
     fiscal year, and any such funds for a fiscal year before such 
     fiscal year that remain available for obligation, for a 
     defense nuclear nonproliferation project or activity outside 
     the states of the former Soviet Union if the President 
     determines each of the following:
       (1) That such project or activity will--
       (A)(i) assist the United States in the resolution of a 
     critical emerging proliferation threat; or
       (ii) permit the United States to take advantage of 
     opportunities to achieve long-standing nonproliferation 
     goals; and
       (B) be completed in a short period of time.
       (2) That the Department of Energy is the entity of the 
     Federal Government that is most capable of carrying out such 
     project or activity.
       (b) Scope of Authority.--The authority in subsection (a) to 
     obligate and expend funds for a project or activity includes 
     authority to provide equipment, goods, and services for such 
     project or activity utilizing such funds, but does not 
     include authority to provide cash directly to such project or 
     activity.
       (c) Limitation on Total Amount of Obligation.--The amount 
     that may be obligated in a fiscal year under the authority in 
     subsection (a) may not exceed $50,000,000.
       (d) Limitation on Availability of Funds.--(1) The President 
     may not obligate funds for a project or activity under the 
     authority in subsection (a) until the President makes each 
     determination specified in that subsection with respect to 
     such project or activity.
       (2) Not later than 10 days after obligating funds under the 
     authority in subsection (a) for a project or activity, the 
     President shall notify Congress in writing of the 
     determinations made under paragraph (1) with respect to such 
     project or activity, together with--
       (A) a justification for such determinations; and
       (B) a description of the scope and duration of such project 
     or activity.
       (e) Additional Limitations and Requirements.--Except as 
     otherwise provided in subsections (a) and (b), the exercise 
     of the authority in subsection (a) shall be subject to any 
     requirement or limitation under another provision of law as 
     follows:
       (1) Any requirement for prior notice or other reports to 
     Congress on the use of international nuclear materials 
     protection and cooperation program funds or on international 
     nuclear materials protection and cooperation program projects 
     or activities.
       (2) Any limitation on the obligation or expenditure of 
     international nuclear materials protection and cooperation 
     program funds.
       (3) Any limitation on international nuclear materials 
     protection and cooperation program projects or activities.
       (f) Funds.--As used in this section, the term 
     ``international nuclear materials protection and cooperation 
     program funds'' means the funds appropriated pursuant to the 
     authorization of appropriations in section 3101(a)(2) for 
     such program.

     SEC. 3125. REQUIREMENT FOR ON-SITE MANAGERS.

       (a) On-Site Manager Requirement.--Before obligating any 
     defense nuclear nonproliferation funds for a project 
     described in subsection (b), the Secretary of Energy shall 
     appoint one on-site manager for that project. The manager 
     shall be appointed from among employees of the Federal 
     Government.
       (b) Projects Covered.--Subsection (a) applies to a 
     project--
       (1) to be located in a state of the former Soviet Union;
       (2) which involves dismantlement, destruction, or storage 
     facilities, or construction of a facility; and
       (3) with respect to which the total contribution by the 
     Department of Energy is expected to exceed $50,000,000.
       (c) Duties of On-Site Manager.--The on-site manager 
     appointed under subsection (a) shall--
       (1) develop, in cooperation with representatives from 
     governments of countries participating in the project, a list 
     of those steps or activities critical to achieving the 
     project's disarmament or nonproliferation goals;
       (2) establish a schedule for completing those steps or 
     activities;
       (3) meet with all participants to seek assurances that 
     those steps or activities are being completed on schedule; 
     and
       (4) suspend United States participation in a project when a 
     non-United States participant fails to complete a scheduled 
     step or activity on time, unless directed by the Secretary of 
     Energy to resume United States participation.
       (d) Authority To Manage More Than One Project.--(1) Subject 
     to paragraph (2), an employee of the Federal Government may 
     serve as on-site manager for more than one project, including 
     projects at different locations.
       (2) If such an employee serves as on-site manager for more 
     than one project in a fiscal year, the total cost of the 
     projects for that fiscal year may not exceed $150,000,000.
       (e) Steps or Activities.--Steps or activities referred to 
     in subsection (c)(1) are those activities that, if not 
     completed, will prevent a project from achieving its 
     disarmament or nonproliferation goals, including, at a 
     minimum, the following:
       (1) Identification and acquisition of permits (as defined 
     in subsection (g)).
       (2) Verification that the items, substances, or 
     capabilities to be dismantled, secured, or otherwise modified 
     are available for dismantlement, securing, or modification.
       (3) Timely provision of financial, personnel, management, 
     transportation, and other resources.
       (f) Notification to Congress.--In any case in which the 
     Secretary of Energy directs an on-site manager to resume 
     United States participation in a project under subsection 
     (c)(4), the Secretary shall concurrently notify Congress of 
     such direction.
       (g) Permit Defined.--In this section, the term ``permit'' 
     means any local or national permit for development, general 
     construction, environmental, land use, or other purposes that 
     is required in the state of the former Soviet Union in which 
     the project is being or is proposed to be carried out.
       (h) Effective Date.--This section shall take effect six 
     months after the date of the enactment of this Act.
                       Subtitle D--Other Matters

     SEC. 3131. PERFORMANCE OF PERSONNEL SECURITY INVESTIGATIONS 
                   OF CERTAIN DEPARTMENT OF ENERGY AND NUCLEAR 
                   REGULATORY COMMISSION EMPLOYEES IN SENSITIVE 
                   PROGRAMS.

       (a) Performance by FBI at Direction of DOE or NRC.--
     Subsection f. of section 145 of the Atomic Energy Act of 1954 
     (42 U.S.C. 2165) is amended to read as follows:
       ``f. (1) Notwithstanding the provisions of subsections a., 
     b., and c. of this section, but subject to subsection e. of 
     this section, a majority of the

[[Page 27612]]

     members of the Commission may direct that an investigation 
     required by such provisions on an individual described in 
     paragraph (2) be carried out by the Federal Bureau of 
     Investigation rather than by the Civil Service Commission.
       ``(2) An individual described in this paragraph is an 
     individual who is employed--
       ``(A) in a program certified by a majority of the members 
     of the Commission to be of a high degree of importance or 
     sensitivity; or
       ``(B) in any other specific position certified by a 
     majority of the members of the Commission to be of a high 
     degree of importance or sensitivity.''.
       (b) Repeal of Requirement for Performance by FBI for 
     Personnel Security and Assurance Programs.--Subsection e.(2) 
     of such section is amended by striking ``or a Personnel 
     Security and Assurance Program''.

     SEC. 3132. POLICY OF DEPARTMENT OF ENERGY REGARDING FUTURE 
                   DEFENSE ENVIRONMENTAL MANAGEMENT MATTERS.

       (a) Policy Required.--(1) Commencing not later than October 
     1, 2005, the Secretary of Energy shall have in effect a 
     policy for carrying out future defense environmental 
     management matters of the Department of Energy. The policy 
     shall specify each officer within the Department with 
     responsibilities for carrying out that policy and, for each 
     such officer, the nature and extent of those 
     responsibilities.
       (2) In paragraph (1), the term ``future defense 
     environmental management matter'' means any environmental 
     cleanup project, decontamination and decommissioning project, 
     waste management project, or related activity that arises out 
     of the activities of the Department in carrying out programs 
     necessary for national security and is to be commenced after 
     the date of the enactment of this Act. However, such term 
     does not include any such project or activity the 
     responsibility for which has been assigned, as of the date of 
     the enactment of this Act, to the Environmental Management 
     program of the Department.
       (b) Reflection in Budget.--For fiscal year 2006 and each 
     fiscal year thereafter, the Secretary shall ensure that the 
     budget justification materials submitted to Congress in 
     support of the Department of Energy budget for such fiscal 
     year (as submitted with the budget of the President under 
     section 1105(a) of title 31, United States Code) reflect the 
     policy required by subsection (a).
       (c) Consultation.--The Secretary shall carry out this 
     section in consultation with the Administrator for Nuclear 
     Security and the Under Secretary of Energy for Energy, 
     Science, and Environment.
       (d) Report.--The Secretary shall include with the budget 
     justification materials submitted to Congress in support of 
     the Department of Energy budget for fiscal year 2005 (as 
     submitted with the budget of the President under section 
     1105(a) of title 31, United States Code) a report on the 
     policy that the Secretary plans to have in effect under 
     subsection (a) as of October 1, 2005. The report shall 
     specify the officers and responsibilities referred to in 
     subsection (a).

     SEC. 3133. INCLUSION IN 2005 STOCKPILE STEWARDSHIP PLAN OF 
                   CERTAIN INFORMATION RELATING TO STOCKPILE 
                   STEWARDSHIP CRITERIA.

       (a) Inclusion in 2005 Stockpile Stewardship Plan.--In 
     submitting to Congress the updated version of the 2005 
     stockpile stewardship plan, the Secretary of Energy shall 
     include the matters specified in subsection (b).
       (b) Matters Included.--The matters referred to in 
     subsection (a) are the following:
       (1) An update of any information or criteria described in 
     the report on stockpile stewardship criteria submitted under 
     section 4202 of the Atomic Energy Defense Act (as transferred 
     and redesignated by section 3161(e)(3) of this Act).
       (2) A description of any additional information identified, 
     or criteria established, on matters covered by such section 
     4202 during the period beginning on the date of the submittal 
     of the report under such section 4202 and ending on the date 
     of the submittal of the updated version of the plan under 
     subsection (a) of this section.
       (3) For each science-based tool developed by the Department 
     of Energy during such period--
       (A) a description of the relationship of such science-based 
     tool to the collection of information needed to determine 
     that the nuclear weapons stockpile is safe and reliable; and
       (B) a description of the criteria for judging whether or 
     not such science-based tool provides for the collection of 
     such information.
       (c) 2005 Stockpile Stewardship Plan Defined.--In this 
     section, the term ``2005 stockpile stewardship plan'' means 
     the updated version of the plan for maintaining the nuclear 
     weapons stockpile developed under section 4203 of the Atomic 
     Energy Defense Act (as transferred and redesignated by 
     section 3161(e)(4) of this Act) that is required to be 
     submitted to Congress not later than March 15, 2005.

     SEC. 3134. PROGRESS REPORTS ON ENERGY EMPLOYEES OCCUPATIONAL 
                   ILLNESS COMPENSATION PROGRAM.

       (a) Report on Access to Information for Performance of 
     Radiation Dose Reconstructions.--(1) Not later than 90 days 
     after the date of the enactment of this Act, the National 
     Institute for Occupational Safety and Health shall submit to 
     Congress a report on the ability of the Institute to obtain, 
     in a timely, accurate, and complete manner, information 
     necessary for the purpose of carrying out radiation dose 
     reconstructions under the Energy Employees Occupational 
     Illness Compensation Program Act of 2000 (42 U.S.C. 7384 et 
     seq.), including information requested from any element of 
     the Department of Energy.
       (2) The report shall include the following:
       (A) An identification of each matter adversely affecting 
     the ability of the Institute to obtain information described 
     in paragraph (1) in a timely, accurate, and complete manner.
       (B) For each facility with respect to which the Institute 
     is carrying out one or more dose reconstructions described in 
     paragraph (1)--
       (i) a specification of the total number of claims requiring 
     dose reconstruction;
       (ii) a specification of the number of claims for which dose 
     reconstruction has been adversely affected by any matter 
     identified under paragraph (1); and
       (iii) a specification of the number of claims requiring 
     dose reconstruction for which, because of any matter 
     identified under paragraph (1), dose reconstruction has not 
     been completed within 150 days after the date on which the 
     Secretary of Labor submitted the claim to the Secretary of 
     Health and Human Services.
       (b) Report on Denial of Claims.--(1) Not later than 90 days 
     after the date of the enactment of this Act, the Secretary of 
     Labor shall submit to Congress a report on the denial of 
     claims under the Energy Employees Occupational Illness 
     Compensation Program Act of 2000 as of the date of such 
     report.
       (2) The report shall include for each facility with respect 
     to which the Secretary has received one or more claims under 
     that Act the following:
       (A) The number of claims received with respect to such 
     facility that have been denied, including the percentage of 
     total number of claims received with respect to such facility 
     that have been denied.
       (B) The reasons for the denial of such claims, including 
     the number of claims denied for each such reason.

     SEC. 3135. REPORT ON INTEGRATION ACTIVITIES OF DEPARTMENT OF 
                   DEFENSE AND DEPARTMENT OF ENERGY WITH RESPECT 
                   TO ROBUST NUCLEAR EARTH PENETRATOR.

       Section 1032 of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314; 
     116 Stat. 2643; 10 U.S.C. 2358 note) is amended by adding at 
     the end the following new subsection:
       ``(e) Integration Activities in Fiscal Year 2003 With 
     Respect to RNEP.--The report under subsection (a) that is due 
     on April 1, 2004, shall include, in addition to the elements 
     specified in subsection (b), a description of the integration 
     and interoperability of the research and development, 
     procurement, and other activities undertaken during fiscal 
     year 2003 by the Department of Defense and the Department of 
     Energy with respect to the Robust Nuclear Earth 
     Penetrator.''.
       Subtitle E--Consolidation of National Security Provisions

     SEC. 3141. TRANSFER AND CONSOLIDATION OF RECURRING AND 
                   GENERAL PROVISIONS ON DEPARTMENT OF ENERGY 
                   NATIONAL SECURITY PROGRAMS.

       (a) Purpose.--
       (1) In general.--The purpose of this section is to assemble 
     together, without substantive amendment but with technical 
     and conforming amendments of a non-substantive nature, 
     recurring and general provisions of law on Department of 
     Energy national security programs that remain in force in 
     order to consolidate and organize such provisions of law into 
     a single Act intended to comprise general provisions of law 
     on such programs.
       (2) Construction of transfers.--The transfer of a provision 
     of law by this section shall not be construed as amending, 
     altering, or otherwise modifying the substantive effect of 
     such provision.
       (3) Treatment of satisfied requirements.--Any requirement 
     in a provision of law transferred under this section 
     (including a requirement that an amendment to law be 
     executed) that has been fully satisfied in accordance with 
     the terms of such provision of law as of the date of transfer 
     under this section shall be treated as so fully satisfied, 
     and shall not be treated as being revived solely by reason of 
     transfer under this section.
       (4) Classification.--The provisions of the Atomic Energy 
     Defense Act, as amended by this section, shall be classified 
     to the United States Code as a new chapter of title 50, 
     United States Code.
       (b) Division Heading.--The Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314) 
     is amended by adding at the end the following new division 
     heading:
           ``DIVISION D--ATOMIC ENERGY DEFENSE PROVISIONS''.
       (c) Short Title; Table of Contents; Definition.--
       (1) Short title; table of contents.--Section 3601 of the 
     Atomic Energy Defense Act (title XXXVI of Public Law 107-314; 
     116 Stat. 2756) is--
       (A) transferred to the end of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003;
       (B) redesignated as section 4001;
       (C) inserted after the heading for division D of the Bob 
     Stump National Defense Authorization Act for Fiscal Year 
     2003, as added by subsection (b); and
       (D) amended--
       (i) by amending the heading to read as follows:

     ``SEC. 4001. SHORT TITLE; TABLE OF CONTENTS.'';

       (ii) by striking ``This title'' and inserting ``(a) Short 
     Title.--This division''; and

[[Page 27613]]

       (iii) by adding at the end the following:
       ``(b) Table of Contents.--The table of contents for this 
     division is as follows:

             ``DIVISION D--ATOMIC ENERGY DEFENSE PROVISIONS

``Sec. 4001. Short title; table of contents.
``Sec. 4002. Definition.

                  ``TITLE XLI--ORGANIZATIONAL MATTERS

``Sec. 4101. Naval Nuclear Propulsion Program.
``Sec. 4102. Management structure for nuclear weapons production 
              facilities and nuclear weapons laboratories.
``Sec. 4103. Restriction on licensing requirement for certain defense 
              activities and facilities.

            ``TITLE XLII--NUCLEAR WEAPONS STOCKPILE MATTERS

       ``Subtitle A--Stockpile Stewardship and Weapons Production

``Sec. 4201. Stockpile stewardship program.
``Sec. 4202. Report on stockpile stewardship criteria.
``Sec. 4203. Plan for stewardship, management, and certification of 
              warheads in the nuclear weapons stockpile.
``Sec. 4204. Nuclear weapons stockpile life extension program.
``Sec. 4205. Annual assessments and reports to the President and 
              Congress regarding the condition of the United States 
              nuclear weapons stockpile.
``Sec. 4206. Form of certifications regarding the safety or reliability 
              of the nuclear weapons stockpile.
``Sec. 4207. Nuclear test ban readiness program.
``Sec. 4208. Study on nuclear test readiness postures.
``Sec. 4209. Requirements for specific request for new or modified 
              nuclear weapons.
``Sec. 4210. Limitation on underground nuclear weapons tests.
``Sec. 4211. Testing of nuclear weapons.
``Sec. 4212. Manufacturing infrastructure for refabrication and 
              certification of nuclear weapons stockpile.
``Sec. 4213. Reports on critical difficulties at nuclear weapons 
              laboratories and nuclear weapons production plants.

                         ``Subtitle B--Tritium

``Sec. 4231. Tritium production program.
``Sec. 4232. Tritium recycling.
``Sec. 4233. Tritium production.
``Sec. 4234. Modernization and consolidation of tritium recycling 
              facilities.
``Sec. 4235. Procedures for meeting tritium production requirements.

                  ``TITLE XLIII--PROLIFERATION MATTERS

``Sec. 4301. International cooperative stockpile stewardship.
``Sec. 4302. Nonproliferation initiatives and activities.
``Sec. 4303. Annual report on status of Nuclear Materials Protection, 
              Control, and Accounting Program.
``Sec. 4304. Nuclear Cities Initiative.
``Sec. 4305. Authority to conduct program relating to fissile 
              materials.
``Sec. 4306. Disposition of weapons-usable plutonium at Savannah River 
              Site.
``Sec. 4306A. Disposition of surplus defense plutonium at Savannah 
              River Site, Aiken, South Carolina.

  ``TITLE XLIV--ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT MATTERS

      ``Subtitle A--Environmental Restoration and Waste Management

``Sec. 4401. Defense Environmental Restoration and Waste Management 
              Account.
``Sec. 4402. Requirement to develop future use plans for environmental 
              management program.
``Sec. 4403. Integrated fissile materials management plan.
``Sec. 4404. Baseline environmental management reports.
``Sec. 4405. Accelerated schedule for environmental restoration and 
              waste management activities.
``Sec. 4406. Defense waste cleanup technology program.
``Sec. 4407. Report on environmental restoration expenditures.
``Sec. 4408. Public participation in planning for environmental 
              restoration and waste management at defense nuclear 
              facilities.

                  ``Subtitle B--Closure of Facilities

``Sec. 4421. Projects to accelerate closure activities at defense 
              nuclear facilities.
``Sec. 4422. Reports in connection with permanent closures of 
              Department of Energy defense nuclear facilities.

                      ``Subtitle C--Privatization

``Sec. 4431. Defense environmental management privatization projects.

             ``Subtitle D--Hanford Reservation, Washington

``Sec. 4441. Safety measures for waste tanks at Hanford nuclear 
              reservation.
``Sec. 4442. Hanford waste tank cleanup program reforms.
``Sec. 4443. River Protection Project.
``Sec. 4444. Funding for termination costs of River Protection Project, 
              Richland, Washington.

           ``Subtitle E--Savannah River Site, South Carolina

``Sec. 4451. Accelerated schedule for isolating high-level nuclear 
              waste at the defense waste processing facility, Savannah 
              River Site.
``Sec. 4452. Multi-year plan for clean-up.
``Sec. 4453. Continuation of processing, treatment, and disposal of 
              legacy nuclear materials.
``Sec. 4453A. Continuation of processing, treatment, and disposition of 
              legacy nuclear materials.
``Sec. 4453B. Continuation of processing, treatment, and disposition of 
              legacy nuclear materials.
``Sec. 4453C. Continuation of processing, treatment, and disposal of 
              legacy nuclear materials.
``Sec. 4453D. Continuation of processing, treatment, and disposal of 
              legacy nuclear materials.
``Sec. 4454. Limitation on use of funds for decommissioning F-canyon 
              facility.

              ``TITLE XLV--SAFEGUARDS AND SECURITY MATTERS

                 ``Subtitle A--Safeguards and Security

``Sec. 4501. Prohibition on international inspections of Department of 
              Energy facilities unless protection of Restricted Data is 
              certified.
``Sec. 4502. Restrictions on access to national laboratories by foreign 
              visitors from sensitive countries.
``Sec. 4503. Background investigations of certain personnel at 
              Department of Energy facilities.
``Sec. 4504. Department of Energy counterintelligence polygraph 
              program.
``Sec. 4504A. Counterintelligence polygraph program.
``Sec. 4505. Notice to congressional committees of certain security and 
              counterintelligence failures within nuclear energy 
              defense programs.
``Sec. 4506. Submittal of annual report on status of security functions 
              at nuclear weapons facilities.
``Sec. 4507. Report on counterintelligence and security practices at 
              national laboratories.
``Sec. 4508. Report on security vulnerabilities of national laboratory 
              computers.

                  ``Subtitle B--Classified Information

``Sec. 4521. Review of certain documents before declassification and 
              release.
``Sec. 4522. Protection against inadvertent release of Restricted Data 
              and Formerly Restricted Data.
``Sec. 4523. Supplement to plan for declassification of Restricted Data 
              and Formerly Restricted Data.
``Sec. 4524. Protection of classified information during laboratory-to-
              laboratory exchanges.
``Sec. 4525. Identification in budget materials of amounts for 
              declassification activities and limitation on 
              expenditures for such activities.

                    ``Subtitle C--Emergency Response

``Sec. 4541. Responsibility for Defense Programs Emergency Response 
              Program.

                    ``TITLE XLVI--PERSONNEL MATTERS

                   ``Subtitle A--Personnel Management

``Sec. 4601. Authority for appointment of certain scientific, 
              engineering, and technical personnel.
``Sec. 4602. Whistleblower protection program.
``Sec. 4603. Employee incentives for employees at closure project 
              facilities.
``Sec. 4604. Department of Energy defense nuclear facilities workforce 
              restructuring plan.
``Sec. 4605. Authority to provide certificate of commendation to 
              Department of Energy and contractor employees for 
              exemplary service in stockpile stewardship and security.

                  ``Subtitle B--Education and Training

``Sec. 4621. Executive management training in the Department of Energy.
``Sec. 4622. Stockpile stewardship recruitment and training program.
``Sec. 4623. Fellowship program for development of skills critical to 
              the Department of Energy nuclear weapons complex.

                      ``Subtitle C--Worker Safety

``Sec. 4641. Worker protection at nuclear weapons facilities.
``Sec. 4642. Safety oversight and enforcement at defense nuclear 
              facilities.
``Sec. 4643. Program to monitor Department of Energy workers exposed to 
              hazardous and radioactive substances.
``Sec. 4644. Programs for persons who may have been exposed to 
              radiation released from Hanford nuclear reservation.

         ``TITLE XLVII--BUDGET AND FINANCIAL MANAGEMENT MATTERS

   ``Subtitle A--Recurring National Security Authorization Provisions

``Sec. 4701. Definitions.
``Sec. 4702. Reprogramming.
``Sec. 4703. Minor construction projects.
``Sec. 4704. Limits on construction projects.
``Sec. 4705. Fund transfer authority.
``Sec. 4706. Conceptual and construction design.
``Sec. 4707. Authority for emergency planning, design, and construction 
              activities.
``Sec. 4708. Scope of authority to carry out plant projects.
``Sec. 4709. Availability of funds.

[[Page 27614]]

``Sec. 4710. Transfer of defense environmental management funds.
``Sec. 4711. Transfer of weapons activities funds.
``Sec. 4712. Funds available for all national security programs of the 
              Department of Energy.

                        ``Subtitle B--Penalties

``Sec. 4721. Restriction on use of funds to pay penalties under 
              environmental laws.
``Sec. 4722. Restriction on use of funds to pay penalties under Clean 
              Air Act.

                      ``Subtitle C--Other Matters

``Sec. 4731. Single request for authorization of appropriations for 
              common defense and security programs.

                 ``TITLE XLVIII--ADMINISTRATIVE MATTERS

                        ``Subtitle A--Contracts

``Sec. 4801. Costs not allowed under covered contracts.
``Sec. 4802. Prohibition and report on bonuses to contractors operating 
              defense nuclear facilities.
``Sec. 4803. Contractor liability for injury or loss of property 
              arising out of atomic weapons testing programs.

                 ``Subtitle B--Research and Development

``Sec. 4811. Laboratory-directed research and development programs.
``Sec. 4812. Limitations on use of funds for laboratory directed 
              research and development purposes.
``Sec. 4812A. Limitation on use of funds for certain research and 
              development purposes.
``Sec. 4813. Critical technology partnerships.
``Sec. 4814. University-based research collaboration program.

                  ``Subtitle C--Facilities Management

``Sec. 4831. Transfers of real property at certain Department of Energy 
              facilities.
``Sec. 4832. Engineering and manufacturing research, development, and 
              demonstration by plant managers of certain nuclear 
              weapons production plants.
``Sec. 4833. Pilot program relating to use of proceeds of disposal or 
              utilization of certain Department of Energy assets.

                      ``Subtitle D--Other Matters

``Sec. 4851. Semiannual reports on local impact assistance.
``Sec. 4852. Payment of costs of operation and maintenance of 
              infrastructure at Nevada Test Site.''.
       (2) Definition.--Division D of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this section, is further amended by adding at the end the 
     following new section:

     ``SEC. 4002. DEFINITION.

       ``In this division, the term `congressional defense 
     committees' means--
       ``(1) the Committee on Armed Services and the Committee on 
     Appropriations of the Senate; and
       ``(2) the Committee on Armed Services and the Committee on 
     Appropriations of the House of Representatives.''.
       (d) Organizational Matters.--
       (1) Title heading.--Division D of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this section, is further amended by adding at the end the 
     following:
                 ``TITLE XLI--ORGANIZATIONAL MATTERS''.
       (2) Naval nuclear propulsion program.--Section 1634 of the 
     Department of Defense Authorization Act, 1985 (Public Law 98-
     525; 98 Stat. 2649) is--
       (A) transferred to title XLI of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as added by 
     paragraph (1);
       (B) inserted after the title heading for such title, as so 
     added; and
       (C) amended--
       (i) by striking the section heading and inserting the 
     following new section heading:

     ``SEC. 4101. NAVAL NUCLEAR PROPULSION PROGRAM.'';

     and
       (ii) by striking ``Sec. 1634.''.
       (3) Management structure for facilities and laboratories.--
     Section 3140 of the National Defense Authorization Act for 
     Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2833) is--
       (A) transferred to title XLI of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4102;
       (C) inserted after section 4101, as added by paragraph (2); 
     and
       (D) amended in subsection (d)(2), by striking ``120 days 
     after the date of the enactment of this Act,'' and inserting 
     ``January 21, 1997,''.
       (4) Restriction on licensing requirements for certain 
     activities and facilities.--Section 210 of the Department of 
     Energy National Security and Military Applications of Nuclear 
     Energy Authorization Act of 1981 (Public Law 96-540; 94 Stat. 
     3202) is--
       (A) transferred to title XLI of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) inserted after section 4102, as added by paragraph (3); 
     and
       (C) amended--
       (i) by striking the section heading and inserting the 
     following new section heading:

     ``SEC. 4103. RESTRICTION ON LICENSING REQUIREMENT FOR CERTAIN 
                   DEFENSE ACTIVITIES AND FACILITIES.'';

       (ii) by striking ``Sec. 210.''; and
       (iii) by striking ``this or any other Act'' and inserting 
     ``the Department of Energy National Security and Military 
     Applications of Nuclear Energy Authorization Act of 1981 
     (Public Law 96-540) or any other Act''.
       (e) Nuclear Weapons Stockpile Matters.--
       (1) Headings.--Division D of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003, as amended by this 
     section, is further amended by adding at the end the 
     following new headings:
            ``TITLE XLII--NUCLEAR WEAPONS STOCKPILE MATTERS
     ``Subtitle A--Stockpile Stewardship and Weapons Production''.
       (2) Stockpile stewardship program.--Section 3138 of the 
     National Defense Authorization Act for Fiscal Year 1994 
     (Public Law 103-160; 107 Stat. 1946), as amended by section 
     3152(e) of the National Defense Authorization Act for Fiscal 
     Year 1998 (Public Law 105-85; 111 Stat. 2042), is--
       (A) transferred to title XLII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as added by 
     paragraph (1);
       (B) redesignated as section 4201; and
       (C) inserted after the heading for subtitle A of such 
     title, as so added.
       (3) Stockpile stewardship criteria.--Section 3158 of the 
     Strom Thurmond National Defense Authorization Act for Fiscal 
     Year 1999 (Public Law 105-261; 112 Stat. 2257), as amended, 
     is--
       (A) transferred to title XLII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4202; and
       (C) inserted after section 4201, as added by paragraph (2).
       (4) Plan for stewardship, management, and certification of 
     warheads in stockpile.--Section 3151 of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85; 
     111 Stat. 2041) is--
       (A) transferred to title XLII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4203; and
       (C) inserted after section 4202, as added by paragraph (3).
       (5) Stockpile life extension program.--Section 3133 of the 
     National Defense Authorization Act for Fiscal Year 2000 
     (Public Law 106-65; 113 Stat. 926) is--
       (A) transferred to title XLII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4204;
       (C) inserted after section 4203, as added by paragraph (4); 
     and
       (D) amended in subsection (c)(1) by striking ``the date of 
     the enactment of this Act'' and inserting ``October 5, 
     1999''.
       (6) Annual assessments and reports on condition of 
     stockpile.--Section 3141 of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314; 
     116 Stat. 2730) is--
       (A) transferred to title XLII of such Act, as amended by 
     this subsection;
       (B) redesignated as section 4205;
       (C) inserted after section 4204, as added by paragraph (5); 
     and
       (D) amended in subsection (d)(3)(B) by striking ``section 
     3137 of the National Defense Authorization Act for Fiscal 
     Year 1996 (42 U.S.C. 2121 note)'' and inserting ``section 
     4212''.
       (7) Form of certain certifications regarding stockpile.--
     Section 3194 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-481) is--
       (A) transferred to title XLII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4206; and
       (C) inserted after section 4205, as added by paragraph (6).
       (8) Nuclear test ban readiness program.--Section 1436 of 
     the National Defense Authorization Act, Fiscal Year 1989 
     (Public Law 100-456; 102 Stat. 2075) is--
       (A) transferred to title XLII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4207;
       (C) inserted after section 4206, as added by paragraph (7); 
     and
       (D) amended in the section heading by adding a period at 
     the end.
       (9) Study on nuclear test readiness postures.--Section 3152 
     of the National Defense Authorization Act for Fiscal Year 
     1996 (Public Law 104-106; 110 Stat. 623), as amended by 
     section 3192 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-480), is--
       (A) transferred to title XLII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4208; and
       (C) inserted after section 4207, as added by paragraph (8).
       (10) Requirements for requests for new or modified nuclear 
     weapons.--Section 3143 of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314; 
     116 Stat. 2733) is--
       (A) transferred to title XLII of such Act, as amended by 
     this subsection;
       (B) redesignated as section 4209; and
       (C) inserted after section 4208, as added by paragraph (9).

[[Page 27615]]

       (11) Limitation on underground nuclear weapons tests.--
     Subsection (f) of section 507 of the Energy and Water 
     Development Appropriations Act, 1993 (Public Law 102-337; 106 
     Stat. 1345) is--
       (A) transferred to title XLII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) inserted after section 4209, as added by paragraph 
     (10); and
       (C) amended--
       (i) by inserting before the text the following new section 
     heading:

     ``SEC. 4210. LIMITATION ON UNDERGROUND NUCLEAR WEAPONS 
                   TESTS.'';

     and
       (ii) by striking ``(f)''.
       (12) Testing of nuclear weapons.--Section 3137 of the 
     National Defense Authorization Act for Fiscal Year 1994 
     (Public Law 103-160; 107 Stat. 1946) is--
       (A) transferred to title XLII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4211;
       (C) inserted after section 4210, as added by paragraph 
     (11); and
       (D) amended--
       (i) in subsection (a), by inserting ``of the National 
     Defense Authorization Act for Fiscal Year 1994 (Public Law 
     103-160)'' after ``section 3101(a)(2)''; and
       (ii) in subsection (b), by striking ``this Act'' and 
     inserting ``the National Defense Authorization Act for Fiscal 
     Year 1994''.
       (13) Manufacturing infrastructure for stockpile.--Section 
     3137 of the National Defense Authorization Act for Fiscal 
     Year 1996 (Public Law 104-106; 110 Stat. 620), as amended by 
     section 3132 of the National Defense Authorization Act for 
     Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2829), is--
       (A) transferred to title XLII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4212;
       (C) inserted after section 4211, as added by paragraph 
     (12); and
       (D) amended in subsection (d) by inserting ``of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106)'' after ``section 3101(b)''.
       (14) Reports on critical difficulties at laboratories and 
     plants.--Section 3159 of the National Defense Authorization 
     Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 
     2842), as amended by section 1305 of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85; 
     111 Stat. 1954) and section 3163 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 
     113 Stat. 944), is--
       (A) transferred to title XLII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4213; and
       (C) inserted after section 4212, as added by paragraph 
     (13).
       (15) Subtitle heading on tritium.--Title XLII of the Bob 
     Stump National Defense Authorization Act for Fiscal Year 
     2003, as amended by this subsection, is further amended by 
     adding at the end the following new subtitle heading:
                        ``Subtitle B--Tritium''.
       (16) Tritium production program.--Section 3133 of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106; 110 Stat. 618) is--
       (A) transferred to title XLII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4231;
       (C) inserted after the heading for subtitle B of such title 
     XLII, as added by paragraph (15); and
       (D) amended--
       (i) by striking ``the date of the enactment of this Act'' 
     each place it appears and inserting ``February 10, 1996''; 
     and
       (ii) in subsection (b), by inserting ``of the National 
     Defense Authorization Act for Fiscal Year 1996 (Public Law 
     104-106)'' after ``section 3101''.
       (17) Tritium recycling.--Section 3136 of the National 
     Defense Authorization Act for Fiscal Year 1996 (Public Law 
     104-106; 110 Stat. 620) is--
       (A) transferred to title XLII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4232; and
       (C) inserted after section 4231, as added by paragraph 
     (16).
       (18) Tritium production.--Subsections (c) and (d) of 
     section 3133 of the National Defense Authorization Act for 
     Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2830) are--
       (A) transferred to title XLII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) inserted after section 4232, as added by paragraph 
     (17); and
       (C) amended--
       (i) by inserting before the text the following new section 
     heading:

     ``SEC. 4233. TRITIUM PRODUCTION.'';

       (ii) by redesignating such subsections as subsections (a) 
     and (b), respectively; and
       (iii) in subsection (a), as so redesignated, by inserting 
     ``of Energy'' after ``The Secretary''.
       (19) Modernization and consolidation of tritium recycling 
     facilities.--Section 3134 of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201; 
     110 Stat. 2830) is--
       (A) transferred to title XLII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4234;
       (C) inserted after section 4233, as added by paragraph 
     (18); and
       (D) amended in subsection (b) by inserting ``of the 
     National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201)'' after ``section 3101''.
       (20) Procedures for meeting tritium production 
     requirements.--Section 3134 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 
     113 Stat. 927) is--
       (A) transferred to title XLII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4235; and
       (C) inserted after section 4234, as added by paragraph 
     (19).
       (f) Proliferation Matters.--
       (1) Title heading.--Division D of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this section, is further amended by adding at the end the 
     following new title heading:
                ``TITLE XLIII--PROLIFERATION MATTERS''.
       (2) International cooperative stockpile stewardship.--
     Section 3133 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2036), as 
     amended by sections 1069 and 3131 of the Strom Thurmond 
     National Defense Authorization Act for Fiscal Year 1999 
     (Public Law 105-261; 112 Stat. 2136, 2246), is--
       (A) transferred to title XLIII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as added by 
     paragraph (1);
       (B) redesignated as section 4301;
       (C) inserted after the heading for such title, as so added; 
     and
       (D) amended in subsection (b)(3) by striking ``this Act'' 
     and inserting ``the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85)''.
       (3) Nonproliferation initiatives and activities.--Section 
     3136 of the National Defense Authorization Act for Fiscal 
     Year 2000 (Public Law 106-65; 113 Stat. 927) is--
       (A) transferred to title XLIII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4302;
       (C) inserted after section 4301, as added by paragraph (2); 
     and
       (D) amended in subsection (b)(1) by striking ``this title'' 
     and inserting ``title XXXI of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65)''.
       (4) Annual report on materials protection, control, and 
     accounting program.--Section 3171 of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 (as 
     enacted into law by Public Law 106-398; 114 Stat. 1645A-475) 
     is--
       (A) transferred to title XLIII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4303;
       (C) inserted after section 4302, as added by paragraph (3); 
     and
       (D) amended in subsection (c)(1) by striking ``this Act'' 
     and inserting ``the Floyd D. Spence National Defense 
     Authorization Act for Fiscal Year 2001 (as enacted into law 
     by Public Law 106-398)''.
       (5) Nuclear cities initiative.--Section 3172 of the Floyd 
     D. Spence National Defense Authorization Act for Fiscal Year 
     2001 (as enacted into law by Public Law 106-398; 114 Stat. 
     1645A-476) is--
       (A) transferred to title XLIII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4304; and
       (C) inserted after section 4303, as added by paragraph (4).
       (6) Programs on fissile materials.--Section 3131 of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106; 110 Stat. 617), as amended by section 
     3152 of the Bob Stump National Defense Authorization Act for 
     Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2738), is--
       (A) transferred to title XLIII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4305; and
       (C) inserted after section 4304, as added by paragraph (5).
       (7) Disposition of plutonium.--
       (A) Disposition of weapons usable plutonium.--Section 3182 
     of the Bob Stump National Defense Authorization Act for 
     Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2747) is--
       (i) transferred to title XLIII of such Act, as amended by 
     this subsection;
       (ii) redesignated as section 4306; and
       (iii) inserted after section 4305, as added by paragraph 
     (6).
       (B) Disposition of surplus defense plutonium.--Section 3155 
     of the National Defense Authorization Act for Fiscal Year 
     2002 (Public Law 107-107; 115 Stat. 1378) is--
       (i) transferred to title XLIII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (ii) redesignated as section 4306A; and
       (iii) inserted after section 4306, as added by subparagraph 
     (A).
       (g) Environmental Restoration and Waste Management 
     Matters.--
       (1) Headings.--Division D of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003, as amended by this 
     section, is further amended by adding at the end the 
     following new headings:

[[Page 27616]]


  ``TITLE XLIV--ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT MATTERS
    ``Subtitle A--Environmental Restoration and Waste Management''.
       (2) Defense environmental restoration and waste management 
     account.--Section 3134 of the National Defense Authorization 
     Act for Fiscal Years 1992 and 1993 (Public Law 102-190; 105 
     Stat. 1575) is--
       (A) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as added by 
     paragraph (1);
       (B) redesignated as section 4401; and
       (C) inserted after the heading for subtitle A of such 
     title, as so added.
       (3) Future use plans for environmental management 
     program.--Section 3153 of the National Defense Authorization 
     Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2839) 
     is--
       (A) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4402;
       (C) inserted after section 4401, as added by paragraph (2); 
     and
       (D) amended--
       (i) in subsection (d), by striking ``the date of the 
     enactment of this Act'' and inserting ``September 23, 
     1996,''; and
       (ii) in subsection (h)(1), by striking ``the date of the 
     enactment of this Act'' and inserting ``September 23, 1996''.
       (4) Integrated fissile materials management plan.--Section 
     3172 of the National Defense Authorization Act for Fiscal 
     Year 2000 (Public Law 106-65; 113 Stat. 948) is--
       (A) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4403; and
       (C) inserted after section 4402, as added by paragraph (3).
       (5) Baseline environmental management reports.--Section 
     3153 of the National Defense Authorization Act for Fiscal 
     Year 1994 (Public Law 103-160; 107 Stat. 1950), as amended by 
     section 3160 of the National Defense Authorization Act for 
     Fiscal Year 1995 (Public Law 103-337; 108 Stat. 3094), 
     section 3152 of the National Defense Authorization Act for 
     Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2839), and 
     section 3160 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2048), is--
       (A) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4404; and
       (C) inserted after section 4403, as added by paragraph (4).
       (6) Accelerated schedule for environmental restoration and 
     waste management.--Section 3156 of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
     110 Stat. 625) is--
       (A) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4405;
       (C) inserted after section 4404, as added by paragraph (5); 
     and
       (D) amended in subsection (b)(2) by inserting before the 
     period the following: ``, the predecessor provision to 
     section 4404 of this Act''.
       (7) Defense waste cleanup technology program.--Section 3141 
     of the National Defense Authorization Act for Fiscal Years 
     1990 and 1991 (Public Law 101-189; 103 Stat. 1679) is--
       (A) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4406;
       (C) inserted after section 4405, as added by paragraph (6); 
     and
       (D) amended in the section heading by adding a period at 
     the end.
       (8) Report on environmental restoration expenditures.--
     Section 3134 of the National Defense Authorization Act for 
     Fiscal Year 1991 (Public Law 101-510; 104 Stat. 1833) is--
       (A) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4407;
       (C) inserted after section 4406, as added by paragraph (7); 
     and
       (D) amended in the section heading by adding a period at 
     the end.
       (9) Public participation in planning for environmental 
     restoration and waste management.--Subsection (e) of section 
     3160 of the National Defense Authorization Act for Fiscal 
     Year 1995 (Public Law 103-337; 108 Stat. 3095) is--
       (A) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) inserted after section 4407, as added by paragraph (8); 
     and
       (C) amended--
       (i) by inserting before the text the following new section 
     heading:

     ``SEC. 4408. PUBLIC PARTICIPATION IN PLANNING FOR 
                   ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT 
                   AT DEFENSE NUCLEAR FACILITIES.'';

     and
       (ii) by striking ``(e) Public Participation in Planning.--
     ''.
       (10) Subtitle heading on closure of facilities.--Title XLIV 
     of the Bob Stump National Defense Authorization Act for 
     Fiscal Year 2003, as amended by this subsection, is further 
     amended by adding at the end the following new subtitle 
     heading:
                 ``Subtitle B--Closure of Facilities''.
       (11) Projects to accelerate closure activities at defense 
     nuclear facilities.--Section 3143 of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201; 
     110 Stat. 2836) is--
       (A) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4421;
       (C) inserted after the heading for subtitle B of such 
     title, as added by paragraph (10); and
       (D) amended in subsection (i) by striking ``the expiration 
     of the 15-year period beginning on the date of the enactment 
     of this Act'' and inserting ``September 23, 2011''.
       (12) Reports in connection with permanent closure of 
     defense nuclear facilities.--Section 3156 of the National 
     Defense Authorization Act for Fiscal Years 1990 and 1991 
     (Public Law 101-189; 103 Stat. 1683) is--
       (A) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4422;
       (C) inserted after section 4421, as added by paragraph 
     (11); and
       (D) amended in the section heading by adding a period at 
     the end.
       (13) Subtitle heading on privatization.--Title XLIV of the 
     Bob Stump National Defense Authorization Act for Fiscal Year 
     2003, as amended by this subsection, is further amended by 
     adding at the end the following new subtitle heading:
                     ``Subtitle C--Privatization''.
       (14) Defense environmental management privatization 
     projects.--Section 3132 of the National Defense Authorization 
     Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2034) 
     is--
       (A) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4431;
       (C) inserted after the heading for subtitle C of such 
     title, as added by paragraph (13); and
       (D) amended--
       (i) in subsections (a), (c)(1)(B)(i), and (d), by inserting 
     ``of the National Defense Authorization Act for Fiscal Year 
     1998 (Public Law 105-85)'' after ``section 3102(i)''; and
       (ii) in subsections (c)(1)(B)(ii) and (f), by striking 
     ``the date of enactment of this Act'' and inserting 
     ``November 18, 1997''.
       (15) Subtitle heading on hanford reservation.--Title XLIV 
     of the Bob Stump National Defense Authorization Act for 
     Fiscal Year 2003, as amended by this subsection, is further 
     amended by adding at the end the following new subtitle 
     heading:
            ``Subtitle D--Hanford Reservation, Washington''.
       (16) Safety measures for waste tanks.--Section 3137 of the 
     National Defense Authorization Act for Fiscal Year 1991 
     (Public Law 101-510; 104 Stat. 1833) is--
       (A) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4441;
       (C) inserted after the heading for subtitle D of such 
     title, as added by paragraph (15); and
       (D) amended--
       (i) in the section heading, by adding a period at the end;
       (ii) in subsection (a), by striking ``Within 90 days after 
     the date of the enactment of this Act,'' and inserting ``Not 
     later than February 3, 1991,'';
       (iii) in subsection (b), by striking ``Within 120 days 
     after the date of the enactment of this Act,'' and inserting 
     ``Not later than March 5, 1991,'';
       (iv) in subsection (c), by striking ``Beginning 120 days 
     after the date of the enactment of this Act,'' and inserting 
     ``Beginning March 5, 1991,''; and
       (v) in subsection (d), by striking ``Within six months 
     after the date of the enactment of this Act,'' and inserting 
     ``Not later than May 5, 1991,''.
       (17) Waste tank cleanup program.--Section 3139 of the Strom 
     Thurmond National Defense Authorization Act for Fiscal Year 
     1999 (Public Law 105-261; 112 Stat. 2250), as amended by 
     section 3141 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-463) and section 3135 
     of the National Defense Authorization Act for Fiscal Year 
     2002 (Public Law 107-107; 115 Stat. 1368), is--
       (A) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4442;
       (C) inserted after section 4441, as added by paragraph 
     (16); and
       (D) amended in subsection (d) by striking ``30 days after 
     the date of the enactment of the Floyd D. Spence National 
     Defense Authorization Act for Fiscal Year 2001,'' and 
     inserting ``November 29, 2000,''.
       (18) River protection project.--Subsection (a) of section 
     3141 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-462) is--
       (A) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) inserted after section 4442, as added by paragraph 
     (17); and
       (C) amended--
       (i) by inserting before the text the following new section 
     heading:

[[Page 27617]]



     ``SEC. 4443. RIVER PROTECTION PROJECT.'';

     and
       (ii) by striking ``(a) Redesignation of Project.--''.
       (19) Funding for termination costs of river protection 
     project.--Section 3131 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-454) is--
       (A) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4444;
       (C) inserted after section 4443, as added by paragraph 
     (18); and
       (D) amended--
       (i) by striking ``section 3141'' and inserting ``section 
     4443''; and
       (ii) by striking ``the date of the enactment of this Act'' 
     and inserting ``October 30, 2000''.
       (20) Subtitle heading on savannah river site, south 
     carolina.--Title XLIV of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003, as amended by this 
     subsection, is further amended by adding at the end the 
     following new subtitle heading:
          ``Subtitle E--Savannah River Site, South Carolina''.
       (21) Accelerated schedule for isolating high-level nuclear 
     waste at defense waste processing facility.--Section 3141 of 
     the National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201; 110 Stat. 2834) is--
       (A) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as 4451; and
       (C) inserted after the heading for subtitle E of such 
     title, as added by paragraph (20).
       (22) Multi-year plan for clean-up.--Subsection (e) of 
     section 3142 of the National Defense Authorization Act for 
     Fiscal Year 1997 (Public Law 104-201; 110 Stat. 2834) is--
       (A) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) inserted after section 4451, as added by paragraph 
     (21); and
       (C) amended--
       (i) by inserting before the text the following new section 
     heading:

     ``SEC. 4452. MULTI-YEAR PLAN FOR CLEAN-UP.'';

     and
       (ii) by striking ``(e) Multi-Year Plan for Clean-Up at 
     Savannah River Site.--The Secretary'' and inserting ``The 
     Secretary of Energy''.
       (23) Continuation of processing, treatment, and disposal of 
     legacy nuclear materials.--
       (A) Fiscal year 2001.--Subsection (a) of section 3137 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-460) is--
       (i) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (ii) inserted after section 4452, as added by paragraph 
     (22); and
       (iii) amended--

       (I) by inserting before the text the following new section 
     heading:

     ``SEC. 4453. CONTINUATION OF PROCESSING, TREATMENT, AND 
                   DISPOSAL OF LEGACY NUCLEAR MATERIALS.'';

     and
       (II) by striking ``(a) Continuation.--''.

       (B) Fiscal year 2000.--Section 3132 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 
     113 Stat. 924) is--
       (i) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (ii) redesignated as section 4453A; and
       (iii) inserted after section 4453, as added by subparagraph 
     (A).
       (C) Fiscal year 1999.--Section 3135 of the Strom Thurmond 
     National Defense Authorization Act for Fiscal Year 1999 
     (Public Law 105-261; 112 Stat. 2248) is--
       (i) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (ii) redesignated as section 4453B; and
       (iii) inserted after section 4453A, as added by 
     subparagraph (B).
       (D) Fiscal year 1998.--Subsection (b) of section 3136 of 
     the National Defense Authorization Act for Fiscal Year 1998 
     (Public Law 105-85; 111 Stat. 2038) is--
       (i) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (ii) inserted after section 4453B, as added by subparagraph 
     (C); and
       (iii) amended--

       (I) by inserting before the text the following new section 
     heading:

     ``SEC. 4453C. CONTINUATION OF PROCESSING, TREATMENT, AND 
                   DISPOSAL OF LEGACY NUCLEAR MATERIALS.'';

     and
       (II) by striking ``(b) Requirement for Continuing 
     Operations at Savannah River Site.--''.

       (E) Fiscal year 1997.--Subsection (f) of section 3142 of 
     the National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201; 110 Stat. 2836) is--
       (i) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (ii) inserted after section 4453C, as added by subparagraph 
     (D); and
       (iii) amended--

       (I) by inserting before the text the following new section 
     heading:

     ``SEC. 4453D. CONTINUATION OF PROCESSING, TREATMENT, AND 
                   DISPOSAL OF LEGACY NUCLEAR MATERIALS.'';

       (II) by striking ``(f) Requirement for Continuing 
     Operations at Savannah River Site.--The Secretary'' and 
     inserting ``The Secretary of Energy''; and
       (III) by striking ``subsection (e)'' and inserting 
     ``section 4452''.

       (24) Limitation on use of funds for decommissioning f-
     canyon facility.--Subsection (b) of section 3137 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-460) is--
       (A) transferred to title XLIV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) inserted after section 4453D, as added by paragraph 
     (23)(E); and
       (C) amended--
       (i) by inserting before the text the following new section 
     heading:

     ``SEC. 4454. LIMITATION ON USE OF FUNDS FOR DECOMMISSIONING 
                   F-CANYON FACILITY.'';

       (ii) by striking ``(b) Limitation on Use of Funds for 
     Decommissioning F-Canyon Facility.--'';
       (iii) by striking ``this or any other Act'' and inserting 
     ``the Floyd D. Spence National Defense Authorization Act for 
     Fiscal Year 2001 (as enacted into law by Public Law 106-398) 
     or any other Act''; and
       (iv) by striking ``the Secretary'' in the matter preceding 
     paragraph (1) and inserting ``the Secretary of Energy''.
       (h) Safeguards and Security Matters.--
       (1) Headings.--Division D of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003, as amended by this 
     section, is further amended by adding at the end the 
     following new headings:
              ``TITLE XLV--SAFEGUARDS AND SECURITY MATTERS
                ``Subtitle A--Safeguards and Security''.
       (2) Prohibition on international inspections of facilities 
     without protection of restricted data.--Section 3154 of the 
     National Defense Authorization Act for Fiscal Year 1996 
     (Public Law 104-106; 110 Stat. 624) is--
       (A) transferred to title XLV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as added by 
     paragraph (1);
       (B) redesignated as section 4501;
       (C) inserted after the heading for subtitle A of such 
     title, as so added; and
       (D) amended--
       (i) by striking ``(1) The'' and inserting ``The''; and
       (ii) by striking ``(2) For purposes of paragraph (1),'' and 
     inserting ``(c) Restricted Data Defined.--In this section,''.
       (3) Restrictions on access to laboratories by foreign 
     visitors from sensitive countries.--Section 3146 of the 
     National Defense Authorization Act for Fiscal Year 2000 
     (Public Law 106-65; 113 Stat. 935) is--
       (A) transferred to title XLV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4502;
       (C) inserted after section 4501, as added by paragraph (2); 
     and
       (D) amended--
       (i) in subsection (b)(2)--

       (I) in the matter preceding subparagraph (A), by striking 
     ``30 days after the date of the enactment of this Act'' and 
     inserting ``on November 4, 1999,''; and
       (II) in subparagraph (A), by striking ``The date that is 90 
     days after the date of the enactment of this Act'' and 
     inserting ``January 3, 2000'';

       (ii) in subsection (d)(1), by striking ``the date of the 
     enactment of this Act,'' and inserting ``October 5, 1999,''; 
     and
       (iii) in subsection (g), by adding at the end the following 
     new paragraphs:
       ``(3) The term `national laboratory' means any of the 
     following:
       ``(A) Lawrence Livermore National Laboratory, Livermore, 
     California.
       ``(B) Los Alamos National Laboratory, Los Alamos, New 
     Mexico.
       ``(C) Sandia National Laboratories, Albuquerque, New Mexico 
     and Livermore, California.
       ``(4) The term `Restricted Data' has the meaning given that 
     term in section 11 y. of the Atomic Energy Act of 1954 (42 
     U.S.C. 2014(y)).''.
       (4) Background investigations on certain personnel.--
     Section 3143 of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65; 113 Stat. 934) is--
       (A) transferred to title XLV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4503;
       (C) inserted after section 4502, as added by paragraph (3); 
     and
       (D) amended--
       (i) in subsection (b), by striking ``the date of the 
     enactment of this Act'' and inserting ``October 5, 1999,''; 
     and
       (ii) by adding at the end the following new subsection:
       ``(c) Definitions.--In this section, the terms `national 
     laboratory' and `Restricted Data' have the meanings given 
     such terms in section 4502(g).''.
       (5) Counterintelligence polygraph program.--
       (A) Department of energy counterintelligence polygraph 
     program.--Section 3152 of

[[Page 27618]]

     the National Defense Authorization Act for Fiscal Year 2002 
     (Public Law 107-107; 115 Stat. 1376) is--
       (i) transferred to title XLV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (ii) redesignated as section 4504;
       (iii) inserted after section 4503, as added by paragraph 
     (4); and
       (iv) amended in subsection (c) by striking ``section 3154 
     of the Department of Energy Facilities Safeguards, Security, 
     and Counterintelligence Enhancement Act of 1999 (subtitle D 
     of title XXXI of Public Law 106-65; 42 U.S.C. 7383h)'' and 
     inserting ``section 4504A''.
       (B) Counterintelligence polygraph program.--Section 3154 of 
     the National Defense Authorization Act for Fiscal Year 2000 
     (Public Law 106-65; 113 Stat. 941), as amended by section 
     3135 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-456), is--
       (i) transferred to title XLV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (ii) redesignated as section 4504A;
       (iii) inserted after section 4504, as added by subparagraph 
     (A); and
       (iv) amended in subsection (h) by striking ``180 days after 
     the date of the enactment of this Act,'' and inserting 
     ``April 5, 2000,''.
       (6) Notice of security and counterintelligence failures.--
     Section 3150 of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65; 113 Stat. 939) is--
       (A) transferred to title XLV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4505; and
       (C) inserted after section 4504A, as added by paragraph 
     (5)(B).
       (7) Annual report on security functions at nuclear weapons 
     facilities.--Section 3162 of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85; 
     111 Stat. 2049) is--
       (A) transferred to title XLV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4506;
       (C) inserted after section 4505, as added by paragraph (6); 
     and
       (D) amended in subsection (b) by inserting ``of the 
     National Defense Authorization Act for Fiscal Year 1998 
     (Public Law 105-85; 111 Stat. 2048; 42 U.S.C. 7251 note)'' 
     after ``section 3161''.
       (8) Report on counterintelligence and security practices at 
     laboratories.--Section 3152 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 
     113 Stat. 940) is--
       (A) transferred to title XLV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4507;
       (C) inserted after section 4506, as added by paragraph (7); 
     and
       (D) amended by adding at the end the following new 
     subsection:
       ``(c) National Laboratory Defined.--In this section, the 
     term `national laboratory' has the meaning given that term in 
     section 4502(g)(3).''.
       (9) Report on security vulnerabilities of national 
     laboratory computers.--Section 3153 of the National Defense 
     Authorization Act for Fiscal Year 2000 (Public Law 106-65; 
     113 Stat. 940) is--
       (A) transferred to title XLV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4508;
       (C) inserted after section 4507, as added by paragraph (8); 
     and
       (D) amended by adding at the end the following new 
     subsection:
       ``(f) National Laboratory Defined.--In this section, the 
     term `national laboratory' has the meaning given that term in 
     section 4502(g)(3).''.
       (10) Subtitle heading on classified information.--Title XLV 
     of the Bob Stump National Defense Authorization Act for 
     Fiscal Year 2003, as amended by this subsection, is further 
     amended by adding at the end the following new subtitle 
     heading:
                ``Subtitle B--Classified Information''.
       (11) Review of certain documents before declassification 
     and release.--Section 3155 of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106; 
     110 Stat. 625) is--
       (A) transferred to title XLV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4521; and
       (C) inserted after the heading for subtitle B of such 
     title, as added by paragraph (10).
       (12) Protection against inadvertent release of restricted 
     data and formerly restricted data.--Section 3161 of the Strom 
     Thurmond National Defense Authorization Act for Fiscal Year 
     1999 (Public Law 105-261; 112 Stat. 2259), as amended by 
     section 1067(3) of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65; 113 Stat. 774) and 
     section 3193 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-480), is--
       (A) transferred to title XLV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4522;
       (C) inserted after section 4521, as added by paragraph 
     (11); and
       (D) amended--
       (i) in subsection (c)(1), by striking ``the date of the 
     enactment of this Act'' and inserting ``October 17, 1998,'';
       (ii) in subsection (f)(1), by striking ``the date of the 
     enactment of this Act'' and inserting ``October 17, 1998''; 
     and
       (iii) in subsection (f)(2), by striking ``The Secretary'' 
     and inserting ``Commencing with inadvertent releases 
     discovered on or after October 30, 2000, the Secretary''.
       (13) Supplement to plan for declassification of restricted 
     data and formerly restricted data.--Section 3149 of the 
     National Defense Authorization Act for Fiscal Year 2000 
     (Public Law 106-65; 113 Stat. 938) is--
       (A) transferred to title XLV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4523;
       (C) inserted after section 4522, as added by paragraph 
     (12); and
       (D) amended--
       (i) in subsection (a), by striking ``subsection (a) of 
     section 3161 of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261; 
     112 Stat. 2260; 50 U.S.C. 435 note)'' and inserting 
     ``subsection (a) of section 4522'';
       (ii) in subsection (b)--

       (I) by striking ``section 3161(b)(1) of that Act'' and 
     inserting ``subsection (b)(1) of section 4522''; and
       (II) by striking ``the date of the enactment of that Act'' 
     and inserting ``October 17, 1998,'';

       (iii) in subsection (c)--

       (I) by striking ``section 3161(c) of that Act'' and 
     inserting ``subsection (c) of section 4522''; and
       (II) by striking ``section 3161(a) of that Act'' and 
     inserting ``subsection (a) of such section''; and

       (iv) in subsection (d), by striking ``section 3161(d) of 
     that Act'' and inserting ``subsection (d) of section 4522''.
       (14) Protection of classified information during 
     laboratory-to-laboratory exchanges.--Section 3145 of the 
     National Defense Authorization Act for Fiscal Year 2000 
     (Public Law 106-65; 113 Stat. 935) is--
       (A) transferred to title XLV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4524; and
       (C) inserted after section 4523, as added by paragraph 
     (13).
       (15) Identification in budgets of amount for 
     declassification activities.--Section 3173 of the National 
     Defense Authorization Act for Fiscal Year 2000 (Public Law 
     106-65; 113 Stat. 949) is--
       (A) transferred to title XLV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4525;
       (C) inserted after section 4524, as added by paragraph 
     (14); and
       (D) amended in subsection (b) by striking ``the date of the 
     enactment of this Act'' and inserting ``October 5, 1999,''.
       (16) Subtitle heading on emergency response.--Title XLV of 
     the Bob Stump National Defense Authorization Act for Fiscal 
     Year 2003, as amended by this subsection, is further amended 
     by adding at the end the following new subtitle heading:
                  ``Subtitle C--Emergency Response''.
       (17) Responsibility for defense programs emergency response 
     program.--Section 3158 of the National Defense Authorization 
     Act for Fiscal Year 1996 (Public Law 104-106; 110 Stat. 626) 
     is--
       (A) transferred to title XLV of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4541; and
       (C) inserted after the heading for subtitle C of such 
     title, as added by paragraph (16).
       (i) Personnel Matters.--
       (1) Headings.--Division D of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003, as amended by this 
     section, is further amended by adding at the end the 
     following new headings:
                    ``TITLE XLVI--PERSONNEL MATTERS
                 ``Subtitle A--Personnel Management''.
       (2) Authority for appointment of certain scientific, 
     engineering, and technical personnel.--Section 3161 of the 
     National Defense Authorization Act for Fiscal Year 1995 
     (Public Law 103-337; 108 Stat. 3095), as amended by section 
     3139 of the National Defense Authorization Act for Fiscal 
     Year 1998 (Public Law 105-85; 111 Stat. 2040), sections 3152 
     and 3155 of the Strom Thurmond National Defense Authorization 
     Act for Fiscal Year 1999 (Public Law 105-261; 112 Stat. 2253, 
     2257), and section 3191 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-480), is--
       (A) transferred to title XLVI of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as added by 
     paragraph (1);
       (B) redesignated as section 4601; and
       (C) inserted after the heading for subtitle A of such 
     title, as so added.
       (3) Whistleblower protection program.--Section 3164 of the 
     National Defense Authorization Act for Fiscal Year 2000 
     (Public Law 106-65; 113 Stat. 946) is--
       (A) transferred to title XLVI of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4602;
       (C) inserted after section 4601, as added by paragraph (2); 
     and
       (D) amended in subsection (n) by striking ``60 days after 
     the date of the enactment of this Act,'' and inserting 
     ``December 5, 1999,''.

[[Page 27619]]

       (4) Employee incentives for workers at closure project 
     facilities.--Section 3136 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-458) is--
       (A) transferred to title XLVI of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4603;
       (C) inserted after section 4602, as added by paragraph (3); 
     and
       (D) amended--
       (i) in subsections (c) and (i)(1)(A), by striking ``section 
     3143 of the National Defense Authorization Act for Fiscal 
     Year 1997 (42 U.S.C. 7274n)'' and inserting ``section 4421''; 
     and
       (ii) in subsection (g), by striking ``section 3143(h) of 
     the National Defense Authorization Act for Fiscal Year 1997'' 
     and inserting ``section 4421(h)''.
       (5) Defense nuclear facility workforce restructuring 
     plan.--Section 3161 of the National Defense Authorization Act 
     for Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2644), as 
     amended by section 1070(c)(2) of the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-337; 
     108 Stat. 2857), Public Law 105-277 (112 Stat. 2681-419, 
     2681-430), and section 1048(h)(1) of the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107; 
     115 Stat. 1229), is--
       (A) transferred to title XLVI of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4604;
       (C) inserted after section 4603, as added by paragraph (4); 
     and
       (D) amended--
       (i) in subsection (a), by striking ``(hereinafter in this 
     subtitle referred to as the `Secretary')''; and
       (ii) by adding at the end the following new subsection:
       ``(g) Department of Energy Defense Nuclear Facility 
     Defined.--In this section, the term `Department of Energy 
     defense nuclear facility' means--
       ``(1) a production facility or utilization facility (as 
     those terms are defined in section 11 of the Atomic Energy 
     Act of 1954 (42 U.S.C. 2014)) that is under the control or 
     jurisdiction of the Secretary and that is operated for 
     national security purposes (including the tritium loading 
     facility at Savannah River, South Carolina, the 236 H 
     facility at Savannah River, South Carolina; and the Mound 
     Laboratory, Ohio), but the term does not include any facility 
     that does not conduct atomic energy defense activities and 
     does not include any facility or activity covered by 
     Executive Order Number 12344, dated February 1, 1982, 
     pertaining to the naval nuclear propulsion program;
       ``(2) a nuclear waste storage or disposal facility that is 
     under the control or jurisdiction of the Secretary;
       ``(3) a testing and assembly facility that is under the 
     control or jurisdiction of the Secretary and that is operated 
     for national security purposes (including the Nevada Test 
     Site, Nevada; the Pinnellas Plant, Florida; and the Pantex 
     facility, Texas);
       ``(4) an atomic weapons research facility that is under the 
     control or jurisdiction of the Secretary (including Lawrence 
     Livermore, Los Alamos, and Sandia National Laboratories); or
       ``(5) any facility described in paragraphs (1) through (4) 
     that--
       ``(A) is no longer in operation;
       ``(B) was under the control or jurisdiction of the 
     Department of Defense, the Atomic Energy Commission, or the 
     Energy Research and Development Administration; and
       ``(C) was operated for national security purposes.''.
       (6) Authority to provide certificate of commendation to 
     employees.--Section 3195 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-481) is--
       (A) transferred to title XLVI of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4605; and
       (C) inserted after section 4604, as added by paragraph (5).
       (7) Subtitle heading on education and training.--Title XLVI 
     of the Bob Stump National Defense Authorization Act for 
     Fiscal Year 2003, as amended by this subsection, is further 
     amended by adding at the end the following new subtitle 
     heading:
                ``Subtitle B--Education and Training''.
       (8) Executive management training.--Section 3142 of the 
     National Defense Authorization Act for Fiscal Years 1990 and 
     1991 (Public Law 101-189; 103 Stat. 1680) is--
       (A) transferred to title XLVI of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4621;
       (C) inserted after the heading for subtitle B of such 
     title, as added by paragraph (7); and
       (D) amended in the section heading by adding a period at 
     the end.
       (9) Stockpile stewardship recruitment and training 
     program.--Section 3131 of the National Defense Authorization 
     Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 3085) 
     is--
       (A) transferred to title XLVI of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4622;
       (C) inserted after section 4621, as added by paragraph (8); 
     and
       (D) amended--
       (i) in subsection (a)(1), by striking ``section 3138 of the 
     National Defense Authorization Act for Fiscal Year 1994 
     (Public Law 103-160; 107 Stat. 1946; 42 U.S.C. 2121 note)'' 
     and inserting ``section 4201''; and
       (ii) in subsection (b)(2), by inserting ``of the National 
     Defense Authorization Act for Fiscal Year 1995 (Public Law 
     103-337)'' after ``section 3101(a)(1)''.
       (10) Fellowship program for development of skills critical 
     to nuclear weapons complex.--Section 3140 of the National 
     Defense Authorization Act for Fiscal Year 1996 (Public Law 
     104-106; 110 Stat 621), as amended by section 3162 of the 
     National Defense Authorization Act for Fiscal Year 2000 
     (Public Law 106-65; 113 Stat. 943), is--
       (A) transferred to title XLVI of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4623; and
       (C) inserted after section 4622, as added by paragraph (9).
       (11) Subtitle heading on worker safety.--Title XLVI of the 
     Bob Stump National Defense Authorization Act for Fiscal Year 
     2003, as amended by this subsection, is further amended by 
     adding at the end the following new subtitle heading:
                     ``Subtitle C--Worker Safety''.
       (12) Worker protection at nuclear weapons facilities.--
     Section 3131 of the National Defense Authorization Act for 
     Fiscal Years 1992 and 1993 (Public Law 102-190; 105 Stat. 
     1571) is--
       (A) transferred to title XLVI of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4641;
       (C) inserted after the heading for subtitle C of such 
     title, as added by paragraph (11); and
       (D) amended in subsection (e) by inserting ``of the 
     National Defense Authorization Act for Fiscal Years 1992 and 
     1993 (Public Law 102-190)'' after ``section 3101(9)(A)''.
       (13) Safety oversight and enforcement at defense nuclear 
     facilities.--Section 3163 of the National Defense 
     Authorization Act for Fiscal Year 1995 (Public Law 103-337; 
     108 Stat. 3097) is--
       (A) transferred to title XLVI of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4642;
       (C) inserted after section 4641, as added by paragraph 
     (12); and
       (D) amended in subsection (b) by striking ``90 days after 
     the date of the enactment of this Act,'' and inserting 
     ``January 5, 1995,''.
       (14) Program to monitor workers at defense nuclear 
     facilities exposed to hazardous or radioactive substances.--
     Section 3162 of the National Defense Authorization Act for 
     Fiscal Year 1993 (Public Law 102-484; 106 Stat. 2646) is--
       (A) transferred to title XLVI of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4643;
       (C) inserted after section 4642, as added by paragraph 
     (13); and
       (D) amended--
       (i) in subsection (b)(6), by striking ``1 year after the 
     date of the enactment of this Act'' and inserting ``October 
     23, 1993'';
       (ii) in subsection (c), by striking ``180 days after the 
     date of the enactment of this Act,'' and inserting ``April 
     23, 1993,''; and
       (iii) by adding at the end the following new subsection:
       ``(d) Definitions.--In this section:
       ``(1) The term `Department of Energy defense nuclear 
     facility' has the meaning given that term in section 4604(g).
       ``(2) The term `Department of Energy employee' means any 
     employee of the Department of Energy employed at a Department 
     of Energy defense nuclear facility, including any employee of 
     a contractor or subcontractor of the Department of Energy 
     employed at such a facility.''.
       (15) Programs for persons who may have been exposed to 
     radiation released from hanford reservation.--Section 3138 of 
     the National Defense Authorization Act for Fiscal Year 1991 
     (Public Law 101-510; 104 Stat. 1834), as amended by section 
     3138 of the National Defense Authorization Act for Fiscal 
     Year 1995 (Public Law 103-337; 108 Stat. 3087), is--
       (A) transferred to title XLVI of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4644;
       (C) inserted after section 4643, as added by paragraph 
     (14); and
       (D) amended--
       (i) in the section heading, by adding a period at the end;
       (ii) in subsection (a), by striking ``this title'' and 
     inserting ``title XXXI of the National Defense Authorization 
     Act for Fiscal Year 1991 (Public Law 101-510)''; and
       (iii) in subsection (c)--

       (I) in paragraph (2), by striking ``six months after the 
     date of the enactment of this Act,'' and inserting ``May 5, 
     1991,''; and
       (II) in paragraph (3), by striking ``18 months after the 
     date of the enactment of this Act,'' and inserting ``May 5, 
     1992,''.

       (j) Budget and Financial Management Matters.--
       (1) Headings.--Division D of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003, as amended by this 
     section, is further amended by adding at the end the 
     following new headings:

[[Page 27620]]


         ``TITLE XLVII--BUDGET AND FINANCIAL MANAGEMENT MATTERS
 ``Subtitle A--Recurring National Security Authorization Provisions''.
       (2) Recurring national security authorization provisions.--
     Sections 3620 through 3631 of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314; 
     116 Stat. 2756) are--
       (A) transferred to title XLVII of such Act, as added by 
     paragraph (1);
       (B) redesignated as sections 4701 through 4712, 
     respectively;
       (C) inserted after the heading for subtitle A of such 
     title, as so added; and
       (D) amended--
       (i) in section 4702, as so redesignated, by striking 
     ``sections 3629 and 3630'' and inserting ``sections 4710 and 
     4711'';
       (ii) in section 4706(a)(3)(B), as so redesignated, by 
     striking ``section 3626'' and inserting ``section 4707'';
       (iii) in section 4707(c), as so redesignated, by striking 
     ``section 3625(b)(2)'' and inserting ``section 4706(b)(2)'';
       (iv) in section 4710(c), as so redesignated, by striking 
     ``section 3621'' and inserting ``section 4702'';
       (v) in section 4711(c), as so redesignated, by striking 
     ``section 3621'' and inserting ``section 4702''; and
       (vi) in section 4712, as so redesignated, by striking 
     ``section 3621'' and inserting ``section 4702''.
       (3) Subtitle heading on penalties.--Title XLVII of the Bob 
     Stump National Defense Authorization Act for Fiscal Year 
     2003, as amended by this subsection, is further amended by 
     adding at the end the following new subtitle heading:
                       ``Subtitle B--Penalties''.
       (4) Restriction on use of funds to pay penalties under 
     environmental laws.--Section 3132 of the National Defense 
     Authorization Act for Fiscal Year 1987 (Public Law 99-661; 
     100 Stat. 4063) is--
       (A) transferred to title XLVII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4721;
       (C) inserted after the heading for subtitle B of such 
     title, as added by paragraph (3); and
       (D) amended in the section heading by adding a period at 
     the end.
       (5) Restriction on use of funds to pay penalties under 
     clean air act.--Section 211 of the Department of Energy 
     National Security and Military Applications of Nuclear Energy 
     Authorization Act of 1981 (Public Law 96-540; 94 Stat. 3203) 
     is--
       (A) transferred to title XLVII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) inserted after section 4721, as added by paragraph (4); 
     and
       (C) amended--
       (i) by striking the section heading and inserting the 
     following new section heading:

     ``SEC. 4722. RESTRICTION ON USE OF FUNDS TO PAY PENALTIES 
                   UNDER CLEAN AIR ACT.'';

       (ii) by striking ``Sec. 211.''; and
       (iii) by striking ``this or any other Act'' and inserting 
     ``the Department of Energy National Security and Military 
     Applications of Nuclear Energy Authorization Act of 1981 
     (Public Law 96-540) or any other Act''.
       (6) Subtitle heading on other matters.--Title XLVII of the 
     Bob Stump National Defense Authorization Act for Fiscal Year 
     2003, as amended by this subsection, is further amended by 
     adding at the end the following new subtitle heading:
                     ``Subtitle C--Other Matters''.
       (7) Single request for authorization of appropriations for 
     common defense and security programs.--Section 208 of the 
     Department of Energy National Security and Military 
     Applications of Nuclear Energy Authorization Act of 1979 
     (Public Law 95-509; 92 Stat. 1779) is--
       (A) transferred to title XLVII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) inserted after the heading for subtitle C of such 
     title, as added by paragraph (6); and
       (C) amended--
       (i) by striking the section heading and inserting the 
     following new section heading:

     ``SEC. 4731. SINGLE REQUEST FOR AUTHORIZATION OF 
                   APPROPRIATIONS FOR COMMON DEFENSE AND SECURITY 
                   PROGRAMS.'';

     and
       (ii) by striking ``Sec. 208.''.
       (k) Administrative Matters.--
       (1) Headings.--Division D of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003, as amended by this 
     section, is further amended by adding at the end the 
     following new headings:
                 ``TITLE XLVIII--ADMINISTRATIVE MATTERS
                       ``Subtitle A--Contracts''.
       (2) Costs not allowed under certain contracts.--Section 
     1534 of the Department of Defense Authorization Act, 1986 
     (Public Law 99-145; 99 Stat. 774), as amended by section 3131 
     of the National Defense Authorization Act for Fiscal Years 
     1988 and 1989 (Public Law 100-180; 101 Stat. 1238), is--
       (A) transferred to title XLVIII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as added by 
     paragraph (1);
       (B) redesignated as section 4801;
       (C) inserted after the heading for subtitle A of such 
     title, as so added; and
       (D) amended--
       (i) in the section heading, by adding a period at the end; 
     and
       (ii) in subsection (b)(1), by striking ``the date of the 
     enactment of this Act,'' and inserting ``November 8, 1985,''.
       (3) Prohibition on bonuses to contractors operating defense 
     nuclear facilities.--Section 3151 of the National Defense 
     Authorization Act for Fiscal Years 1990 and 1991 (Public Law 
     101-189; 103 Stat. 1682) is--
       (A) transferred to title XLVIII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4802;
       (C) inserted after section 4801, as added by paragraph (2); 
     and
       (D) amended--
       (i) in the section heading, by adding a period at the end;
       (ii) in subsection (a), by striking ``the date of the 
     enactment of this Act'' and inserting ``November 29, 1989'';
       (iii) in subsection (b), by striking ``6 months after the 
     date of the enactment of this Act,'' and inserting ``May 29, 
     1990,''; and
       (iv) in subsection (d), by striking ``90 days after the 
     date of the enactment of this Act'' and inserting ``March 1, 
     1990''.
       (4) Contractor liability for injury or loss of property 
     arising from atomic weapons testing programs.--Section 3141 
     of the National Defense Authorization Act for Fiscal Year 
     1991 (Public Law 101-510; 104 Stat. 1837) is--
       (A) transferred to title XLVIII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4803;
       (C) inserted after section 4802, as added by paragraph (3); 
     and
       (D) amended--
       (i) in the section heading, by adding a period at the end; 
     and
       (ii) in subsection (d), by striking ``the date of the 
     enactment of this Act'' each place it appears and inserting 
     ``November 5, 1990,''.
       (5) Subtitle heading on research and development.--Title 
     XLVIII of the Bob Stump National Defense Authorization Act 
     for Fiscal Year 2003, as amended by this subsection, is 
     further amended by adding at the end the following new 
     subtitle heading:
               ``Subtitle B--Research and Development''.
       (6) Laboratory-directed research and development.--Section 
     3132 of the National Defense Authorization Act for Fiscal 
     Year 1991 (Public Law 101-510; 104 Stat. 1832) is--
       (A) transferred to title XLVIII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4811;
       (C) inserted after the heading for subtitle B of such 
     title, as added by paragraph (5); and
       (D) amended in the section heading by adding a period at 
     the end.
       (7) Limitations on use of funds for laboratory directed 
     research and development.--
       (A) Limitations on use of funds for laboratory directed 
     research and development.--Section 3137 of the National 
     Defense Authorization Act for Fiscal Year 1998 (Public Law 
     105-85; 111 Stat. 2038) is--
       (i) transferred to title XLVIII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (ii) redesignated as section 4812;
       (iii) inserted after section 4811, as added by paragraph 
     (6);
       (iv) amended in subsection (b) by striking ``section 
     3136(b) of the National Defense Authorization Act for Fiscal 
     Year 1997 (Public Law 104-201; 110 Stat. 2831; 42 U.S.C. 
     7257b)'' and inserting ``section 4812A(b)'';
       (v) amended in subsection (d)--

       (I) by striking ``section 3136(b)(1)'' and inserting 
     ``section 4812A(b)(1)''; and
       (II) by striking ``section 3132(c) of the National Defense 
     Authorization Act for Fiscal Year 1991 (42 U.S.C. 7257a(c))'' 
     and inserting ``section 4811(c)''; and

       (vi) amended in subsection (e) by striking ``section 
     3132(d) of the National Defense Authorization Act for Fiscal 
     Year 1991 (42 U.S.C. 7257a(d))'' and inserting ``section 
     4811(d)''.
       (B) Limitation on use of funds for certain research and 
     development purposes.--Section 3136 of the National Defense 
     Authorization Act for Fiscal Year 1997 (Public Law 104-201; 
     110 Stat. 2830), as amended by section 3137 of the National 
     Defense Authorization Act for Fiscal Year 1998 (Public Law 
     105-85; 111 Stat. 2038), is--
       (i) transferred to title XLVIII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (ii) redesignated as section 4812A;
       (iii) inserted after section 4812, as added by subparagraph 
     (A); and
       (iv) amended in subsection (a) by inserting ``of the 
     National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201)'' after ``section 3101''.
       (8) Critical technology partnerships.--Section 3136 of the 
     National Defense Authorization Act for Fiscal Years 1992 and 
     1993 (Public Law 102-190; 105 Stat. 1577), as amended by 
     section 203(b)(3) of Public Law 103-35 (107 Stat. 102), is--
       (A) transferred to title XLVIII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4813; and
       (C) inserted after section 4812A, as added by paragraph 
     (7)(B).
       (9) University-based research collaboration program.--
     Section 3155 of the National

[[Page 27621]]

     Defense Authorization Act for Fiscal Year 1998 (Public Law 
     105-85; 111 Stat. 2044) is--
       (A) transferred to title XLVIII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4814;
       (C) inserted after section 4813, as added by paragraph (8); 
     and
       (D) amended in subsection (c) by striking ``this title'' 
     and inserting ``title XXXI of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85)''.
       (10) Subtitle heading on facilities management.--Title 
     XLVIII of the Bob Stump National Defense Authorization Act 
     for Fiscal Year 2003, as amended by this subsection, is 
     further amended by adding at the end the following new 
     subtitle heading:
                 ``Subtitle C--Facilities Management''.
       (11) Transfers of real property at certain facilities.--
     Section 3158 of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85; 111 Stat. 2046) is--
       (A) transferred to title XLVIII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4831; and
       (C) inserted after the heading for subtitle C of such 
     title, as added by paragraph (10).
       (12) Engineering and manufacturing research, development, 
     and demonstration at certain nuclear weapons production 
     plants.--Section 3156 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-467) is--
       (A) transferred to title XLVIII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4832; and
       (C) inserted after section 4831, as added by paragraph 
     (11).
       (13) Pilot program on use of proceeds of disposal or 
     utilization of certain assets.--Section 3138 of the National 
     Defense Authorization Act for Fiscal Year 1998 (Public Law 
     105-85; 111 Stat. 2039) is--
       (A) transferred to title XLVIII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) redesignated as section 4833;
       (C) inserted after section 4832, as added by paragraph 
     (12); and
       (D) amended in subsection (d) by striking ``sections 202 
     and 203(j) of the Federal Property and Administrative 
     Services Act of 1949 (40 U.S.C. 483 and 484(j))'' and 
     inserting ``subchapter II of chapter 5 and section 549 of 
     title 40, United States Code,''.
       (14) Subtitle heading on other matters.--Title XLVIII of 
     the Bob Stump National Defense Authorization Act for Fiscal 
     Year 2003, as amended by this subsection, is further amended 
     by adding at the end the following new subtitle heading:
                     ``Subtitle D--Other Matters''.
       (15) Semiannual reports on local impact assistance.--
     Subsection (f) of section 3153 of the National Defense 
     Authorization Act for Fiscal Year 1998 (Public Law 105-85; 
     111 Stat. 2044) is--
       (A) transferred to title XLVIII of the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003, as amended by 
     this subsection;
       (B) inserted after the heading for subtitle D of such 
     title, as added by paragraph (14); and
       (C) amended--
       (i) by inserting before the text the following new section 
     heading:

     ``SEC. 4851. SEMIANNUAL REPORTS ON LOCAL IMPACT 
                   ASSISTANCE.'';

       (ii) by striking ``(f) Semiannual Reports to Congress of 
     Local Impact Assistance.--''; and
       (iii) by striking ``section 3161(c)(6) of the National 
     Defense Authorization Act of 1993 (42 U.S.C. 7274h(c)(6))'' 
     and inserting ``section 4604(c)(6)''.
       (16) Payment of costs of operation and maintenance of 
     infrastructure at nevada test site.--Section 3144 of the 
     National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201; 110 Stat. 2838) is--
       (A) transferred to title XLVIII of such Act, as amended by 
     this subsection;
       (B) redesignated as section 4852; and
       (C) inserted after section 4851, as added by paragraph 
     (15).
       (m) Conforming Amendments.--(1) Title XXXVI of the Bob 
     Stump National Defense Authorization Act for Fiscal Year 2003 
     (Public Law 107-314; 116 Stat. 1756) is repealed.
       (2) Subtitle E of title XXXI of the National Defense 
     Authorization Act for Fiscal Year 1993 (Public Law 102-484; 
     42 U.S.C. 7274h et seq.) is repealed.
       (3) Section 8905a(d)(5)(A) of title 5, United States Code, 
     is amended by striking ``section 3143 of the National Defense 
     Authorization Act for Fiscal Year 1997 (42 U.S.C. 7274n)'' 
     and inserting ``section 4421 of the Atomic Energy Defense 
     Act''.
          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

     SEC. 3201. AUTHORIZATION.

       There are authorized to be appropriated for fiscal year 
     2004, $19,559,000 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. Revisions to required receipt objectives for previously 
              authorized disposals from National Defense Stockpile.

     SEC. 3301. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE 
                   FUNDS.

       (a) Obligation of Stockpile Funds.--During fiscal year 
     2004, the National Defense Stockpile Manager may obligate up 
     to $69,701,000 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. REVISIONS TO REQUIRED RECEIPT OBJECTIVES FOR 
                   PREVIOUSLY AUTHORIZED DISPOSALS FROM NATIONAL 
                   DEFENSE STOCKPILE.

       Section 3402 of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65; 113 Stat. 972; 50 U.S.C. 
     98d note) is amended--
       (1) in subsection (b)--
       (A) by striking ``and'' at the end of paragraph (2); and
       (B) by striking paragraph (3) and inserting the following 
     new paragraphs:
       ``(3) $340,000,000 before the end of fiscal year 2005; and
       ``(4) $450,000,000 before the end of fiscal year 2013.''; 
     and
       (2) in subsection (e), by adding at the end the following 
     new sentence: ``The disposal of materials under this section 
     to achieve the receipt levels specified in subsection (b), 
     within the time periods specified in subsection, shall be in 
     addition to any routine and on-going disposals used to fund 
     operations of the National Defense Stockpile.''.
                 TITLE XXXIV--NAVAL PETROLEUM RESERVES
Sec. 3401. Authorization of appropriations.

     SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

       (a) Amount.--There are hereby authorized to be appropriated 
     to the Secretary of Energy $16,500,000 for fiscal year 2004 
     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. Short title.

          Subtitle A--Maritime Administration Reauthorization

Sec. 3511. Authorization of appropriations for fiscal years 2004, 2005, 
              2006, 2007, and 2008.
Sec. 3512. Conveyance of obsolete vessels under title V, Merchant 
              Marine Act, 1936.
Sec. 3513. Authority to convey vessel USS HOIST (ARS-40).
Sec. 3514. Cargo preference.
Sec. 3515. Maritime education and training.
Sec. 3516. Authority to convey obsolete vessels to U.S. territories and 
              foreign countries for reefing.
Sec. 3517. Maintenance and repair reimbursement pilot program.

       Subtitle B--Amendments to Title XI Loan Guarantee Program

Sec. 3521. Equity payments by obligor for disbursement prior to 
              termination of escrow agreement.
Sec. 3522. Waivers of program requirements.
Sec. 3523. Project monitoring.
Sec. 3524. Defaults.
Sec. 3525. Decision period.
Sec. 3526. Loan guarantees.
Sec. 3527. Annual report on program.
Sec. 3528. Review of program.

                  Subtitle C--Maritime Security Fleet

Sec. 3531. Establishment of Maritime Security Fleet.
Sec. 3532. Related amendments to existing law.
Sec. 3533. Interim rules.
Sec. 3534. Repeals and conforming amendments.
Sec. 3535. GAO study of adjustment of operating agreement payment 
              criteria.
Sec. 3536. Definitions.
Sec. 3537. Effective dates.

    Subtitle D--National Defense Tank Vessel Construction Assistance

Sec. 3541. National defense tank vessel construction program.
Sec. 3542. Application procedure.
Sec. 3543. Award of assistance.
Sec. 3544. Priority for title XI assistance.
Sec. 3545. Definitions.
Sec. 3546. Authorization of appropriations.

     SEC. 3501. SHORT TITLE.

       This title may be cited as the ``Maritime Security Act of 
     2003''.

[[Page 27622]]


          Subtitle A--Maritime Administration Reauthorization

     SEC. 3511. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEARS 
                   2004, 2005, 2006, 2007, AND 2008.

       There are authorized to be appropriated to the Secretary of 
     Transportation for the Maritime Administration--
       (1) for expenses necessary for operations and training 
     activities, not to exceed $104,400,000 for the fiscal year 
     ending September 30, 2004, $106,000,000 for the fiscal year 
     ending September 2005, and $109,000,000 for the fiscal year 
     ending September 30, 2006, $111,000,000 for the fiscal year 
     ending September 30, 2007, and $113,000,000 for the fiscal 
     year ending September 30, 2008;
       (2) for expenses under the loan guarantee program 
     authorized by title XI of the Merchant Marine Act, 1936 (46 
     U.S.C. App. 1271 et. seq.), $36,000,000 for each of fiscal 
     years 2004, 2005, 2006, 2007, and 2008 of which--
       (A) $30,000,000 shall be for the cost (as defined in 
     section 502(5) of the Federal Credit Reform Act of 1990 (2 
     U.S.C. 661a(5))) of loan guarantees under the program; and
       (B) $6,000,000 shall be for administrative expenses related 
     to loan guarantee commitments under the program; and
       (3) for ship disposal, $18,422,000 for fiscal year 2004, 
     $11,422,000 for each of fiscal years 2005 and 2006, and 
     $12,000,000 for each of fiscal years 2007 and 2008.

     SEC. 3512. CONVEYANCE OF OBSOLETE VESSELS UNDER TITLE V, 
                   MERCHANT MARINE ACT, 1936.

       Section 508 of the Merchant Marine Act, 1936 (46 U.S.C. 
     App. 1158) is amended--
       (1) by inserting ``(a) Authority To Scrap or Sell Obsolete 
     Vessels.--'' before ``If''; and
       (2) by adding at the end the following:
       ``(b) Authority To Convey Vessels.--
       ``(1) In general.--Notwithstanding section 510(j) of this 
     Act, the Secretary of Transportation may convey the right, 
     title, and interest of the United States Government in any 
     vessel of the National Defense Reserve Fleet that has been 
     identified by the Secretary as an obsolete vessel of 
     insufficient value to warrant its further preservation, if--
       ``(A) the recipient is a non-profit organization, a State, 
     Commonwealth, or possession of the United States or any 
     municipal corporation or political subdivision thereof, or 
     the District of Columbia;
       ``(B) the recipient agrees not to use, or allow others to 
     use, the vessel for commercial transportation purposes;
       ``(C) the recipient agrees to make the vessel available to 
     the Government whenever the Secretary indicates that it is 
     needed by the Government;
       ``(D) the recipient agrees to hold the Government harmless 
     for any claims arising from exposure to asbestos, 
     polychlorinated biphenyls, lead paint, or other hazardous 
     substances after conveyance of the vessel, except for claims 
     arising from use of the vessel by the Government;
       ``(E) the recipient has a conveyance plan and a business 
     plan that describes the intended use of the vessel, each of 
     which have been submitted to and approved by the Secretary;
       ``(F) the recipient has provided proof, as determined by 
     the Secretary, of resources sufficient to accomplish the 
     transfer, necessary repairs and modifications, and initiation 
     of the intended use of the vessel; and
       ``(G) the recipient agrees that when the recipient no 
     longer requires the vessel for use as described in the 
     business plan required under subparagraph (E)--
       ``(i) the recipient will, at the discretion of the 
     Secretary, reconvey the vessel to the Government in good 
     condition except for ordinary wear and tear; or
       ``(ii) if the Board of Trustees of the recipient has 
     decided to dissolve the recipient according to the laws of 
     the State in which the recipient is incorporated, then--

       ``(I) the recipient shall distribute the vessel, as an 
     asset of the recipient, to a person that has been determined 
     exempt from taxation under the provisions of section 
     501(c)(3) of the Internal Revenue Code, or to the Federal 
     Government or a State or local government for a public 
     purpose; and
       ``(II) the vessel shall be disposed of by a court of 
     competent jurisdiction of the county in which the principal 
     office of the recipient is located, for such purposes as the 
     court shall determine, or to such organizations as the court 
     shall determine are organized exclusively for public 
     purposes.

       ``(2) Other equipment.--At the Secretary's discretion, 
     additional equipment from other obsolete vessels of the 
     National Defense Reserve Fleet may be conveyed to assist the 
     recipient with maintenance, repairs, or modifications.
       ``(3) Additional terms.--The Secretary may require any 
     additional terms the Secretary considers appropriate.
       ``(4) Delivery of vessel.--If conveyance is made under this 
     subsection the vessel shall be delivered to the recipient at 
     a time and place to be determined by the Secretary. The 
     vessel shall be conveyed in an `as is' condition.
       ``(5) Limitations.--If at any time prior to delivery of the 
     vessel to the recipient, the Secretary determines that a 
     different disposition of a vessel would better serve the 
     interests of the Government, the Secretary shall pursue the 
     more favorable disposition of the obsolete vessel and shall 
     not be liable for any damages that may result from an 
     intended recipient's reliance upon a proposed transfer.
       ``(6) Reversion.--The Secretary shall include in any 
     conveyance under this subsection terms under which all right, 
     title, and interest conveyed by the Secretary shall revert to 
     the United States if the Secretary determines the vessel has 
     been used other than as described in the business plan 
     required under paragraph (1)(E).''.

     SEC. 3513. AUTHORITY TO CONVEY VESSEL USS HOIST (ARS-40).

       (a) In General.--Notwithstanding section 510(j) of the 
     Merchant Marine Act, 1936 (46 App. U.S.C. 1160(j)), the 
     Secretary of Transportation may convey the right, title, and 
     interest of the United States Government in and to the vessel 
     USS HOIST (ARS-40), to the Last Patrol Museum, located in 
     Toledo, Ohio (a not-for-profit corporation, in this section 
     referred to as the ``recipient''), for use as a military 
     museum, if--
       (1) the recipient agrees to use the vessel as a nonprofit 
     military museum;
       (2) the recipient agrees not to use, or allow others to 
     use, the vessel for commercial transportation purposes;
       (3) the recipient agrees to make the vessel available to 
     the Government whenever the Secretary indicates that it is 
     needed by the Government;
       (4) the recipient agrees that when the recipient no longer 
     requires the vessel for use as a military museum--
       (A) the recipient will, at the discretion of the Secretary, 
     reconvey the vessel to the Government in good condition 
     except for ordinary wear and tear; or
       (B) if the Board of Trustees of the recipient has decided 
     to dissolve the recipient according to the laws of the State 
     in which the recipient is incorporated, then--
       (i) the recipient shall distribute the vessel, as an asset 
     of the recipient, to a person that has been determined exempt 
     from taxation under the provisions of section 501(c)(3) of 
     the Internal Revenue Code, or to the Federal Government or a 
     State or local government for a public purpose; and
       (ii) the vessel shall be disposed of by a court of 
     competent jurisdiction of the county in which the principal 
     office of the recipient is located, for such purposes as the 
     court shall determine, or to such organizations as the court 
     shall determine are organized exclusively for public 
     purposes;
       (5) the recipient agrees to hold the Government harmless 
     for any claims arising from exposure to asbestos, 
     polychlorinated biphenyls, lead paint, or other hazardous 
     substances after conveyance of the vessel, except for claims 
     arising from use of the vessel by the Government;
       (6) the recipient has available, for use to restore the 
     vessel, in the form of cash, liquid assets, or a written loan 
     commitment, financial resources of at least $100,000; and
       (7) the recipient has a conveyance plan and a business plan 
     that describes the intended use of the vessel, each of which 
     have been submitted to and approved by the Secretary.
       (b) Delivery of Vessel.--If a conveyance is made under this 
     section, the Secretary shall deliver the vessel at the place 
     where the vessel is located on the date of enactment of this 
     Act, in its present condition, and without cost to the 
     Government.
       (c) Other Unneeded Equipment.--The Secretary may also 
     convey any unneeded equipment from other vessels in the 
     National Defense Reserve Fleet in order to restore the USS 
     HOIST (ARS-40) to museum quality.
       (d) Retention of Vessel in NDRF.--
       (1) In general.--The Secretary shall retain in the National 
     Defense Reserve Fleet the vessel authorized to be conveyed 
     under subsection (a), until the earlier of--
       (A) 2 years after the date of the enactment of this Act; or
       (B) the date of conveyance of the vessel under subsection 
     (a).
       (2) Limitation.--Paragraph (1) does not require the 
     Secretary to retain the vessel in the National Defense 
     Reserve Fleet if the Secretary determines that retention of 
     the vessel in the fleet will pose an unacceptable risk to the 
     marine environment.

     SEC. 3514. CARGO PREFERENCE.

       Section 901b(c)(2) of the Merchant Marine Act, 1936 (46 
     U.S.C App. 1241f(c)(2)) is amended by striking ``1986.'' and 
     inserting ``1986, the 18-month period beginning April 1, 
     2002, and the 12-month period beginning October 1, 2003, and 
     each year thereafter.''.

     SEC. 3515. MARITIME EDUCATION AND TRAINING.

       (a) Cost of Education Defined.--Section 1302 of the 
     Merchant Marine Act, 1936 (46 U.S.C. App. 1295a) is amended--
       (1) by striking ``and'' after the semicolon in paragraph 
     (3);
       (2) by striking ``States.'' in paragraph (4)(B) and 
     inserting ``States; and''; and
       (3) by adding at the end the following:
       ``(5) the term `cost of education provided' means the 
     financial costs incurred by the Federal Government for 
     providing training or financial assistance to students at the 
     United States Merchant Marine Academy and the State maritime 
     academies, including direct financial assistance, room, 
     board, classroom academics, and other training activities.''.
       (b) Commitment Agreements.--Section 1303(e) of the Merchant 
     Marine Act, 1936 (46 U.S.C. App. 1295b(e)) is amended--
       (1) by striking ``Academy, unless the individual is 
     separated from the'' in paragraph (1)(A);
       (2) by striking paragraph (1)(C) and inserting the 
     following:
       ``(C) to maintain a valid license as an officer in the 
     merchant marine of the United States for at least 6 years 
     following the date of graduation from the Academy of such 
     individual, accompanied by the appropriate national and 
     international endorsements and certification as required by 
     the United States Coast Guard for

[[Page 27623]]

     service aboard vessels on domestic and international 
     voyages;'';
       (3) by striking paragraph (1)(E)(iii) and inserting the 
     following:
       ``(iii) as a commissioned officer on active duty in an 
     armed force of the United States, as a commissioned officer 
     in the National Oceanic and Atmospheric Administration, or 
     other maritime-related employment with the Federal Government 
     which serves the national security interests of the United 
     States, as determined by the Secretary; or'';
       (4) by striking paragraph (2) and inserting the following:
       ``(2)(A) If the Secretary determines that any individual 
     who has attended the Academy for not less than 2 years has 
     failed to fulfill the part of the agreement required by 
     paragraph (1)(A), such individual may be ordered by the 
     Secretary of Defense to active duty in one of the armed 
     forces of the United States to serve for a period of time not 
     to exceed 2 years. In cases of hardship as determined by the 
     Secretary, the Secretary may waive this provision in whole or 
     in part.
       ``(B) If the Secretary of Defense is unable or unwilling to 
     order an individual to active duty under subparagraph (A), or 
     if the Secretary of Transportation determines that 
     reimbursement of the cost of education provided would better 
     serve the interests of the United States, the Secretary may 
     recover from the individual the cost of education provided by 
     the Federal Government.'';
       (5) by striking paragraph (3) and inserting the following:
       ``(3)(A) If the Secretary determines that an individual has 
     failed to fulfill any part of the agreement required by 
     paragraph (1), as described in subparagraphs (1)(B), (C), 
     (D), (E), or (F), such individual may be ordered to active 
     duty to serve a period of time not less than 3 years and not 
     more than the unexpired portion, as determined by the 
     Secretary, of the service required by paragraph (1)(E). The 
     Secretary, in consultation with the Secretary of Defense, 
     shall determine in which service the individual shall be 
     ordered to active duty to serve such period of time. In cases 
     of hardship, as determined by the Secretary, the Secretary 
     may waive this provision in whole or in part.
       ``(B) If the Secretary of Defense is unable or unwilling to 
     order an individual to active duty under subparagraph (A), or 
     if the Secretary of Transportation determines that 
     reimbursement of the cost of education provided would better 
     serve the interests of the United States, the Secretary may 
     recover from the individual the cost of education provided 
     and may reduce the amount to be recovered from such 
     individual to reflect partial performance of service 
     obligations and such other factors as the Secretary 
     determines merit such a reduction.''; and
       (6) by redesignating paragraph (4) as paragraph (5) and 
     inserting after paragraph (3) the following:
       ``(4) To aid in the recovery of the cost of education 
     provided by the Federal Government pursuant to a commitment 
     agreement under this section, the Secretary may request the 
     Attorney General to begin court proceedings, and the 
     Secretary may make use of the Federal debt collection 
     procedures in chapter 176 of title 28, United States Code, or 
     other applicable administrative remedies.''.
       (c) Degrees Awarded.--Section 1303(g) of the Merchant 
     Marine Act, 1936 (46 U.S.C. App. 1295b(g)) is amended to read 
     as follows:
       ``(g) Degrees Awarded.--
       ``(1) Bachelor's degree.--The Superintendent of the Academy 
     may confer the degree of bachelor of science upon any 
     individual who has met the conditions prescribed by the 
     Secretary and who, if a citizen of the United States, has 
     passed the examination for a merchant marine officer's 
     license. No individual may be denied a degree under this 
     subsection because the individual is not permitted to take 
     such examination solely because of physical disqualification.
       ``(2) Master's degree.--The Superintendent of the Academy 
     may confer a master's degree upon any individual who has met 
     the conditions prescribed by the Secretary. Any master's 
     degree program may be funded through non-appropriated funds. 
     In order to maintain the appropriate academic standards, the 
     program shall be accredited by the appropriate accreditation 
     body. The Secretary may make regulations necessary to 
     administer such a program.''.
       (d) Student Incentive Payments.--Section 1304(g) of the 
     Merchant Marine Act, 1936 (46 U.S.C. App. 1295c(g)) is 
     amended--
       (1) by striking ``$3,000'' in paragraph (1) and inserting 
     ``$4,000'';
       (2) in paragraph (3)(A) by striking ``attending, unless the 
     individual is separated by such academy;'' and inserting 
     ``attending;'';
       (3) by striking paragraph (3)(C) and inserting the 
     following:
       ``(C) to maintain a valid license as an officer in the 
     merchant marine of the United States for at least 6 years 
     following the date of graduation from such State maritime 
     academy of such individual, accompanied by the appropriate 
     national and international endorsements and certification as 
     required by the United States Coast Guard for service aboard 
     vessels on domestic and international voyages;'';
       (4) by striking paragraph (3)(E)(iii) and inserting the 
     following:
       ``(iii) as a commissioned officer on active duty in an 
     armed force of the United States, as a commissioned officer 
     in the National Oceanic and Atmospheric Administration, or in 
     other maritime-related employment with the Federal Government 
     which serves the national security interests of the United 
     States, as determined by the Secretary; or'';
       (5) by striking paragraph (4) and inserting the following:
       ``(4)(A) If the Secretary determines that an individual who 
     has accepted the payment described in paragraph (1) for a 
     minimum of 2 academic years has failed to fulfill the part of 
     the agreement required by paragraph (1) and described in 
     paragraph (3)(A), such individual may be ordered by the 
     Secretary of Defense to active duty in the Armed Forces of 
     the United States to serve for a period of time not to exceed 
     2 years. In cases of hardship, as determined by the 
     Secretary, the Secretary may waive this provision in whole or 
     in part.
       ``(B) If the Secretary of Defense is unable or unwilling to 
     order an individual to active duty under subparagraph (A), or 
     if the Secretary of Transportation determines that 
     reimbursement of the cost of education provided would better 
     serve the interests of the United States, the Secretary--
       ``(i) subject to clause (ii), may recover from the 
     individual the amount of student incentive payments, plus 
     interest and attorneys fees; and
       ``(ii) may reduce the amount to be recovered from such 
     individual to reflect partial performance of service 
     obligations and such other factors as the Secretary 
     determines merit such reduction.'';
       (6) by striking paragraph (5) and inserting the following:
       ``(5)(A) If the Secretary determines that an individual has 
     failed to fulfill any part of the agreement required by 
     paragraph (1), as described in paragraphs (3)(B), (C), (D), 
     (E), or (F), such individual may be ordered to active duty to 
     serve a period of time not less than 2 years and not more 
     than the unexpired portion, as determined by the Secretary, 
     of the service required by paragraph (3)(E). The Secretary, 
     in consultation with the Secretary of Defense, shall 
     determine in which service the individual shall be ordered to 
     active duty to serve such period of time. In cases of 
     hardship, as determined by the Secretary, the Secretary may 
     waive this provision in whole or in part.
       ``(B) If the Secretary of Defense is unable or unwilling to 
     order an individual to active duty under subparagraph (A), or 
     if the Secretary of Transportation determines that 
     reimbursement of the cost of education provided would better 
     serve the interests of the United States, the Secretary--
       ``(i) subject to clause (ii), may recover from the 
     individual the amount of student incentive payments, plus 
     interest and attorneys fees; and
       ``(ii) may reduce the amount to be recovered from such 
     individual to reflect partial performance of service 
     obligations and such other factors as the Secretary 
     determines merit such reduction.''; and
       (7) by redesignating paragraphs (6) and (7) as paragraphs 
     (7) and (8), respectively, and inserting after paragraph (5) 
     the following:
       ``(6) To aid in the recovery of student incentive payments 
     plus interest and attorneys fees the Secretary may request 
     the Attorney General to begin court proceedings, and the 
     Secretary may make use of the Federal debt collection 
     procedures in chapter 176 of title 28, United States Code, 
     and other applicable administrative remedies.''.
       (e) Awards and Medals.--Section 1306 of the Merchant Marine 
     Act, 1936 (46 U.S.C. App. 1295e) is amended by adding at the 
     end the following:
       ``(d) Awards and Medals.--The Secretary may establish and 
     maintain a medals and awards program to recognize 
     distinguished service, superior achievement, professional 
     performance, and other commendable achievement by personnel 
     of the United States Maritime Service.''.

     SEC. 3516. AUTHORITY TO CONVEY OBSOLETE VESSELS TO U.S. 
                   TERRITORIES AND FOREIGN COUNTRIES FOR REEFING.

       (a) Deadline for Preparation.--Paragraph (1) of section 
     3504(b) of the Bob Stump National Defense Authorization Act 
     for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2754; 16 
     U.S.C. 1220 note) is amended by striking ``September 30, 
     2003,'' and inserting ``March 31, 2004,''.
       (b) Guidance on Practices.--Such section is further 
     amended--
       (1) in paragraph (1), by inserting ``guidance 
     recommending'' after ``jointly develop'';
       (2) in paragraph (2), by inserting ``guidance 
     recommending'' before ``environmental best management 
     practices'';
       (3) in paragraph (3)--
       (A) in subparagraph (A), by inserting ``recommended'' after 
     ``include'';
       (B) by striking subparagraph (B) and inserting the 
     following new subparagraph (B)
       ``(B) promote consistent use of such practices 
     nationwide;''; and
       (C) in subparagraph (C), by striking ``establish 
     baselines'' and inserting ``provide a basis''; and
       (4) in paragraph (4), by striking ``guidelines to be used 
     by'' and inserting ``guidance for''.
       (c) Applications for Preparation of Vessels as Reefs.--Such 
     section is further amended--
       (1) by redesignating paragraph (5) as paragraph (6); and
       (2) by inserting after paragraph (4) the following new 
     paragraph (5):
       ``(5) Not later than March 31, 2004, the Secretary of 
     Transportation, acting through the Maritime Administration, 
     and the Administrator of the Environmental Protection Agency 
     shall jointly establish an application process for 
     governments of States, commonwealths, and United

[[Page 27624]]

     States territories and possession, and foreign governments, 
     for the preparation of vessels for use as artificial reefs, 
     including documentation and certification requirements for 
     that application process.''.

     SEC. 3517. MAINTENANCE AND REPAIR REIMBURSEMENT PILOT 
                   PROGRAM.

       (a) Authority to Enter Agreements.--
       (1) In general.--The Secretary of Transportation may carry 
     out a pilot program under which the Secretary may enter into 
     an agreement with a contractor under chapter 531 of title 46, 
     United States Code, as amended by this Act, regarding 
     maintenance and repair of a vessel that is subject to an 
     operating agreement under that chapter.
       (2) Limitation.--The Secretary may not require a person to 
     enter into an agreement under this section, including as a 
     condition of awarding an operating agreement to the person 
     under chapter 531 of title 46, United States Code, as amended 
     by this Act.
       (b) Terms of Agreement.--An agreement under this section--
       (1) shall require that except as provided in subsection 
     (c), all qualified maintenance or repair on the vessel shall 
     be performed in the United States;
       (2) shall require that the Secretary shall reimburse the 
     contractor in accordance with subsection (d) for the costs of 
     qualified maintenance or repair performed in the United 
     States; and
       (3) shall apply to maintenance and repair performed during 
     the 5-year period beginning on the date the vessel begins 
     operating under the operating agreement under chapter 531 of 
     title 46, United States Code.
       (c) Exception to Requirement to Perform Work in the United 
     States.--A contractor shall not be required to have qualified 
     maintenance or repair work performed in the United States 
     under this section, if the Secretary determines that--
       (1) there is no facility in the United States available to 
     perform the work; or
       (2) there is not available to the Secretary sufficient 
     funds to pay reimbursement under subsection (d) with respect 
     to the work.
       (d) Reimbursement.--
       (1) In general.--The Secretary shall, subject to the 
     availability of appropriations, reimburse a contractor for 
     costs incurred by the contractor for qualified maintenance or 
     repair performed in the United States under this section.
       (2) Amount.--The amount of reimbursement shall be equal to 
     80 percent of the difference between--
       (A) the fair and reasonable cost of obtaining the qualified 
     maintenance or repair in the United States; and
       (B) the fair and reasonable cost of obtaining the qualified 
     maintenance or repair outside the United States, in the 
     geographic region in which the vessel generally operates.
       (3) Determination of fair and reasonable costs.--The 
     Secretary shall determine fair and reasonable costs for 
     purposes of paragraph (2).
       (e) Notification Requirements.--
       (1) Notification by contractor.--The Secretary is not 
     required to pay reimbursement to a contractor under this 
     section for qualified maintenance or repair, unless the 
     contractor--
       (A) notifies the Secretary of the intent of the contractor 
     to obtain the qualified maintenance or repair, by not later 
     than 180 days before the date of the performance of the 
     qualified maintenance or repair; and
       (B) includes in such notification--
       (i) a description of all qualified maintenance or repair 
     that the contractor should reasonably expect may be 
     performed;
       (ii) an estimate of the cost of obtaining such qualified 
     maintenance or repair in the United States; and
       (iii) an estimate of the cost of obtaining such qualified 
     maintenance or repair outside the United States, in the 
     geographic region in which the vessel generally operates.
       (2) Certification by secretary.--Not later than 60 days 
     after the date of receipt of notification under paragraph 
     (1), the Secretary shall certify to the contractor--
       (A) whether there is a facility in the United States 
     available to perform the qualified maintenance or repair 
     described in the notification by the contractor under 
     paragraph (1); and
       (B) whether there is available to the Secretary sufficient 
     funds to pay reimbursement under subsection (d) with respect 
     to such work.
       (f) Qualified Maintenance or Repair Defined.--In this 
     section the term ``qualified maintenance or repair''--
       (1) except as provided in paragraph (2), means--
       (A) any inspection of a vessel that is--
       (i) required under chapter 33 of title 46, United States 
     Code; and
       (ii) performed in the period in which the vessel is subject 
     to an agreement under this section; and
       (B) any maintenance or repair of a vessel that is 
     determined, in the course of an inspection referred to in 
     subparagraph (A), to be necessary to comply with the laws of 
     the United States; and
       (2) does not include--
       (A) routine maintenance or repair; or
       (B) any emergency work that is necessary to enable a vessel 
     to return to a port in the United States.
       (g) Analysis.--
       (1) In general.--Not later than October 1, 2004, the 
     Secretary of Transportation shall submit to the Committee on 
     Armed Services of the House of Representatives and the 
     Committee on Armed Services and the Committee on Commerce, 
     Science, and Transportation of the Senate, an analysis of the 
     need for agreements authorized by this section.
       (2) Conduct and considerations.--In conducting the 
     analysis, the Secretary shall consider the overall costs and 
     benefits of the pilot program, including the following:
       (A) The impact on operations of vessels in the program.
       (B) The availability of repair shipyards and drydocks in 
     the various regions of the United States (as that term is 
     defined in such chapter) that are capable of handling such 
     vessels that are ocean-going vessels.
       (C) The experience of such shipyards in repairing the types 
     of such vessels.
       (D) A comparison of drydock and repair costs between 
     available United States and foreign shipyards located within 
     the geographic range of the trading area of such vessels.
       (E) A comparison of the time period required for the 
     drydocking and repair of such vessels between available 
     United States shipyards and foreign shipyards.
       (F) The impact of the voyage deviation of such vessels to 
     United States shipyards.
       (G) The benefits to the Department of Defense of having a 
     vessel repair base in the United States to accelerate the 
     activation of the Ready Reserve Fleet.
       (H) The benefits of extending the program to all vessels 
     that are subject to operating agreements under chapter 531 of 
     title 46 United States Code, as amended by this Act.
       (3) Recommendations.--The Secretary shall include in the 
     analysis recommendations of any additional incentives that 
     are necessary to encourage participation in the program.
       (h) Authorization of Appropriations.--In addition to the 
     other amounts authorized by this subtitle, for reimbursement 
     of costs of qualified maintenance or repair under this 
     section there is authorized to be appropriated to the 
     Secretary of Transportation $19,500,000 for each of fiscal 
     years 2006 through 2011.
       Subtitle B--Amendments to Title XI Loan Guarantee Program

     SEC. 3521. EQUITY PAYMENTS BY OBLIGOR FOR DISBURSEMENT PRIOR 
                   TO TERMINATION OF ESCROW AGREEMENT.

       (a) In General.--Section 1108 of the Merchant Marine Act, 
     1936 (46 U.S.C. App. 1279a) is amended by adding at the end 
     the following:
       ``(g) Payments Required Before Disbursement.--
       ``(1) In general.--No disbursement shall be made under 
     subsection (b) to any person until the total amount paid by 
     or for the account of the obligor from sources other than the 
     proceeds of the obligation equals at least 25 percent or 
     12\1/2\ percent, whichever is applicable under section 1104A, 
     of the aggregate actual cost of the vessel, as previously 
     approved by the Secretary. If the aggregate actual cost of 
     the vessel has increased since the Secretary's initial 
     approval or if it increases after the first disbursement is 
     permitted under this subsection, then no further 
     disbursements shall be made under subsection (b) until the 
     total amount paid by or for the account of the obligor from 
     sources other than the proceeds of the obligation equals at 
     least 25 percent or 12\1/2\ percent, as applicable, of the 
     increase, as determined by the Secretary, in the aggregate 
     actual cost of the vessel. Nothing in this paragraph shall 
     require the Secretary to consent to finance any increase in 
     actual cost unless the Secretary determines that such an 
     increase in the obligation meets all the terms and conditions 
     of this title or other applicable law.
       ``(2) Documented proof of progress requirement.--The 
     Secretary shall, by regulation, establish a transparent, 
     independent, and risk-based process for verifying and 
     documenting the progress of projects under construction 
     before disbursing guaranteed loan funds. At a minimum, the 
     process shall require documented proof of progress in 
     connection with the construction, reconstruction, or 
     reconditioning of a vessel or vessels before disbursements 
     are made from the escrow fund. The Secretary may require that 
     the obligor provide a certificate from an independent party 
     certifying that the requisite progress in construction, 
     reconstruction, or reconditioning has taken place.''.
       (b) Definition of Actual Cost.--Section 1101(f) of the 
     Merchant Marine Act, 1936 (46 U.S.C. App. 1271(f)) is amended 
     to read as follows:
       ``(f) Actual Cost Defined.--The term `actual cost' means 
     the sum of--
       ``(1) all amounts paid by or for the account of the obligor 
     as of the date on which a determination is made under section 
     1108(g)(1); and
       ``(2) all amounts that the Secretary reasonably estimates 
     that the obligor will become obligated to pay from time to 
     time thereafter, for the construction, reconstruction, or 
     reconditioning of the vessel, including guarantee fees that 
     will become payable under section 1104A(e) in connection with 
     all obligations issued for construction, reconstruction, or 
     reconditioning of the vessel or equipment to be delivered, 
     and all obligations issued for the delivered vessel or 
     equipment.''.

     SEC. 3522. WAIVERS OF PROGRAM REQUIREMENTS.

       Section 1104A(d) of the Merchant Marine Act, 1936 (46 
     U.S.C. App. 1274(d)) is amended by redesignating paragraph 
     (4) as paragraph (5), and inserting after paragraph (3) the 
     following:
       ``(4) The Secretary shall promulgate regulations concerning 
     circumstances under which waivers of or exceptions to 
     otherwise applicable regulatory requirements concerning 
     financial condition can be made. The regulations shall 
     require that--
       ``(A) the economic soundness requirements set forth in 
     paragraph (1)(A) of this subsection are

[[Page 27625]]

     met after the waiver of the financial condition requirement; 
     and
       ``(B) the waiver shall provide for the imposition of other 
     requirements on the obligor designed to compensate for the 
     increased risk associated with the obligor's failure to meet 
     regulatory requirements applicable to financial condition.''.

     SEC. 3523. PROJECT MONITORING.

       (a) Project Monitoring.--Section 1104A of the Merchant 
     Marine Act, 1936 (46 U.S.C. App. 1274) is amended by adding 
     at the end the following:
       ``(k) Monitoring.-- The Secretary shall monitor the 
     financial conditions and operations of the obligor on a 
     regular basis during the term of the guarantee. The Secretary 
     shall document the results of the monitoring on an annual or 
     quarterly basis depending upon the condition of the obligor. 
     If the Secretary determines that the financial condition of 
     the obligor warrants additional protections to the Secretary, 
     then the Secretary shall take appropriate action under 
     subsection (m) of this section. If the Secretary determines 
     that the financial condition of the obligor jeopardizes its 
     continued ability to perform its responsibilities in 
     connection with the guarantee of obligations by the 
     Secretary, the Secretary shall make an immediate 
     determination whether default should take place and whether 
     further measures described in subsection (m) should be taken 
     to protect the interests of the Secretary while insuring that 
     program objectives are met.''.
       (b) Separation of Duties and Other Requirements.--Section 
     1104A of the Merchant Marine Act, 1936 (46 U.S.C. App. 1274), 
     as amended by subsection (a), is further amended by adding at 
     the end the following:
       ``(l) Review of Applications.--No commitment to guarantee, 
     or guarantee of, an obligation shall be made by the Secretary 
     unless the Secretary certifies that a full and fair 
     consideration of all the regulatory requirements, including 
     economic soundness and financial requirements applicable to 
     obligors and related parties, and a thorough assessment of 
     the technical, economic, and financial aspects of the loan 
     application has been made.
       ``(m) Agreement With Obligor.--The Secretary shall include 
     provisions in loan agreements with obligors that provide 
     additional authority to the Secretary to take action to limit 
     potential losses in connection with defaulted loans or loans 
     that are in jeopardy due to the deteriorating financial 
     condition of obligors. Provisions that the Secretary shall 
     include in loan agreements include requirements for 
     additional collateral or greater equity contributions that 
     are effective upon the occurrence of verifiable conditions 
     relating to the obligors financial condition or the status of 
     the vessel or shipyard project.''.

     SEC. 3524. DEFAULTS.

       Section 1105 of the Merchant Marine Act, 1936 (46 U.S.C. 
     App. 1275) is amended by adding at the end the following:
       ``(f) Default Response.--In the event of default on a 
     obligation, the Secretary shall conduct operations under this 
     title in a manner which--
       ``(1) maximizes the net present value return from the sale 
     or disposition of assets associated with the obligation, 
     including prompt referral to the Attorney General for 
     collection as appropriate;
       ``(2) minimizes the amount of any loss realized in the 
     resolution of the guarantee;
       ``(3) ensures adequate competition and fair and consistent 
     treatment of offerors; and
       ``(4) requires appraisal of assets by an independent 
     appraiser.''.

     SEC. 3525. DECISION PERIOD.

       Section 1104A of the Merchant Marine Act, 1936 (46 U.S.C. 
     App. 1274), as amended by section 3523, is amended by adding 
     at the end the following:
       ``(n) Decision Period.--
       ``(1) In general.--The Secretary of Transportation shall 
     approve or deny an application for a loan guarantee under 
     this title within 270 days after the date on which the signed 
     application is received by the Secretary.
       ``(2) Extension.--Upon request by an applicant, the 
     Secretary may extend the 270-day period in paragraph (1) to a 
     date not later than 2 years after the date on which the 
     signed application for the loan guarantee was received by the 
     Secretary.''.

     SEC. 3526. LOAN GUARANTEES.

       Section 1104A of the Merchant Marine Act, 1936 (46 U.S.C. 
     App. 1274) is amended--
       (1) by striking subsection (d); and
       (2) in subsection (f)--
       (A) by striking ``(including for obtaining independent 
     analysis under subsection (d)(4))'';
       (B) by inserting ``(1)'' after ``(f)''; and
       (C) by adding at the end the following:
       ``(2) The Secretary may make a determination that aspects 
     of an application under this title require independent 
     analysis to be conducted by third party experts due to risk 
     factors associated with markets, technology, financial 
     structures, or other risk factors identified by the 
     Secretary. Any independent analysis conducted pursuant to 
     this provision shall be performed by a party chosen by the 
     Secretary.
       ``(3) Notwithstanding any other provision of this title, 
     the Secretary may make a determination that an application 
     under this title requires additional equity because of 
     increased risk factors associated with markets, technology, 
     financial structures, or other risk factors identified by the 
     Secretary.
       ``(4) The Secretary may charge and collect fees to cover 
     the costs of independent analysis under paragraph (2). 
     Notwithstanding section 3302 of title 31, United States Code, 
     any fee collected under this paragraph shall--
       ``(A) be credit as an offsetting collection to the account 
     that finances the administration of the loan guarantee 
     program;
       ``(B) shall be available for expenditure only to pay the 
     costs of activities and services for which the fee is 
     imposed; and
       ``(C) shall remain available until expended.''.

     SEC. 3527. ANNUAL REPORT ON PROGRAM.

       The Secretary of Transportation shall report to Congress 
     annually on the loan guarantee program under title XI of the 
     Merchant Marine Act, 1936 (46 U.S.C. App. 1271 et seq.). The 
     reports shall include--
       (1) the size, in dollars, of the portfolio of loans 
     guaranteed;
       (2) the size, in dollars, of projects in the portfolio 
     facing financial difficulties;
       (3) the number and type of projects covered;
       (4) a profile of pending loan applications;
       (5) the amount of appropriations available for new 
     guarantees;
       (6) a profile of each project approved since the last 
     report; and
       (7) a profile of any defaults since the last report.

     SEC. 3528. REVIEW OF PROGRAM.

       (a) In General.--The Secretary of Transportation shall 
     conduct a comprehensive assessment of the human capital and 
     other resource needs in connection with the title XI loan 
     guarantee program under the Merchant Marine Act, 1936 (46 
     U.S.C. App. 1271 et seq.). In connection with this 
     assessment, the Secretary shall develop an organizational 
     framework for the program offices that insures that a clear 
     separation of duties is established among the loan 
     application, project monitoring, and default management 
     functions.
       (b) Program Enhancements.--
       (1) Section 1103(h)(1) of the Merchant Marine Act, 1936 (46 
     U.S.C. App. 1273(h)(1)) is amended--
       (A) by striking ``subsection'' in subparagraph (A) and 
     inserting ``subsection, and update annually,'';
       (B) by inserting ``annually'' before ``determine'' in 
     subparagraph (B);
       (C) by striking ``and'' after the semicolon in subparagraph 
     (A);
       (D) by striking ``category.'' in subparagraph (B) and 
     inserting ``category; and''; and
       (E) by adding at the end the following:
       ``(C) ensure that each risk category is comprised of loans 
     that are relatively homogeneous in cost and share 
     characteristics predictive of defaults and other costs, given 
     the facts known at the time of obligation or commitment, 
     using a risk category system that is based on historical 
     analysis of program data and statistical evidence concerning 
     the likely costs of defaults or other costs that expected to 
     be associated with the loans in the category.''.
       (2) Section 1103(h)(2)(A) of that Act (46 U.S.C. App. 
     1273(h)(2)(A)) is amended by inserting ``and annually for 
     projects subject to a guarantee,'' after ``obligation,''.
       (3) Section 1103(h)(3) of that Act (46 U.S.C. App. 
     1273(h)(3)) is amended by adding at the end the following:
       ``(K) A risk factor for concentration risk reflecting the 
     risk presented by an unduly large percentage of loans 
     outstanding by any 1 borrower or group of affiliated 
     borrowers.''.
       (c) Report.--The Secretary shall report to the Committee on 
     Armed Services and the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on Armed 
     Services of the House of Representatives on the results of 
     the development of an organizational framework under 
     subsection (a) by January 2, 2004.
                  Subtitle C--Maritime Security Fleet

     SEC. 3531. ESTABLISHMENT OF MARITIME SECURITY FLEET.

       (a) In General.--Title 46, United States Code, is amended 
     by inserting before subtitle VI the following new subtitle:

                     ``Subtitle V--Merchant Marine

``Chap.                                                            Sec.
``531. Maritime Security Fleet....................................53101

                 ``CHAPTER 531--MARITIME SECURITY FLEET

``Sec.
``53101. Definitions.
``53102. Establishment of Maritime Security Fleet.
``53103. Award of operating agreements.
``53104. Effectiveness of operating agreements.
``53105. Obligations and rights under operating agreements.
``53106. Payments.
``53107. National security requirements.
``53108. Regulatory relief.
``53109. Special rule regarding age of participating fleet vessel.
``53110. Regulations
``53111. Authorization of appropriations.

     ``Sec. 53101. Definitions

       ``In this chapter:
       ``(1) Bulk cargo.--The term `bulk cargo' means cargo that 
     is loaded and carried in bulk without mark or count.
       ``(2) Contractor.--The term `contractor' means an owner or 
     operator of a vessel that enters into an operating agreement 
     for the vessel with the Secretary under section 53103.
       ``(3) Fleet.--The term `Fleet' means the Maritime Security 
     Fleet established under section 53102(a).
       ``(4) Foreign commerce.--The term `foreign commerce'--
       ``(A) subject to subparagraph (B), means--
       ``(i) commerce or trade between the United States, its 
     territories or possessions, or the District of Columbia, and 
     a foreign country; and

[[Page 27626]]

       ``(ii) commerce or trade between foreign countries; and
       ``(B) includes, in the case of liquid and dry bulk cargo 
     carrying services, trading between foreign ports in 
     accordance with normal commercial bulk shipping practices in 
     such manner as will permit United States-documented vessels 
     freely to compete with foreign-flag bulk carrying vessels in 
     their operation or in competing for charters, subject to 
     rules and regulations promulgated by the Secretary of 
     Transportation pursuant to this chapter or subtitle D of the 
     Maritime Security Act of 2003.
       ``(5) LASH vessel.--The term `LASH vessel' means a lighter 
     aboard ship vessel.
       ``(6) Participating fleet vessel.--The term `participating 
     fleet vessel' means any vessel that--
       ``(A) on October 1, 2005--
       ``(i) meets the requirements of paragraph (1), (2), (3), or 
     (4) of section 53102(c); and
       ``(ii) is less than 25 years of age, or less than 30 years 
     of age in the case of a LASH vessel; and
       ``(B) on December 31, 2004, is covered by an operating 
     agreement under subtitle B of title VI of the Merchant Marine 
     Act, 1936 (46 App. U.S.C. 1187 et seq.).
       ``(7) Person.--The term `person' includes corporations, 
     partnerships, and associations existing under or authorized 
     by the laws of the United States, or any State, Territory, 
     District, or possession thereof, or of any foreign country.
       ``(8) Product tank vessel.--The term `product tank vessel' 
     means a double hulled tank vessel capable of carrying 
     simultaneously more than 2 separated grades of refined 
     petroleum products.
       ``(9) Secretary.--The term `Secretary' means the Secretary 
     of Transportation.
       ``(10) Tank vessel.--The term `tank vessel' has the meaning 
     that term has under section 2101 of this title.
       ``(11) United states.--The term `United States' includes 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     the Northern Mariana Islands, Guam, American Samoa, the 
     Virgin Islands.
       ``(12) United states citizen trust.--(A) Subject to 
     subparagraph (C), the term `United States citizen trust' 
     means a trust that is qualified under this paragraph.
       ``(B) A trust is qualified under this paragraph with 
     respect to a vessel only if--
       ``(i) each of the trustees is a citizen of the United 
     States; and
       ``(ii) the application for documentation of the vessel 
     under chapter 121 of this title includes the affidavit of 
     each trustee stating that the trustee is not aware of any 
     reason involving a beneficiary of the trust that is not a 
     citizen of the United States, or involving any other person 
     that is not a citizen of the United States, as a result of 
     which the beneficiary or other person would hold more than 25 
     percent of the aggregate power to influence or limit the 
     exercise of the authority of the trustee with respect to 
     matters involving any ownership or operation of the vessel 
     that may adversely affect the interests of the United States.
       ``(C) If any person that is not a citizen of the United 
     States has authority to direct or participate in directing a 
     trustee for a trust in matters involving any ownership or 
     operation of the vessel that may adversely affect the 
     interests of the United States or in removing a trustee for a 
     trust without cause, either directly or indirectly through 
     the control of another person, the trust is not qualified 
     under this paragraph unless the trust instrument provides 
     that persons who are not citizens of the United States may 
     not hold more than 25 percent of the aggregate authority to 
     so direct or remove a trustee.
       ``(D) This paragraph shall not be considered to prohibit a 
     person who is not a citizen of the United States from holding 
     more than 25 percent of the beneficial interest in a trust.
       ``(13) United states-documented vessel.--The term `United 
     States-documented vessel' means a vessel documented under 
     chapter 121 of this title.

     ``Sec. 53102. Establishment of Maritime Security Fleet

       ``(a) In General.--The Secretary of Transportation, in 
     consultation with the Secretary of Defense, shall establish a 
     fleet of active, commercially viable, militarily useful, 
     privately owned vessels to meet national defense and other 
     security requirements and maintain a United States presence 
     in international commercial shipping. The Fleet shall consist 
     of privately owned, United States-documented vessels for 
     which there are in effect operating agreements under this 
     chapter, and shall be known as the Maritime Security Fleet.
       ``(b) Vessel Eligibility.--A vessel is eligible to be 
     included in the Fleet if--
       ``(1) the vessel meets the requirements of paragraph (1), 
     (2), (3), or (4) of subsection (c);
       ``(2) the vessel is operated (or in the case of a vessel to 
     be constructed, will be operated) in providing transportation 
     in foreign commerce;
       ``(3) the vessel is self-propelled and is--
       ``(A) a roll-on/roll-off vessel with a carrying capacity of 
     at least 80,000 square feet or 500 twenty-foot equivalent 
     units and that is 15 years of age or less on the date the 
     vessel is included in the Fleet;
       ``(B) a tank vessel that is constructed in the United 
     States after the date of the enactment of this chapter;
       ``(C) a tank vessel that is 10 years of age or less on the 
     date the vessel is included in the Fleet;
       ``(D) a LASH vessel that is 25 years of age or less on the 
     date the vessel is included in the Fleet; or
       ``(E) any other type of vessel that is 15 years of age or 
     less on the date the vessel is included in the Fleet;
       ``(4) the vessel is--
       ``(A) determined by the Secretary of Defense to be suitable 
     for use by the United States for national defense or military 
     purposes in time of war or national emergency; and
       ``(B) determined by the Secretary to be commercially 
     viable; and
       ``(5) the vessel--
       ``(A) is a United States-documented vessel; or
       ``(B) is not a United States-documented vessel, but--
       ``(i) the owner of the vessel has demonstrated an intent to 
     have the vessel documented under chapter 121 of this title if 
     it is included in the Fleet; and
       ``(ii) at the time an operating agreement for the vessel is 
     entered into under this chapter, the vessel is eligible for 
     documentation under chapter 121 of this title.
       ``(c) Requirements Regarding Citizenship of Owners, 
     Charterers, and Operators.--
       ``(1) Vessel owned and operated by section 2 citizens.--A 
     vessel meets the requirements of this paragraph if, during 
     the period of an operating agreement under this chapter that 
     applies to the vessel, the vessel will be owned and operated 
     by one or more persons that are citizens of the United States 
     under section 2 of the Shipping Act, 1916 (46 App. U.S.C. 
     802).
       ``(2) Vessel owned by section 2 citizen or united states 
     citizen trust, and chartered to documentation citizen.--A 
     vessel meets the requirements of this paragraph if--
       ``(A) during the period of an operating agreement under 
     this chapter that applies to the vessel, the vessel will be--
       ``(i) owned by a person that is a citizen of the United 
     States under section 2 of the Shipping Act, 1916 (46 App. 
     U.S.C. 802) or that is a United States citizen trust; and
       ``(ii) demise chartered to a person--

       ``(I) that is eligible to document the vessel under chapter 
     121 of this title;
       ``(II) the chairman of the board of directors, chief 
     executive officer, and a majority of the members of the board 
     of directors of which are citizens of the United States under 
     section 2 of the Shipping Act, 1916 (46 App. U.S.C. 802), and 
     are appointed and subjected to removal only upon approval by 
     the Secretary; and
       ``(III) that certifies to the Secretary that there are no 
     treaties, statutes, regulations, or other laws that would 
     prohibit the contractor for the vessel from performing its 
     obligations under an operating agreement under this chapter;

       ``(B) in the case of a vessel that will be demise chartered 
     to a person that is owned or controlled by another person 
     that is not a citizen of the United States under section 2 of 
     the Shipping Act, 1916 (46 App. U.S.C. 802), the other person 
     enters into an agreement with the Secretary not to influence 
     the operation of the vessel in a manner that will adversely 
     affect the interests of the United States; and
       ``(C) the Secretary and the Secretary of Defense notify the 
     Committee on Armed Services and the Committee on Commerce, 
     Science, and Transportation of the Senate and the Committee 
     on Armed Services of the House of Representatives that they 
     concur with the certification required under subparagraph 
     (A)(ii)(III), and have reviewed and agree that there are no 
     other legal, operational, or other impediments that would 
     prohibit the contractor for the vessel from performing its 
     obligations under an operating agreement under this chapter.
       ``(3) Vessel owned and operated by defense contractor.--A 
     vessel meets the requirements of this paragraph if--
       ``(A) during the period of an operating agreement under 
     this chapter that applies to the vessel, the vessel will be 
     owned and operated by a person that--
       ``(i) is eligible to document a vessel under chapter 121 of 
     this title;
       ``(ii) operates or manages other United States-documented 
     vessels for the Secretary of Defense, or charters other 
     vessels to the Secretary of Defense;
       ``(iii) has entered into a special security agreement for 
     purposes of this paragraph with the Secretary of Defense;
       ``(iv) makes the certification described in paragraph 
     (2)(A)(ii)(III); and
       ``(v) in the case of a vessel described in paragraph 
     (2)(B), enters into an agreement referred to in that 
     paragraph; and
       ``(B) the Secretary and the Secretary of Defense notify the 
     Committee on Armed Services and the Committee on Commerce, 
     Science, and Transportation of the Senate and the Committee 
     on Armed Services of the House of Representatives that they 
     concur with the certification required under subparagraph 
     (A)(iv), and have reviewed and agree that there are no other 
     legal, operational, or other impediments that would prohibit 
     the contractor for the vessel from performing its obligations 
     under an operating agreement under this chapter.
       ``(4) Vessel owned by documentation citizen and chartered 
     to section 2 citizen.--A vessel meets the requirements of 
     this paragraph if, during the period of an operating 
     agreement under this chapter that applies to the vessel, the 
     vessel will be--
       ``(A) owned by a person that is eligible to document a 
     vessel under chapter 121 of this title; and
       ``(B) demise chartered to a person that is a citizen of the 
     United States under section 2 of the Shipping Act, 1916 (46 
     App. U.S.C. 802).
       ``(d) Request by Secretary of Defense.--The Secretary of 
     Defense shall request the Secretary of Homeland Security to 
     issue any waiver

[[Page 27627]]

     under the first section of Public Law 81-891 (64 Stat. 1120; 
     46 App. U.S.C. note prec. 3) that is necessary for purposes 
     of this chapter.
       ``(e) Vessel Standards.--
       ``(1) Certificate of inspection.--A vessel used to provide 
     oceangoing transportation which the Secretary of the 
     department in which the Coast Guard is operating determines 
     meets the criteria of subsection (b) of this section but 
     which, on the date of enactment of the Maritime Security Act 
     of 2003, is not a documented vessel (as that term is defined 
     in section 12101 of this title) shall be eligible for a 
     certificate of inspection if the Secretary determines that--
       ``(A) the vessel is classed by and designed in accordance 
     with the rules of the American Bureau of Shipping, or another 
     classification society accepted by the Secretary;
       ``(B) the vessel complies with applicable international 
     agreements and associated guidelines, as determined by the 
     country in which the vessel was documented immediately before 
     becoming a documented vessel (as defined in that section); 
     and
       ``(C) that country has not been identified by the Secretary 
     as inadequately enforcing international vessel regulations as 
     to that vessel.
       ``(2) Continued eligibility for certificate.--Paragraph (1) 
     does not apply to a vessel after any date on which the vessel 
     fails to comply with the applicable international agreements 
     and associated guidelines referred to in paragraph (1)(B).
       ``(3) Reliance on classification society.--
       ``(A) In general.--The Secretary may rely on a 
     certification from the American Bureau of Shipping or, 
     subject to subparagraph (B), another classification society 
     accepted by the Secretary to establish that a vessel is in 
     compliance with the requirements of paragraphs (1) and (2).
       ``(B) Foreign classification society.--The Secretary may 
     accept certification from a foreign classification society 
     under subparagraph (A) only--
       ``(i) to the extent that the government of the foreign 
     country in which the society is headquartered provides access 
     on a reciprocal basis to the American Bureau of Shipping; and
       ``(ii) if the foreign classification society has offices 
     and maintains records in the United States.
       ``(f) Waiver of Age Restriction.--The Secretary of Defense, 
     in conjunction with the Secretary of Transportation, may 
     waive the application of an age restriction under subsection 
     (b)(3) if the Secretaries jointly determine that the waiver--
       ``(1) is in the national interest;
       ``(2) is appropriate to allow the maintenance of the 
     economic viability of the vessel and any associated operating 
     network; and
       ``(3) is necessary due to the lack of availability of other 
     vessels and operators that comply with the requirements of 
     this chapter.

     ``Sec. 53103. Award of operating agreements

       ``(a) In General.--The Secretary shall require, as a 
     condition of including any vessel in the Fleet, that the 
     person that is the owner or operator of the vessel for 
     purposes of section 53102(c) enter into an operating 
     agreement with the Secretary under this section.
       ``(b) Procedure for Applications.--
       ``(1) Acceptance of applications.--Beginning no later than 
     30 days after the effective date of this chapter, the 
     Secretary shall accept applications for enrollment of vessels 
     in the Fleet.
       ``(2) Action on applications.--Within 90 days after receipt 
     of an application for enrollment of a vessel in the Fleet, 
     the Secretary shall approve the application in conjunction 
     with the Secretary of Defense, and shall enter into an 
     operating agreement with the applicant, or provide in writing 
     the reason for denial of that application.
       ``(3) Participating fleet vessels.--
       ``(A) In general.--The Secretary shall accept an 
     application for an operating agreement for a participating 
     fleet vessel under the priority under subsection (c)(1)(B) 
     only from a person that has authority to enter into an 
     operating agreement for the vessel with respect to the full 
     term of the operating agreement.
       ``(B) Vessel under demise charter.--For purposes of 
     subparagraph (A), in the case of a vessel that is subject to 
     a demise charter that terminates by its terms on September 
     30, 2005 (without giving effect to any extension provided 
     therein for completion of a voyage or to effect the actual 
     redelivery of the vessel), or that is terminable at will by 
     the owner of the vessel after such date, only the owner of 
     the vessel shall be treated as having the authority referred 
     to in paragraph (1).
       ``(C) Vessel owned by united states citizen trust.--For 
     purposes of subparagraph (B), in the case of a vessel owned 
     by a United States citizen trust, the term `owner of the 
     vessel' includes a beneficial owner of the vessel with 
     respect to such trust.
       ``(c) Priority for Awarding Agreements.--
       ``(1) In general.--Subject to the availability of 
     appropriations, the Secretary shall enter into operating 
     agreements according to the following priority:
       ``(A) New tank vessels.--First, for any tank vessel that--
       ``(i) is constructed in the United States after the 
     effective date of this chapter;
       ``(ii) is eligible to be included in the Fleet under 
     section 53102(b); and
       ``(iii) during the period of an operating agreement under 
     this chapter that applies to the vessel, will be owned and 
     operated by one or more persons that are citizens of the 
     United States under section 2 of the Shipping Act, 1916 (46 
     App. U.S.C. 802), except that the Secretary shall not enter 
     into operating agreements under this subparagraph for more 
     than 5 such vessels.
       ``(B) Participating fleet vessels.--Second, to the extent 
     amounts are available after applying subparagraphs (A), for 
     any participating fleet vessel, except that the Secretary 
     shall not enter into operating agreements under this 
     subparagraph for more than 47 vessels.
       ``(C) Certain vessels operated by section 2 citizens.--
     Third, to the extent amounts are available after applying 
     subparagraphs (A) and (B), for any other vessel that is 
     eligible to be included in the Fleet under section 53102(b), 
     and that, during the period of an operating agreement under 
     this chapter that applies to the vessel, will be--
       ``(i) owned and operated by one or more persons that are 
     citizens of the United States under section 2 of the Shipping 
     Act, 1916 (46 App. U.S.C. 802); or
       ``(ii) owned by a person that is eligible to document the 
     vessel under chapter 121 of this title, and operated by a 
     person that is a citizen of the United States under section 2 
     of the Shipping Act, 1916 (46 App. U.S.C. 802).
       ``(D) Other eligible vessels.--Fourth, to the extent 
     amounts are available after applying subparagraphs (A), (B), 
     and (C), for any other vessel that is eligible to be included 
     in the Fleet under section 53102(b).
       ``(2) Reduction in number of slots for participating fleet 
     vessels.--The number in paragraph (1)(B) shall be reduced by 
     1--
       ``(A) for each participating fleet vessel for which an 
     application for enrollment in the Fleet is not received by 
     the Secretary within the 90-day period beginning on the 
     effective date of this chapter; and
       ``(B) for each participating fleet vessel for which an 
     application for enrollment in the Fleet received by the 
     Secretary is not approved by the Secretary and the Secretary 
     of Defense within the 90-day period beginning on the date of 
     such receipt.
       ``(3) Discretion within priority.--The Secretary--
       ``(A) subject to subparagraph (B), may award operating 
     agreements within each priority under paragraph (1) as the 
     Secretary considers appropriate; and
       ``(B) shall award operating agreement within a priority--
       ``(i) in accordance with operational requirements specified 
     by the Secretary of Defense;
       ``(ii) in the case of operating agreements awarded under 
     subparagraph (C) or (D) of paragraph (1), according to 
     applicants' records of owning and operating vessels; and
       ``(iii) subject to the approval of the Secretary of 
     Defense.
       ``(4) Treatment of tank vessel to be replaced.--(A) For 
     purposes of the application of paragraph (1)(A) with respect 
     to the award of an operating agreement, the Secretary may 
     treat an existing tank vessel that is eligible to be included 
     in the Fleet under section 53102(b) as a vessel that is 
     constructed in the United States after the effective date of 
     this chapter, if--
       ``(i) a binding contract for construction in the United 
     States of a replacement vessel to be operated under the 
     operating agreement is executed by not later than 9 months 
     after the first date amounts are available to carry out this 
     chapter; and
       ``(ii) the replacement vessel is eligible to be included in 
     the Fleet under section 53102(b).
       ``(B) No payment under this chapter may be made for an 
     existing tank vessel for which an operating agreement is 
     awarded under this paragraph after the earlier of--
       ``(i) 4 years after the first date amounts are available to 
     carry out this chapter; or
       ``(ii) the date of delivery of the replacement tank vessel.
       ``(d) Limitation.--The Secretary may not award operating 
     agreements under this chapter that require payments under 
     section 53106 for a fiscal year for more than 60 vessels.

     ``Sec. 53104. Effectiveness of operating agreements

       ``(a) Effectiveness, Generally.--The Secretary may enter 
     into an operating agreement under this chapter for fiscal 
     year 2006. Except as provided in subsection (b), the 
     agreement shall be effective only for 1 fiscal year, but 
     shall be renewable, subject to the availability of 
     appropriations, for each subsequent fiscal year through the 
     end of fiscal year 2015.
       ``(b) Vessels Under Charter to U.S.--Unless an earlier date 
     is requested by the applicant, the effective date for an 
     operating agreement with respect to a vessel that is, on the 
     date of entry into an operating agreement, on charter to the 
     United States Government, other than a charter pursuant to an 
     Emergency Preparedness Agreement under section 53107, shall 
     be the expiration or termination date of the Government 
     charter covering the vessel, or any earlier date the vessel 
     is withdrawn from that charter.
       ``(c) Termination.--
       ``(1) Termination by secretary.--If the contractor with 
     respect to an operating agreement materially fails to comply 
     with the terms of the agreement--
       ``(A) the Secretary shall notify the contractor and provide 
     a reasonable opportunity to comply with the operating 
     agreement;
       ``(B) the Secretary shall terminate the operating agreement 
     if the contractor fails to achieve such compliance; and
       ``(C) upon such termination, any funds obligated by the 
     agreement shall be available to the Secretary to carry out 
     this chapter.
       ``(2) Early termination by contractor, generally.--An 
     operating agreement under this chapter shall terminate on a 
     date specified by the contractor if the contractor notifies 
     the

[[Page 27628]]

     Secretary, by not later than 60 days before the effective 
     date of the termination, that the contractor intends to 
     terminate the agreement.
       ``(3) Early termination by contractor, with available 
     replacement.--An operating agreement under this chapter shall 
     terminate upon the expiration of the 3-year period beginning 
     on the date a vessel begins operating under the agreement, 
     if--
       ``(A) the contractor notifies the Secretary, by not later 
     than 2 years after the date the vessel begins operating under 
     the agreement, that the contractor intends to terminate the 
     agreement under this paragraph; and
       ``(B) the Secretary, in conjunction with the Secretary of 
     Defense, determines that--
       ``(i) an application for an operating agreement under this 
     chapter has been received for a replacement vessel that is 
     acceptable to the Secretaries; and
       ``(ii) during the period of an operating agreement under 
     this chapter that applies to the replacement vessel, the 
     replacement vessel will be--

       ``(I) owned and operated by one or more persons that are 
     citizens of the United States under section 2 of the Shipping 
     Act, 1916 (46 App. U.S.C. 802); or
       ``(II) owned by a person that is eligible to document the 
     vessel under chapter 121 of this title, and operated by a 
     person that is a citizen of the United States under section 2 
     of the Shipping Act, 1916 (46 App. U.S.C. 802).

       ``(d) Nonrenewal for Lack of Funds.--If, by the first day 
     of a fiscal year, sufficient funds have not been appropriated 
     under the authority provided by this chapter for that fiscal 
     year, then the Secretary shall notify the Committee on Armed 
     Services and the Committee on Commerce, Science, and 
     Transportation of the Senate and the Committee on Armed 
     Services of the House of Representatives that operating 
     agreements authorized under this chapter for which sufficient 
     funds are not available will not be renewed for that fiscal 
     year if sufficient funds are not appropriated by the 60th day 
     of that fiscal year.
       ``(e) Release of Vessels From Obligations.--If an operating 
     agreement under this chapter is terminated under subsection 
     (c)(3), or if funds are not appropriated for payments under 
     an operating agreement under this chapter for any fiscal year 
     by the 60th day of that fiscal year, then--
       ``(1) each vessel covered by the operating agreement is 
     thereby released from any further obligation under the 
     operating agreement;
       ``(2) the owner or operator of the vessel may transfer and 
     register such vessel under a foreign registry that is 
     acceptable to the Secretary of Transportation and the 
     Secretary of Defense, notwithstanding section 9 of the 
     Shipping Act, 1916 (46 App. U.S.C. 808); and
       ``(3) if section 902 of the Merchant Marine Act, 1936 (46 
     App. U.S.C. 1242) is applicable to such vessel after 
     registration of the vessel under such a registry, then the 
     vessel is available to be requisitioned by the Secretary of 
     Transportation pursuant to section 902 of such Act.

     ``Sec. 53105. Obligations and rights under operating 
       agreements

       ``(a) Operation of Vessel.--An operating agreement under 
     this chapter shall require that, during the period a vessel 
     is operating under the agreement--
       ``(1) the vessel--
       ``(A) shall be operated exclusively in the foreign commerce 
     or in mixed foreign commerce and domestic trade allowed under 
     a registry endorsement issued under section 12105 of this 
     title; and
       ``(B) shall not otherwise be operated in the coastwise 
     trade; and
       ``(2) the vessel shall be documented under chapter 121 of 
     this title.
       ``(b) Annual Payments by Secretary.--
       ``(1) In general.--An operating agreement under this 
     chapter shall require, subject to the availability of 
     appropriations, that the Secretary make a payment each fiscal 
     year to the contractor in accordance with section 53106.
       ``(2) Operating agreement is obligation of united states 
     government.--An operating agreement under this chapter 
     constitutes a contractual obligation of the United States 
     Government to pay the amounts provided for in the agreement 
     to the extent of actual appropriations.
       ``(c) Documentation Requirement.--Each vessel covered by an 
     operating agreement (including an agreement terminated under 
     section 53104(c)(2)) shall remain documented under chapter 
     121 of this title, until the date the operating agreement 
     would terminate according to its terms.
       ``(d) National Security Requirements.--
       ``(1) In general.--A contractor with respect to an 
     operating agreement (including an agreement terminated under 
     section 53104(c)(2)) shall continue to be bound by the 
     provisions of section 53107 until the date the operating 
     agreement would terminate according to its terms.
       ``(2) Emergency preparedness agreement.--All terms and 
     conditions of an Emergency Preparedness Agreement entered 
     into under section 53107 shall remain in effect until the 
     date the operating agreement would terminate according to its 
     terms, except that the terms of such Emergency Preparedness 
     Agreement may be modified by the mutual consent of the 
     contractor, the Secretary of Transportation, and the 
     Secretary of Defense.
       ``(e) Transfer of Operating Agreements.--A contractor under 
     an operating agreement may transfer the agreement (including 
     all rights and obligations under the agreement) to any person 
     that is eligible to enter into that operating agreement under 
     this chapter, if the transfer is approved by the Secretary 
     and the Secretary of Defense.
       ``(f) Replacement Vessel.--A contractor may replace a 
     vessel under an operating agreement with another vessel that 
     is eligible to be included in the Fleet under section 
     53102(b), if the Secretary, in conjunction with the Secretary 
     of Defense, approve replacement of the vessel.

     ``Sec. 53106. Payments

       ``(a) Annual payment.--
       ``(1) In general.--The Secretary, subject to the 
     availability of appropriations and the other provisions of 
     this section, shall pay to the contractor for an operating 
     agreement, for each vessel that is covered by the operating 
     agreement, an amount equal to--
       ``(A) $2,600,000 for each of fiscal years 2006, 2007, and 
     2008;
       ``(B) $2,900,000, for each of fiscal years 2009, 2010, and 
     2011; and
       ``(C) $3,100,000 for each fiscal years 2012, 2013, 2014, 
     and 2015.
       ``(2) Timing.--The amount shall be paid in equal monthly 
     installments at the end of each month. The amount shall not 
     be reduced except as provided by this section.
       ``(b) Certification Required for Payment.--As a condition 
     of receiving payment under this section for a fiscal year for 
     a vessel, the contractor for the vessel shall certify, in 
     accordance with regulations issued by the Secretary, that the 
     vessel has been and will be operated in accordance with 
     section 53105(a)(1) for at least 320 days in the fiscal year. 
     Days during which the vessel is drydocked, surveyed, 
     inspected, or repaired shall be considered days of operation 
     for purposes of this subsection.
       ``(c) General Limitations.--The Secretary of Transportation 
     shall not make any payment under this chapter for a vessel 
     with respect to any days for which the vessel is--
       ``(1) under a charter to the United States Government, 
     other than a charter pursuant to an Emergency Preparedness 
     Agreement under section 53107;
       ``(2) not operated or maintained in accordance with an 
     operating agreement under this chapter; or
       ``(3) more than--
       ``(A) 25 years of age, except as provided in subparagraph 
     (B) or (C);
       ``(B) 20 years of age, in the case of a tank vessel; or
       ``(C) 30 years of age, in the case of a LASH vessel.
       ``(d) Reductions in Payments.--With respect to payments 
     under this chapter for a vessel covered by an operating 
     agreement, the Secretary--
       ``(1) except as provided in paragraph (2), shall not reduce 
     any payment for the operation of the vessel to carry military 
     or other preference cargoes under section 2631 of title 10, 
     United States Code, the Act of March 26, 1934 (46 App. U.S.C. 
     1241-1), section 901(a), 901(b), or 901b of the Merchant 
     Marine Act, 1936 (46 App. U.S.C. 1241(a), 1241(b), or 1241f), 
     or any other cargo preference law of the United States;
       ``(2) shall not make any payment for any day that the 
     vessel is engaged in transporting more than 7,500 tons of 
     civilian bulk preference cargoes pursuant to section 901(a), 
     901(b), or 901b of the Merchant Marine Act, 1936 (46 App. 
     U.S.C. 1241(a), 1241(b), or 1241f), that is bulk cargo; and
       ``(3) shall make a pro rata reduction in payment for each 
     day less than 320 in a fiscal year that the vessel is not 
     operated in accordance with section 53105(a)(1), with days 
     during which the vessel is drydocked or undergoing survey, 
     inspection, or repair considered to be days on which the 
     vessel is operated.
       ``(e) Limitation Regarding Noncontiguous Domestic Trade.--
       ``(1) In general.--No contractor shall receive payments 
     pursuant to this chapter during a period in which it 
     participates in noncontiguous domestic trade.
       ``(2) Limitation on Application.--Paragraph (1) shall not 
     apply to any person that is a citizen of the United States 
     within the meaning of section 2(c) of the Shipping Act, 1916 
     (46 App. U.S.C. 802(c)).
       ``(3) Participates in a noncontiguous domestic trade 
     defined.--In this subsection the term `participates in a 
     noncontiguous domestic trade' means directly or indirectly 
     owns, charters, or operates a vessel engaged in 
     transportation of cargo between a point in the contiguous 48 
     States and a point in Alaska, Hawaii, or Puerto Rico, other 
     than a point in Alaska north of the Arctic Circle.

     ``Sec. 53107. National security requirements

       ``(a) Emergency Preparedness Agreement Required.--The 
     Secretary shall establish an Emergency Preparedness Program 
     under this section that is approved by the Secretary of 
     Defense. Under the program, the Secretary, in conjunction 
     with the Secretary of Defense, shall include in each 
     operating agreement under this chapter a requirement that the 
     contractor enter into an Emergency Preparedness Agreement 
     under this section with the Secretary. The Secretary shall 
     negotiate and enter into an Emergency Preparedness Agreement 
     with each contractor as promptly as practicable after the 
     contractor has entered into an operating agreement under this 
     chapter.
       ``(b) Terms of Agreement.--
       ``(1) In general.--An Emergency Preparedness Agreement 
     under this section shall require that upon a request by the 
     Secretary of Defense during time of war or national 
     emergency, or whenever determined by the Secretary of Defense 
     to be necessary for national security or contingency 
     operation (as that term is defined

[[Page 27629]]

     in section 101 of title 10, United States Code), a contractor 
     for a vessel covered by an operating agreement under this 
     chapter shall make available commercial transportation 
     resources (including services).
       ``(2) Basic terms.--(A) The basic terms of the Emergency 
     Preparedness Agreement shall be established (subject to 
     subparagraph (B)) by the Secretary and the Secretary of 
     Defense.
       ``(B) In any Emergency Preparedness Agreement, the 
     Secretary and a contractor may agree to additional or 
     modifying terms appropriate to the contractor's circumstances 
     if those terms have been approved by the Secretary of 
     Defense.
       ``(c) Participation After Expiration of Operating 
     Agreement.--Except as provided by section 53105(d), the 
     Secretary may not require, through an Emergency Preparedness 
     Agreement or operating agreement, that a contractor continue 
     to participate in an Emergency Preparedness Agreement after 
     the operating agreement with the contractor has expired 
     according to its terms or is otherwise no longer in effect. 
     After expiration of an Emergency Preparedness Agreement, a 
     contractor may volunteer to continue to participate in such 
     an agreement.
       ``(d) Resources Made Available.--The commercial 
     transportation resources to be made available under an 
     Emergency Preparedness Agreement shall include vessels or 
     capacity in vessels, intermodal systems and equipment, 
     terminal facilities, intermodal and management services, and 
     other related services, or any agreed portion of such 
     nonvessel resources for activation as the Secretary of 
     Defense may determine to be necessary, seeking to minimize 
     disruption of the contractor's service to commercial 
     shippers.
       ``(e) Compensation.--
       ``(1) In general.--The Secretary shall include in each 
     Emergency Preparedness Agreement provisions approved by the 
     Secretary of Defense under which the Secretary of Defense 
     shall pay fair and reasonable compensation for all commercial 
     transportation resources provided pursuant to this section.
       ``(2) Specific requirements.--Compensation under this 
     subsection--
       ``(A) shall not be less than the contractor's commercial 
     market charges for like transportation resources;
       ``(B) shall be fair and reasonable considering all 
     circumstances;
       ``(C) shall be provided from the time that a vessel or 
     resource is required by the Secretary of Defense until the 
     time that it is redelivered to the contractor and is 
     available to reenter commercial service; and
       ``(D) shall be in addition to and shall not in any way 
     reflect amounts payable under section 53106.
       ``(f) Temporary Replacement Vessels.--Notwithstanding 
     section 2631 of title 10, United States Code, the Act of 
     March 26, 1934 (46 App. U.S.C. 1241-1), section 901(a), 
     901(b), or 901b of the Merchant Marine Act, 1936 (46 App. 
     U.S.C. 1241(a), 1241(b), or 1241f), or any other cargo 
     preference law of the United States--
       ``(1) a contractor may operate or employ in foreign 
     commerce a foreign-flag vessel or foreign-flag vessel 
     capacity as a temporary replacement for a United States-
     documented vessel or United States-documented vessel capacity 
     that is activated by the Secretary of Defense under an 
     Emergency Preparedness Agreement or under a primary 
     Department of Defense-approved sealift readiness program; and
       ``(2) such replacement vessel or vessel capacity shall be 
     eligible during the replacement period to transport 
     preference cargoes subject to section 2631 of title 10, 
     United States Code, the Act of March 26, 1934 (46 App. U.S.C. 
     1241-1), and sections 901(a), 901(b), and 901b of the 
     Merchant Marine Act, 1936 (46 App. U.S.C. 1241(a), 1241(b), 
     and 1241b) to the same extent as the eligibility of the 
     vessel or vessel capacity replaced.
       ``(g) Redelivery and Liability of United States for 
     Damages.--
       ``(1) In general.--All commercial transportation resources 
     activated under an Emergency Preparedness Agreement shall, 
     upon termination of the period of activation, be redelivered 
     to the contractor in the same good order and condition as 
     when received, less ordinary wear and tear, or the Secretary 
     of Defense shall fully compensate the contractor for any 
     necessary repair or replacement.
       ``(2) Limitation on liability of u.s.--Except as may be 
     expressly agreed to in an Emergency Preparedness Agreement, 
     or as otherwise provided by law, the Government shall not be 
     liable for disruption of a contractor's commercial business 
     or other consequential damages to a contractor arising from 
     activation of commercial transportation resources under an 
     Emergency Preparedness Agreement.

     ``Sec. 53108. Regulatory relief

       ``(a) Operation in Foreign Commerce.--A contractor for a 
     vessel included in an operating agreement under this chapter 
     may operate the vessel in the foreign commerce of the United 
     States without restriction.
       ``(b) Other Restrictions.--The restrictions of section 
     901(b)(1) of the Merchant Marine Act, 1936 (46 App. U.S.C. 
     1241(b)(1)) concerning the building, rebuilding, or 
     documentation of a vessel in a foreign country shall not 
     apply to a vessel for any day the operator of that vessel is 
     receiving payments for operation of that vessel under an 
     operating agreement under this chapter.
       ``(c) Telecommunications Equipment.--The telecommunications 
     and other electronic equipment on an existing vessel that is 
     redocumented under the laws of the United States for 
     operation under an operating agreement under this chapter 
     shall be deemed to satisfy all Federal Communications 
     Commission equipment certification requirements, if--
       ``(1) such equipment complies with all applicable 
     international agreements and associated guidelines as 
     determined by the country in which the vessel was documented 
     immediately before becoming documented under the laws of the 
     United States;
       ``(2) that country has not been identified by the Secretary 
     as inadequately enforcing international regulations as to 
     that vessel; and
       ``(3) at the end of its useful life, such equipment will be 
     replaced with equipment that meets Federal Communications 
     Commission equipment certification standards.

     ``Sec. 53109. Special rule regarding age of participating 
       fleet vessel

       ``Any age restriction under section 53102(b)(3) or 
     53106(c)(3) shall not apply to a participating fleet vessel 
     during the 30-month period beginning on the date the vessel 
     begins operating under an operating agreement under this 
     title, if the Secretary determines that the contractor for 
     the vessel has entered into an arrangement to obtain and 
     operate under the operating agreement for the participating 
     fleet vessel a replacement vessel that, upon commencement of 
     such operation, will be eligible to be included in the Fleet 
     under section 53102(b).

     ``Sec. 53110. Regulations

       ``The Secretary and the Secretary of Defense may each 
     prescribe rules as necessary to carry out their respective 
     responsibilities under this chapter.

     ``Sec. 53111. Authorization of appropriations

       ``There are authorized to be appropriated for payments 
     under section 53106, to remain available until expended--
       ``(1) $156,000,000 for each of fiscal years 2006, 2007, and 
     2008;
       ``(2) $174,000,000 for each of fiscal years 2009, 2010, and 
     2011; and
       ``(3) $186,000,000 for each fiscal year thereafter through 
     fiscal year 2015.''.
       (b) Conforming Amendment.--The table of subtitles at the 
     beginning of title 46, United States Code, is amended by 
     inserting before the item relating to chapter VI the 
     following:

``V. MERCHANT MARINE...................................... 53101''.....

     SEC. 3532. RELATED AMENDMENTS TO EXISTING LAW.

       (a) Amendment to Shipping Act, 1916.--Section 9 of the 
     Shipping Act, 1916 (46 App. U.S.C. 808) is amended--
       (1) by redesignating subsection (e), as added by section 
     1136(b) of Public Law 104-324 (110 Stat. 3987), as subsection 
     (f); and
       (2) by amending subsection (e), as added by section 6 of 
     Public Law 104-324 (110 Stat. 3132), to read as follows:
       ``(e) Notwithstanding subsection (c)(2), the Merchant 
     Marine Act, 1936, or any contract entered into with the 
     Secretary of Transportation under that Act, a vessel may be 
     placed under a foreign registry, without approval of the 
     Secretary, if--
       ``(1)(A) the Secretary, in conjunction with the Secretary 
     of Defense, determines that at least one replacement vessel 
     of equal or greater military capability and of a capacity 
     that is equivalent or greater, as measured by deadweight 
     tons, gross tons, or container equivalent units, as 
     appropriate, is documented under chapter 121 of title 46, 
     United States Code, by the owner of the vessel placed under 
     the foreign registry; and
       ``(B) the replacement vessel is not more than 10 years of 
     age on the date of that documentation; or
       ``(2) an operating agreement covering the vessel under 
     chapter 531 of title 46, United States Code, has expired.''.
       (b) Merchant Marine Act, 1936.--Section 512 of the Merchant 
     Marine Act, 1936 (46 U.S.C. 1162) is amended--
       (1) by striking ``Notwithstanding'' and inserting ``(a) 
     Except as provided in subsection (b), notwithstanding''; and
       (2) by adding at the end the following:
       ``(b)(1) Except as provided in paragraph (2), the 
     restrictions and requirements of section 506 shall terminate 
     upon the expiration of the 20-year period beginning on the 
     date of the original delivery of the vessel from the shipyard 
     for operation of a vessel in any domestic trade in which it 
     has operated at any time since 1996.
       ``(2) Paragraph (1) shall not affect any requirement to 
     make payments under section 506.''.

     SEC. 3533. INTERIM RULES.

       The Secretary of Transportation and the Secretary of 
     Defense may each prescribe interim rules necessary to carry 
     out their respective responsibilities under this subtitle and 
     the amendments made by this subtitle. For this purpose, the 
     Secretaries are excepted from compliance with the notice and 
     comment requirements of section 553 of title 5, United States 
     Code. All interim rules prescribed under the authority of 
     this section that are not earlier superseded by final rules 
     shall expire no later than 270 days after the effective date 
     of this subtitle.

     SEC. 3534. REPEALS AND CONFORMING AMENDMENTS.

       (a) Repeals.--The following provisions are repealed:
       (1) Subtitle B of title VI of the Merchant Marine Act, 1936 
     (46 App. U.S.C. 1187 et seq.).
       (2) Section 804 of the Merchant Marine Act, 1936 (46 App. 
     U.S.C. 1222).
       (b) Conforming Amendments.--
       (1) Section 12102(d)(4) of title 46, United States Code, is 
     amended by inserting ``or chapter 531 of title 46, United 
     States Code'' after ``Merchant Marine Act, 1936''.

[[Page 27630]]

       (2) Section 1137 of Public Law 104-324 (46 App. U.S.C. 1187 
     note) is amended by striking ``section 651(b) of the Merchant 
     Marine Act, 1936'' and inserting ``section 53102(b) of title 
     46, United States Code''.

     SEC. 3535. GAO STUDY OF ADJUSTMENT OF OPERATING AGREEMENT 
                   PAYMENT CRITERIA.

       (a) In General.--The Comptroller General of the United 
     States shall conduct a study of the potential impact of 
     amending section 53106 of title 46, United States Code, as 
     amended by this Act--
       (1) to increase or decrease the 7,500 ton limitation;
       (2) to apply the limitation to bagged cargo as well as bulk 
     cargo; and
       (3) to so modify the tonnage limitation and apply it to 
     bagged cargo as well as bulk cargo.
       (b) Matters To Be Addressed.--
       (1) Specific impacts.--As part of the study required by 
     subsection (a), the Comptroller General shall address, in 
     particular, the impact of such amendments on--
       (A) the Maritime Security Fleet established under chapter 
     531 of title 46, United States Code, as amended by this Act;
       (B) the civilian bulk cargo preference program under 
     section 901(a), 901(b), or 901b of such Act (46 U.S.C. App. 
     1241(a), 1241(b), and 1241f); and
       (C) operations of vessels under sections 901a through 901k 
     of such Act (46 U.S.C. App. 1241e through 1241o, the Food for 
     Peace Act of 1966 (7 U.S.C. 1707a(b)(8)), or any other 
     statute in pari materia.
       (2) Certain aspects.--In carrying out paragraph (1), the 
     Comptroller General shall consider, among other matters--
       (A) increased or decreased costs to the overall cargo 
     preference program, including transportation costs (for both 
     land and water transportation);
       (B) effects on ports;
       (C) the number of shipments that would be affected;
       (D) increased or decreased administrative and compliance 
     burdens for carriers and Federal agencies; and
       (E) increases or decreases in the number of United States-
     flag operators participating in the cargo preference program.
       (3) Balancing benefits.--In the study, the Comptroller 
     General shall also address whether and how such amendments 
     could result in achieving an appropriate balance of benefits 
     between participants in the Maritime Security Fleet program 
     and participants in the cargo preference program.
       (c) Report.--The Comptroller General shall transmit a 
     report of the study, including findings, conclusions, and 
     recommendations (including legislative recommendations, if 
     any), to the Committee on Armed Services of the House of 
     Representatives and the Committee on Armed Services and the 
     Committee on Commerce, Science, and Transportation of the 
     Senate within 9 months after the date of enactment of this 
     Act.
       (d) Authority.--In order to conduct the study required by 
     subsection (a), the Comptroller General, or any of the 
     Comptroller General's duly authorized representatives, shall 
     have access to any books, accounts, documents, papers, and 
     records that relate to the information required to complete 
     the study of owners or operators of vessels--
       (1) under operating agreements under subtitle B of title VI 
     of the Merchant Marine Act, 1936 (46 App. U.S.C. 651 et seq.) 
     or chapter 531 of title 46, United States Code, as amended by 
     this Act; and
       (2) that accept bulk cargo subject to the cargo preference 
     laws of the United States.

     SEC. 3536. DEFINITIONS.

       In this subtitle, the definitions set forth in section 
     53101 of title 46, United States Code, as amended by this 
     Act, shall apply.

     SEC. 3537. EFFECTIVE DATES.

       (a) In General.--Except as provided in subsections (b) and 
     (c), this subtitle shall take effect October 1, 2004.
       (b) Repeals and Conforming Amendments.--Section 3534 shall 
     take effect October 1, 2005.
       (c) Other Provisions.--Sections 3533, 3535, and this 
     section shall take effect on the date of the enactment of 
     this Act.
    Subtitle D--National Defense Tank Vessel Construction Assistance

     SEC. 3541. NATIONAL DEFENSE TANK VESSEL CONSTRUCTION PROGRAM.

       The Secretary of Transportation shall establish a program 
     for the provision of financial assistance for the 
     construction in the United States of a fleet of up to 5 
     privately owned product tank vessels--
       (1) to be operated in commercial service in foreign 
     commerce; and
       (2) to be available for national defense purposes in time 
     of war or national emergency pursuant to an Emergency 
     Preparedness Plan approved by the Secretary of Defense 
     pursuant to section 3543(e).

     SEC. 3542. APPLICATION PROCEDURE.

       (a) Request for Proposals.--Within 90 days after the date 
     of the enactment of this subtitle, and on an as-needed basis 
     thereafter, the Secretary, in consultation with the Secretary 
     of Defense, shall publish in the Federal Register a request 
     for competitive proposals for the construction of new product 
     tank vessels necessary to meet the commercial and national 
     security needs of the United States and to be built with 
     assistance under this subtitle.
       (b) Qualification.--Any citizen of the United States or any 
     shipyard in the United States may submit a proposal to the 
     Secretary of Transportation for purposes of constructing a 
     product tank vessel with assistance under this subtitle.
       (c) Requirement.--The Secretary, with the concurrence of 
     the Secretary of Defense, may enter into an agreement with 
     the submitter of a proposal for assistance under this 
     subtitle if the Secretary determines that--
       (1) the plans and specifications call for construction of a 
     new product tank vessel of not less than 35,000 deadweight 
     tons and not greater than 60,000 deadweight tons, that--
       (A) will meet the requirements of foreign commerce;
       (B) is capable of carrying militarily useful petroleum 
     products, and will be suitable for national defense or 
     military purposes in time of war, national emergency, or 
     other military contingency; and
       (C) will meet the construction standards necessary to be 
     documented under the laws of the United States;
       (2) the shipyard in which the vessel will be constructed 
     has the necessary capacity and expertise to successfully 
     construct the proposed number and type of product tank 
     vessels in a reasonable period of time as determined by the 
     Secretary of Transportation, taking into consideration the 
     recent prior commercial shipbuilding history of the proposed 
     shipyard in delivering a vessel or series of vessels on time 
     and in accordance with the contract price and specifications; 
     and
       (3) the person proposed to be the operator of the proposed 
     vessel possesses the ability, experience, financial 
     resources, and any other qualifications determined to be 
     necessary by the Secretary for the operation and maintenance 
     of the vessel.
       (d) Priority.--The Secretary--
       (1) subject to paragraph (2), shall give priority 
     consideration to a proposal submitted by a person that is a 
     citizen of the United States under section 2 of the Shipping 
     Act, 1916 (46 App. U.S.C. 802); and
       (2) may give priority to consideration of proposals that 
     provide the best value to the Government, taking into 
     consideration--
       (A) the costs of vessel construction; and
       (B) the commercial and national security needs of the 
     United States.

     SEC. 3543. AWARD OF ASSISTANCE.

       (a) In General.--If after review of a proposal, the 
     Secretary determines that the proposal fulfills the 
     requirements under this subtitle, the Secretary may enter 
     into a contract with the proposed purchaser and the proposed 
     shipyard for the construction of a product tank vessel with 
     assistance under this subtitle.
       (b) Amount of Assistance.--The contract shall provide that 
     the Secretary shall pay, subject to the availability of 
     appropriations, up to 75 percent of the actual construction 
     cost of the vessel, but in no case more than $50,000,000 per 
     vessel.
       (c) Construction in United States.--A contract under this 
     section shall require that construction of a vessel with 
     assistance under this subtitle shall be performed in a 
     shipyard in the United States.
       (d) Documentation of Vessel.--
       (1) Contract requirement.--A contract under this section 
     shall require that, upon delivery of a vessel constructed 
     with assistance under the contract, the vessel shall be 
     documented under chapter 121 of title 46, United States Code 
     with a registry endorsement only.
       (2) Restriction on coastwise endorsement.--A vessel 
     constructed with assistance under this subtitle shall not be 
     eligible for a certificate of documentation with a coastwise 
     endorsement.
       (3) Authority to reflag not applicable.--Section 9(g) of 
     the Shipping Act, 1916, (46 App. U.S.C. 808(g)) shall not 
     apply to a vessel constructed with assistance under this 
     subtitle.
       (e) Emergency Preparedness Agreement.--
       (1) In general.--A contract under this section shall 
     require that the person who will be the operator of a vessel 
     constructed with assistance under the contract shall enter 
     into an Emergency Preparedness Agreement for the vessel under 
     section 53107 of title 46, United States Code, as amended by 
     this Act.
       (2) Treatment as contractor.--For purposes of the 
     application, under paragraph (1), of section 53107 of title 
     46, United States Code, to a vessel constructed with 
     assistance under this subtitle, the term ``contractor'' as 
     used in that section means the person who will be the 
     operator of a vessel constructed with assistance under this 
     subtitle.
       (f) Additional Terms.--The Secretary shall incorporate in 
     the contract the requirements set forth in this subtitle, and 
     may incorporate in the contract any additional terms the 
     Secretary considers necessary.

     SEC. 3544. PRIORITY FOR TITLE XI ASSISTANCE.

       Section 1103 of the Merchant Marine Act, 1936 (46 App. 
     U.S.C. 1273) is amended by adding at the end the following:
       ``(i) Priority.--In guaranteeing and entering commitments 
     to guarantee under this section, the Secretary shall give 
     priority to guarantees and commitments for vessels that are 
     otherwise eligible for a guarantee under this section and 
     that are constructed with assistance under subtitle D of the 
     Maritime Security Act of 2003.''.

     SEC. 3545. DEFINITIONS.

       In this subtitle the definitions set forth in section 53101 
     of title 46, United States Code, as amended by this Act, 
     shall apply.

     SEC. 3546. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated to the Secretary to 
     carry out this subtitle a total of

[[Page 27631]]

     $250,000,000 for fiscal years after fiscal year 2004.
                TITLE XXXVI--NUCLEAR SECURITY INITIATIVE

Sec. 3601. Short title.

   Subtitle A--Administration and Oversight of Threat Reduction and 
                       Nonproliferation Programs

Sec. 3611. Management assessment of Department of Defense and 
              Department of Energy threat reduction and 
              nonproliferation programs.

       Subtitle B--Relations Between the United States and Russia

Sec. 3621. Comprehensive inventory of Russian tactical nuclear weapons.
Sec. 3622. Establishment of interparliamentary Threat Reduction Working 
              Group.
Sec. 3623. Sense of Congress on cooperation by United States and NATO 
              with Russia on ballistic missile defenses.
Sec. 3624. Sense of Congress on enhanced collaboration to achieve more 
              reliable Russian early warning systems.

                       Subtitle C--Other Matters

Sec. 3631. Promotion of discussions on nuclear and radiological 
              security and safety between the International Atomic 
              Energy Agency and the Organization for Economic 
              Cooperation and Development.

     SEC. 3601. SHORT TITLE.

       This title may be cited as the ``Nuclear Security 
     Initiative Act of 2003''.
   Subtitle A--Administration and Oversight of Threat Reduction and 
                       Nonproliferation Programs

     SEC. 3611. MANAGEMENT ASSESSMENT OF DEPARTMENT OF DEFENSE AND 
                   DEPARTMENT OF ENERGY THREAT REDUCTION AND 
                   NONPROLIFERATION PROGRAMS.

       (a) GAO Assessment Required.--The Comptroller General shall 
     carry out an assessment of the management of the threat 
     reduction and nonproliferation programs of the Department of 
     Defense and the Department of Energy. The matters assessed 
     shall include--
       (1) the effectiveness of the overall strategy used for 
     managing such programs;
       (2) the basis used to allocate the missions of such 
     programs among the executive departments and agencies;
       (3) the criteria used to assess the effectiveness of such 
     programs;
       (4) the strategy and process used to establish priorities 
     for activities carried out under such programs, including the 
     analysis of risks and benefits used in determining how best 
     to allocate the funds made available for such programs;
       (5) the mechanisms used to coordinate the activities 
     carried out under such programs by the executive departments 
     and agencies so as to ensure efficient execution and avoid 
     duplication of effort; and
       (6) the management controls used in carrying out such 
     programs and the effect of such controls on the execution of 
     such programs.
       (b) Considerations.--In carrying out the assessment 
     required by subsection (a), the Comptroller General shall 
     take into account--
       (1) the national security interests of the United States; 
     and
       (2) the need for accountability in expenditure of funds by 
     the United States.
       (c) Report.--Not later than May 1, 2004, the Comptroller 
     General shall submit a report on the assessment required by 
     subsection (a) to the Committee on Armed Services of the 
     House of Representatives and the Committee on Armed Services 
     of the Senate.
       (d) Definitions.--In this section:
       (1) The term ``threat reduction and nonproliferation 
     programs of the Department of Defense and the Department of 
     Energy'' means--
       (A) 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); 
     and
       (B) any programs for which funds are made available under 
     the defense nuclear nonproliferation account of the 
     Department of Energy.
       (2) The term ``management controls'' means any accounting, 
     oversight, or other measure intended to ensure that programs 
     are executed consistent with--
       (A) programmatic objectives as stated in budget 
     justification materials submitted to Congress (as submitted 
     with the budget of the President under section 1105(a) of 
     title 31, United States Code); and
       (B) any restrictions related to such objectives as are 
     imposed by law.
       Subtitle B--Relations Between the United States and Russia

     SEC. 3621. COMPREHENSIVE INVENTORY OF RUSSIAN TACTICAL 
                   NUCLEAR WEAPONS.

       (a) Sense of Congress.--It is the sense of Congress that 
     the United States should, to the extent the President 
     considers prudent, seek to work with the Russian Federation 
     to develop a comprehensive inventory of Russian tactical 
     nuclear weapons.
       (b) Report.--Not later than 12 months after the date of the 
     enactment of this Act, the President shall submit to Congress 
     a report, in both classified and unclassified form as 
     necessary, describing the progress that has been made toward 
     creating such an inventory.

     SEC. 3622. ESTABLISHMENT OF INTERPARLIAMENTARY THREAT 
                   REDUCTION WORKING GROUP.

       (a) Establishment of Working Group.--There is hereby 
     established a working group to be known as the ``Threat 
     Reduction Working Group'' as an interparliamentary group of 
     the Congress of the United States and the legislature of the 
     Russian Federation.
       (b) Purpose of Working Group.--The purpose of the working 
     group established by subsection (a) shall be to explore means 
     to enhance cooperation between the United States and the 
     Russian Federation with respect to nuclear nonproliferation 
     and security and such other issues related to reducing the 
     dangers of weapons of mass destruction as the members of the 
     working group consider appropriate.
       (c) Membership.--(1) The majority leader of the Senate, 
     after consultation with the minority leader of the Senate, 
     shall appoint not more than 10 Senators to the working group 
     established by subsection (a).
       (2) The Speaker of the House of Representatives, after 
     consultation with the minority leader of the House of 
     Representatives, shall appoint not more than 30 Members of 
     the House to the working group.

     SEC. 3623. SENSE OF CONGRESS ON COOPERATION BY UNITED STATES 
                   AND NATO WITH RUSSIA ON BALLISTIC MISSILE 
                   DEFENSES.

       (a) Sense of Congress.--It is the sense of Congress that 
     the President should, in conjunction with the North Atlantic 
     Treaty Organization, encourage appropriate cooperative 
     relationships between the Russian Federation and the United 
     States and North Atlantic Treaty Organization with respect to 
     the development and deployment of ballistic missile defenses.
       (b) Report to Congress.--Not later than one year after the 
     date of the enactment of this Act, 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 a report (in unclassified or classified form 
     as necessary) on the feasibility of increasing cooperation 
     between the Russian Federation and the United States and the 
     North Atlantic Treaty Organization on the subject of 
     ballistic missile defense. The report shall include--
       (1) the recommendations of the Secretary;
       (2) a description of the threat such cooperation is 
     intended to address; and
       (3) an assessment of possible benefits to ballistic missile 
     defense programs of the United States.

     SEC. 3624. SENSE OF CONGRESS ON ENHANCED COLLABORATION TO 
                   ACHIEVE MORE RELIABLE RUSSIAN EARLY WARNING 
                   SYSTEMS.

       It is the sense of Congress that the President, to the 
     extent consistent with the national security interests of the 
     United States, should--
       (1) encourage joint efforts by the United States and the 
     Russian Federation to reduce the probability of accidental 
     nuclear attack as a result of misinformation or 
     miscalculation by developing the capabilities and increasing 
     the reliability of Russian ballistic missile early-warning 
     systems;
       (2) encourage the development of joint programs by the 
     United States and the Russian Federation to ensure that the 
     Russian Federation has reliable information regarding 
     launches of ballistic missiles anywhere in the world; and
       (3) pending the execution of a new agreement between the 
     United States and the Russian Federation providing for the 
     conduct of the Russian-American Observation Satellite (RAMOS) 
     program, ensure that funds appropriated for that program for 
     fiscal year 2004 are obligated and expended in a manner that 
     provides for the satisfactory continuation of that program.
                       Subtitle C--Other Matters

     SEC. 3631. PROMOTION OF DISCUSSIONS ON NUCLEAR AND 
                   RADIOLOGICAL SECURITY AND SAFETY BETWEEN THE 
                   INTERNATIONAL ATOMIC ENERGY AGENCY AND THE 
                   ORGANIZATION FOR ECONOMIC COOPERATION AND 
                   DEVELOPMENT.

       (a) Sense of Congress Regarding Initiation of Dialogue 
     Between the IAEA and the OECD.--It is the sense of Congress 
     that--
       (1) the United States should seek to initiate discussions 
     between the International Atomic Energy Agency and the 
     Organization for Economic Cooperation and Development for the 
     purpose of exploring issues of nuclear and radiological 
     security and safety, including the creation of new sources of 
     revenue (including debt reduction) for states to provide 
     nuclear security; and
       (2) the discussions referred to in paragraph (1) should 
     also provide a forum to explore possible sources of funds in 
     support of the G-8 Global Partnership Against the Spread of 
     Weapons and Materials of Mass Destruction.
       (b) Contingent Report.--(1) Except as provided in paragraph 
     (2), the President shall, not later than 12 months after the 
     date of the enactment of this Act, submit to Congress a 
     report on--
       (A) the efforts made by the United States to initiate the 
     discussions described in subsection (a);
       (B) the results of those efforts; and
       (C) any plans for further discussions and the purposes of 
     such discussions.
       (2) Paragraph (1) shall not apply if no efforts referred to 
     in paragraph (1)(A) have been made.
       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

[[Page 27632]]

     Curt Weldon,
     Jim Saxton,
     John M. McHugh,
     Terry Everett,
     Roscoe Bartlett,
     Howard ``Buck'' McKeon,
     Mac Thornberry,
     John Hostettler,
     Walter B. Jones,
     Jim Ryun,
     Jim Gibbons,
     Robin Hayes,
     Heather Wilson,
     Ken Calvert,
     Ike Skelton,
     Solomon P. Ortiz,
     Lane Evans,
     Neil Abercrombie,
     Silvestre Reyes,
     From the Permanent Select Committee on Intelligence, for 
     consideration of matters within the jurisdiction of that 
     committee under clause 11 of rule X:
     Porter J. Goss,
     Pete Hoekstra,
     Jane Harman,
     From the Committee on Agriculture, for consideration of secs. 
     1057 and 2822 of the House bill, and modifications committed 
     to conference:
     Bob Goodlatte,
     Frank D. Lucas,
     Charles W. Stenholm,
     From the Committee on Education and the Workforce, for 
     consideration of secs. 544, 553, 563, 567, 907, 1046, 1501, 
     1502, and 1504-1506 of the House bill, and secs. 233, 351, 
     352, 368, 701, 1034, and 1036 of the Senate amendment, and 
     modifications committed to conference:
     Michael N. Castle,
     John Kline,
     From the Committee on Energy and Commerce, for consideration 
     of secs. 601, 3113, 3201, and 3517 of the House bill, and 
     secs. 601, 701, 852, 3151, and 3201 of the Senate amendment, 
     and modifications committed to conference:
     Billy Tauzin,
     Joe Barton,
     From the Committee on Financial Services, for consideration 
     of secs. 814 and 907 of the House bill, and modifications 
     committed to conference:
     Michael G. Oxley,
     Peter T. King,
     From the Committee on Government Reform, for consideration of 
     secs. 315, 323, 551, 805, 822, 824, 828, 829, 1031, 1046, 
     1050, 1057, Title XI, Title XIV, secs. 2825 and 2826 of the 
     House bill, and secs. 326, 801, 811, 813, 822, 831-833, 841, 
     852, 853, 1013, 1035, 1102-1104, and 2824-2826 of the Senate 
     amendment, and modifications committed to conference:
     Tom Davis,
     Christopher Shays,
     Jo Ann Davis,
     Adam H. Putnam,
     Michael R. Turner,
     From the Select Committee on Homeland Security, for 
     consideration of sec. 1456 of the House bill, and 
     modifications committed to conference:
     Christopher Cox,
     John Shadegg,
     Bennie G. Thompson,
     From the Committee on House Administration, for consideration 
     of sec. 564 of the Senate amendment, and modifications 
     committed to conference:
     Robert W. Ney,
     John L. Mica,
     John B. Larson,
     From the Committee on International Relations, for 
     consideration of secs. 1047, 1201, 1202, 1209, Title XIII, 
     secs. 3601, 3611, 3631, 3632, and 3634-3636 of the House 
     bill, and secs. 323, 343, 921, 1201, 1201, 1204, 1205, 1207, 
     1208, Title XIII, and sec. 3141 of the Senate amendment, and 
     modifications committed to conference:
     Henry Hyde,
     Doug Bereuter,
     From the Committee on the Judiciary, for consideration of 
     secs. 661-665 and 851-853 of the Senate amendment, and 
     modifications committed to conference:
     James F. Sensenbrenner, Jr.,
     Lamar Smith,
     From the Committee on Resources, for consideration of secs. 
     311, 317-319, 601 and 1057 of the House bill, and secs. 322, 
     330, and 601 of the Senate amendment, and modifications 
     committed to conference:
     Richard Pombo,
     Denny Rehberg,
     From the Committee on Science, for consideration of secs. 852 
     and 911 of the Senate amendment, and modifications committed 
     to conference:
     Sherwood Boehlert,
     Nick Smith,
     Ralph M. Hall,
     From the Committee on Transportation and Infrastructure, for 
     consideration of secs. 312, 601, 907, 1049, 1051, and 2824 of 
     the House bill, and secs. 324, 601, and 2821 of the Senate 
     amendment, and modifications committed to conference:
     Don Young,
     Thomas Petri,
     Brad Carson,
     From the Committee on Veterans Affairs, for consideration of 
     sec. 565 of the House bill, and secs. 644 and 707 of the 
     Senate amendment, and modifications committed to conference:
     Christopher H. Smith,
     Mike Bilirakis,
     From the Committee on Ways and Means, for consideration of 
     sec. 701 of the Senate amendment, and modifications committed 
     to conference:
     William Thomas,
     Jim McCrery,
                                Managers on the Part of the House.

     John W. Warner,
     John McCain,
     James Inhofe,
     Pat Roberts,
     Wayne Allard,
     Jeff Sessions,
     Susan Collins,
     John Ensign,
     James Talent,
     Saxby Chambliss,
     Lindsey Graham,
     Elizabeth Dole,
     John Cornyn,
     E. Benjamin Nelson,
     Mark Pryor,
                               Managers on the Part of the Senate.

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[[Page 27640]]

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          Title I--Procurement

     Overview
       The budget request for fiscal year 2004 included an 
     authorization of $72,653.5 million for Procurement for the 
     Department of Defense.
       The House bill would authorize $75,010.0 million.
       The Senate amendment would authorize $75,638.8 million.
       The conferees recommend an authorization of $74,203.5 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 27642]]

                       Items of Special Interest

                     Legislative Provisions Adopted

     Aircraft Procurement, Army--Overview
       The budget request for fiscal year 2004 included an 
     authorization of $2,128.5 million for Aircraft Procurement, 
     Army in the Department of Defense.
       The House bill would authorize $2,194.6 million.
       The Senate amendment would authorize $2,159.3 million.
       The conferees recommend an authorization of $2,099.0 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 27644]]

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[[Page 27645]]

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[[Page 27646]]

     UH-60 Blackhawk
       The budget request included $138.9 million to procure ten 
     UH-60 Blackhawk helicopters.
       The House bill would authorize an increase of $52.0 million 
     to procure an additional five UH-60L Blackhawk helicopters 
     for the Army National guard (ARNG) and $60.8 million for four 
     HH-60L medical evacuation Blackhawk helicopters for the ARNG.
       The Senate amendment would authorize an increase of $70.7 
     million to procure an additional seven Blackhawk helicopters 
     for the Army and $800,000 for an inlet barrier system.
       The conferees agree to authorize $70.7 million to procure 
     seven additional UH-60 Blackhawk helicopters to be fielded to 
     the active or reserve component in accordance with Army 
     priorities.
     Missile Procurement, Army--Overview
       The budget request for fiscal year 2004 included an 
     authorization of $1,459.5 million for Missile Procurement, 
     Army in the Department of Defense.
       The House bill would authorize $1,594.7 million.
       The Senate amendment would authorize $1,553.5 million.
       The conferees recommend an authorization of $1,549.5 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 27648]]

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[[Page 27649]]

     Procurement of Weapons and Tracked Combat Vehicles, Army--
         Overview
       The budget request for fiscal year 2004 included an 
     authorization of $1,640.7 million for Procurement of Weapons 
     and Tracked Combat Vehicles, Army in the Department of 
     Defense.
       The House bill would authorize $2,297.4 million.
       The Senate amendment would authorize $1,658.5 million.
       The conferees recommend an authorization of $1,997.3 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 27651]]

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[[Page 27652]]

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[[Page 27653]]

     Other Procurement, Army--Overview
       The budget request for fiscal year 2004 included an 
     authorization of $4,216.9 million for Other Procurement, Army 
     in the Department of Defense.
       The House bill would authorize $4,321.5 million.
       The Senate amendment would authorize $4,268.0 million.
       The conferees recommend an authorization of $4,365.2 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 27655]]

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[[Page 27657]]

     Combat Support Medical
       The budget request included $16.6 million for Combat 
     Support Medical.
       The House bill would authorize an increase of $1.0 million 
     to procure additional computer sets for Army medical 
     logistics battalions.
       The Senate amendment would authorize an increase of $2.0 
     million to procure rapid infusion pumps.
       The conferees agree to authorize an increase of $1.0 
     million to procure additional Combat Automated Service 
     Support-Medical (CASS-M) medical computer sets and an 
     increase of $2.0 million for additional rapid infusion pumps 
     to be fielded to the active or reserve component in 
     accordance with Army priorities.
     Aircraft Procurement, Navy--Overview
       The budget request for fiscal year 2004 included an 
     authorization of $8,788.1 million for Aircraft Procurement, 
     Navy in the Department of Defense.
       The House bill would authorize $9,050.0 million.
       The Senate amendment would authorize $8,996.9 million.
       The conferees recommend an authorization of $9,009.9 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 27659]]

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[[Page 27669]]

     Weapons Procurement, Navy--Overview
       The budget request for fiscal year 2004 included an 
     authorization of $1,991.8 million for Weapons Procurement, 
     Navy in the Department of Defense.
       The House bill would authorize $2,529.8 million.
       The Senate amendment would authorize $2,046.8 million.
       The conferees recommend an authorization of $2,233.5 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 27677]]

     Procurement of Ammunition, Navy and Marine Corps--Overview
       The budget request for fiscal year 2004 included an 
     authorization of $922.4 million for Ammunition Procurement, 
     Navy and Marine Corps in the Department of Defense.
       The House bill would authorize $963.4 million.
       The Senate amendment would authorize $924.3 million.
       The conferees recommend an authorization of $924.3 million. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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[[Page 27680]]

     Shipbuilding and Conversion, Navy--Overview
       The budget request for fiscal year 2004 included an 
     authorization of $11,439.0 million for Shipbuilding and 
     Conversion, Navy in the Department of Defense.
       The House bill would authorize $11,472.4 million.
       The Senate amendment would authorize $11,708.0 million.
       The conferees recommend an authorization of $11,730.0 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 27682]]

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[[Page 27683]]

     Other Procurement, Navy--Overview
       The budget request for fiscal year 2004 included an 
     authorization of $4,679.4 million for Other Procurement, Navy 
     in the Department of Defense.
       The House bill would authorize $4,614.9 million.
       The Senate amendment would authorize $4,741.9 million.
       The conferees recommend an authorization of $4,739.1 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 27693]]

     Procurement, Marine Corps--Overview
       The budget request for fiscal year 2004 included an 
     authorization of $1,071.0 million for Procurement, Marine 
     Corps in the Department of Defense.
       The House bill would authorize $1,154.3 million.
       The Senate amendment would authorize $1,089.6 million.
       The conferees recommend an authorization of $1,123.5 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 27699]]

     Aircraft Procurement, Air Force-Overview
       The budget request for fiscal year 2004 included an 
     authorization of $12,079.4 million for Aircraft Procurement, 
     Air Force in the Department of Defense.
       The House bill would authorize $12,604.5 million.
       The Senate amendment would authorize $12,103.1 million.
       The conferees recommend an authorization of $12,035.2 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 27706]]

     E-8C joint surveillance and target attack radar system 
         reengining
       The budget request included $36.0 million for E-8C joint 
     surveillance and target attack radar system (JSTARS) 
     modifications, but included no funding for reengining of the 
     JSTARS aircraft.
       The House bill would authorize an increase of $27.0 million 
     to begin a reengining program for the E-8C JSTARS aircraft.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize an increase of $5.0 
     million to begin a possible reengining program for the E-8C 
     JSTARS aircraft.
       The conferees understand that the E-8C's current engines 
     are old, inefficient, provide marginal power to support the 
     E-8C's mission taskings, and are expensive to maintain and 
     operate in comparison to new engines currently available in 
     the commercial marketplace. The conferees note that the 
     Department of the Air Force submitted a budget/program fact 
     paper that supported a 16-year lease program for E-8C 
     replacement engines. While the conferees also note that an 
     engine lease was not included in the budget request or on the 
     Air Force's unfunded priority list, the conferees believe 
     that a future E-8C reengining program may be necessary. 
     Accordingly, the conferees direct the Secretary of Defense to 
     provide 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 aircraft. This 
     analysis should compare the options of maintaining the 
     current engines, buying and installing new engines, and 
     leasing and installing new engines. This report should 
     indicate the Department's preferred option, and plans for 
     implementation of that preferred option.
     Overview
       The budget request for fiscal year 2004 included an 
     authorization of $1.3 billion for Ammunition Procurement, Air 
     Force in the Department of Defense.
       The House bill would authorize $1.3 billion.
       The Senate amendment would authorize the budget request.
       The conferees recommend an authorization of $1.3 billion. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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[[Page 27709]]

     Missile Procurement, Air Force-Overview
       The budget request for fiscal year 2004 included an 
     authorization of $4,393.0 million for Missile Procurement, 
     Air Force in the Department of Defense.
       The House bill would authorize $4,348.0 million.
       The Senate amendment would authorize $4,394.4 million.
       The conferees recommend an authorization of $4,298.5 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 27712]]

     Other Procurement, Air Force-Overview
       The budget request for fiscal year 2004 included an 
     authorization of $11,583.7 million for Other Procurement, Air 
     Force in the Department of Defense.
       The House bill would authorize $11,376.1 million.
       The Senate amendment would authorize $11,630.7 million.
       The conferees recommend an authorization of $11,631.9 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 27719]]

     Procurement, Defense-Wide-Overview
       The budget request for fiscal year 2004 included an 
     authorization of $3,665.5 million for Procurement, Defense-
     wide in the Department of Defense.
       The House bill would authorize $3,734.8 million.
       The Senate amendment would authorize $3,855.5 million.
       The conferees recommend an authorization of $3,768.5 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 27725]]

     Advanced SEAL Delivery System advance procurement
       The House bill would authorize $23.6 million, as proposed 
     in the budget request, for the advance procurement of long 
     lead time items associated with the Advanced SEAL Delivery 
     System (ASDS), a flagship acquisition program of the U.S. 
     Special Operations Command (SOCOM).
       The Senate amendment recommended against funding advance 
     procurement for ASDS because of continuing developmental 
     problems plaguing the ASDS program.
       The conferees agree to authorize $23.6 million in 
     procurement, Defense-wide, for ASDS advance procurement, but 
     direct that none of the authorized funds may be obligated or 
     expended until 15 days after the Secretary of Defense 
     notifies the congressional defense committees, in writing, of 
     a favorable Milestone C decision with regard to continuing 
     the ASDS program. This report shall include a detailed 
     summary on the program's revised cost estimate and future 
     cost estimates, as validated by the Cost Analysis and 
     Improvement Group. Additionally, the report shall include: an 
     evaluation of contractor performance, to date; a detailed 
     acquisition strategy; and, a plan to demonstrate realistic 
     solutions to key technical and performance problems 
     identified during operational test and evaluation.
       The conferees remain committed to meeting SOCOM's 
     requirement for this capability, but are concerned that 
     technical and financial problems that have plagued this 
     program since its inception are still not yet fully resolved. 
     The program is six years behind schedule and hundreds of 
     millions of dollars over original cost estimates. It is 
     possible that potential solutions to technical and 
     performance problems, as yet not demonstrated, may require 
     additional design changes. The conferees expect that advance 
     procurement of long lead time items for additional ASDS boats 
     will be delayed until key technical problems are demonstrably 
     resolved and fundamental design of future boats is stable.
     National Guard and Reserve Equipment
       The conferees recommend that, of the amounts appropriated 
     in fiscal year 2004 for National Guard and Reserve equipment, 
     priority consideration should be given to the following 
     items: Joint Threat Emitter System, Improved Target 
     Acquisition System, F-16 Block 42 Re-engining Program, 
     Extended Cold Weather Clothing System, F-16 and A-10 LITENING 
     AT Targeting Pod, Movement Tracking System, Laser 
     Marksmanship Training System, Bladefold Kits for Apache 
     Helicopters, High Mobility Multi-purpose Wheeled Vehicles 
     (HMMWV), Up-Armored HMMWV, Construction Equipment SLEP, AN/
     PVS-14, LITENING II, E-8C nonrecurring engineering for Re-
     engining, and Family of Medium Tactical Vehicles (FMTV).

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (secs. 101-104)
       The House bill contained provisions (secs. 101-104) that 
     would authorize the recommended fiscal year 2004 funding 
     levels for procurement Army, Navy, Marine Corps, Air Force, 
     and Defense-wide activities.
       The Senate amendment contained similar provisions (secs. 
     101-104) and additional provisions (secs. 105-107) that would 
     authorize the recommended fiscal year 2004 funding levels for 
     procurement for the Defense Inspector General, the Chemical 
     Demilitarization Program, and the Defense Health Program.
       The conference agreement includes a provision that would 
     authorize funding levels for the Army, Navy, Marine Corps, 
     Air Force, and Defense-wide activities. The conference 
     agreement includes authorizations for the Defense Inspector 
     General, the Chemical Demilitarization Program, and the 
     Defense Health Program, as provided elsewhere in this 
     conference report.

                       Subtitle B--Army Programs

     Stryker vehicle program (sec. 111)
       The House bill contained a provision (sec. 111) that would 
     withhold $300.0 million from the authorization of 
     appropriations for Stryker vehicle procurement until the 
     Secretary of the Army provided a report to the congressional 
     defense committees. The report would identify options for 
     modifications to the equipment and configuration of the 
     Stryker Brigade Combat Team (SBCT) that would make the SBCT 
     more survivable, more capable across a broader spectrum of 
     combat operations, and capable to be employed independent of 
     higher-level command formations and support. The provision 
     would also direct the Secretary to certify to the 
     congressional defense committees whether fielding the fourth 
     SBCT, as planned, would meet the objectives of a more capable 
     and survivable brigade. The provision would also direct that 
     all funds authorized for appropriation would be spent on 
     Stryker vehicles only.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would withhold 20 
     percent of the budget request for the Stryker vehicle program 
     until the Secretary of the Army provides a report to the 
     congressional defense committees that identifies options for 
     modifications to the equipment and configuration of the SBCT.
     CH-47 helicopter program (sec. 112)
       The Senate amendment contained a provision (sec. 111) that 
     would direct a study of the feasibility and costs and 
     benefits of providing for a second source for the production 
     of gears for CH-47 helicopter transmissions.
       The House bill contained no similar provision.
       The House recedes.

                       Subtitle C--Navy Programs

     Multiyear procurement authority for F/A-18 aircraft program 
         (sec. 121)
       The House bill contained a provision (sec. 121) that would 
     authorize the Secretary of the Navy to enter into a multiyear 
     procurement contract for up to 234 aircraft in the F/A-18E, 
     F/A-18F, and EA-18G configurations. The budget request 
     included a baseline multiyear procurement authority for 42 
     aircraft a year, a total of 210 aircraft, with the 
     flexibility to procure an additional six aircraft a year for 
     the last four years of the multiyear procurement, potentially 
     bringing the total to 234 aircraft.
       The Senate amendment contained a provision (sec. 121) that 
     would authorize the Secretary to enter into multiyear 
     procurement contracts for a number of Navy programs, 
     including the F/A-18E/F program.
       The Senate recedes.
     Multiyear procurement authority for Tactical Tomahawk cruise 
         missile program (sec. 122)
       The House bill contained a provision (sec. 122) that would 
     authorize the Secretary of the Navy to enter into a multiyear 
     procurement contract for the Tactical Tomahawk cruise missile 
     program, limiting the production to no more than 900 cruise 
     missiles in any year.
       The Senate amendment contained a provision (sec. 121) that 
     would authorize the Secretary to enter into multiyear 
     procurement contracts for a number of Navy programs, 
     including the Tactical Tomahawk cruise missile program. The 
     provision would require the Secretary to determine that the 
     cruise missile is effective for fleet use as a result of 
     operational testing before entering into the multiyear 
     procurement contract.
       The Senate recedes with an amendment that would authorize 
     the Secretary to enter into a multiyear procurement contract 
     for the Tactical Tomahawk cruise missile program, limiting 
     the production to no more than 900 cruise missiles in any 
     year. The Secretary would be required to submit a 
     determination to the congressional defense committees that 
     the Tactical Tomahawk cruise missile is effective for fleet 
     use, based on operational testing, before entering into the 
     multiyear procurement contract.
     Multiyear procurement authority for Virginia class submarine 
         program (sec. 123)
       The House bill contained a provision (sec. 123) that would 
     authorize the Secretary of the Navy to enter into a multiyear 
     procurement contract for seven Virginia-class submarines, 
     with a limitation that the Secretary could not enter into the 
     contract until 30 days after submitting a certification of 
     compliance with subsection (a) of section 2306b of title 10, 
     United States Code, to the congressional defense committees.
       The Senate amendment contained a provision (sec. 121) that 
     would authorize the Secretary to enter multiyear procurement 
     contracts for a number of Navy programs, including the 
     Virginia-class submarine, subject to the contractor teaming 
     agreement included in paragraphs (2)(A), (3) and (4) of 
     section 121(b) of the National Defense Authorization Act for 
     Fiscal Year 1998 (Public Law 105-85).
       The Senate recedes with an amendment that would authorize 
     the Secretary to enter into a multiyear procurement contract 
     for Virginia-class submarines. The provision would restrict 
     the Secretary from entering into the contract until 30 days 
     after submitting a certification of compliance with 
     subsection (a) of section 2306b of title 10, United States 
     Code, to the congressional defense committees. The provision 
     also mandates continuance of the teaming arrangement 
     authorized in paragraphs (2)(A), (3), and (4) of section 
     121(b) of the National Defense Authorization Act for Fiscal 
     Year 1998 (Public Law 105-85) for the multiyear procurement 
     contract.
     Multiyear procurement authority for E-2C aircraft program 
         (sec. 124)
       The House bill contained a provision (sec. 124) that would 
     authorize the Secretary of the Navy to enter into multiyear 
     procurement contracts for the procurement of four E-2C 
     aircraft, four TE-2C aircraft, and 16 engines for aircraft in 
     the E-2C or TE-2C configuration. The provision would limit 
     the period of the contract to four program years.
       The Senate amendment contained a provision (sec. 121) that 
     would authorize the Secretary to enter into multiyear 
     procurement contracts for a number of Navy programs, 
     including the E-2C aircraft program.
       The Senate recedes with an amendment that would authorize 
     the Secretary to enter into multiyear procurement contracts 
     for E-2C aircraft, TE-2C aircraft, and engines for aircraft 
     in the E-2C and TE-2C configurations, with the period of the 
     contract limited to four program years.
     Multiyear procurement authority for Phalanx close in weapon 
         system program (sec. 125)
       The House bill contained a number of separate provisions 
     which would authorize Navy

[[Page 27726]]

     multiyear procurement contracts, but did not have multiyear 
     procurement authorization for the Phalanx CIWS-1B program.
       The Senate amendment contained a provision (sec. 121) that 
     would authorize the Secretary of the Navy to enter into 
     multiyear procurement contracts for a number of Navy 
     programs, including block 1B of the Phalanx close in weapon 
     system (CIWS-1B).
       The House recedes with an amendment that would authorize 
     the Secretary to enter into a multiyear procurement contract 
     for the Phalanx CIWS-1B program.
     Pilot program for flexible funding of cruiser conversions and 
         overhauls (sec. 126)
       The Senate amendment contained a provision (sec. 122) that 
     would authorize a pilot program through which the Secretary 
     of the Navy could transfer funds from certain appropriations 
     accounts to procurement for shipbuilding and conversion 
     accounts. The provision would authorize the pilot program 
     from fiscal year 2004 through fiscal year 2012. The provision 
     would allow the transfer of funds to provide funds for 
     conversion or overhaul of cruisers when it is due to an 
     increase in the workload to meet conversion or overhaul 
     requirements, or a new conversion or overhaul requirement is 
     established. The Secretary would not be able to make a 
     transfer under this section for 30 days after a notification 
     containing details of the transfer is transmitted to the 
     congressional defense committees.
       The House bill contained no similar provision.
       The House recedes.

                     Subtitle D--Air Force Programs

     Elimination of quantity limitations on multiyear procurement 
         authority for C-130J aircraft (sec. 131)
       The House bill contained a provision (sec. 132) that would 
     amend section 131(a) of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314) 
     by raising the number of C-130J aircraft authorized in the 
     current multiyear procurement contract from 40 aircraft to 42 
     aircraft.
       The Senate amendment contained a provision (sec. 131) that 
     would amend section 131(a) of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314) 
     by eliminating the numerical limits in the current multiyear 
     procurement contract for C-130J aircraft in the CC-130J and 
     KC-130J configurations.
       The House recedes.
     Limitation on retiring C-5 aircraft (sec. 132)
       The House bill contained a provision (sec. 133) that would 
     prevent the Secretary of the Air Force from retiring C-5A 
     aircraft from the active inventory of the Air Force in any 
     number that would reduce the total number of C-5 aircraft in 
     the active inventory below 112, until the Air Force has 
     modified a C-5A aircraft with the reliability enhancement and 
     reengining program; and the Director, Operational Test and 
     Evaluation, has submitted an operational assessment of that 
     aircraft based on an operational evaluation.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Limitation on obligation of funds for procurement of F/A-22 
         aircraft (sec. 133)
       The House bill contained a provision (sec. 134) that would 
     prohibit the obligation of $136.0 million of the funds 
     appropriated for F/A-22 aircraft procurement in fiscal year 
     2004 until the Under Secretary of Defense for Acquisition, 
     Technology and Logistics (USD (AT&L)) certifies the 
     following: (1) four F/A-22 operational test aircraft are 
     equipped with version 3.1.2 or later of the operational 
     flight program; and, (2) these four aircraft, so equipped, 
     have demonstrated 20 hours mean time between avionics 
     software instability events. The provision would include a 
     waiver by which the Secretary of Defense could waive this 
     limitation in the event the USD (AT&L) was unable to make the 
     certification.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would: (1) change 
     the number of test aircraft to five aircraft for the 
     operational test, plus the avionics test aircraft, and ensure 
     that all aircraft are equipped with the software operational 
     flight program configured for initial operational test and 
     evaluation (IOT&E); and, (2) change the software stability 
     metric to five hours mean time between avionics anomalies, 
     classified as software events of type 1 or type 2 failures, 
     or a hardware event of type 5 failure.
       The conferees understand that much attention has been given 
     to the F/A-22 aircraft software stability over the last 
     several months, and that significant improvement has been 
     made in this area. However, the conferees are concerned that 
     the Department of Defense has focused so keenly on software 
     stability that they may be missing other aspects of 
     reliability and maintainability contained in the operational 
     requirements document. Meeting these operational suitability 
     requirements will, in the end, determine the operational 
     utility of the aircraft, and deserve senior level attention.
     Aircraft for performance of aerial refueling mission (sec. 
         134)
       The Senate amendment contained a provision (sec. 367) that 
     would restrict the Secretary of the Air Force from retiring 
     more than 12 KC-135E aerial refueling aircraft in fiscal year 
     2004. The provision would also require the Secretary to 
     submit an analysis of alternatives, conducted by a federally 
     funded research and development center or another entity 
     independent of the Department of Defense, for meeting Air 
     Force aerial refueling requirements to the congressional 
     defense committees not later than March 1, 2004.
       The House bill contained no similar provision.
       The House recedes.
     Procurement of tanker aircraft (sec. 135)
       The conferees recommend a provision that would authorize 
     the Secretary of the Air Force to enter into a lease for no 
     more than 20 aerial refueling tanker aircraft, and would 
     further authorize the Secretary of the Air Force to enter 
     into a multiyear procurement program, using incremental 
     funding, for up to 80 aerial refueling aircraft for not in 
     excess of 10 program years beginning as early as fiscal year 
     2004.
       The provision would also require the Secretary of Defense 
     to conduct a study to identify alternative means for meeting 
     the long-term requirements of the Air Force for both the 
     maintenance and training in the operation of aerial refueling 
     aircraft leased or procured through this program. This study 
     would be delivered to the congressional defense committees no 
     later than April 1, 2004.
       The conferees expect that this study would identify a time 
     frame within which the program could transition to 
     competitively-based maintenance, and within which the program 
     could transition to a centralized training concept consistent 
     with those used by other Air Force airlift and tanker 
     aircraft with comparable numbers of aircraft in the force 
     structure.
     Air Force Air Refueling Transfer Account
       The House bill contained a provision (sec. 131) that would 
     establish an account for the Department of the Air Force, 
     known as the Air Force Air Refueling Transfer Account. The 
     provision would authorize $229.2 million for the necessary 
     expenses to prepare for leasing of tanker aircraft under 
     section 8159 of the Department of Defense Appropriations Act 
     for Fiscal Year 2002 (division A of Public Law 107-117), for 
     the necessary expenses to prepare for the purchase of tanker 
     aircraft for the Air Force, or for retaining in active 
     service (rather than retiring) KC-135E aircraft.
       The Senate amendment contained no similar provision.
       The House recedes.
     Subtitle E--Other Programs

                   Legislative Provisions Not Adopted

     B-1B bomber aircraft
       The Senate amendment contained a provision (sec. 132) that 
     would authorize $20.3 million for the reconstitution of B-1B 
     bomber fleet, offset by a commensurate reduction from funds 
     for Special Operations Forces operational enhancements. It 
     would also require the Secretary of the Air Force to submit a 
     report to the congressional defense committees on the amount 
     necessary to be included in the future-years defense program 
     to reconstitute the entire B1-B bomber aircraft fleet.
       The House bill contained no similar provision, but included 
     an increase of $20.3 million for the B-1B.
       The Senate recedes.
       The conferees agree to authorize an increase of $20.3 
     million for the B-1B bomber, as noted elsewhere in this 
     conference report.
     Configuration of the fourth Stryker brigade combat team
       The House bill contained a provision (sec. 112) that would 
     authorize an increase of $100.0 million in Procurement of 
     Weapons and Tracked Combat Vehicles, Army, for the 
     procurement of additional lethality and sustainability 
     enhancements for the fourth Stryker brigade combat team.
       The Senate amendment contained no similar provision.
       The House recedes.
     LPD-17 class vessel
       The House bill contained a provision (sec. 125) that would 
     authorize an increase for shipbuilding and conversion for 
     advance procurement of long-lead items, including the 
     advanced fabrication of components, for the LPD-17 class 
     vessel. This authorization would be for the lesser amount of 
     $200.0 million or funds appropriated in any fiscal year 2003 
     act making supplemental appropriations, after May 7, 2003, 
     for the procurement of Tomahawk cruise missiles.
       The Senate amendment contained no similar provision.
       The House recedes.
     Rapid infusion pumps
       The Senate amendment contained a provision (sec. 112) that 
     would authorize an increase of $2.0 million in Other 
     Procurement, Army, for the procurement of medical rapid 
     infusion (IV) pumps.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize an increase of $2.0 
     million for rapid infusion pumps, as noted elsewhere in this 
     conference report.
     Reduction in authorization
       The Senate amendment contained a provision (sec. 108) that 
     would reduce procurement, Defense-wide, Special Operations

[[Page 27727]]

     Forces rotary wing upgrades by $2.1 million and procurement, 
     Defense-wide, Special Operations Forces operational 
     enhancements by $1.2 million, for a total reduction of $3.3 
     million. After Senate Armed Services Committee action on the 
     National Defense Authorization Bill (S. 1050), the Commander, 
     U.S. Special Operations Command, was able to procure certain 
     unfunded priorities with fiscal year 2003 supplemental 
     funding, obviating the need for certain additions included in 
     the original bill.
       The House bill contained no similar provision.
       The Senate recedes.

         Title II--Research, Development, Test, and Evaluation

     Overview
       The budget request for fiscal year 2004 included an 
     authorization of $61,826.7 million for Research and 
     Development for the Department of Defense.
       The House bill would authorize $62,723.8 million.
       The Senate amendment would authorize $63,212.3 million.
       The conferees recommend an authorization of $63,384.7 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 27729]]

     Department of Defense science and technology funding
       The budget request included $10,232.0 million for defense 
     science and technology, including all Defense-wide and 
     military service funding for basic research, applied 
     research, and advanced technology development. To address the 
     conferees' concerns with respect to critical shortcomings in 
     the budget request, the conferees recommend an authorization 
     of $11,029.6 million, an increase of $797.6 million for the 
     Department of Defense (DOD) Science and Technology (S&T) 
     Program.
       The past year has provided numerous examples of successful 
     technology development and deployment. The men and women of 
     the U.S. Armed Forces are better equipped, trained, and 
     protected because of revolutionary breakthroughs emerging 
     from the technology base. The Global War On Terrorism has 
     provided a showcase for precision munitions, unmanned and 
     robotic systems, instantaneous global communications, and 
     other technologies that enable our military superiority. With 
     continued robust and stable science and technology 
     investments, future forces will leverage revolutionary 
     technologies such as directed energy, nanotechnology, and 
     intelligent robotics to accomplish their missions.
       The conferees commend the Department for increasing the 
     budget request for science and technology by nearly 25 
     percent over the past two fiscal years and moving towards 
     meeting the Secretary of Defense's goal of funding the 
     Science and Technology Program at three percent of the 
     overall defense budget. In addition, the Department continues 
     to make great strides in meeting the difficult challenges of 
     technology transition and, throughout the past year, in 
     successfully delivering revolutionary capabilities to the 
     warfighter, ranging from thermobaric weapons to enhanced 
     armor and protective systems to multilingual translation 
     devices. The conferees note that the Technology Transition 
     Initiative and the Defense Acquisition Challenge Program, 
     programs originally established in the Bob Stump National 
     Defense Authorization Act for Fiscal Year 2003 (Public Law 
     107-314), continue to be successfully implemented by the 
     Department to address critical transition challenges. 
     Finally, the conferees note that the Office of the Director 
     of Defense Research and Engineering has organized an 
     important effort to address the critical workforce issues 
     facing the Nation's defense research laboratories. The issues 
     confronting the national treasures of the defense laboratory 
     system cannot be overstated and will require forceful 
     advocacy within the Department in the future.
       Despite the positive aspects of the Department's Science 
     and Technology Program, the conferees are concerned about 
     long-term projections for reductions in DOD science and 
     technology as a percentage of total obligation authority, 
     which are well below the three percent level, and in short-
     term trends in the science and technology accounts of some of 
     the military departments and defense agencies. In particular, 
     the conferees share the concerns raised by the House 
     regarding the Navy Science and Technology Program. As 
     highlighted in the House report accompanying H.R. 1588 (H. 
     Rept. 108-106), ``. . . the Navy's core science and 
     technology program is reduced to $1.48 billion, $460.0 
     million less than last year's appropriated level, 1.3 percent 
     of the total Department of the Navy budget, and the lowest in 
     total and percentage funding of the military departments. The 
     budget request represents the second straight year of a 
     significant reduction in the Navy's science and technology 
     program.''
       The conferees remain concerned that the level of investment 
     in basic, long-term research remains anemic. This account 
     will provide the next generation of warfighters with the 
     equipment, training, and protection they will require in 
     future conflicts. As the investment in science and technology 
     continues to grow towards the Secretary's three percent goal, 
     the basic research accounts must grow at comparable rates. In 
     the face of growing near-term requirements and budget 
     pressures, the Department must work to preserve its long 
     range view of technology development and embrace the role 
     that fundamental research plays in the future of our 
     military. The recent successes of the technology base in the 
     Global War On Terrorism should not lead to an expectation of 
     science on demand.
       The conferees also note that increasingly, scientific and 
     technical advances are creating policy, privacy, and 
     regulatory issues that must be addressed prior to final 
     development and deployment of new technologies. These issues 
     must be adequately addressed in parallel with research and 
     technology development so that new capabilities are delivered 
     to warfighters in a manner that is consistent with well 
     developed and technically informed policies.

                                  ARMY

     Research, Development, Test and Evaluation, Army--Overview
       The budget request for fiscal year 2004 included an 
     authorization of $9,122.8 million for Research, Development, 
     Test and Evaluation, Army in the Department of Defense.
       The House bill would authorize $9,338.4 million.
       The Senate amendment would authorize $9,016.2 million.
       The conferees recommend an authorization of $9,544.8 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 27743]]

     Patriot Advanced Capability-3 spiral development
       The budget request included in $174.5 million in PE 64865A 
     for Patriot Advanced Capability-3 (PAC-3) advanced 
     development; $276.3 million in PE 63869A for research and 
     development on the Medium Extended Air Defense System 
     (MEADS); $44.5 million in PE 23801A for development of 
     Patriot system improvements; $561.6 million in Missile 
     Procurement, Army, for procurement of 108 PAC-3 missiles; and 
     $212.6 million in Missile Procurement, Army, for procurement 
     of Patriot system modifications.
       The House bill would authorize $253.5 million in PE 64865A 
     for PAC-3 advanced development, an increase of $79.0 million; 
     $276.3 million for MEADS research and development, the 
     requested amount, but would transfer funding for the program 
     to the Missile Defense Agency (MDA) in PE 63881C; $44.5 
     million in PE 23801A, the requested amount; $687.6 for 
     procurement of 138 PAC-3 missiles and improvements in PAC-3 
     communications and radar, an increase of $126.0 million and 
     30 missiles; and $212.6 million, the requested amount, for 
     procurement of Patriot system modifications.
       The Senate amendment would authorize the merger of PAC-3 
     advanced development and MEADS research and development into 
     a single PAC-3 spiral development program, with funds for the 
     new alignment in a MDA program element. Specifically, the 
     Senate amendment would authorize no funding in PE 64865A, a 
     decrease of $174.5 million; no funding in PE 63869A, a 
     decrease of $276.3 million; $415.8 million in PE 64865C, an 
     increase of $415.8 million; $48.5 million in PE 23801A, an 
     increase of $4.0 million for the light antenna mast group; 
     and $223.6 million in Missile Procurement, Army, an increase 
     of $11.0 million for procurement of unfunded PAC-3 
     requirements identified by the Army. Of the funds authorized 
     in PE 64865C, $20.0 million would be directed toward meeting 
     high priority unfunded PAC-3 evolutionary development efforts 
     identified by the Army. Funding in this program element would 
     represent an increase of $20.0 million for PAC-3 development 
     and a decrease of $55.0 million for legacy MEADS development 
     efforts.
       The conferees agree to authorize $450.7 million in PE 
     63869A for PAC-3 spiral development. This funding represents 
     the combined requests for PAC-3 development and MEADS, merged 
     into a single account under the auspices of the Army. The 
     conferees also agree to authorize $45.5 million in PE 23801A, 
     an increase of $1.0 million for the light antenna mast group; 
     $651.6 million in Missile Procurement, Army, for 138 PAC-3 
     missiles, an increase of $90.0 million and 30 missiles; and 
     $212.6 million, the budget request, for procurement of 
     Patriot system modifications.
       Subsequent to the submission of the budget request, the 
     Under Secretary of Defense for Acquisition, Technology, and 
     Logistics approved the Army's plan for the merger of MEADS 
     and PAC-3 development under Army management. The conferees 
     agree that the PAC-3 development program and the MEADS 
     research and development program are best managed as a single 
     coordinated effort and funded in a single program element. 
     The conferees expect that such a management structure will 
     lead to the development of technologies that can be used in 
     subsequent PAC-3 block procurement, resulting in more rapid 
     deployment of MEADS objective capabilities.
       The conferees support the administration's efforts to 
     encourage participation by U.S. allies and friends in the 
     development of ballistic missile defenses. MEADS has been an 
     example of those efforts. The conferees support a continuing, 
     meaningful role for Germany and Italy in the combined 
     development program.
       The conferees recognize that PAC-3 also has air and cruise 
     missile defense missions and that consequently the 
     administration recommended that a merged PAC-3/MEADS program 
     be funded in the Army. The conferees understand that programs 
     with multiple missions, such as PAC-3, pose difficult 
     management challenges. The conferees note that MDA is 
     responsible for ballistic missile defense research and 
     development; the services are responsible for air and cruise 
     missile defense development, procurement of air and missile 
     defense systems, and product improvement of those systems; 
     and the Joint Theater Air and Missile Defense Organization is 
     responsible for air and missile defense architectures. The 
     conferees direct the Secretary of Defense to review this 
     division of responsibilities, and to make any recommendations 
     for changes to this management structure he deems desirable 
     to the Committees on Armed Services of the Senate and House 
     of Representatives by March 1, 2004.
       The conferees also recognize that the transition of 
     ballistic missile defense program procurement to the services 
     poses serious management challenges for the spiral 
     development of enhanced capabilities in the future. The 
     conferees believe that MDA should retain the authority 
     necessary to assure proper integration of missile defense 
     assets. The conferees direct the Secretary of Defense to 
     review the MDA's current authorities and planning for spiral 
     development, and to make any recommendations for changes to 
     these authorities and plans he deems desirable to the 
     Committees on Armed Services of the Senate and House of 
     Representatives by March 1, 2004.
       The conferees reemphasize the priority placed by Congress 
     and the President on development of defenses against 
     ballistic missiles. The conferees understand that the Army 
     has other competing priorities for force modernization and 
     transformation funds. However, the conferees expect that the 
     Army will obligate and expend funds authorized and 
     appropriated for PAC-3/MEADS development solely for that 
     purpose.
     Space-based Radar
       The budget request included $274.1 million for the space-
     based radar program.
       The conferees agree to authorize $199.1 million for the 
     space-based radar program, a reduction of $75.0 million.
       The conferees continue to support the Department's plans to 
     develop a Space-based Radar (SBR) system to support both 
     military and intelligence missions. The conferees note that 
     the program is in an early development phase, and 
     consequently both the system's planned architecture and its 
     concept of operations are as yet unclear. The conferees 
     believe that robust competition will be important to 
     achieving the most effective SBR technologies, architectures, 
     and concepts of operations.
       The Senate report (S. Rept. 108-46) included a requirement 
     that the Secretary of the Air Force submit two reports on 
     options for Space-Based Radar architectures and spiral 
     developments. In lieu of these reports, the conferees direct 
     that the Secretary of the Air Force and the Under Secretary 
     of Defense for Intelligence to jointly submit a report to the 
     congressional defense and intelligence committees by March 
     30, 2004, and a follow-on report by March 15, 2005, on the 
     SBR capabilities and concepts of operation to meet both 
     military and intelligence community needs, and the options 
     for the SBR architecture, technology, and spiral 
     developments. These reports should include, when available, a 
     description of the initial architecture planned for SBR, the 
     rationale for choosing the initial architecture and spiral 
     development planned for the system and for rejecting the 
     alternatives, an assessment of the cost effectiveness of SBR 
     architecture and spiral alternatives that were evaluated, and 
     a description of the competitive processes used to ensure 
     that all relevant technologies, architectures, and concepts 
     of operations were thoroughly evaluated.
       The conferees believe that proper definition of system 
     capabilities and coordination with the intelligence community 
     are key to success for the SBR program. The conferees 
     understand that the Under Secretary of the Air Force intends 
     to issue the request for proposal (RFP) for phase A SBR 
     concept development and analysis of alternatives only after 
     the Joint Requirements Oversight Council and the Mission 
     Requirements Board agree on a statement of SBR capabilities 
     and concepts of operations. The conferees fully support this 
     approach. The conferees direct the Under Secretary of the Air 
     Force to issue the RFP only after this agreement has been 
     achieved. If this RFP has not been issued within 60 days of 
     the date of enactment of this Act, the conferees further 
     direct the Secretary of Defense and the Director of Central 
     Intelligence to provide a report describing the reasons for 
     the delay to the Committees on Armed Services of the Senate 
     and House of Representatives, the Select Committee on 
     Intelligence of the Senate and the Permanent Select Committee 
     on Intelligence of the House of Representatives. If required, 
     this report shall be provided no later than March 30, 2004.

                                  NAVY

     Research, Development, Test and Evaluation, Navy-Overview
       The budget request for fiscal year 2004 included an 
     authorization of $14,106.7 million for Research, Development, 
     Test and Evaluation, Navy in the Department of Defense.
       The House bill would authorize $14,364.5 million.
       The Senate amendment would authorize $14,604.8 million.
       The conferees recommend an authorization of $14,845.5 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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                               AIR FORCE

     Research, Development, Test and Evaluation, Air Force--
         Overview
       The budget request for fiscal year 2004 included an 
     authorization of $20,336.3 million for Research, Development, 
     Test and Evaluation, Air Force in the Department of Defense.
       The House bill would authorize $20,552.9 million.
       The Senate amendment would authorize $20,389.5 million.
       The conferees recommend an authorization of $20,555.7 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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     Operationally responsive launch
       The budget request included $24.2 million in PE 64855F for 
     operationally responsive launch.
       The House bill would authorize $36.2 million in PE 64855F, 
     an increase of $12.0 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $26.2 million, an increase 
     of $2.0 million, for technology development for operationally 
     responsive launch.
       The conferees understand that the Air Force intends to 
     conduct an analysis of alternatives prior to awarding two 
     development contracts in the third quarter of fiscal year 
     2004. The conferees direct the Secretary of the Air Force to 
     take appropriate steps to ensure that technologies that are 
     potentially important to operationally responsive launch 
     continue to mature during this analysis of alternatives.


                              DEFENSE-WIDE

     Research, Development, Test and Evaluation, Defense-Wide-
         Overview
       The budget request for fiscal year 2004 included an 
     authorization of $17,974.3 million for Research, Development, 
     Test and Evaluation, Defense-wide in the Department of 
     Defense.
       The House bill would authorize $18,181.4 million.
       The Senate amendment would authorize $18,849.0 million.
       The conferees recommend an authorization of $18,152.1 
     million. Unless noted explicitly in the statement of 
     managers, all changes are made without prejudice.

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[[Page 27785]]

     Chemical and biological defense program applied research
       The budget request included $106.5 million in PE 62384BP 
     for chemical and biological defense program applied research.
       The House bill would authorize $136.5 million in PE 62384BP 
     for chemical and biological defense program applied research, 
     including $25.0 million for a chemical-biological defense 
     applied research initiative and $5.0 million for mustard gas 
     antidote.
       The Senate amendment would authorize $127.5 million in PE 
     62384BP for chemical and biological defense program applied 
     research, including $2.0 million for acoustic wave sensor 
     technology, $3.5 million for water quality sensors, $3.0 
     million for mustard gas antidote, $6.5 million for 
     bioinformatics, $2.0 million for sensor technologies, $3.0 
     million for food security technologies, and $1.0 million for 
     nerve agent decontamination technologies.
       The conferees agree to authorize $142.0 million in PE 
     62384BP for chemical and biological defense program applied 
     research, including $17.5 million for a chemical-biological 
     defense applied research initiative, $2.0 million for 
     acoustic wave sensor technology, $3.5 million for water 
     quality sensors, $5.0 million for mustard gas antidote, $6.5 
     million for bioinformatics, and $1.0 million for nerve agent 
     decontamination technologies.
       The conferees note that projects and technologies to be 
     considered for funding under the chemical-biological defense 
     program applied research initiative should be selected on the 
     basis of technical and potential operational merit. The 
     conferees recommend that the projects and technologies to be 
     considered for funding under the chemical-biological defense 
     program applied research initiative should include, but are 
     not limited to, the following: air contaminant monitoring 
     system; automated liquid phase detection of toxic chemicals; 
     rapid decontamination system for nerve agents; rapid 
     antibody-based biological countermeasures (RABBC); and 
     multivalent Ebola-Marburg filovirus technologies.
     Ballistic missile defense products
       The budget request included $343.6 million in PE 63889C for 
     ballistic missile defense (BMD) products.
       The House bill would authorize $312.5 million, a reduction 
     of $31.1 million.
       The Senate amendment would authorize the budget request.
       The conferees agree to authorize $343.6 million, the budget 
     request, for BMD products.
       The conferees direct the Secretary of Defense to prioritize 
     funding in this line to maximize the effectiveness of the 
     initial defensive operations capability and to ensure that 
     sufficient modeling and simulation is conducted to verify the 
     effectiveness of BMD system battle management and command and 
     control.
     Ballistic missile defense system core
       The budget request included $484.0 million in PE 63890C for 
     ballistic missile defense system (BMDS) core activities.
       The House bill would authorize $439.0 million in PE 63890C, 
     a reduction of $45.0 million.
       The Senate amendment would authorize $481.0 million in PE 
     63890C, an increase of $2.0 million for the Advanced Research 
     Center and a decrease of $5.0 million for lethality testing.
       The conferees agree to authorize $446.0 million in PE 
     63890C, an increase of $2.0 million for the Advanced Research 
     Center, an increase of $5.0 million for wide bandwidth 
     technology, and a program reduction of $45.0 million.
       The conferees are aware that the Missile Defense Agency 
     (MDA) believes that a program reduction to BMDS core 
     activities could significantly disrupt MDA's efforts to field 
     an initial capability by the end of fiscal year 2004 and will 
     slow the effort to define and develop the interfaces needed 
     to assure an integrated missile defense system with enhanced 
     capabilities. The conferees support the President's decision 
     to field an initial set of missile defense capabilities and 
     understand the utility of integrating disparate BMDS elements 
     into a single integrated BMD system. The conferees encourage 
     MDA to more clearly define discrete products generated by 
     BMDS core activities and the purpose of these products, along 
     with associated costs and schedules, to allow for better 
     congressional oversight in these matters.

                          TEST AND EVALUATION

     Operational Test and Evaluation, Defense-Overview
       The budget request for fiscal year 2004 included an 
     authorization of $286.7 million for Operational Test and 
     Evaluation, Defense.
       The House bill would authorize $286.7 million.
       The Senate amendment would authorize $286.7 million.
       The conferees recommend an authorization of $286.7 million. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

[[Page 27786]]

     [GRAPHIC] [TIFF OMITTED] TH06NO03.139
     


[[Page 27787]]

                       Items of Special Interest

     Manned airborne reconnaissance aircraft replacement
       Recent military operations in Iraq and Afghanistan, along 
     with broader requirements to support the global war on 
     terrorism and standing global reconnaissance requirements, 
     have placed enormous operational tempo demands on manned 
     airborne reconnaissance platforms operated by the U.S. Army, 
     Navy, and Air Force. The limited number of these assets and 
     the large number of requirements placed on them have led to 
     their designation as ``high demand/low density'' assets that 
     have to be intensively managed by the Department of Defense 
     (DOD) to ensure the most productive, efficient use. While 
     many of these airborne reconnaissance platforms were 
     initially developed for service-specific reconnaissance 
     requirements, over time they have evolved into a patchwork 
     airborne reconnaissance architecture that is not optimized to 
     support national and combatant commanders' intelligence 
     requirements.
       Congress established the position of Under Secretary of 
     Defense for Intelligence (USD(I)) in the National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314). 
     A clear intent of that action was to create a position and an 
     organization in DOD that would better assess service and 
     Defense-wide intelligence requirements, and better develop, 
     coordinate and integrate current and projected DOD 
     intelligence capabilities in support of service, joint, and 
     national intelligence collection requirements. The conferees 
     expect the USD(I) to move expeditiously to establish 
     requirements for the development of a fully integrated manned 
     and unmanned airborne reconnaissance architecture for the 
     future that has adequate capabilities and availability to 
     meet projected requirements, minimizes unnecessary 
     duplication of effort, and maximizes operational efficiency.
       Some of these platforms, such as the Navy's EP-3E and the 
     Army's RC-12 Guardrail, are nearing the end of their expected 
     service lives and are in urgent need of replacement. The 
     conferees are concerned that while the need to recapitalize 
     manned airborne reconnaissance platforms in a coordinated, 
     integrated fashion is well known within the DOD, only the 
     Army has established a formal program for replacing its 
     legacy manned airborne signals intelligence reconnaissance 
     platforms by the competitive development and production of 
     the Aerial Common Sensor (ACS).
       The conferees are aware that the Navy is interested in 
     taking advantage of the work done by the Army on ACS, and is 
     considering the adoption of an ACS-based solution for 
     replacement of the EP-3E. The conferees applaud the Navy 
     efforts to establish a joint program with the Army, but are 
     concerned that a thorough analysis of options has not yet 
     been conducted. While the Navy did commission an initial 
     analysis of options, the conferees feel a more rigorous, 
     thorough analysis is warranted for such an important program.
       The conferees direct the Secretary of Defense to conduct a 
     thorough analysis of options to replace the EP-3E mission 
     capability. The analysis should be conducted as expeditiously 
     as possible in order to avoid delaying an EP-3E replacement. 
     The conferees expect that the analysis should evaluate: (1) 
     all reasonable alternatives, including all manned and 
     unmanned replacement alternatives, such as the RC-135 Rivet 
     Joint, Global Hawk unmanned aerial vehicle, and the ACS; (2) 
     the consistency of the cost methodology; and, (3) a solution 
     that maximizes signals intelligence capability, low life-
     cycle costs, and increases interoperability. In order to 
     ensure the Navy makes a well-founded acquisition decision, 
     the conferees direct the Secretary of the Navy not to proceed 
     with the acquisition of an EP-3E replacement until this 
     analysis is complete and Defense Acquisition Board approval 
     has been granted. The Navy should use additional funding that 
     may be available to expedite the study, analysis, and 
     decision making processes.
       The conferees are also concerned that the Air Force has not 
     moved more aggressively to analyze program alternatives for 
     replacing or modernizing the RC-135, which will also be 
     required in future years. The conferees believe that, when it 
     is time to replace the RC-135 platform, DOD could avail 
     itself of more modern platforms that use state of the art 
     technology in aircraft and intelligence collection systems, 
     emphasize lower operating costs, and take full advantage of 
     robust communications capabilities to reduce platform size, 
     weight, and operational costs.
       The conferees direct the Secretary of Defense to conduct a 
     formal Analysis of Alternatives (AOA) for replacement or 
     modernization of the RC-135 mission. The AOA shall consider 
     all manned and unmanned replacement alternatives, including 
     high altitude, long endurance unmanned aerial vehicles, an 
     ACS-based option, and more cutting edge technologies such as 
     high altitude aero-bodies. The AOA should also specifically 
     address the option of forming a joint program with Army, 
     Navy, and Air Force participation.
       The conferees expect these analyses will be coordinated 
     with the Under Secretary of Defense for Acquisition, 
     Technology and Logistics and the USD(I), and will be a 
     consistent part of the comprehensive effort by the USD(I) to 
     establish requirements for the development of a fully 
     integrated manned and unmanned airborne reconnaissance 
     architecture that makes appropriate use of reach-back 
     technology.
     Sniper detection systems
       The conferees note the growing need for reliable sniper 
     detection systems and support the use of technology to 
     rapidly and reliably classify and precisely locate hostile 
     fire in complex and urban terrain. The conferees further note 
     continuing work in several alternate technologies for sniper 
     detection by various defense agencies and laboratories. The 
     conferees encourage the Department of Defense to support 
     accelerated research and development for such technologies to 
     protect the lives of U.S. service personnel.
     Supercomputer research and development
       The conferees encourage the Secretary of Defense and the 
     Secretary of Energy to take measures to ensure that the 
     United States continues to be the world leader in 
     supercomputing applications and infrastructure. The conferees 
     note that the July 2002, ``Report on High Performance 
     Computing for the National Security,'' submitted by the 
     Department of Defense, stated that supercomputing ``.  .  . 
     has been a key technology in the development of our nuclear 
     arsenal, other major weapon systems, in critical intelligence 
     fields of image processing and cryptanalysis, and as a key 
     enabler for U.S. leadership in national-security fields of 
     science and discovery.'' The conferees believe it is 
     necessary to support a robust research and development 
     program for basic and applied research on supercomputing 
     systems and applications to maintain the United States' 
     competitive position in the global marketplace and to meet 
     military requirements.

                     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 2004 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 an identical provision (sec. 
     201) and additional provisions (secs. 203-204) that would 
     authorize the recommended fiscal year 2004 funding levels for 
     research, development, test, and evaluation for the Defense 
     Inspector General and the Defense Health Program.
       The conference agreement includes a provision that would 
     authorize funding levels for the Army, Navy, Marine Corps, 
     Air Force, Defense-wide activities, and the Director of Test 
     and Evaluation. The conference agreement includes 
     authorizations for the Defense Inspector General and the 
     Defense Health Program, as provided elsewhere in this 
     conference report.
     Amount for defense science and technology (sec. 202)
       The budget request included an authorization of $10,232.0 
     million for Department of Defense (DOD) science and 
     technology programs.
       The House bill would authorize $10,893.1 million.
       The Senate amendment would authorize $10,705.6 million.
       The conferees agree to authorize $11,029.6 million for DOD 
     science and technology programs. Unless noted explicitly in 
     the statement of managers, all changes are made without 
     prejudice.

    Subtitle B--Program Requirements, Restrictions, and Limitations

     Collaborative program for development of electromagnetic gun 
         technology (sec. 211)
       The House bill contained a provision (sec. 211) that would 
     establish a collaborative program for the development of 
     electromagnetic gun technology.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
       The conferees note that electromagnetic guns show 
     significant potential to transform the capabilities of our 
     military forces. The conferees believe that the program 
     established by this provision should be a robustly funded, 
     joint endeavor that aggressively develops and transitions 
     electromagnetic gun systems and supporting technologies to 
     warfighters, while continuing to address the fundamental 
     scientific issues supporting their development.
       The conferees direct the Director of Defense Research and 
     Engineering to assign lead responsibility to appropriate 
     organizations within the Department of Defense for the 
     development of the various enabling technologies to achieve 
     the program's goals. The conferees note that the Army, Navy, 
     and Defense Advanced Research Projects Agency each have 
     unique expertise, capabilities, and resources to support this 
     Department of Defense program. The conferees believe that the 
     memorandum of agreement established for the program should 
     clearly delineate the roles and responsibilities for each of 
     the participating organizations.

[[Page 27788]]


     Leadership and duties of Department of Defense Test Resource 
         Management Center (sec. 212)
       The House bill contained a provision (sec. 212) that would 
     amend section 196(b)(1) of title 10, United States Code, to 
     provide that, in addition to a commissioned officer of the 
     armed forces serving on active duty, the Secretary of Defense 
     may also consider for possible selection as Director of the 
     Department of Defense Test Resource Management Center (DTRMC) 
     a senior civilian official or employee of the Department of 
     Defense who has substantial experience in the field of test 
     and evaluation.
       The Senate amendment contained a similar provision (sec. 
     862) that would also clarify that the Director of Operational 
     Test and Evaluation (DOT&E) budget is not subject to review 
     by the DTRMC and that DOT&E access to records and data would 
     include relevant operational records and data for systems 
     that are deployed prior to the completion of the operational 
     test and evaluation.
       The House recedes with an amendment that would authorize 
     the selection of a senior civilian official as Director of 
     the DTRMC and provide that the DOT&E budget is not subject to 
     review by the DTRMC. The issue of DOT&E access to operational 
     records and data is addressed elsewhere in this conference 
     report.
     Development of the joint tactical radio system (sec. 213)
       The House bill contained a provision (sec. 213) that would 
     establish an independent joint tactical radio system (JTRS) 
     joint program office (JPO) under rotating military service 
     leadership. The provision would also centralize program 
     funding and place all JTRS cluster development under JPO 
     control. The JPO would ensure a joint JTRS concept of 
     operations.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to provide an implementation plan for 
     the JTRS program that would (1) adopt a program management 
     structure that provides strong and effective joint 
     management; (2) have sufficient control and authority to 
     properly execute the program; and (3) establish processes to 
     resolve differences between services expeditiously. The 
     provision would direct the Secretary to develop a single, 
     unified concept of operations for all JTRS users. The 
     provision would also require the Secretary to submit the 
     implementation plan and unified concept of operations to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives by January 1, 2004, and to ensure that this 
     plan is implemented no later than October 1, 2004.
       The conferees believe that the JTRS program is on a 
     successful path to develop and procure Cluster 1 waveforms 
     for a software programmable radio. However, the conferees 
     also believe that the JTRS has reached a critical stage in 
     its development that requires increased oversight and 
     management.
     Future combat systems (sec. 214)
       The House bill contained a provision (sec. 214) that would 
     require the budget request for the projects within the 
     Armored Systems Modernization Program within the Department 
     of the Army to be displayed in separate program elements. 
     Further, this section would preclude authorization of 
     appropriations until the Secretary of Defense provides to the 
     congressional defense committees more detailed justification 
     for the $1.7 billion program.
       The Senate amendment contained a similar provision (sec. 
     212) that would require the Objective Force Indirect Fires 
     project be planned, programmed, and budgeted as a separate 
     and distinct program element.
       The House recedes with an amendment that would require the 
     Secretary of Defense to ensure that the Future Combat Systems 
     (FCS), Networked Fires System Technology, and Objective Force 
     Indirect Fires projects are planned, programmed and budgeted 
     for as separate, distinct program elements. Further, the 
     provision requires that the Secretary of the Army provide to 
     the congressional defense committees an annual report on the 
     cost breakdown for each project under the FCS program 
     element, including sufficient detail to justify the requested 
     budget and any updates of the Future Combat System analysis 
     of alternatives.
       The Under Secretary for Defense for Acquisition, Technology 
     and Logistics approved the FCS Increment 1 to proceed into 
     systems design and development and be managed as a single 
     major defense acquisition program. The conferees note that 
     the Department of the Army requested $1.7 billion in funding 
     although the key performance parameters for FCS will not be 
     quantified until November 2004. The technology development, 
     concept design, system design, and key performance parameters 
     specification of this evolutionary program are performed in 
     parallel. The financial risks are high and program management 
     function is challenging. If this program is to be managed 
     successfully, the specific tasks and objectives to be 
     accomplished must be clearly defined. This new ``system-of-
     systems'' rapid development approach is new to the Department 
     of the Army. The high cost and high risk require 
     congressional oversight which can be better accomplished 
     through the application of separate and distinct program 
     elements for the FCS, Networked Fire Systems Technology, and 
     Objective Force Indirect Fires projects. The conferees also 
     understand that the acquisition system should not discourage 
     nor inhibit spiral development. Therefore, the conferees 
     support further development of an improved process that 
     strengthens congressional oversight and provides the Army the 
     flexibility to manage the program without further subdividing 
     the remaining projects under the FCS into program elements.
       Although the Networked Fires and Objective Force Indirect 
     Fires projects will be managed as separate and distinct 
     program elements from FCS, the conferees understand the high 
     value placed on interdependence and connectivity between 
     these programs. The future Networked Fires program will not 
     only fund missile development, but will also develop the 
     command, control, communications, and computers, and 
     intelligence, surveillance, and reconnaissance capabilities 
     required for FCS. Similarly, the future Objective Force 
     Indirect Fires program will not only fund the development of 
     the non-line-of-sight cannon capability but will also serve 
     as the technology driver and the lead system for the 
     development of common components for manned ground systems, 
     such as the chassis.
       The conferees support Army transformation and the related 
     FCS. The transformation of the Army's capabilities with the 
     FCS is pivotal in meeting the goals of the Objective Force. 
     However, the conferees believe that it is essential that the 
     FCS be properly defined and managed to ensure the successful 
     fielding of this capability.
       The conferees recognize that this evolutionary program 
     requires a certain level of flexibility to maintain the 
     aggressive schedule. As a result, the conferees increase the 
     limit for reprogramming funds within the three Future Combat 
     Systems elements to $20.0 million before congressional 
     approval is required. The Secretary of the Army shall notify 
     the congressional defense committees of any below threshold 
     reprogramming actions. Reprogramming funds from outside the 
     FCS program to the FCS program would require the normal 
     congressional defense committee approval process.
     Extension of reporting requirement for RAH-66 Comanche 
         aircraft program (sec. 215)
       The House bill contained a provision (sec. 216) that would 
     extend the requirement for the Secretary of the Army to 
     report quarterly to the Committees on Armed Services of the 
     Senate and the House of Representatives on the progress of 
     the restructured Comanche aircraft program.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees continue to support the RAH-66 Comanche 
     aircraft program and note that the Army is making progress on 
     program execution.
     Studies of Fleet Platform Architectures for the Navy (sec. 
         216)
       The House bill contained a provision (sec. 217) that would 
     direct the Secretary of Defense to provide for the 
     performance of eight independent studies of alternative Navy 
     future fleet platform architectures. These studies would 
     examine, without constraint and in unclassified and, to the 
     extent necessary, classified format: (1) the national 
     security strategy; (2) potential threats; (3) traditional 
     roles and missions; (4) alternative roles and missions; (5) 
     evolving technology; and (6) personnel reduction 
     opportunities in recommending future fleet architectures.
       The Senate recedes with an amendment that would require the 
     Secretary to provide for the performance of two studies that 
     would recommend future fleet architectures of the Navy. One 
     study would be performed by a federally funded research and 
     development center, such as the Institute for Defense 
     Analyses. The other study would be performed by the Office of 
     Force Transformation within the Office of the Secretary of 
     Defense, with participation from the Office of Net Assessment 
     within the Office of the Secretary of Defense, the Department 
     of the Navy, and the Joint Staff. The studies would be 
     required to be delivered to the congressional defense 
     committees not later than January 15, 2005.

                 Subtitle C--Ballistic Missile Defense

     Enhanced flexibility for ballistic missile defense systems 
         (sec. 221)
       The House bill contained a provision (sec. 221) that would 
     amend subsection (a) of section 223 of title 10, United 
     States Code, to allow the President flexibility in 
     designating program elements for the Missile Defense Agency 
     (MDA). The provision would make conforming changes, including 
     those related to reporting requirements, and other technical 
     issues.
       The Senate amendment contained a similar provision (sec. 
     222) that would repeal subsection (a) of section 223 of title 
     10, United States Code.
       The Senate recedes. The conferees are aware of the 
     Administration's interest in submitting an MDA budget request 
     in fiscal year 2005 that reflects a single program element. 
     The conferees believe that submission of future budget 
     justification material should be consistent with past 
     practice, and that a budget request reflecting a single 
     program element would be inappropriate.

[[Page 27789]]


     Fielding of ballistic missile defense capabilities (sec. 222)
       The Senate amendment contained a provision (sec. 221) that 
     would allow the Department of Defense to use research, 
     development, test and evaluation funding to develop and field 
     an initial set of ballistic missile defense capabilities.
       The House bill contained no similar provision.
       The House recedes.
     Oversight of procurement of ballistic missile defense system 
         elements (sec. 223)
       The Senate amendment contained a provision (sec. 223) that 
     would require: (1) the Secretary of Defense to submit, for 
     ballistic missile defense (BMD) system elements for which the 
     Missile Defense Agency (MDA) is engaged in planning for 
     production and initial fielding, the production rate 
     capabilities being planned, the potential date of 
     availability of the element, the expected costs of initial 
     production and fielding, and the estimated date that the 
     element could be transferred to a military department; (2) 
     the Missile Defense Agency to establish and submit to 
     Congress measurable performance criteria for each block of 
     the BMD system and its elements that describe the intended 
     effectiveness of that block against foreign adversary 
     capabilities; (3) the Director of Operational Test and 
     Evaluation (DOT&E), in consultation with the Director of MDA, 
     to establish and provide to Congress appropriate plans and 
     schedules for operational testing, including an estimate of 
     when the element would demonstrate its ability to meet its 
     performance criteria through such testing; (4) the DOT&E to 
     provide to Congress an assessment of progress being made in 
     verifying element performance through operational testing; 
     and (5) the Secretary of Defense to provide an estimate of 
     funding necessary for procurement of BMD system elements in 
     the future-years defense program (FYDP).
       The House bill contained no similar provision.
       The House recedes with an amendment that would require: (1) 
     the Secretary of Defense to submit production rate 
     capabilities being planned, the potential date of 
     availability of the element, and the estimated date that the 
     element could be transferred to a military department for BMD 
     system elements for which MDA is engaged in planning for 
     production and initial fielding; (2) the Secretary to provide 
     an estimate of funding necessary for procurement of BMD 
     system elements in the FYDP; (3) that performance criteria 
     for development phases of the BMD system and its elements 
     describe the intended effectiveness of each phase against 
     foreign adversary capabilities; and (4) DOT&E to make 
     available for review by March 1, 2004, the developmental and 
     operational test plans established to assess the 
     effectiveness of the BMD system and its elements with respect 
     to performance criteria.
       The conferees believe that the System Capability 
     Specifications and Foreign Adversary Capabilities documents 
     submitted by MDA with the fiscal year 2004 budget request 
     were valuable documents that provide the Armed Services 
     Committees of the Senate and the House of Representatives 
     improved insight into the intent and progress of missile 
     defense programs. The conferees believe that the System 
     Capability Specification Document should reference those 
     threats described in the Foreign Adversary Capabilities 
     Document to which the performance criteria are intended to 
     apply. The conferees expect that descriptions of intended 
     effectiveness will appropriately address potential 
     countermeasures.
     Renewal of authority to assist local communities affected by 
         ballistic missile defense system test bed (sec. 224)
       The Senate amendment contained a provision (sec. 224) that 
     would renew for three years the authority of the Missile 
     Defense Agency to use research, development, test, and 
     evaluation funds for assistance to communities significantly 
     impacted by the expanded ballistic missile defense test bed. 
     The provision would also require the Secretary of Defense to 
     submit a description of the community assistance projects to 
     be supported in a given fiscal year along with an estimate of 
     the total cost of each project.
       The House bill contained no similar provision.
       The House recedes with an amendment that would renew this 
     authority for one year, and require the Secretary of Defense 
     to submit within 60 days of enactment of this Act a 
     description of the community assistance projects to be 
     supported along with an estimate of the total cost of each 
     project.
     Prohibition on use of funds for nuclear armed interceptors in 
         missile defense systems (sec. 225)
       The Senate amendment contained a provision (sec. 226) that 
     would prohibit the use of funds authorized to be appropriated 
     for the Department of Defense in fiscal year 2004 for 
     research, development, test, and evaluation, procurement, or 
     deployment of nuclear armed interceptors in a missile defense 
     system.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Follow-on research, development, test, and evaluation related 
         to system improvements for missile defense programs 
         transferred to military departments (sec. 226)
       The conferees recommend a provision that would amend 
     section 224 of Title 10, U.S. Code. Section 224 requires that 
     funding for ballistic missile defense (BMD) research and 
     development be included in Missile Defense Agency (MDA) 
     budget accounts and that responsibility for follow-on 
     research and development on BMD elements transferred to the 
     services remain with the Director of MDA. The amendment to 
     section 224 would require that research and development 
     funding requested for the purpose of integrating a BMD 
     element into the overall integrated BMD architecture be 
     included in the MDA budget accounts and that responsibility 
     for follow-on research and development on BMD elements 
     transferred to the services be clearly delineated.
       The conferees agree that significant capability 
     enhancements can be achieved through the integration of 
     ballistic missile system elements into a seamless web of 
     interceptor, battle management, communications, and sensor 
     systems, and that MDA must have the budgetary resources and 
     management authority to ensure that such integration is 
     achieved. The conferees recommend that the MDA director 
     continue to play an active role in the management of 
     ballistic missile defense programs transferred to the 
     services.

                       Subtitle D--Other Matters

     Global Research Watch Program in the Office of the Director 
         of Defense Research and Engineering (sec. 231)
       The Senate amendment contained a provision (sec. 231) that 
     would establish a Global Research Watch program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would direct the 
     military departments and defense agencies to participate in 
     the program and to provide a sunset provision for the 
     legislative provision.
     Defense Advanced Research Projects Agency Biennial Strategic 
         Plan (sec. 232)
       The Senate amendment contained a provision (sec. 232) that 
     would require the preparation of a biennial strategic plan 
     for the activities of the Defense Advance Research Projects 
     Agency (DARPA) and for the establishment of a senior review 
     panel to assist in the formulation, review, and approval of 
     the strategic plan.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Director, DARPA, to prepare a biennial strategic plan and 
     would also require the Secretary of Defense to submit the 
     plan to Congress in even-numbered years at the same time that 
     the President submits the budget request.
       The conferees note that in accomplishing DARPA's mission as 
     the central research and development organization of the 
     Department of Defense with a primary responsibility to 
     maintain U.S. technological superiority over potential 
     adversaries, the Director of DARPA has been granted wide 
     latitude in discharging his responsibilities for the 
     organization, direction, and management of DARPA and all 
     assigned resources. Focusing on revolutionary research 
     initiatives with high technical risk and high payoff, and 
     responding to tasks and guidance from the Office of the 
     Secretary of Defense (OSD) and the Joint Chiefs of Staff 
     (JCS), the Director, DARPA, exercises his responsibilities 
     under the direction, authority, and control of the Under 
     Secretary of Defense for Acquisition, Technology and 
     Logistics and the Director of Defense Research and 
     Engineering (DDR&E). For DARPA to execute its mission, the 
     conferees believe that close and regular communication is 
     required between the agency, OSD, the JCS and combatant 
     commands, the military departments and defense components, 
     the intelligence community, other federal agencies, private 
     industry, academia, and research institutions.
       The conferees note and share the views contained in the 
     Report of the Defense Science Board Task Force for the 
     Investment Strategy for DARPA, dated July 1999, recommending 
     that DARPA strengthen its approach to strategic planning in 
     order to develop the warfighting capabilities, which will be 
     required by U.S. Armed Forces to address the new asymmetric 
     threats and complex and diverse missions expected in the 21st 
     Century, and the technologies to support those capabilities. 
     The task force noted that strategic planning should be based 
     on a collaboration between the DARPA Director and his Office 
     Directors, and that the resulting plans must be communicated 
     to the agency's program managers, as well as the DDR&E, USD 
     (AT&L), the Joint Staff and Congress. The task force 
     cautioned that the planning process should not be too 
     bureaucratic and that resource flexibility must be maintained 
     to address emerging opportunities.
       The conferees note that the DARPA Strategic Plan, February 
     2003, listed a number of defense officials who have been 
     briefed on major elements of the current DARPA strategy. The 
     conferees observe that it is common practice for scientific 
     and technical organizations, both in the public and private 
     sector, to engage advisory boards and/or visiting committees 
     to assist in the review of

[[Page 27790]]

     strategic plans and programs. For example, the Defense 
     Science Board has effectively reviewed a number of DOD 
     programs, including DARPA's, on several occasions. The 
     conferees believe that the ability of the DARPA Director and 
     other senior officials to draw on such activities would be of 
     immeasurable value in developing and reviewing the DARPA 
     strategic plan. Finally, the conferees note that the recent 
     controversy surrounding DARPA's Terrorism Information 
     Awareness program, the handling of the issue by DARPA and OSD 
     management, and the resulting termination of the program, 
     might have been avoided had a properly vetted strategic 
     review of DARPA programs been in place, as contemplated by 
     this provision. The conferees direct the Secretary of Defense 
     to establish an appropriate means for review and approval of 
     the DARPA strategic plan.
     Enhancement of authority of Secretary of Defense to support 
         science, mathematics, engineering and technology 
         education (sec. 233)
       The Senate amendment contained a provision (sec. 233) that 
     would enhance the authority of the Secretary of Defense to 
     support science, mathematics, and technology education.
       The House bill contained no similar provision. The House 
     recedes with an amendment that would provide authority for 
     the Secretary to support competition judging and event and 
     award ceremony activities in conjunction with these 
     educational programs.
       The conferees intend for the Secretary to use this 
     authority to continue and expand upon educational activities 
     that are consistent with the mission of the Department of 
     Defense, including the Army's eCybermission program. The 
     conferees intend that this authority will allow for the 
     covering of appropriate expenses for events, ceremonies, and 
     personnel, including non-federal personnel, associated with 
     these activities.
     Department of Defense program to expand high-speed, network-
         centric bandwidth capabilities for network-centric 
         operations (sec. 234)
       The Senate amendment contained a provision (sec. 234) that 
     would require the Secretary of Defense to establish a 
     comprehensive research and development program for advanced 
     technologies to achieve high-speed, high-bandwidth wireless 
     communications for the Department of Defense. The Senate 
     provision would direct that the program focus on technologies 
     to improve utilization of the radio frequency spectrum for 
     wireless and mobile systems, highly networked systems, 
     efficient communications devices, and computer software 
     applications, including robust security, encryption, and 
     privacy applications. The program would also include the 
     development of common technology requirements and 
     requirements among the military services and defense agencies 
     to enhance interoperability and joint experimentation to 
     improve network-centric warfare capabilities from the 
     operational to the small unit level. Finally, the provision 
     would require the Secretary to carry out the program through 
     the Director of Defense Research and Engineering (DDR&E).
       The House bill contained no similar provision.
       The House recedes with an amendment that would assign to 
     the Secretary of Defense the responsibility for carrying out 
     the program.
       The conferees endorse the establishment of a comprehensive 
     research and development program that would support the 
     Department's transformation to a network-centric force in 
     which the rapid delivery of large amounts of data throughout 
     the theater of operations would dramatically enhance the 
     capability and situational awareness of the fighting forces. 
     The conferees note that both the DDR&E and the Assistant 
     Secretary of Defense for Networks and Information Integration 
     (ASD(NII)) would have significant responsibilities with 
     respect to the planning and execution of such a program: the 
     DDR&E, as the principal staff assistant and advisor to the 
     Under Secretary of Defense for Acquisition, Technology, and 
     Logistics, with respect to oversight of the Department's 
     science and technology program, including basic and applied 
     research and advanced technology development; and the 
     ASD(NII), as the principal staff advisor for networks and 
     network centric concepts and for command, control and 
     communications (C3), with respect to oversight of 
     acquisition, technology, and logistics regarding C3 and 
     information programs. The conferees expect that the DDR&E and 
     the ASD(NII) will closely coordinate their respective 
     responsibilities and activities regarding the program with 
     one another and with the secretaries of the military 
     departments, the heads of appropriate defense agencies, and 
     the heads of other appropriate elements of the Department, in 
     order to achieve an integrated, comprehensive research and 
     development program that accomplishes the objectives 
     established by the provision.
     Blue forces tracking initiative (sec. 235)
       The Senate amendment contained a provision (sec. 1031) that 
     would require the Secretary of Defense to coordinate the 
     developmental activities associated with U.S. military 
     efforts to collect and display information on the location of 
     U.S. and allied forces on the battlefield, which is sometimes 
     called ``blue forces tracking'' or ``blue forces situational 
     awareness.'' The provision would further direct the 
     Commander, U.S. Joint Forces Command, to conduct a blue 
     forces tracking joint experiment in fiscal year 2004 in order 
     to demonstrate and evaluate available technologies, and to 
     recommend an achievable solution for Defense-wide fielding. 
     The provision would require the Secretary to submit a report 
     to the congressional defense committees on the results of the 
     joint experiment and a plan for how the Department of Defense 
     would proceed with the development, acquisition, and fielding 
     of a blue forces tracking system.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees are concerned that despite improvements in 
     technology and despite lessons learned from previous 
     conflicts, the U.S. Armed Forces still lack a fully 
     functional, near real-time blue forces tracking system. While 
     overall casualties have declined in recent conflicts, the 
     percent of casualties associated with friendly fire incidents 
     has remained relatively constant. Additionally, different 
     elements of the Department are working on disparate 
     capabilities that are not fully interoperable. An initial 
     lesson learned from Operation Iraqi Freedom has been that 
     coalition battlefield commanders did not have a complete 
     picture of where all friendly forces were located and that 
     available tracking systems were not fully interoperable.
       The conferees urge the Secretary to ensure that all funding 
     within the Department for blue forces tracking development is 
     fully coordinated, and that he implement a comprehensive plan 
     for the development, acquisition, and fielding of a 
     functional, interoperable blue force tracking system as soon 
     as possible.

                   Legislative Provisions Not Adopted

     Amount for collaborative information warfare network
       The Senate amendment contained a provision (sec. 236) that 
     would authorize an increase of $8.0 million in PE 206313M, to 
     be used for the Collaborative Information Warfare Network 
     program, to be offset by a general decrease of $8.0 million 
     in Operation and Maintenance, Air Force.
       The House bill contained no similar provision.
       The Senate recedes.
     Amount for joint engineering data management information and 
         control systems
       The Senate amendment contained a provision (sec. 213) that 
     would authorize an increase of $2.5 million in PE 63739N for 
     the joint engineering data management information and control 
     system (JEDMICS), and a decrease of $2.5 million in Other 
     Procurement, Navy, for the same system.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize an increase of $2.5 
     million in PE 63739N for JEDMICS.
     Amount for network centric operations
       The Senate amendment contained a provision (sec. 221) that 
     would authorize $1.0 million in PE 61228A for the initiation 
     of a capability in historically black colleges and 
     universities to support network centric operations of the 
     Department of Defense.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
     Boron energy cell technology
       The Senate amendment contained a provision (sec. 219) that 
     would provide a $5.0 million increase for boron energy cell 
     technology research and development and would offset the 
     increase with a reduction from funds authorized for 
     appropriation for Army operation and maintenance.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize an increase of $5.0 
     million in PE 63401F for boron energy cell technology 
     research and development, as noted elsewhere in this 
     conference report.
     Composite sail test articles
       The Senate amendment contained a provision (sec. 217) that 
     would authorize an increase of $2.0 million in PE 64561N for 
     development and fabrication of composite sail test articles 
     for incorporation into designs for future submarines.
       The House bill contained no similar provision.
       The Senate recedes.
     Coproduction of Arrow ballistic missile defense system
       The Senate amendment contained a provision (sec. 237) that 
     would make available $115.0 million for coproduction of the 
     Arrow ballistic missile defense system from funds authorized 
     for appropriation for ballistic missile defense in section 
     201 of this Act.
       The House bill contained no similar provision.
       The Senate recedes.
     Enhanced production of titanium
       The House bill contained a provision (sec. 215) that would 
     require the Secretary of Defense, through the Secretary of 
     the Army, to

[[Page 27791]]

     assess technologies leading to the enhanced production of 
     titanium by the United States, select on a competitive basis 
     the most viable technologies, and authorize $8.0 million 
     under PE 62624A to carry out this provision.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees agree to authorize $2.0 million in PE 62624A 
     for titanium extraction mining and process engineering 
     research.
       The conferees note the need for the Department of Defense 
     to develop advanced low-cost titanium materials for use in 
     military non-aerospace applications. The conferees direct the 
     Secretary of Defense to develop an integrated plan for the 
     development and processing of low-cost titanium materials and 
     associated manufacturing technologies. The plan should also 
     identify, to the maximum extent possible, military systems 
     that may utilize low-cost titanium materials. The Secretary 
     of Defense shall provide the plan to the congressional 
     defense committees along with the fiscal year 2005 budget 
     request.
     Human tissue engineering
       The Senate amendment contained a provision (sec. 214) that 
     would authorize an increase of $1.7 million in PE 62787A for 
     human tissue engineering.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize an increase of $1.7 
     million in PE 62787A for minimally invasive digital printing 
     for human tissue engineering.
     Magnetic levitation
       The Senate amendment contained a provision (sec. 216) that 
     would authorize an additional $2.1 million in PE 64759F for 
     research and development on magnetic levitation technologies 
     at the high speed test track at Holloman Air Force Base, New 
     Mexico.
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize an increase of $2.1 
     million in PE 64759F for research and development on magnetic 
     levitation technologies at the high speed test track at 
     Holloman Air Force Base, New Mexico.
     Modification of program element of short range air defense 
         radar program of the Army
       The Senate amendment contained a provision (sec. 220) that 
     would modify the program element for the Army's short range 
     air defense radar program from PE 62303A (Missile Technology) 
     to PE 63772A(Advanced Tactical Computer Science and Sensor 
     Technology).
       The House bill contained no similar provision.
       The Senate recedes on the provision.
       The conferees agree to authorize an additional $6.0 million 
     in PE63772A for the Army's short range air defense radar 
     program.
     Non-thermal imaging systems
       The Senate amendment contained a provision (sec. 215) that 
     would authorize an additional $2.0 million in PE 62114N for 
     research and development of non-thermal imaging systems.
       The House bill contained no similar provision, however, it 
     would authorize an increase of $2.0 million in PE 62114N for 
     applied research in promising non-thermal imaging 
     technologies, including FireLidar, for military and civilian 
     firefighting and operational applications.
       The Senate recedes.
       The conferees agree to authorize an increase of $2.0 
     million in PE 62114N for applied research in non-thermal 
     imaging systems, such as FireLidar.
     Portable mobile emergency broadband systems
       The Senate amendment contained a provision (sec. 218) that 
     would authorize an additional $2.0 million in PE 63008A for 
     development of portable mobile emergency broadband systems.
       The House bill contained no similar provision. The House 
     authorized $8.6 million in PE 63008A for development of a 
     portable and mobile emergency broadband system.
       The Senate recedes on the provision.
       The conferees agree to authorize an increase of $4.0 
     million in PE 63008A for development of portable mobile 
     emergency broadband systems.
     Program increases
       The House bill contained a provision (sec. 203) that would 
     authorize $3.0 million in PE 63002A for diagnosis of 
     dermatological diseases, $3.0 million in PE 63004A for 
     lightweight cartridge cases for ammunition, $6.5 million in 
     PE 64512N for aviation-shipboard information technology, $1.4 
     million in PE 64512N for the AutoREAD system, $5.0 million in 
     PE 63640M for SPIKE urban warfare system, $3.25 million in PE 
     63207N for research in hydrographic sciences, $5.0 million in 
     PE 64231N for an at-sea demonstration of the F/A-22 
     electronic warfare product improvement program, $4.0 million 
     in PE 62204F for reconfigurable signal processors, $2.0 
     million in PE 63750D8Z for an evaluation of systems to detect 
     concentrations of specific compounds, and $5.0 million in PE 
     63284BP for mustard gas antidote.
       The Senate bill contained no similar provision.
       The House recedes.
       The conferees agree to authorize $3.0 million in PE 63002A 
     for diagnosis of dermatological diseases, $4.0 million in PE 
     64512N for aviation-shipboard information technology, $5.0 
     million in PE 63640M for SPIKE urban warfare system, $2.0 
     million in PE 64231N for an F/A-22 EW at-sea demo, $4.0 
     million in PE 62204F for reconfigurable signal processors, 
     and $5.0 million in PE 62384BP for mustard gas antidote. 
     These authorizations are also noted elsewhere in this 
     conference report.
     Prohibition on transfer of certain programs outside the 
         Office of the Secretary of Defense
       The Senate amendment contained a provision (sec. 211) that 
     would prohibit the transfer of five research, development, 
     test and evaluation (RDT&E) programs from the Office of the 
     Secretary of Defense to the military services. These programs 
     are: explosive demilitarization technology (PE 63104D8Z); 
     high energy laser research initiative (PE 61108D8Z); high 
     energy laser research (PE 62890D8Z); high energy laser 
     advanced development (PE 63924D8Z); and university research 
     initiative (PE 61103D8Z).
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the Department of Defense (DOD), 
     and in particular the Office of the Director of Defense 
     Research and Engineering (DDR&E), has assured the conferees 
     that, despite the devolvement of these programs, the nature 
     of the programs will not change. The conferees have, and will 
     continue to pay particular attention to these programs in the 
     future. The Secretary of Defense should consider these 
     programs congressional interest items for purposes of the 
     Base for Reprogramming (DD 1414). Any reprogramming of funds 
     from these accounts shall only occur after approval by the 
     congressional defense committees. The conferees may remove 
     this designation after several years experience with the 
     devolved programs.
       The conferees further note their concerns about funding 
     levels and technical content of the basic research activities 
     of the defense science and technology program. The 
     Department's investment in basic research provides the 
     foundation upon which our modern military is built. It is 
     critical the basic research investment remain strong, stable, 
     and focused on the fundamental search for new knowledge. 
     Therefore, the conferees direct the National Academies of 
     Science to evaluate the DOD basic research portfolio. The 
     evaluation shall utilize the official DOD definition of basic 
     research to determine whether the basic research portfolio is 
     consistent with the definition provided in DOD regulation. 
     The conferees expect to work closely with the National 
     Academies of Science and the Secretary to build the terms of 
     reference for this evaluation. The evaluation should be made 
     available to the congressional defense committees prior to 
     the fiscal year 2006 budget request.
       The conferees direct the Secretary to submit a report for 
     each of the fifteen programs devolved in the fiscal year 2004 
     President's budget request, if the current year's budget 
     request for the program is less than the fiscal year 2004 
     budget request in constant dollars. This reporting 
     requirement is intended to be in effect for the next four 
     fiscal years. This report shall be included with each fiscal 
     year budget request, and shall contain budget request and 
     appropriated levels for the program dating back to calendar 
     year 2000 in both current and constant dollars, and an 
     analysis of the impact of the reduced funding on the 
     development of military capabilities, affected contractors, 
     technical workforce, and scientific and technological 
     advancement.
     Requirement for specific authorization of Congress for 
         design, development, or deployment of hit-to-kill 
         ballistic missile interceptors
       The Senate amendment contained a provision (sec. 225) that 
     would: (1) require specific congressional authorization for 
     the use of funds toward design, development, or deployment of 
     hit-to-kill interceptors or other weapons for placement in 
     space; and (2) make $14.0 million of funds authorized to be 
     appropriated for fiscal year 2004 for Ballistic Missile 
     Defense System Interceptors available for research and 
     concept definition for a space based test bed.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees understand that the Missile Defense Agency 
     has no plans to use any fiscal year 2004 funding for space-
     based interceptor research, development, design or 
     deployment.

                  Title III--Operation and Maintenance

     Overview
       The budget request for fiscal year 2004 included an 
     authorization of $116,958.8 million for Operation and 
     Maintenance, $17,900.4 for Other Programs, and $2,894.5 for 
     Working Capital Fund Accounts in the Department of Defense.
       The House bill would authorize $113,891.0 million for 
     Operation and Maintenance, $17,877.1 for Other Programs, and 
     $2,889.5 for Working Capital Fund Accounts.
       The Senate amendment would authorize $130,611.4 million for 
     Operation and Maintenance and $2,789.3 for Working Capital 
     Fund Accounts.

[[Page 27792]]

       The conferees recommend an authorization of $114,353.3 
     million for Operation and Maintenance, $17,911.6 for Other 
     Programs, and $2,849.5 for Working Capital Fund Accounts. 
     Unless noted explicitly in the statement of managers, all 
     changes are made without prejudice.

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                              Budget Items

     Flight School XXI
       The budget requested included $499.4 million in Operation 
     and Maintenance, Army, for the Flight School XXI program.
       The House bill would authorize an increase of $148.0 
     million for the Flight School XXI program.
       The Senate amendment would authorize an increase of $15.0 
     million for the Flight School XXI program.
       The conferees agree to authorize an increase of $5.0 
     million in support of the Army's initiative to shift flight 
     training from legacy aircraft to modernized aircraft and 
     simulators, as planned under the Flight School XXI program. 
     The conferees urge the Army to carefully evaluate the program 
     requirements for Flight School XXI and to plan appropriately 
     to accomplish this initiative. The conferees support the 
     strategic goal of eliminating flight time in non-modernized 
     aircraft and increasing flight training in go-to-war aircraft 
     and simulators.
     Marine Corps initial issue
       The budget request included $588.7 million in Operation and 
     Maintenance, Marine Corps (OMMC), operational forces, 
     including initial issue of personal clothing and equipment.
       The House bill would authorize an increase of $51.0 million 
     in OMMC, depot maintenance, for initial issue.
       The Senate amendment would authorize an increase of $5.0 
     million in OMMC, operational forces, for initial issue.
       The conferees agree to authorize an increase of $10.0 
     million in OMMC, operational forces, for initial issue, to 
     include All Purpose Environmental Clothing System (APECS), 
     Mountain/Cold Weather Clothing and Equipment, and the Modular 
     General Purpose Tent System.

                       Items of Special Interest

     Range requirements for supersonic flight training
       The conferees support the language in the Senate Report on 
     the National Defense Authorization Act for Fiscal Year 2004 
     (S. Rept. 108-46) requiring an evaluation of current and 
     projected requirements for land, air, and sea space in 
     support of testing and training requirements. The conferees 
     direct the Department of Defense, in preparing the report, to 
     consider the requirements associated with future planned 
     aircraft or with planned upgrades to existing combat 
     aircraft, and to include an evaluation of existing supersonic 
     airspace. The conferees expect the Department to build on 
     past analyses of supersonic airspace requirements, such as 
     the recent Melrose Range study, when addressing the 
     feasibility and desirability of enhancing or expanding 
     existing supersonic airspace.

                     Legislative Provisions Adopted

              Subtitle A--Authorization of Appropriations

     Authorization of appropriations (secs. 301-303)
       The House bill contained provisions (secs. 301-303) that 
     would authorize fiscal year 2004 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, and the Defense Health Program.
       The Senate amendment contained similar provisions (secs. 
     105-107, secs. 203-204, and secs. 301-302).
       The conference agreement would authorize funding levels for 
     all operation and maintenance accounts, working capital 
     funds, and other Department of Defense programs.
     Chemical Agents and Munitions Destruction, Defense
       The House bill contained a provision (Sec. 303(b)) that 
     would provide a total of $1.6 billion for Chemical Agents and 
     Munitions Destruction, Defense (CAMD, D), including an 
     increase of $50.0 million for the chemical stockpile 
     emergency preparedness project for additional enhancements to 
     the ability of State and local governments to respond to a 
     chemical accident or incident at chemical stockpile storage 
     sites in Arkansas, Oregon, and Alabama.
       The Senate amendment contained a provision (sec. 106) that 
     would provide $1.6 billion for CAMD, D.
       The House recedes with an amendment that would authorize 
     for appropriation $1.6 billion for CAMD, D, as follows: $1.2 
     billion for Operations and Maintenance; $251.9 million for 
     Research, Development, Test, and Evaluation; and $79.2 
     million for Procurement.
       The conferees strongly support the decision of the 
     Department of Defense to request funding for the chemical 
     agents and munitions destruction program in a Defense-wide 
     account. Section 1521(f) of title 50, United States Code, 
     requires that funds for this program shall not be included in 
     the budget for any military department. Funding the 
     destruction program in a Defense-wide account ensures that 
     the program is subject to the appropriate level of management 
     and oversight and ensures that the program is not subject to 
     the internal budget priorities of one particular services.

                  Subtitle B--Environmental Provisions

     Reauthorization and modification of title I of Sikes Act 
         (sec. 311)
       The House bill contained a provision (sec. 311) that would 
     amend section 670f of title 16, United States Code, to 
     reauthorize section 108 of the Sikes Act (Public Law 86-767), 
     by striking, ``fiscal years 1998 through 2003,'' and in each 
     place it appears inserting ``fiscal years 2004 through 
     2008.'' The provision would also express a sense of Congress 
     regarding the Department of Defense (DOD) outsourcing of 
     natural resource manager functions. Finally, the provision 
     would establish a five-year DOD pilot program for management, 
     control, and eradication of invasive species on military 
     installations in Guam.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense, to the extent practicable and after 
     consultation with the Secretary of Interior, to incorporate 
     in an Integrated Natural Resource Management Plan the 
     management, control, and eradication of invasive species that 
     are not native to the ecosystem of a military installation in 
     Guam and may harm readiness, the environment, the economy, or 
     human health and safety.
     Clarification of Department of Defense response to 
         environmental emergencies (sec. 312)
       The House bill contained a provision (sec. 314) that would 
     amend sections 402, 404, and 2561 of title 10, United States 
     Code, to clarify the authority of the Secretary of Defense to 
     respond to environmental emergencies by providing 
     humanitarian assistance, including the authority to transport 
     supplies or provide assistance for the purpose of responding 
     to or mitigating the effects of an event that threatens harm 
     to the environment, such as an oil spill.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would give the 
     Secretary discretionary authority to provide environmental 
     emergency assistance if such assistance would not otherwise 
     be available and would be subject to reimbursement.
     Repeal of authority to use environmental restoration account 
         funds for relocation of contaminated facility (sec. 313)
       The Senate amendment contained a provision (sec. 325) that 
     would extend for three years the authority of the Secretary 
     of Defense or secretaries of the military departments to use 
     funds available in the environmental restoration accounts, 
     pursuant to section 2703 of title 10, United States Code, to 
     permanently relocate facilities.
       The House bill contained no similar provision.
       The House recedes with an amendment that would repeal the 
     authority, effective September 30, 2003, while retaining the 
     authority to pay costs under cooperative agreements entered 
     into prior to September 30, 2003.
     Authorization for Department of Defense participation in 
         wetland mitigation banks (sec. 314)
       The House bill contained a provision (sec. 312) that would 
     amend chapter 159 of title 10, United States Code, to permit 
     the secretaries of the military departments to participate in 
     wetland mitigation banking programs and consolidated user 
     sites as an alternative to mitigation on Department of 
     Defense lands for military construction projects.
       The Senate amendment contained a similar provision.
       The House recedes with an amendment that would require the 
     Secretary of the Army, acting through the Chief of Engineers, 
     to issue regulations establishing performance standards and 
     criteria for the use of on-site, off-site, and in-lieu fee 
     mitigation and mitigation banking as compensation for lost 
     wetland functions in permits issued by the Secretary, 
     consistent with section 404 of the Federal Water Pollution 
     Control Act (33 U.S.C. 1344).
     Inclusion of environmental response equipment and services in 
         Navy definitions of salvage facilities and salvage 
         services (sec. 315)
       The House bill contained a provision (sec. 313) that would 
     amend section 7361 and 7363 of title 10, United States Code, 
     to specifically authorize the Secretary of the Navy to 
     provide salvage facilities and to assert claims for salvage 
     services related to environmental response activities.
       The Senate amendment contained a similar provision (sec. 
     329).
       The Senate recedes with a technical amendment.
     Repeal of model program for base closure environmental 
         restoration (sec. 316)
       The House bill contained a provision (sec. 1021) that would 
     eliminate a reporting requirement under the section 2926(g) 
     of the National Defense Authorization Act for Fiscal Year 
     1991 (Public Law 101-510; 10 U.S.C. 2687 note).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would repeal the 
     authority under section 2926 of the National Defense 
     Authorization Act for Fiscal Year 1991.
     Requirements for Restoration Advisory Boards and exemption 
         from Federal Advisory Committee Act (sec. 317)
       The House bill contained a provision (sec. 315) that would 
     waive the Federal Advisory

[[Page 27834]]

     Committee Act (FACA) (5 U.S.C. App.) requirements for 
     Restoration Advisory Boards (RABs) set up to facilitate 
     environmental cleanup at military bases. The provision would 
     require that RABs comply with substantive requirements 
     comparable to those applicable under FACA with the exception 
     of Federal Register notice and financial disclosure 
     requirements.
       The Senate amendment (sec. 326) would exempt RABs from the 
     Federal Register notice requirements of FACA and would 
     eliminate restrictions on the number of RABs operating at any 
     one time.
       The Senate recedes.
     Military readiness and conservation of protected species 
         (sec. 318)
       The House bill contained a provision (sec. 317) that would 
     amend section 4(a)(3) of the Endangered Species Act (16 
     U.S.C. 1533(a)(3)) to preclude designation of critical 
     habitat on Department of Defense (DOD) lands that are subject 
     to an Integrated Natural Resource Management Plan (INRMP) 
     prepared under section 101 of the Sikes Act (16 U.S.C. 670a) 
     if the Secretary of the Interior determines that such a plan 
     addresses special management considerations or protection of 
     endangered or threatened species.
       The Senate amendment contained a similar provision (sec. 
     322) that would amend title 10, United States Code, to 
     preclude designation of critical habitat on DOD lands that 
     are subject to an INRMP, if the Secretary of Interior 
     determines in writing that: (1) the management activities 
     identified in the plan will effectively conserve threatened 
     and endangered species; and (2) that adequate funding will be 
     provided for such management activities.
       The Senate recedes with an amendment that would modify 
     section 4(a)(3) of the Endangered Species Act to preclude 
     designation of critical habitat on DOD lands that are subject 
     to an INRMP, if the Secretary of the Interior determines in 
     writing that such plan provides a benefit to the species for 
     which critical habitat is proposed for designation. This 
     approach would allow for a balance between military training 
     requirements and protection of endangered or threatened 
     species, as pertains to pending or future critical habitat 
     designations.
       The conferees would expect the Secretary of the Interior to 
     assess an INRMP's potential contribution to species 
     conservation, giving due regard to those habitat protection, 
     maintenance, and improvement projects and other related 
     activities specified in the plan that address the particular 
     conservation and protection needs of the species for which 
     critical habitat would otherwise be proposed. Consistent with 
     current practice, the Secretary would establish criteria that 
     would be used to determine if an INRMP benefits the listed 
     species for which critical habitat would be proposed.
     Military readiness and marine mammal protection (sec. 319)
       The House bill contained a provision (sec. 318) that would 
     amend sections 3(18) and 101 of the Marine Mammal Protection 
     Act (MMPA or the Act) (16 U.S.C. 1362(18) and 1371) to focus 
     the ``harassment'' definition on biologically significant 
     impacts, eliminate the requirement to publish notice with 
     respect to incidental takes, and remove references to ``small 
     numbers,'' ``specified geographical region,'' and ``specific 
     geographic region,'' as pertains to incidental take permits. 
     The provision would also include an exemption for activities 
     necessary for the national defense.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would apply the 
     new ``harassment'' definition to military readiness 
     activities and scientific research activities by or on behalf 
     of the Federal Government. The conference agreement would 
     also include the following: changes to the permit process; 
     the national defense exemption; considerations relevant to 
     mitigation and monitoring requirements; and other technical 
     changes.
       Specifically, the conference agreement would amend section 
     3(18) of the Marine Mammal Protection Act of 1972 (16 U.S.C. 
     1362(18)) by providing a new definition of ``harassment'' 
     applicable only to military readiness activities, as defined 
     by section 315(f) of the National Defense Authorization Act 
     for Fiscal Year 2003 (Public Law 107-314), and scientific 
     research activities by or on behalf of the Federal 
     Government, conducted pursuant to section 104(c)(3) of the 
     Act (16 U.S.C. 1374(c)(3)). The new definition will provide 
     greater clarity for the Department of Defense (DOD) and the 
     regulatory agencies, and would properly focus authorization 
     of military readiness and scientific research activities on 
     biologically significant impacts to marine mammals, a 
     science-based approach. Under the new definition for ``Level 
     B Harassment,'' behavioral patterns would be considered 
     ``abandoned'' if long-term cessation of behaviors and 
     demographic consequences to reproduction or survivability of 
     the species or stock were involved. In order for natural 
     behavioral patterns to be considered ``significantly 
     altered,'' there must be demographic consequences to 
     reproduction or survivability of the species.
       In addition, the conference agreement would authorize the 
     Secretary of Defense, after conferring with the Secretary of 
     Commerce, the Secretary of the Interior, or both, to exempt 
     from the MMPA any action by the DOD or its components for up 
     to two years, with renewable periods of exemption, if 
     determined necessary for national defense. This authority is 
     consistent with similar exemptions included in other 
     environmental statutes.
       The conference agreement would also cure deficiencies 
     related to the incidental take permit process under MMPA, as 
     applied to military readiness and scientific research 
     activities. The need to address these deficiencies was 
     recently highlighted by the ruling in Natural Resources 
     Defense Council, Inc. et al. v. Evans, No. C-02-3805-EDL, 232 
     F. Supp. 2d 1003 (N.D. Cal 2002), a case that was initiated 
     to stop deployment of the Navy's Surveillance Towed Array 
     Sensor System Low Frequency Active (SURTASS LFA) sonar 
     system. For example, given the migratory nature of marine 
     mammals and the varying biological and bathymetric features 
     of the geographic regions occupied by migratory marine 
     mammals, it is very difficult to describe ``specified 
     geographical region'' for military readiness activities that 
     take place over large areas of the ocean. The case also 
     reveals the conundrum associated with reconciling the meaning 
     of ``small number'' in relation to ``negligible impact.'' As 
     a result of this recent ruling and other litigation related 
     to the Act, the conferees agreed to eliminate the 
     requirements for ``specific geographic region,'' and 
     ``specified geographical region'' and ``small numbers,'' 
     terms that have proven more valuable as a basis for 
     litigation than affording legitimate or demonstrable 
     protection to marine mammals. Such changes would ensure a 
     credible and flexible regulatory process that properly 
     balances the equities associated with military readiness and 
     maritime species protection. It is expected that the 
     rulemaking process would continue to use best available 
     scientific information to analyze impacts on marine mammals.
       The conferees intend that the changes in the definition of 
     ``harassment,'' as well as changes in the incidental take 
     permit process, would not eliminate the existing requirements 
     for mitigation and monitoring (16 U.S.C. 1371(a)(5)). 
     Instead, the use of mitigation and monitoring measures would 
     be focused on the biologically significant impacts on marine 
     mammals. In addition, decisions regarding mitigation and 
     monitoring would take into account safety, practicality of 
     implementation, and impact on the effectiveness of a military 
     readiness activity.
       Finally, the conferees commend the DOD and Navy for their 
     commitment and leadership on marine mammal research. This 
     research, currently funded at about $7.0 million per year, 
     has provided valuable information on the impact of 
     anthropogenic sounds upon marine mammals, marine mammal 
     densities, and the health and vitality of marine mammal 
     species. At a minimum, it is expected that DOD and Navy would 
     continue these efforts and would maintain level funding in 
     the Future Years Defense Plan. The conferees direct the 
     Secretary of Defense to provide an annual report to the 
     congressional defense committees on the funding provided and 
     research conducted in relation to marine mammals. The report 
     may be provided pursuant to section 2706(b) of title 10, 
     United States Code.
     Report regarding impact of civilian community encroachment 
         and certain legal requirements on military installations 
         and ranges and plan to address encroachment (sec. 320)
       The House bill contained a provision (sec. 316) that would 
     require the Secretary of Defense to study and provide a one-
     time report to Congress regarding the impact of civilian 
     community encroachment on the readiness requirements and 
     normal operations at military installations that are required 
     to maintain safety buffer zones or safety arcs as part of 
     their functional mission activities. The report would include 
     study results pertaining to the impact of the environmental 
     requirements under the Clean Air Act (42 U.S.C. 7410), the 
     Solid Waste Disposal Act (42 U.S.C. 6901), and the 
     Comprehensive Environmental Restoration, Compensation and 
     Liability Act (42 U.S.C. 9601).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require an 
     interim report by January 31, 2004, a more comprehensive 
     report and a plan for addressing encroachment by January 31, 
     2006, and updates regarding the progress made in implementing 
     the plan each year commencing January 2007 through January 
     2010. The conferees expect the Secretary to make a diligent 
     effort to respond to the interim reporting requirement.
     Cooperative water use management related to Fort Huachuca, 
         Arizona, and Sierra Vista subwatershed (sec. 321)
       The House bill contained a provision (sec. 319) that would 
     amend section 7 of the Endangered Species Act of 1973 (16 
     U.S.C. 1536) to ensure that the Secretary of the Army would 
     not be held responsible for water consumption that occurs 
     outside of Fort Huachuca, Arizona, and is not subject to the 
     authority and control of the Secretary. The provision would 
     also recognize secretarial discretion to mitigate off-base 
     water consumption.

[[Page 27835]]

       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would clarify the 
     categories of water consumption that may be considered at 
     Fort Huachuca. The provision would recognize the Upper San 
     Pedro Partnership and its efforts to establish a 
     collaborative water use management program in the Sierra 
     Vista Subwatershed, Arizona. The provision would also require 
     the Secretary of Interior, in consultation with the 
     Secretaries of Defense and Agriculture and other members of 
     the Partnership, to submit a report to Congress, no later 
     than December 31, 2004, on the water use management and 
     conservation measures implemented and needed to restore 
     sustainable yield of the regional aquifer. Subsequent annual 
     reports on the progress toward sustainable yield of the 
     regional aquifer would be due no later than October 31st of 
     each year through 2011. Finally, the provision would express 
     the sense of Congress that future funding appropriations to 
     the Partnership should take into account the progress made in 
     meeting annual goals.
     Task force on resolution of conflict between military 
         training and endangered species protection at Barry M. 
         Goldwater Range, Arizona (sec. 322)
       The Senate amendment contained a provision (sec. 330) that 
     would establish a task force to determine and assess various 
     means of enabling full use of the live ordnance delivery 
     areas at Goldwater Range while also protecting endangered 
     species that are present at the Range. The task force would 
     be composed of representatives from Luke AFB, Goldwater 
     Range, federal and state regulators, and non-governmental 
     groups. The task force would be required to determine or 
     assess the following: (1) the effects of the presence of 
     endangered species on military training activities in the 
     live ordnance delivery areas at Goldwater Range and in any 
     other areas of the range that are adversely affected by the 
     presence of endangered species; (2) various means of 
     addressing any significant adverse impacts on military 
     training activities on Goldwater Range that are identified by 
     the task force; and (3) the benefits and costs associated 
     with the implementation of each possible solution identified 
     by the task force. The provision would also require the task 
     force to report to Congress.
       The House bill contained no similar provision.
       The House recedes with technical amendments.
     Public health assessment of exposure to perchlorate (sec. 
         323)
       The House bill contained a provision (sec. 345) that would 
     direct the Secretary of Defense to provide an independent 
     epidemiological study and endocrinological review of human 
     exposure to perchlorate.
       The Senate amendment contained an identical provision (sec. 
     331).
       The House recedes with a technical amendment.
     Comptroller General review of Arctic Military Environmental 
         Cooperation Program (sec. 324)
       The Senate amendment contained a provision (sec. 323) that 
     would authorize the Secretary of Defense to expand a 
     cooperative environmental technology program to countries in 
     the Western Pacific regions. The Secretary, with the 
     concurrence of the Secretary of State, would provide 
     cooperative assistance on activities that contribute to the 
     demonstration of environmental technology in the Arctic and 
     Pacific regions, with certain limitations and exceptions. The 
     primary focus of the program would be technology projects and 
     activities related to radiological contamination.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Comptroller General to conduct a review of the Arctic 
     Military Environmental Cooperation (AMEC) Program, the 
     existing and proposed technology demonstration role of the 
     program in U.S. nonproliferation efforts, and the 
     relationship to the Cooperative Threat Reduction (CTR) 
     Program. Based on this review, the Comptroller General would 
     submit a report to Congress that assesses the Western Pacific 
     conditions that may require an expansion of AMEC technology 
     development and demonstration, the foreign funding 
     contributions for AMEC activities, the use of AMEC by CTR and 
     G-8 Global Partnership Against the Spread of Weapons and 
     Materials of Mass Destruction Initiative, the importance of 
     AMEC to the disarmament and nonproliferation functions of 
     CTR, and the program's future year funding and program plans.
       The conferees note that no funds were included in the 
     budget request for fiscal year 2004 or the Future Years 
     Defense Program (FYDP) for the AMEC program. In the event the 
     Secretary of Defense intends to continue the AMEC program and 
     seek authorization to expand the program to the Western 
     Pacific regions, the conferees expect the development of a 
     comprehensive funding and program plan, and the 
     identification of funding and projects in the FYDP. 
     Otherwise, the Secretary should terminate the program. The 
     conferees are aware that there is growing international 
     interest in the activities of the AMEC program. The conferees 
     encourage and support broad-based international programs that 
     involve contributions by all participants.

                 Subtitle C--Workplace and Depot Issues

     Exemption of certain firefighting service contracts from 
         prohibition on contracts for performances of firefighting 
         functions (sec. 331)
       The Senate amendment contained a provision (sec. 363) that 
     would allow the Department of Defense to enter into contracts 
     for up to one year for the performance of firefighting 
     functions to fill positions vacated by deployed military 
     firefighters.
       The House bill contained no similar provision.
       The House recedes.
     Technical amendment relating to termination of Sacramento 
         Army Depot, Sacramento, California (sec. 332)
       The Senate amendment contained a provision (sec. 364) that 
     would repeal an obsolete provision of law related to a closed 
     military facility.
       The House bill contained no similar provision.
       The House recedes.
     Exception to competition requirement for workloads previously 
         performed by depot-level activities (sec. 333)
       The Senate amendment contained a provision (sec. 365) that 
     would provide for an exception to the requirement in section 
     2469 of title 10, United States Code, for current depot-level 
     maintenance and repair workload performed under a public-
     private partnership pursuant to section 2474(b) of title 10, 
     United States Code.
       The House bill contained no similar provision.
       The House recedes with an amendment to authorize a waiver 
     of the requirements under section 2469 of title 10, United 
     States Code, for workloads performed under a public-private 
     partnership at a Center for Industrial and Technical 
     Excellence.
     Resources-based schedules for completion of public-private 
         competitions for performance of Department of Defense 
         functions (sec. 334)
       The Senate amendment contained a provision (sec. 812) that 
     would ensure that schedules for the completion of public-
     private competitions within the Department of Defense (DOD) 
     are based on DOD analysis of the availability of sufficient 
     personnel, training, and technical resources to conduct such 
     competitions. The provision would also establish a pilot 
     program to allow the DOD to base its competitive sourcing 
     decisions for information technology services on best value 
     criteria.
       The House bill contained no similar provision.
       The House recedes with an amendment that would ensure a 
     resource-based schedule for the completion of DOD public-
     private competitions. The issue of establishing a best value 
     public-private competition pilot program is addressed 
     elsewhere in the conference report.
     Delayed implementation of revised Office of Management and 
         Budget Circular A-76 by Department of Defense pending 
         report (sec. 335)
       The House bill contained a provision (sec. 323) that would 
     require the Secretary of Defense to report to the Committees 
     on Armed Services of the Senate and the House of 
     Representatives on the new Office of Management and Budget 
     Circular A-76 and then wait for a period of 45 days before 
     implementing the Circular.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment to modify the minimum 
     requirements of the content of the report.
     Pilot program for best-value source selection for performance 
         of information technology services (sec. 336)
       The Senate amendment contained a provision (sec. 812) that 
     would establish a pilot program to allow the Department of 
     Defense (DOD) to base its competitive sourcing decisions for 
     information technology services on best value criteria. The 
     provision would also ensure that schedules for the completion 
     of public-private competitions within DOD are based on DOD 
     analysis of the availability of sufficient personnel, 
     training, and technical resources to conduct such 
     competitions.
       The House bill contained no similar provision.
       The House recedes with an amendment that would establish a 
     best value public-private competition pilot program. The 
     issue of schedules for public private competitions is 
     addressed elsewhere in the conference report.
     High-performing organization business process reengineering 
         pilot program (sec. 337)
       The House bill contained a provision (sec. 322) that would 
     authorize the Secretary of Defense to implement a high 
     performing organization pilot program for 15 organizations. 
     Under the pilot program, functions within an organization 
     that undergo an approved business process reengineering (BPR) 
     shall not undergo a public-private competition during the 
     design and implementation phase of the BPR and for five years 
     after successful completion of the BPR.
       The Senate amendment contained no similar provision.

[[Page 27836]]

       The Senate recedes with an amendment that would limit the 
     participation in the pilot to eight eligible organizations 
     and would clarify that a participating organization may elect 
     to undergo a public-private competition under its BPR plan.
     Naval Aviation Depots multi-trades demonstration project 
         (sec. 338)
       The House bill contained a provision (sec. 324) that would 
     require the Secretary of the Navy to conduct a demonstration 
     project to evaluate the benefits of promoting workers who 
     perform multiple trades.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require a 
     worker to perform the new trade at least 25 percent of the 
     time during the worker's work year.

                       Subtitle D--Other Matters

     Cataloging and standardization for defense supply management 
         (sec. 341)
       The House bill contained a provision (sec. 341) that would 
     amend Chapter 145 of title 10, United States Code, to 
     authorize changing the current method the Secretary of 
     Defense follows in cataloging and coding supply items for 
     identification purposes.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to coordinate with the Administrator of 
     the General Services Administration to enable the use of 
     commercial identifiers for commercial items within the 
     Federal Cataloging System.
     Sale of Defense Information Systems Agency services to 
         contractors performing the Navy-Marine Corps Intranet 
         contract (sec. 342)
       The Senate amendment contained a provision (sec. 361) that 
     would enable the Defense Information Systems Agency to sell 
     working-capital funded services to contractors that are 
     working on the Navy-Marine Corps Intranet contract.
       The House bill contained no similar provision.
       The House recedes.
     Permanent authority for purchase of certain municipal 
         services at installations in Monterey County, California 
         (sec. 343)
       The House bill contained a provision (sec. 346) that would 
     authorize the Department of Defense (DOD) to purchase public 
     works, utility, and other municipal services from government 
     agencies in Monterey County, California for DOD operations in 
     that county.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Department of Defense telecommunications benefit (sec. 344)
       The Senate amendment contained a provision (sec. 311(b)) 
     that would direct the Secretary of Defense to provide prepaid 
     phone cards, or an equivalent telecommunications benefit to 
     service members stationed outside the United States who are 
     directly supporting military operations in Iraq or 
     Afghanistan.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     allow service members to use the telecommunications benefit 
     to make free calls to anyone they choose whether inside or 
     outside the United States. Further, the amendment would 
     provide the Secretary the option of providing a 
     telecommunications benefit valued at $40 per month or 120 
     minutes per month, if the latter is less costly. Finally, the 
     amendment would clarify that this benefit is available to 
     those service members who are eligible for combat zone tax 
     exclusion benefits due to their service in direct support of 
     Operation Enduring Freedom and Operation Iraqi Freedom.
     Independent assessment of material condition of the KC-135 
         aerial refueling fleet (sec. 345)
       The conferees recommend a provision that would require the 
     Secretary of Defense to submit an assessment of the material 
     condition of the KC-135 aerial refueling aircraft by May 1, 
     2004. The conferees believe that this assessment will provide 
     important information for the committees' review to support 
     the Air Force's aerial refueling capability.
       The conferees note that one of the justifications provided 
     by the Secretary of the Air Force for proceeding with a lease 
     of KC-767 aircraft to modernize the Air Force's aerial 
     refueling capability is the deleterious effect of corrosion 
     on the material condition of the current KC-135 fleet of 
     aerial refueling aircraft. The conferees believe that an up-
     to-date, independent assessment of the material condition of 
     the KC-135 aerial refueling fleet is warranted.
       Neither the House bill nor the Senate amendment included a 
     provision that would direct that an assessment of the 
     material condition of the KC-135 fleet of aerial refueling 
     aircraft be conducted.
       The conferees expect that the assessment would be made by 
     an entity outside of the Department of Defense (DOD), and 
     should include the following data and analysis for KC-135E 
     and KC-135R aircraft for each year from fiscal year 1996 
     through fiscal year 2003: (1) trend analysis for operational 
     readiness; (2) trend analysis for organizational and depot-
     level maintenance manhours, with specific breakout of 
     corrosion control and prevention manhours; (3) numbers of 
     aircraft grounded due to corrosion and length of time each 
     aircraft was grounded; (4) itemization of improved corrosion 
     control processes which resulted in decreased manhours for 
     corrosion control and treatment; (5) analysis of the 
     relationship between manhours for corrosion repair and 
     improved processes; and (6) analysis of major structural 
     repairs required due to corrosion.
       In addition, the conferees expect that the DOD official or 
     organization designated to oversee and coordinate efforts to 
     prevent and mitigate corrosion of military equipment and 
     infrastructure, as required by section 1067 of the Bob Stump 
     National Defense Authorization Act for Fiscal Year 2003 (P.L. 
     107-314), would be informed of and involved in responding to 
     the results of this assessment.

                   Legislative Provisions Not Enacted

     Availability of funds for local educational agencies affected 
         by the Brooks Air Force Base demonstration project
       The Senate amendment contained a provision (sec. 351(d)) 
     that would authorize up to $500,000 of Department of Defense 
     (DOD) funds for assistance to local educational agencies to 
     be used for making basic support payments in fiscal year 2004 
     to local educational agencies affected by the DOD 
     infrastructure demonstration project at Brooks Air Force 
     Base.
       The House bill contained no similar provision.
       The Senate recedes.
     Construction of wetland crossings, Camp Shelby Combined Arms 
         Maneuver Area, Camp Shelby, Mississippi
       The House bill contained a provision (sec. 320) that would 
     authorize the Secretary of the Army to use operation and 
     maintenance funds to construct wetlands crossings within the 
     Camp Shelby Combined Arms Maneuver Area, Camp Shelby, 
     Mississippi.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees recognize the importance of conducting heavy 
     armor training at the Camp Shelby Combined Arms Manuever Area 
     and expect the Army and Army National Guard to use operations 
     and maintenance funds, when consistent with section 2805 of 
     title 10, United States Code, to support unspecified minor 
     construction at discrete training areas within the Combined 
     Arms Maneuver Area, as necessary to support such training.
     Counterexploitation initiative
       The House bill contained a provision (sec. 304) that would 
     require $1.1 million of the amount authorized to be 
     appropriated by section 301(5) for operations and 
     maintenance, Defense-wide, to be allocated to U.S. Special 
     Operations Command for the purpose of tracing portable, 
     sensitive items exported beyond the borders of the United 
     States.
       The Senate amendment contained no similar provision.
       The House recedes.
     Emergency and morale communications programs
       The Senate amendment contained a provision (sec. 311(a)) 
     that would authorize $5.0 million for the American Red Cross 
     to support its Armed Forces Emergency Services program.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize $5.0 million for the Red 
     Cross Emergency Services program, as noted elsewhere in this 
     conference report.
     Exclusion of certain expenditures from percentage limitation 
         on contracting for performance of depot-level maintenance 
         and repair workloads
       The House bill contained a provision (sec. 321) that would 
     remove the date limitation in section 2474(f) of title 10, 
     United States Code, and permanently authorize that all work 
     performed by private sector personnel at Department of 
     Defense maintenance and repair depots be excluded from the 
     percentage limitations on private sector depot-level 
     maintenance work.
       The Senate amendment contained no similar provision.
       The House recedes.
     Expansion of Department of Defense excess personal property 
         disposal program to include health agencies in addition 
         to law enforcement and firefighting agencies
       The House bill contained a provision (sec. 344) that would 
     grant additional authority to the Secretary of Defense to 
     transfer excess personal property to health agencies.
       The Senate amendment contained no similar provision.
       The House recedes.
     Impact aid for children with severe disabilities
       The Senate amendment contained a provision (sec. 352) that 
     would authorize $5.0 million for continuation of the 
     Department of Defense assistance program to local educational 
     agencies that benefit dependents with severe disabilities.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that section 363 of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 
     (Public Law

[[Page 27837]]

     106-398) authorizes the Secretary of Defense to provide 
     assistance to local educational agencies serving military 
     dependents with severe disabilities. Consistent with that 
     section, the conferees authorize $5.0 million of the funds 
     available for Operation and Maintenance, Defense-Wide, for 
     continuation of such assistance.
     Information operations sustainment for land forces readiness 
         of Army Reserve
       The Senate amendment contained a provision (sec. 313) that 
     would authorize an increase of $3.0 million for operation and 
     maintenance, Army Reserve, to be used for Information 
     Operations for land forces readiness--information operations 
     sustainment. This amount would be offset by a general 
     decrease of $3.0 million in operations and maintenance, Air 
     Force.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree to authorize $2.0 million for operation 
     and maintenance, Army Reserve, Land Forces Readiness, Forces 
     Readiness Operations Support, to be used for information 
     operations for land forces readiness--information operations 
     sustainment, as noted elsewhere in this conference report.
     Performance-based and results-based management requirements 
         for Chief Information Officers of Department of Defense
       The House bill contained a provision (sec. 331) that would 
     establish additional responsibilities for the Chief 
     Information Officer of the Department of Defense and the 
     chief information officers of the military departments.
       The Senate amendment contained no similar provision.
       The House recedes.
     Preservation of Air Force Reserve weather reconnaissance 
         mission
       The House bill contained a provision (sec. 343) that would 
     prohibit the Secretary of Defense from disestablishing or 
     transferring the Air Force Reserve's weather reconnaissance 
     mission unless the Secretary determines that another 
     organization or entity can demonstrate that it has the 
     capability to perform the same mission with the same 
     capability as the Air Force Reserve.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees recognize the coordination between the 
     Department of Defense (DOD) and other federal departments, 
     agencies, and activities, to support weather surveillance 
     taskings developed by the Department of Commerce. DOD 
     resources, including an Air Force Reserve aircraft squadron, 
     are currently involved in weather surveillance as a result of 
     this interagency coordination. The conferees note that this 
     coordination is achieved between the DOD and other federal 
     activities on a not-to-interfere basis with the requirements 
     of the DOD and the armed forces.
       The conferees direct that, before current DOD resources 
     that have been coordinated through the interagency process 
     for weather surveillance are discontinued, the Secretary of 
     Defense shall work within the interagency process to identify 
     alternative DOD capabilities that may be coordinated with 
     other federal activities to continue weather surveillance on 
     a not-to-interfere basis.
     Reduction in authorization for Air Force operation and 
         maintenance account
       The House bill contained a provision (sec. 305) that would 
     reduce authorization by $135.5 million for operation and 
     maintenance, Air Force.
       The Senate bill contained no similar provision.
       The House recedes.
     Reimbursement of reserve component accounts for costs of 
         intelligence activities support provided by reserve 
         component personnel
       The Senate amendment contained a provision (sec. 342) that 
     would amend chapter 1003 of title 10, United States Code, by 
     authorizing the use of the operation and maintenance funds of 
     the military departments, combatant commands, and defense 
     agencies to reimburse pay, allowances, and other expenses of 
     National Guard or reserve intelligence personnel who provide 
     intelligence or counterintelligence support to the military 
     departments, combatant commands, or defense agencies.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that the Department of Defense has asked 
     for the authority contained in the Senate amendment for the 
     past several years, but has yet to recommend increases to 
     appropriate reserve component personnel funding accounts. The 
     conferees urge the Department to better forecast reserve 
     component intelligence requirements and include realistic 
     funding recommendations in reserve component personnel 
     funding accounts in future budget submissions.
     Reimbursement of reserve component military personnel 
         accounts for personnel costs of special operations 
         reserve component personnel engaged in landmines 
         clearance
       The Senate amendment contained a provision (sec. 341) that 
     would amend section 301 of title 10, United States Code, to 
     allow up to $5.0 million of the funding for a fiscal year for 
     humanitarian and civic assistance to be expended for the pay 
     and allowances of reserve component personnel of the Special 
     Operations Command (SOCOM) performing duty in connection with 
     training and activities related to the clearing of landmines 
     for humanitarian purposes.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees note that similar temporary authority was 
     enacted under section 513 of the National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314). 
     Through section 513, Congress directed the Secretary of 
     Defense, as part of the fiscal year 2004 budget request, to 
     submit a legislative proposal that would ensure that the 
     military personnel expenses of active and reserve component 
     personnel engaged in humanitarian de-mining activities were 
     defined in detail and funded within military personnel 
     accounts. No such proposal was submitted. The conferees urge 
     the Secretary to propose a comprehensive, long-term solution 
     to this issue that recognizes the requirement to support 
     humanitarian de-mining operations around the world, and that 
     complies with the requirements of public law.
     Space-available transportation for dependents of members 
         assigned to overseas duty locations for continuous period 
         in excess of one year
       The House bill contained a provision (sec. 342) that would 
     authorize the dependents of service members who are assigned 
     overseas for a continuous period in excess of one year to use 
     space-available transportation to travel between the overseas 
     duty location and the United States and return, or between 
     the overseas duty location and another overseas location and 
     return.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees support policies of the Department of Defense 
     that make space available travel and emergency and morale 
     leave benefits consistent for both active duty personnel and 
     members of the reserve component serving on active duty.
       The conferees recommend that the Department review existing 
     policies regarding space-available travel and emergency and 
     morale leave with the objective of ensuring that members of 
     the reserve component serving on active duty and their 
     dependents are able effectively to exercise this privilege. 
     The conferees recommend further that the Department of 
     Defense and the services ensure promulgation of practical 
     guidance aimed at informing reserve component personnel about 
     their eligibility for this benefit and the resources 
     available to further their understanding of what to expect 
     when traveling space-available.
     Submittal of survey on perchlorate contamination at 
         Department of Defense sites
       The Senate amendment contained a provision (sec. 314) that 
     would require the Secretary of Defense to submit to the 
     appropriate committees of Congress the Department of Defense 
     (DOD) 2001 Perchlorate Occurrence Survey to identify the 
     potential for perchlorate contamination at DOD sites.
       The House bill contained no similar provision.
       The Senate recedes.
       As of July 9, 2003, the Department of Defense notified the 
     Committees on Armed Services of the Senate and the House of 
     Representatives that it had provided interested members of 
     Congress ``. . . all information this office currently has on 
     perchlorate sampling by the Services.''
       As of July 9, 2003, the Department of Defense notified the 
     Committees on Armed Services of the Senate and the House of 
     Representatives that it had provided interested members of 
     Congress ``. . . all information this office currently has on 
     perchlorate sampling by the Services.''

              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, 2004: Army, 482,375; Navy, 375,700; Marine 
     Corps, 175,000; Air Force, 361,268.
       The Senate amendment contained a similar provision (sec. 
     401) that would authorize the following active forces end 
     strengths: Army, 480,000; Navy, 373,800; Marine Corps, 
     175,000; and Air Force, 359,300.
       The Senate recedes with an amendment that would authorize 
     2,400 additional active duty soldiers in the Army.
       The conferees' recommended active forces end strengths for 
     fiscal year 2004 are set forth in the following table:

[[Page 27838]]



----------------------------------------------------------------------------------------------------------------
                                                                     FY 2004                   Change from
                                                FY 2003   ------------------------------------------------------
                   Service                     authorized                                 FY 2004      FY 2003
                                                             Request    Recommendation    request     authorized
----------------------------------------------------------------------------------------------------------------
Army........................................      480,000      480,000        482,400         2,400        2,400
Navy........................................      375,700      373,800        373,800             0       -1,900
Marine Corps................................      175,000      175,000        175,000             0            0
Air Force...................................      359,000      359,300        359,300             0          300
                                             -------------------------------------------------------------------
      DOD Total.............................    1,389,700    1,388,100      1,390,500         2,400          800
----------------------------------------------------------------------------------------------------------------

     Revision in permanent active duty end strength minimum levels 
         (sec. 402)
       The House bill contained a provision (sec. 402) that would 
     establish new permanent active duty end strength minimum 
     levels in section 691(b) of title 10, United States Code, for 
     the Army and Air Force as of September 30, 2004.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would set the 
     following minimum end strengths: Army, 482,400; Navy, 
     373,800; and Air Force, 359,300.
     Personnel strength authorization and accounting process (sec. 
         403)
       The Senate amendment contained a provision (sec. 421) that 
     would authorize a change to the method used by the Department 
     of Defense to measure the strength for active duty and 
     reserve component personnel from strength at the end of the 
     fiscal year to average strength throughout the year.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to prescribe quarterly end strength 
     levels for each service and permissible maximum variances of 
     actual strength at the end of each quarter. The levels and 
     variances established by the Secretary should be such that 
     they support maintenance throughout the year of the personnel 
     strengths necessary to achieve the annual authorized end-
     strength levels.

                       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 the selected 
     reserve personnel, including the end strength for reserves on 
     active duty in support of the reserves, as of September 30, 
     2004: Army National Guard, 350,000; the Army Reserve, 
     205,000; the Naval Reserve, 85,900; the Marine Corps Reserve, 
     39,600; the Air National Guard, 107,000; the Air Force 
     Reserve, 75,800.
       The Senate amendment contained a similar provision (sec. 
     413) that would authorize an end strength for the Air 
     National Guard of 107,030.
       The House recedes.
       The conferees' recommended Selected Reserve end strengths 
     for fiscal year 2004 are set forth in the following table:

----------------------------------------------------------------------------------------------------------------
                                                                     FY 2004                   Change from
                                               FY 2003   -------------------------------------------------------
                  Service                     authorized                   Conferee       FY 2004      FY 2003
                                                            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..............................       87,800       85,900           85,900            0       -1,900
Marine Corps Reserve.......................       39,558       39,600           39,600            0           42
Air National Guard.........................      106,600      107,000          107,030           30          430
Air Force Reserve..........................       75,600       75,800           75,800            0          200
                                            --------------------------------------------------------------------
      DoD Total............................      864,558      863,300          863,330           30       -1,228
Coast Guard Reserve........................        9,000       10,000           10,000            0        1,000
----------------------------------------------------------------------------------------------------------------

     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, 2004: the 
     Army National Guard of the United States, 25,386; the Army 
     Reserve, 14,374; the Naval Reserve, 14,384; the Marine Corps 
     Reserve, 2,261; the Air National Guard of the United States, 
     12,140; and the Air Force Reserve, 1,660.
       The Senate amendment contained a similar provision (sec. 
     412) that would authorize end strengths of 25,599 for the 
     Army National Guard, 12,191 for the Air National Guard and 
     identical end strengths for the other services.
       The House recedes.
       The conferees' recommended end strength levels for Reserves 
     on active duty in support of the reserves are set forth in 
     the following table:

----------------------------------------------------------------------------------------------------------------
                                                                     FY 2004                   Change from
                                               FY 2003   -------------------------------------------------------
                  Service                     authorized                   Conferee       FY 2004      FY 2003
                                                            Request     recommendation    request     authorized
----------------------------------------------------------------------------------------------------------------
Army National Guard........................       24,562       25,386           25,599          213         1037
Army Reserve...............................       14,070       14,374           14,374            0          304
Naval Reserve..............................       14,572       14,384           14,384            0         -188
Marine Corps Reserve.......................        2,261        2,261            2,261            0            0
Air National Guard.........................       11,727       12,140           12,191           51          464
Air Force Reserve..........................        1,498        1,660            1,660            0          162
                                            --------------------------------------------------------------------
      DoD Total............................       68,690       70,205           70,469          264        1,779
----------------------------------------------------------------------------------------------------------------

     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, 2004: the Army 
     National Guard of the United States, 24,589; the Army 
     Reserve, 7,844; the Air National Guard of the United States, 
     22,806; the Air Force Reserve, 9,991.
       The Senate amendment contained a similar provision (sec. 
     413).
       The House recedes with a clarifying amendment that would 
     authorize end strength for the Army Reserve of 6,949.
       The conferees' recommended end strength levels for military 
     technicians (dual status) are set forth in the following 
     table:

----------------------------------------------------------------------------------------------------------------
                                                                     FY 2004                   Change from
                                               FY 2003   -------------------------------------------------------
                  Service                     authorized                   Conferee       FY 2004      FY 2003
                                                            Request     recommendation    request     authorized
----------------------------------------------------------------------------------------------------------------
Army National Guard........................       24,102       24,589           24,589            0          487
Army Reserve...............................        6,599        6,699            6,949          250          350
Air National Guard.........................       22,495       22,806           22,806            0          311
Air Force Reserve..........................        9,911        9,991            9,991            0           80
                                            --------------------------------------------------------------------
      DoD Total............................       63,107       64,085           64,335          250        1,228
----------------------------------------------------------------------------------------------------------------


[[Page 27839]]

     Fiscal year 2004 limitations on 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, 2004.
       The Senate amendment contained a similar provision (sec. 
     414).
       The Senate recedes with a technical amendment.
     Permanent limitations on number of non-dual status 
         technicians (sec. 415)
       The House bill contained a provision (sec. 415) that would 
     increase to 595 the permanent limit on the number of non-dual 
     status military technicians who are allowed to be employed by 
     the Army Reserve on or after October 1, 2007. It would also 
     establish a separate permanent limit of 90 non-dual status 
     technicians who are allowed to be employed by the Air Force 
     Reserve on or after October 1, 2007.
       The Senate amendment contained no similar provision.
       The Senate recedes.

              Subtitle C--Authorization of Appropriations

     Authorization of appropriations for military personnel (sec. 
         421)
       The House bill contained a provision (sec. 421) that would 
     authorize a total of $98,634.5 million to be appropriated to 
     the Department of Defense for military personnel.
       The Senate amendment contained a similar provision (sec. 
     431) that would authorize a total of $99,194.2 million to be 
     appropriated to the Department for military personnel.
       The House recedes with an amendment that would authorize 
     $98,908.4 million to be appropriated to the Department for 
     military personnel.
       The conferees note that in addition to the amounts shown 
     below, $203.0 million was made available in the Emergency 
     Supplemental Appropriations Act for Defense and for the 
     Reconstruction of Iraq and Afghanistan, 2004 (Public Law 108-
     xxx) for imminent danger pay and family separation allowance. 
     The conferees provide the following itemization of the 
     increases and decreases from the budget request related to 
     the military personnel accounts:

                        [Additions in millions]

Army, increase active end strength (2,400).......................$ 68.0
Add AGR strength for WMD-CST teams.................................22.2
Army National Guard, sustain AGR growth............................37.8
Imminent Danger Pay and Family Separation Allowance...............128.0
Minimum 3.7 percent pay raise for all..............................38.0
Increase death gratuity.............................................9.0
                                                             __________
                                                             
    Total.........................................................303.0

                        [Reductions in millions]

Contingency Operations in SW Asia.................................312.1
AGR cost avoidance.................................................38.6
                                                             __________
                                                             
    Total.........................................................350.7
     Armed Forces Retirement Home (sec. 422)
       The House bill contained a provision (sec. 422) that would 
     authorize $65,279,000 to be appropriated for the operation of 
     the Armed Forces Retirement Home during fiscal year 2004.
       The Senate amendment contained a similar provision (sec. 
     303).
       The Senate recedes.

                   Legislative Provisions Not Adopted

     Exclusion of recalled retired members from certain strength 
         limitations during period of war or national emergency
       The Senate amendment contained a provision (sec. 422) that 
     would exclude retirees recalled to active duty from annual 
     personnel end strength and grade strength limitations during 
     a period of war or national emergency in which members of a 
     reserve component are serving on active duty pursuant to an 
     order to active duty under sections 12301 or 12302 of title 
     10, United States Code.
       The House bill contained no similar provision.
       The Senate recedes.
     Increased maximum percentage of general and flag officers on 
         active duty authorized to be serving in grades above 
         brigadier general and rear admiral (lower half)
       The Senate amendment contained a provision (sec. 402) that 
     would modify section 525 of title 10, United States Code, to 
     increase from 50 percent to 55 percent the number of active 
     duty general and flag officers who may serve in grades above 
     O-7.
       The House bill contained no similar provision.
       The Senate recedes.

                   Title V--Military Personnel Policy

                       Items of Special Interest

     Superintendent of the United States Air Force Academy (sec. )
       The conferees considered all the recommendations of the 
     Panel to Review Sexual Misconduct Allegations at the United 
     States Air Force Academy with the goal of determining those 
     that required legislative action. The conferees agree with 
     the Panel's recommendation that the Air Force extend the tour 
     length of the Superintendent to four years in order to 
     provide for greater continuity and stability in Academy 
     leadership and urge the Secretary of the Air Force to 
     implement such a policy.

                     Legislative Provisions Adopted

                  Subtitle A--Officer Personnel Policy

     Standardization of qualifications for appointment as service 
         chief (sec. 501)
       The House bill contained a provision (sec. 501) that would 
     require that candidates for selection as the Chief of Naval 
     Operations and the Commandant of the Marine Corps be chosen 
     from the flag officers of the Navy or general officers of the 
     Marine Corps. The provision would make qualification criteria 
     with respect to grade consistent across all four of the 
     military services.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Eligibility for appointment as Chief of Army Veterinary Corps 
         (sec. 502)
       The Senate amendment contained a provision (sec. 502) that 
     would modify section 3084 of title 10, United States Code, to 
     require that the Chief of the Veterinary Corps of the Army be 
     appointed from among officers of the Veterinary Corps of the 
     Army.
       The House bill contained no similar provision.
       The House recedes.
     Repeal of required grade of defense attache in France (sec. 
         503)
       The House bill contained a provision (sec. 514) that would 
     repeal section 714 of title 10, United States Code, which 
     delineates the required grade for the defense attache to the 
     U.S. embassy in France.
       The Senate bill contained no similar provision.
       The Senate recedes.
     Repeal of termination provisions for certain authorities 
         relating to management of general and flag officers in 
         certain grades (sec. 504)
       The Senate amendment contained a provision (sec. 403) that 
     would extend existing procedures in sections 525, 526, and 
     604 of title 10, United States Code, relating to the filling 
     and management of certain senior joint officer positions.
       The House bill contained no similar provision.
       The House recedes with an amendment that would make the 
     authority permanent for the procedures currently in use 
     relating to management of general and flag officers for these 
     positions.
     Retention of health professions officers to fulfill active-
         duty service commitments following promotion nonselection 
         (sec. 505)
       The House bill contained a provision (sec. 512) that would 
     authorize the secretary concerned to retain officers serving 
     in health professions until the end of their active duty 
     service obligations, notwithstanding the requirement under 
     law to discharge them on an earlier date due to nonselection 
     for promotion. This section would allow the secretary to 
     decline to retain an officer if retention of the officer is 
     not in the best interests of the service.
       The Senate amendment contained a similar provision (sec. 
     501).
       The Senate recedes.
     Permanent authority to reduce three-year time-in-grade 
         requirement for retirement in grade for officers in 
         grades above major and lieutenant commander (sec. 506)
       The Senate amendment contained a provision (sec. 521) that 
     would modify section 1370 of title 10, United States Code, to 
     make permanent the authority to reduce the three-year time-
     in-grade requirement to two years for retirement in grade for 
     officers in grades above major and lieutenant commander under 
     prescribed conditions.
       The House bill contained a provision (sec. 513) that would 
     authorize the Secretary of Defense and the service 
     secretaries greater latitude in allowing officers serving in 
     grades above colonel, or captain in the Navy, to retire in 
     grade, including a minimum one year time-in-grade 
     requirement.
       The House recedes with a clarifying amendment that would 
     make the waiver authority applicable to both active and 
     reserve component officers.
     Contingent exclusion from officer strength and distribution-
         in-grade limitations for officer serving as Associate 
         Director of Central Intelligence for Military Support 
         (sec. 507)
       The conferees agree to include a provision that would 
     exempt the position of Associate Director for Central 
     Intelligence for Military Support from counting against the 
     numbers and percentages of officers authorized to be serving 
     in the rank and grade for an assigned officer's armed force. 
     This exemption would only apply when none of the individuals 
     serving in the positions of Director for Central 
     Intelligence, Deputy Director for Central Intelligence, or 
     Deputy Director of Central Intelligence for Community 
     Management are military officers.
     Reappointment of incumbent Chief of Naval Operations (sec. 
         508)
       The conferees agree to include a provision that, 
     notwithstanding the provisions of section 5033(a)(1) of title 
     10, United States Code, would authorize the President, by and 
     with

[[Page 27840]]

     the advice of the Senate, to reappoint the officer serving as 
     Chief of Naval Operations on October 1, 2003, for an 
     additional term of not more than two years.
     Secretary of Defense approval required for practice of 
         wearing uniform insignia of higher grade known as 
         ``frocking'' (sec. 509)
       The conferees agree to include a provision that would amend 
     section 777 of title 10, United States Code, to add new 
     conditions required for frocking of flag and general 
     officers. This provision would require that the Secretary of 
     Defense, or an authorized designee within the Office of the 
     Secretary of Defense, approve the frocking of all officers 
     for grades above O6. Additionally, the Secretary of Defense 
     would be required to submit written notification to the 
     Congress of the intent to authorize an officer to wear the 
     insignia for a grade above O6 and a period of 30 days would 
     have to elapse after the date of notification before frocking 
     could occur.
       The conferees are dissatisfied with existing procedures 
     that control frocking within the services and are concerned 
     about the troubling instances of improper frocking by field 
     commanders who have knowingly disregarded the requirements of 
     law. The conferees are hopeful that the requirement for 
     approval by the Secretary of Defense and written notification 
     to the Congress prior to the frocking of a flag or general 
     officer will significantly reduce abuses of frocking 
     authority, result in stronger justification for the 
     recommendations to frock flag and general officers, and 
     preclude the need to further restrict the practice of 
     frocking for the most senior grades or impose similar 
     requirements below the grade of O7.
       The conferees expect that the Committees on Armed Services 
     of the Senate and House of Representatives will be informed 
     promptly of violations of laws pertaining to frocking and of 
     actions taken within the Office of the Secretary of Defense 
     and the services to ensure future compliance with the 
     requirements set forth in section 777 of title 10, United 
     States Code.

                 Subtitle B--Reserve Component Matters

     Streamlined process for continuation of officers on the 
         reserve active-status list (sec. 511)
       The House bill contained a provision (sec. 521) that would 
     remove the requirement for the secretary concerned to conduct 
     a selection board to identify officers eligible for 
     continuation on the reserve active-status list after being 
     subject to separation or retirement due to nonselection for 
     promotion, selection for early separation, or other reason.
       The Senate amendment contained a similar provision (sec. 
     512).
       The Senate recedes.
     Consideration of reserve officers for position vacancy 
         promotions in time of war or national emergency (sec. 
         512)
       The House bill contained a provision (sec. 522) that would 
     authorize the secretary concerned to consider reserve 
     officers ordered to active duty in support of a contingency 
     operation for vacancy promotions for a period of up to two 
     years of active duty service.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Authority for delegation of required secretarial special 
         findings for placement of certain retired members in 
         Ready Reserve (sec. 513)
       The House bill contained a provision (sec. 524) that would 
     allow the secretaries of the military departments to delegate 
     determinations of whether retired members possess a skill so 
     critical that they will be permitted to serve in a reserve 
     component following retirement.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Authority to provide expenses of Army and Air Staff personnel 
         and National Guard Bureau personnel attending national 
         conventions of certain military associations (sec. 514)
       The House bill contained a provision (sec. 525) that would 
     authorize the secretary concerned to fund the necessary 
     expenses of regular members assigned to the National Guard 
     Bureau or the Army General Staff or the Air Staff to attend 
     the national convention of the Enlisted Association of the 
     National Guard of the United States in the same manner as 
     funding is provided to support the attendance at the national 
     convention of the National Guard Association of the United 
     States and the Adjutant General Association.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Expanded authority for use of Ready Reserve in response to 
         terrorism (sec. 515)
       The Senate amendment contained a provision (sec. 511) that 
     would modify the language of section 12304(b) of title 10, 
     United States Code, to authorize the use of reserves for all 
     terrorist attacks or threatened terrorist attacks in the 
     United States that result, or could result, in loss of life 
     or property.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     limit use of reserve component personnel and units in 
     responding to a terrorist attack or threatened terrorist 
     attack in the United States to those attacks that result, or 
     could result, in significant loss of life or property, and 
     only if the President determines that the requirements for 
     responding to such an emergency have exceeded, or will 
     exceed, the response capabilities of local, state, and 
     federal civilian agencies.
     National Guard officers on active duty in command of National 
         Guard units (sec. 516)
       The Senate amendment contained a provision (sec. 513) that 
     would modify section 325 of title 32, United States Code, to 
     allow officers of the Army or Air National Guard, called to 
     active duty for the purpose of commanding a unit composed of 
     both active duty and reserve component personnel, to retain 
     and exercise their Army or Air National Guard state 
     commissions if authorized by the President and the governor. 
     Such National Guard officers would have the authority to 
     command subordinate active duty personnel by virtue of their 
     own active duty status and also retain the authority to 
     command National Guard personnel in a nonfederal status.
       The House bill contained no similar provision.
       The House recedes.
     Presidential report on mobilization of reserve component 
         personnel and Secretary of Defense assessment (sec. 517)
       The Senate amendment contained a provision (sec. 1024) that 
     would require the Secretary of Defense, not later than 90 
     days after enactment of this Act, to submit to the Committees 
     on Armed Services of the Senate and the House of 
     Representatives a report on the mobilization of reserve 
     component forces during fiscal years 2002 and 2003.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     President, not later than six months after the date of 
     enactment of this Act, to transmit to Congress a report on 
     the mobilization of members of the reserve components during 
     fiscal years 2002 and 2003. The report would include for each 
     of those fiscal years the number of members of the reserve 
     components who were called or ordered to active duty under a 
     provision of law specified in section 101(a)(13)(B) of title 
     10, United States Code, and additional data regarding the 
     duration and frequency of recalls for members of the reserve 
     components. Additionally, the Secretary would be required to 
     submit, not later than one year after the date of enactment 
     of this Act, a report addressing, among other things, the 
     effects on reserve component recruitment and retention 
     resulting from the mobilization of Reserves, lessons learned 
     from this experience, a description of changes in the armed 
     forces envisioned by the Secretary, and an assessment of the 
     process used for calling and ordering such members to active 
     duty.
     Authority for the use of operation and maintenance funds for 
         promotional activities of the National Committee for 
         Employer Support of the Guard and Reserve (sec. 518)
       The conferees agree to include a provision that would 
     authorize use of amounts appropriated for operation and 
     maintenance, under regulations prescribed by the Secretary of 
     Defense, for official reception, representation, and 
     advertising activities and materials of the National 
     Committee for Employer Support of the Guard and Reserve to 
     further employer commitments to their employees who are 
     members of a reserve component.

            Subtitle C--ROTC and Military Service Academies

     Expanded educational assistance authority for cadets and 
         midshipmen receiving ROTC scholarships (sec. 521)
       The House bill contained a provision (sec. 532) that would 
     authorize the secretary of the military department concerned 
     to provide Senior Reserve Officer Training Corps scholarship 
     students financial assistance in the form of room and board 
     or other expenses required by the educational institution, so 
     long as the total amount of assistance does not exceed what 
     the student would have otherwise received for tuition, fees, 
     books, and laboratory expenses, or another amount determined 
     by the secretary concerned.
       The Senate amendment contained a similar provision (sec. 
     532).
       The Senate recedes with a technical amendment.
     Increase in allocation of scholarships under Army Reserve 
         ROTC scholarship program to students at military junior 
         colleges (sec. 522)
       The House bill contained a provision (sec. 533) that would 
     expand from 10 to 17 the number of cadets attending each 
     military junior college on a Reserve Officer Training Corps 
     scholarship.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Authority for nonscholarship senior ROTC sophomores to 
         voluntarily contract for and receive subsistence 
         allowance (sec. 523)
       The House bill contained a provision (sec. 535) that would 
     authorize the secretary of

[[Page 27841]]

     the military department concerned to enter into a service 
     contract with a Senior Reserve Officer Training Corps student 
     who is not on a scholarship for the purpose of making the 
     student eligible to receive a monthly subsistence allowance 
     at the same level as scholarship cadets and midshipmen.
       The Senate amendment contained a similar provision (sec. 
     604).
       The Senate recedes with an amendment that would provide 
     that no contract may be entered into under this provision 
     after December 31, 2006.
     Appointments to military service academies from nominations 
         made by delegates from Guam, Virgin Islands, and American 
         Samoa (sec. 524)
       The House bill contained a provision (sec. 536) that would 
     increase from two to three the number of appointments to each 
     of the military service academies that can be made as a 
     result of nominations made by the Delegate in Congress from 
     Guam and the Delegate in Congress from the Virgin Islands. It 
     would also increase from one to two the number of 
     appointments to each of the military service academies that 
     can be made as a result of nominations made by the Delegate 
     from American Samoa.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Readmission to service academies of certain former cadets and 
         midshipmen (sec. 525)
       The House bill contained a provision (sec. 537) that would 
     authorize the secretary of a military department to readmit a 
     former cadet or midshipman to a service academy on the basis 
     of a formal report by an Inspector General in the Department 
     of Defense, if that report found that while attending that 
     service academy, the cadet or midshipman had suffered a 
     reprisal or other injustice that led to their resignation 
     from the service academy.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Defense task force on sexual harassment and violence at the 
         military service academies (sec. 526)
       The House bill contained a provision (sec. 539) that would 
     require the Secretary of Defense to establish a task force to 
     examine matters related to sexual harassment and violence at 
     the United States Military Academy and the United States 
     Naval Academy. At the same time, the Secretary would be 
     required to provide the task force's report and his 
     evaluation of the report to the Committees on Armed Services 
     of the Senate and the House of Representatives. The Secretary 
     would also be required to provide to the committees an 
     assessment of the effectiveness of the corrective actions 
     being taken as a result of various investigations into 
     matters involving sexual assault and harassment at the U.S. 
     Air Force Academy.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Actions to address sexual harassment and violence at the 
         service academies (sec. 527)
       The Senate amendment contained a provision (sec. 534) that 
     would direct the service secretaries, under guidance provided 
     by the Department of Defense, to direct the superintendents 
     of their respective service academies to prescribe a policy 
     on sexual misconduct applicable to the personnel of their 
     academy. Additionally, the provision would direct the 
     Secretary of Defense, through the service secretaries and 
     service academy superintendents, to conduct annual 
     assessments, including surveys of academy personnel, to 
     determine the effectiveness of academy policies, training, 
     and procedures on sexual misconduct. The Secretary of Defense 
     would be directed to submit annual reports to the Committees 
     on Armed Services of the Senate and the House of 
     Representatives for five years on sexual misconduct involving 
     academy personnel.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Study and report related to permanent professors at the 
         United States Air Force Academy (sec. 528)
       The conferees agree to include a provision that would 
     direct the Secretary of the Air Force to submit a report to 
     the Secretary of Defense no later than six months after the 
     date of enactment containing recommended changes in policy 
     and law pertaining to the selection, tenure, utilization, 
     responsibilities, and qualifications of the permanent 
     professors at the Air Force Academy.
     Dean of the Faculty of the United States Air Force Academy 
         (sec. 529)
       The conferees agree to include a provision that would amend 
     section 9335 of title 10, United States Code, to authorize 
     selection of either a military officer or civilian for the 
     position of Dean of the Faculty at the U. S. Air Force 
     Academy. It would also authorize the Secretary of the Air 
     Force to prescribe the qualifications, selection procedures, 
     training, retention, and determinations of appropriate pay 
     grade for the Dean of the Faculty.
       In taking these actions, the conferees are implementing one 
     of the recommendations of the Panel to Review Sexual 
     Misconduct Allegations at the U. S. Air Force Academy that 
     was led by former Congresswoman Tillie K. Fowler. The Panel, 
     which issued its report on September 22, 2003, strongly urged 
     expedited action to amend section 9335 of title 10, United 
     States Code, to afford a larger pool of candidates for the 
     position of Dean of the Faculty beyond the current limitation 
     of permanent professors at the U. S. Air Force Academy.
       In evaluating the civilian candidates for the position of 
     Dean of the Faculty, the conferees strongly urge the 
     Secretary of the Air Force to place particular emphasis on 
     candidates with prior military experience and service, and to 
     consider familiarity with and contributions to the armed 
     forces as part of the selection process.

            Subtitle D--Other Education and Training Matters

     Authority for the Marine Corps University to award the degree 
         of master of operational studies. (sec. 531)
       The House bill contained a provision (sec. 531) that would 
     authorize the president of the Marine Corps University to 
     confer the degree of master of operational studies upon 
     graduates of the Command and Staff College's School of 
     Advanced Warfighting who fulfill the requirements for that 
     degree.
       The Senate amendment contained a similar provision (sec. 
     922).
       The Senate recedes with a clarifying amendment.
     Authorization for Naval Postgraduate School to provide 
         instruction to enlisted member participating in certain 
         programs (sec. 532)
       The House bill contained a provision (sec. 538) that would 
     permit enlisted members of the armed services to receive 
     instruction at the Naval Postgraduate School in connection 
     with the information security scholarship program. 
     Additionally, the provision would authorize senior enlisted 
     members of the armed forces to attend certain executive level 
     seminars conducted at the Naval Postgraduate School.
       The Senate amendment contained a similar provision (sec. 
     533).
       The Senate recedes with a clarifying amendment that would 
     require that enlisted members who receive instruction under 
     the information security scholarship program at the Naval 
     Postgraduate School must have completed undergraduate studies 
     and been awarded a baccalaureate degree.
     Cost reimbursement requirements for personnel receiving 
         instruction at the Air Force Institute of Technology 
         (sec. 533)
       The Senate amendment contained a provision (sec. 533) that 
     would require the Department of the Army, the Department of 
     the Navy, and the Department of Transportation to bear the 
     cost of instruction of their personnel at the Air Force 
     Institute of Technology. In the case of an enlisted member of 
     the Army, Navy, Marine Corps, or Coast Guard who receives 
     instruction at the Institute, the Secretary of the Air Force 
     will charge only for such costs and fees as the Secretary 
     considers appropriate.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Inclusion of accrued interest in amounts that may be repaid 
         under Selected Reserve critical specialties education 
         loan repayment program (sec. 534)
       The House bill contained a provision (sec. 534) that would 
     clarify that the interest accrued on a student loan should be 
     included in the loan amount used as the basis for calculating 
     the annual payment to reserve members under the Selected 
     Reserve education loan repayment program.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Funding of education assistance enlistment incentives to 
         facilitate national service through Department of Defense 
         Education Benefits Fund (sec. 535)
       The Senate amendment contained a provision (sec. 535) that 
     would amend section 510 of title 10, United States Code, to 
     authorize payment of education assistance enlistment 
     incentives to eligible National Call to Service participants 
     from the Department of Defense Education Benefits Fund, 
     pursuant to section 2006 of title 10, United States Code.
       The House bill contained no similar provision.
       The House recedes.
     Assistance to local educational agencies that benefit 
         dependents of members of the Armed Forces and Department 
         of Defense civilian employees (sec. 536)
       The House bill contained a provision (sec. 563) that would 
     provide $35.0 million for assistance to local educational 
     agencies that benefit dependents of members of the armed 
     forces and Department of Defense (DOD) civilian employees.
       The Senate amendment contained a similar provision (sec. 
     351) that would authorize $30.0 million for assistance to 
     local educational agencies.
       The Senate recedes with an amendment that would provide 
     $30.0 million for assistance to local educational agencies 
     that benefit dependents of members of the armed forces and 
     DOD civilian employees.

[[Page 27842]]


     Impact aid eligibility for heavily impacted local educational 
         agencies affected by privatization of military housing 
         (sec. 537)
       The House bill contained a provision (sec. 567) that would 
     modify the Elementary and Secondary Education Act of 1965 (20 
     U.S.C. 7703(b)(2)(H)) to clarify the eligibility for impact 
     aid of certain local educational agencies whose student 
     populations are affected by the conversion of military 
     housing units to private housing through public-private 
     partnerships.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would establish 
     the effective date of this provision.

                   Subtitle E--Administrative Matters

     High-tempo personnel management and allowance (sec. 541)
       The House bill contained a provision (sec. 541) that would 
     modify the program under section 991 of title 10 and section 
     436 of title 37, United States Code, with respect to 
     management of deployments of service members and payment of a 
     high-tempo per diem allowance. This provision would require 
     that the deployment of members in excess of 400 days out of 
     the preceding 730 days must be approved, as a minimum, by an 
     officer serving in the grade of colonel or Navy captain, when 
     they have been selected for promotion and are serving in a 
     billet authorized for a general or flag officer, or by a 
     civilian member of the Senior Executive Service.
       This provision would also authorize payment of a monthly 
     high-deployment allowance of up to $1000, instead of the $100 
     high-tempo per diem allowance currently authorized in law, 
     for service members for each month during which the member is 
     deployed for 191 or more consecutive days or for 401 days out 
     of the preceding 730 days. It would also authorize payment of 
     the monthly allowance to reservists serving on active duty 
     for more than 30 days during a second or subsequent 
     mobilization for the same contingency operation.
       The Senate amendment contained a similar provision (sec. 
     561).
       The House recedes with a clarifying amendment that would 
     prescribe when deployment management responsibilities must 
     commence for members who exceed certain high-deployment 
     thresholds.
     Enhanced retention of accumulated leave for high-deployment 
         members (sec. 542)
       The House bill contained a provision (sec. 542) that would 
     increase the accumulated leave from 90 to 120 days that may 
     be retained by a member serving at least 120 consecutive days 
     in an area authorized for payment of imminent danger pay, or 
     similar assignment.
       The Senate amendment contained a similar provision (sec. 
     651).
       The Senate recedes.
     Standardization of statutory authorities for exemptions from 
         requirement for access to secondary schools by military 
         recruiters (sec. 543)
       The House bill contained a provision (sec. 544) that would 
     remove the authority for local educational agencies to vote 
     to deny military recruiters access to secondary schools and 
     student information and would bring the recruiter access 
     policy established in section 503 of title 10, United States 
     Code, in line with the policy established in the No Child 
     Left Behind Act (Public Law 107-110).
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Procedures for consideration of applications for award of the 
         Purple Heart medal to veterans held as prisoners of war 
         before April 25, 1962 (sec. 544)
       The House bill contained a provision (sec. 545) that would 
     instruct the secretary concerned to consider the length of 
     time between captivity and application and the duration of 
     captivity when reviewing cases in which individuals are 
     seeking the award of the Purple Heart for periods when they 
     were held as prisoners of war before April 25, 1962. This 
     provision would also require the secretary concerned to 
     provide information on prisoner of war camps to assist 
     individuals in assembling applications.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Authority for reserve and retired regular officers to hold 
         state and local office notwithstanding call to active 
         duty (sec. 545)
       The House bill contained a provision (sec. 546) that would 
     remove the restriction barring reservists or retirees who are 
     serving on active duty for more than 270 days from holding 
     elective office in the government of a state, the District of 
     Columbia or a territory, possession, or commonwealth of the 
     United States.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would provide 
     that reserve and retired regular officers who serve on active 
     duty for more than 270 days may not hold elective office in 
     the government of a state if the holding of such office is 
     prohibited under the laws of that state or interferes with 
     the performance of the officer's duties as an officer of the 
     armed forces, as determined by the Secretary of Defense. 
     Additionally, the amendment would prohibit an officer who 
     holds such a state elective office from exercising the 
     functions of the office while on active duty with the armed 
     forces.
     Policy on public identification of casualties (sec. 546)
       The House bill contained a provision (sec. 548) that would 
     prohibit the Secretary of Defense from publicly releasing the 
     name or other personal identifying information about military 
     casualties until 24 hours after official notification of the 
     service members' next-of-kin.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to prescribe the policy of the Department of 
     Defense (DOD) on public release of identifying information 
     about casualties. The conferees believe strongly that the 
     policy prescribed by the Secretary should provide service 
     members' next-of-kin with a period of privacy before the 
     public is made aware of service members' death, injury, or 
     change in status. The conferees expect this period of privacy 
     to be at least 18 to 24 hours following official notification 
     of the next-of-kin. The conferees also encourage the 
     Secretary to require as part of the agreement with embedded 
     reporters and other civilian personnel accompanying the force 
     that they will comply with the DOD policy on releasing names 
     and personally identifying information on military 
     casualties.
     Space personnel career fields (sec. 547)
       The Senate amendment contained a provision (sec. 912) that 
     would require the Secretary of Defense to develop a human 
     capital resources strategy for personnel of the Department of 
     Defense with space expertise that would ensure that the space 
     career fields for the military services are integrated to the 
     maximum extent possible. The provision would also require the 
     Secretary to submit a report to the Committees on Armed 
     Services of the Senate and House of Representatives on the 
     strategy, an assessment of the progress in integrating the 
     space career fields of the military services, and an 
     assessment of the adequacy of the Air Force space career 
     field. Finally, the provision would require a review and 
     assessment by the Comptroller General.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       The conferees note that the space career fields within each 
     of the military departments may include officers, enlisted, 
     and civilian personnel. The conferees believe that an 
     integrated strategic approach to the development of viable 
     space career fields should be assessed based on how those 
     career fields provide a common expertise, eliminate 
     redundancies or overlaps in training and education, minimize 
     any critical gaps that may exist in training and education, 
     improve coordination between the services, and ultimately 
     improve space operations and the ability of all the services 
     to benefit from those operations.
     Department of Defense joint advertising, market research, and 
         studies program (sec. 548)
       The conferees agree to include a provision that would 
     authorize the Secretary of Defense to carry out a joint 
     advertising, market research, and studies program to 
     complement the recruiting advertising programs of the 
     military departments and improve the ability of the military 
     departments to attract and recruit qualified individuals to 
     serve in the Armed Forces. This provision would authorize 
     $7,500,000 of operation and maintenance funds for Defense-
     wide activities to be made available to carry out this 
     program.
     Limitation on aviation force structure changes in the 
         department of the Navy (sec. 549)
       The House bill contained a provision (sec. 566) that would 
     require the Secretary of the Navy to ensure that no 
     reductions are made in the active and reserve force structure 
     of Navy and Marine Corps for fixed and rotary wing aircraft 
     until 90 days have elapsed after two reports have been 
     received by the Armed Services Committees of the House of 
     Representatives and the Senate. The reports required would be 
     a naval aviation force structure plan and an active and 
     reserve component integration plan.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would prohibit 
     the Secretary from reducing or disestablishing a Naval or 
     Marine Corps Reserve aviation squadron before February 1, 
     2004. The conferees are aware of a limitation on the use of 
     funds for decommissioning of any Navy or Marine Corps 
     aviation squadron until delivery of a report by the 
     Comptroller General of the United States, contained in 
     section 8141 of the Department of Defense Appropriations Act 
     for Fiscal Year 2004 (P.L. 108-87). The conferees expect the 
     Secretary to take the final findings and recommendations of 
     this report into account if the Secretary decides to reduce 
     or disestablish any Navy or Marine Corps Reserve aviation 
     squadrons.

[[Page 27843]]



                  Subtitle F--Military Justice Matters

     Extended limitation period for prosecution of child abuse 
         cases in courts-martial (sec. 551)
       The Senate amendment contained a provision (sec. 551) that 
     would amend Article 43 of the Uniform Code of Military 
     Justice (UCMJ) (10 U.S.C. 843) to apply a modified version of 
     the federal criminal statute of limitations found in section 
     3283 of title 18, United States Code, which applies to 
     offenses involving the sexual or physical abuse of a child 
     under 18, to trial by court-martial of a person for such 
     offenses under the UCMJ. The modification would limit the 
     application of the extended limitation period to cases 
     involving children under the age of 16 years, the limit for 
     such offenses under the substantive criminal provisions of 
     the UCMJ. The extended limitation period would permit trial 
     by court-martial if sworn charges and specifications were 
     received before the child reached the age of 25 years. This 
     would replace the present five-year statute of limitations 
     for this category of offenses.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Clarification of blood alcohol content limit for the offense 
         under the Uniform Code of Military Justice of drunken 
         operation of a vehicle, aircraft, or vessel (sec. 552)
       The Senate amendment contained a provision (sec. 552) that 
     would clarify the blood alcohol content limit for the offense 
     of drunken operation of a vehicle, aircraft, or vessel under 
     Article 111 of the Uniform Code of Military Justice (10 
     U.S.C. 911). The provision would make explicit that a blood 
     alcohol content equal to the applicable state limit, or the 
     0.10 limit set out in Article 111, whichever is applicable, 
     would constitute an offense under Article 111.
       The House bill contained a similar provision (sec. 547).
       The House recedes with an amendment that would clarify the 
     definition of ``blood alcohol content limit.''

                          Subtitle G--Benefits

     Additional classes of individuals eligible to participate in 
         the federal long-term care insurance program (sec. 561)
       The House bill contained a provision (sec. 551) that would 
     authorize reservists and federal civilian employees who have 
     not reached the minimum age required to begin receiving a 
     retired annuity and certain other civilian employees to be 
     eligible for the Federal Long-Term Care Insurance Program.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Authority to transport remains of retirees and retiree 
         dependents who die in military treatment facilities (sec. 
         562)
       The House bill contained a provision (sec. 552) that would 
     expand the authority of the secretary concerned to transport 
     the remains of armed forces retirees and their dependents who 
     die in military health care facilities to places of burial 
     located overseas or in the continental United States under 
     prescribed conditions.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Eligibility for dependents of certain mobilized reservists 
         stationed overseas to attend Defense Dependents Schools 
         overseas (sec. 563)
       The House bill contained a provision (sec. 553) that would 
     expand the eligibility for space-available, tuition-free 
     attendance at Department of Defense Dependents Schools 
     (DODDS) overseas to the dependents of mobilized reservists 
     who are called to active duty from a continental United 
     States location and whose overseas tour is voluntarily or 
     involuntarily extended beyond one year.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment that would 
     require DODDS tuition-status parity for dependent children of 
     reservists who are ordered to active duty under section 12301 
     or 12302 of title 10, United States Code, from any location 
     to overseas duty assignments.

                     Subtitle H--Domestic Violence

     Travel and transportation for dependents relocating for 
         reasons of personal safety (sec. 571)
       The House bill contained a provision (sec. 571) that would 
     allow travel and transportation allowances to dependents of 
     uniformed service members who are victims of domestic 
     violence and who, under certain conditions, have requested 
     relocation.
       The Senate amendment contained a similar provision (sec. 
     565).
       The House recedes with a clarifying amendment.
     Commencement and duration of payment of transitional 
         compensation (sec. 572)
       The House bill contained a provision (sec. 572) that would 
     allow transitional compensation to commence as of the date of 
     sentencing of a service member who has been convicted of a 
     dependent-abuse offense at a court-martial. Additionally, the 
     provision would modify section 1059(e)(2) of title 10, United 
     States Code, to provide for payment of transitional 
     compensation benefits for 36 months in all cases unless 
     terminated earlier, as required by law.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment providing 
     that transitional compensation shall be paid for a period of 
     not less than 12 months and not more than 36 months, as 
     established in policies prescribed by the secretary 
     concerned.
     Exceptional eligibility for transitional compensation (sec. 
         573)
       The House bill contained a provision (sec. 573) that would 
     allow transitional compensation to be paid in exceptional 
     cases to certain dependents of a member or former member of 
     the armed forces if the secretary concerned determines that 
     there are extenuating circumstances such that granting 
     transitional compensation benefits is consistent with the 
     intent of the program.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment that would 
     provide that a secretarial decision to authorize exceptional 
     payment of transitional compensation may not be delegated.
     Types of administrative separations triggering coverage (sec. 
         574)
       The House bill contained a provision (sec. 574) that would 
     expand coverage of transitional compensation for dependents 
     of a service member on active duty who is administratively 
     separated voluntarily or involuntarily from active duty if 
     the basis for the separation includes a dependent-abuse 
     offense.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Comptroller General review and report (sec. 575)
       The House bill contained provisions (sec. 575 and 576) that 
     would require the Secretary of Defense to convene a working 
     group within two years from the date of enactment to review 
     and assess the progress of the Department of Defense (DOD) in 
     implementation of the recommendations of the Defense Task 
     Force on Domestic Violence. Additionally, the Secretary would 
     be required to provide the necessary resources to the 
     organization within the Office of the Secretary of Defense 
     with direct responsibility for oversight of implementation by 
     the military departments of the recommendations of the Task 
     Force in order for that organization to carry out its duties 
     and responsibilities.
       The Senate bill contained no similar provisions.
       The Senate recedes with an amendment that would require the 
     Comptroller General not later than 30 months after the date 
     of enactment of this Act to review and assess the progress of 
     the DoD in implementing the recommendations of the Defense 
     Task Force on Domestic Violence and the resources that the 
     DoD has provided toward such implementation.
     Fatality reviews (sec. 576)
       The House bill contained a provision (sec. 577) that would 
     require the Secretary of Defense to conduct multidisciplinary 
     reviews of each fatality known or suspected to have resulted 
     from domestic violence or child abuse under certain 
     conditions.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     secretary of the military department concerned, under uniform 
     guidance prescribed by the Secretary of Defense, to conduct 
     fatality reviews in the case of each fatality known or 
     suspected to have resulted from domestic violence or child 
     abuse.
     Sense of Congress (sec. 577)
       The House bill contained a provision (sec. 578) that would 
     express the sense of Congress that the Secretary of Defense 
     should adopt the strategic plan proposed by the Defense Task 
     Force on Domestic Violence and that the service secretaries 
     should establish and support a Victim Advocate Protocol for 
     victims of domestic violence.
       The Senate bill contained no similar provision.
       The Senate recedes with a clarifying amendment.

                       Subtitle I--Other Matters

     Recognition of military families (sec. 581)
       The House bill contained a provision (sec. 562) that would 
     require the Secretary of Defense to implement and sustain 
     programs, including appropriate annual ceremonies and events, 
     to celebrate the contributions and sacrifices of military 
     families in the active and reserve components.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Permanent authority for support for certain chaplain-led 
         military family support programs (sec. 582)
       The House bill contained a provision (sec. 564) that would 
     authorize the secretary of a military department to provide 
     support services to active duty and reserve members and their 
     immediate family members to facilitate their participation in 
     chaplain-led programs designed to build and maintain strong 
     families.

[[Page 27844]]

       The Senate amendment contained no similar provision.
       The Senate recedes.
     Department of Defense-Department of Veterans Affairs Joint 
         Executive Committee (sec. 583)
       The House bill contained a provision (sec. 565) that would 
     expand the scope of responsibilities of the Department of 
     Defense-Department of Veterans Affairs Health Executive 
     Committee to consider matters beyond health care.
       The Senate amendment contained a similar provision (sec. 
     707 (a)--(c)).
       The Senate recedes with a technical amendment.
     Review of the 1991 death of Marine Corps Colonel James E. 
         Sabow (sec. 584)
       The House bill contained a provision (sec. 568) that would 
     require the Secretary of Defense to open a new investigation 
     into the death of Colonel James E. Sabow.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary within 60 days of enactment of this Act, to 
     commence a review by medical and forensic experts outside the 
     Department of Defense of the evidence concerning Colonel 
     Sabow's death on January 22, 1991, with the principal focus 
     of determining the cause of death.
     Policy on concurrent deployment to combat zones of both 
         military spouses of military families with minor children 
         (sec. 585)
       The Senate amendment contained a provision (sec. 563) that 
     would require the Secretary of Defense to prescribe the 
     policy of the Department of Defense on concurrent deployment 
     to a combat zone of both spouses of a dual-military family 
     with one or more minor children within 180 days of enactment 
     of the National Defense Authorization Act for Fiscal Year 
     2004.
       The House bill contained no similar provision.
       The House recedes.
     Congressional notification of amendment or cancellation of 
         Department of Defense directive relating to reasonable 
         access to military installations for certain personal 
         commercial solicitation (sec. 586)
       The House bill contained a provision (sec. 1052) that would 
     require the Secretary of Defense to submit notice to the 
     Congress of any amendment or other revision to a Department 
     of Defense (DOD) directive relating to personal commercial 
     solicitation on military installations, along with the 
     supporting reasons for the change. The provision would 
     further require that no changes take effect until the end of 
     the 90-day period beginning on the date the notice is 
     submitted.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     that any changes to DOD Directive 1344.7, regarding personal 
     commercial solicitation on DOD installations, not take effect 
     until the end of the 30-day period beginning on the date 
     notice of amendment or cancellation of the directive and the 
     reasons therefor are submitted.
       The conferees believe that the Under Secretary of Defense 
     for Personnel and Readiness has acted prudently in responding 
     to documented instances of abuses of grants of access to 
     military installations and personnel for the purpose of 
     commercial solicitation. The Department has taken necessary 
     and appropriate steps to thoroughly consider and evaluate 
     potential changes to personal commercial solicitation 
     policies. The conferees urge the Department to continue to 
     give all stakeholders ample opportunities, both before and 
     after proposed changes are implemented, to contribute factual 
     information and recommendations for improvements to these 
     policies.
     Study of National Guard Challenge Program (sec. 587)
       The Senate amendment contained a provision (sec. 1043) that 
     would provide for a 65 percent maximum federal share for the 
     costs of operating state programs under the National Guard 
     Challenge Program for fiscal year 2004. Additionally, the 
     Secretary of Defense would be required to carry out a study, 
     among other objectives, to identify potential alternatives to 
     the matching fund structure in order to provide management 
     flexibility to better respond to temporary fiscal conditions.
       The House bill contained no similar provision.
       The House recedes with an amendment that would retain: (1) 
     the requirement for the Secretary of Defense to conduct a 
     study of the National Guard Challenge program; (2) maintain 
     the current federal-to-state ratio for matching funds; and 
     (3) provide funding for fiscal year 2004, in accordance with 
     the budget request.
     Findings and sense of Congress on reward for information 
         leading to resolution of status of members of the armed 
         forces who remain unaccounted for (sec. 588)
       The Senate amendment contained a provision (sec. 1039) that 
     would express the sense of the Senate that the Secretary of 
     Defense should use his authority to disburse funds rewarding 
     individuals who provide information leading to the conclusive 
     resolution of the status of any missing member of the armed 
     forces, and authorize and publicize a reward of $1,000,000 
     for information resolving the fate of any member of the armed 
     forces, such as Navy Captain Scott Speicher.
       The House bill contained no similar provision.
       The House recedes with an amendment that would express the 
     sense of Congress that the Secretary should use his authority 
     for the foregoing purpose.

                   Legislative Provisions Not Adopted

     Alternate initial military service obligation for persons 
         accessed under direct entry program
       The Senate amendment contained a provision (sec. 562) that 
     would authorize the establishment of a direct entry program 
     for persons with critical military skills that would not 
     require application of the initial military service 
     obligation, as set forth in section 651(a) of title 10, 
     United States Code.
       The House bill contained no similar provision.
       The Senate recedes.
     Enhancement of voting rights of members of the uniformed 
         services
       The Senate amendment contained a provision (sec. 564) that 
     would modify section 1973ff-1 of title 42, United States 
     Code, by prescribing standards to be used by state officials 
     in validating ballots submitted in elections for federal 
     office by absent uniformed service voters. Additionally, the 
     provision would establish procedures to facilitate voting by 
     recently separated military members.
       The House bill contained no similar provision.
       The Senate recedes.
     Increased flexibility for management of senior level 
         education and post-education assignments
       The Senate amendment contained a provision (sec. 531) that 
     would modify section 663 of title 10, United States Code, by 
     repealing the requirement that the principal course of 
     instruction offered at the Joint Forces Staff College as 
     Phase II joint professional military education must be at 
     least three months in duration. Additionally, the provision 
     would repeal requirements related to mandatory assignment to 
     joint duty of officers completing joint professional military 
     education.
       The House bill contained no similar provision.
       The Senate recedes.
     Repeal of prohibition on transfer between line of the Navy 
         and Navy staff corps applicable to regular Navy officers 
         in grades above lieutenant commander
       The House bill contained a provision (sec. 511) that would 
     repeal section 5582 of title 10, United States Code, setting 
     forth limitations on transfers of officers between the line 
     and staff corps of the Navy.
       The Senate amendment contained no similar provision.
       The House recedes.
     Simplification of determination of annual participation for 
         purposes of Ready Reserve training requirements
       The House bill contained a provision (sec. 523) that would 
     amend section 10147 of title 10, United States Code, to 
     restate (in terms of days of duty to be performed) the annual 
     training requirement for all members of the Ready Reserve.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees support the Department of Defense objective 
     of modifying existing policies affecting annual training 
     participation by members of the Ready Reserve to simplify 
     these policies and make them more flexible and responsive to 
     current operational requirements and the needs of individual 
     reservists. The conferees encourage the Department as it 
     continues its review, however, to balance achieving that 
     objective with efforts to ameliorate any potential negative 
     effects that simplification could have on the pay and 
     retirement benefits of individual reservists and on reserve 
     unit cohesion.
     Standardization of time-in-service requirements for voluntary 
         retirement of members of the Navy and Marine Corps with 
         Army and Air Force requirements
       The House bill contained a provision (sec. 543) that would 
     standardize the existing statutory requirements used by each 
     Service in determining eligibility for retirement.
       The Senate amendment contained no similar provision.
       The House recedes.

          Title VI--Compensation and Other Personnel Benefits

                     Legislative Provisions Adopted

                     Subtitle A--Pay and Allowances

     Increase in basic pay for fiscal year 2004 (sec. 601)
       The House bill contained a provision (sec. 601) that would 
     increase basic pay for members of the armed forces by an 
     average of 4.1 percent. This provision would also provide 
     enhanced increases for mid-grade and senior noncommissioned 
     officers and select warrant officers to enhance retention. It 
     also would provide that the rates of monthly basic pay for 
     members of the National Oceanic and Atmospheric 
     Administration (NOAA) and the Public Health Service (PHS) 
     would be increased by two percent.
       The Senate amendment contained a similar provision (sec. 
     601) that would authorize

[[Page 27845]]

     a military pay raise of 3.7 percent for all officer and 
     enlisted personnel, consistent with the standard set forth in 
     section 602 of the National Defense Authorization Act for 
     Fiscal Year 2000 (Public Law 106-65), which requires that pay 
     increases through fiscal year 2006 for all members equate to 
     the annual increase in the Employment Cost Index plus 0.5 
     percent, and higher targeted pay raises for mid-grade 
     personnel. The Senate provision did not limit to two percent 
     the pay raise of uniformed members of the NOAA and PHS.
       The House recedes.
     Revised annual pay adjustment process (sec. 602)
       The Senate amendment contained a provision (sec. 602) that 
     would modify section 1009 of title 37, United States Code, to 
     require an annual adjustment of basic pay for members of the 
     uniformed services. The provision would provide all eligible 
     members with an increase in the monthly basic pay that is the 
     equivalent percentage (rounded to the nearest one-tenth of 
     one percent) of the annual increase in the Employment Cost 
     Index (ECI). The provision would also maintain the existing 
     requirement in law that annual pay raises in fiscal years 
     2004, 2005, and 2006, equal the annual increase in ECI plus 
     0.5 percent.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Computation of basic pay rate for commissioned officers with 
         prior enlisted or warrant officer service (sec. 603)
       The House bill contained a provision (sec. 602) that would 
     modify section 203 of title 37, United States Code, to 
     authorize commissioned officers who have accrued at least 
     1,460 points for reserve service as a warrant officer, an 
     enlisted member, or as a warrant officer and an enlisted 
     member, to receive basic pay at the same rate as commissioned 
     officers credited with over four years of active duty service 
     as an enlisted member.
       The Senate amendment contained an identical provision (sec. 
     603).
       The conference agreement includes this provision.
     Special subsistence allowance authorities for members 
         assigned to high-cost duty location or under other unique 
         and unusual circumstances (sec. 604)
       The House bill contained a provision (sec. 603) that would 
     authorize payment to service members of a supplemental 
     allowance for subsistence to compensate for additional 
     expenses encountered when they are assigned to high-cost and 
     unique duty locations. The provision would be effective as of 
     September 12, 2001.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would make this 
     authority effective on October 1, 2003.
     Basic allowance for housing for each member married to 
         another member without dependents when both spouses are 
         on sea duty (sec. 605)
       The Senate amendment contained a provision (sec. 605) that 
     would allow two members of the uniformed services in a pay 
     grade below E-6 who are married to each other, have no other 
     dependent, and are simultaneously assigned to sea duty to 
     each receive a basic allowance for housing.
       The House bill contained no similar provision.
       The House recedes.
     Temporary increase in authorized amount of family separation 
         allowance (sec. 606)
       The House bill contained a provision (sec. 622) that would 
     increase the rate of family separation allowance under 
     section 427 of title 37, United States Code, from $100 per 
     month to $250 per month for service members performing duty 
     in the combat zones designated for Operation Iraqi Freedom 
     and Operation Enduring Freedom.
       The Senate amendment contained a provision (sec. 606) that 
     would increase the rate of the family separation allowance 
     from $100 per month to $250 per month for all service members 
     who are eligible to receive this allowance.
       The House recedes with an amendment that would make the 
     rate of $250 per month effective for the period beginning on 
     October 1, 2003, and ending on December 31, 2004.

           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 the Selected Reserve enlistment and 
     reenlistment bonus, special pay for enlisted members of the 
     Selective Reserve assigned to certain high priority units, 
     the Selected Reserve affiliation bonus, the Ready Reserve 
     enlistment and reenlistment bonus, and the prior service 
     enlistment bonus until December 31, 2004.
       The Senate amendment contained an identical provision (sec. 
     611).
       The conference agreement includes this provision.
     One-year extension of certain bonus and special pay 
         authorities for certain health care professionals (sec. 
         612)
       The House bill contained a provision (sec. 612) that would 
     extend the authority for the nurse officer candidate 
     accession program, the accession bonus for registered nurses, 
     incentive special pay for nurse anesthetists, special pay for 
     Selected Reserve health care professionals in critically 
     short wartime specialties, and the accession bonus for dental 
     officers until December 31, 2004. The provision would also 
     extend the authority for repayment of education loans for 
     certain health professionals who serve in the Selected 
     Reserve until January 1, 2005.
       The Senate amendment contained an identical provision (sec. 
     612).
       The conference agreement includes this provision.
     One-year extension of special pay and bonus authorities for 
         nuclear officers (sec. 613)
       The House bill contained a provision (sec. 613) that would 
     extend the authority for the special pay for nuclear-
     qualified officers extending the period of active service, 
     nuclear career accession bonus, and the nuclear career annual 
     incentive bonus until December 31, 2004.
       The Senate amendment contained an identical provision (sec. 
     613).
       The conference agreement includes this provision.
     One-year extension of other bonus and special pay authorities 
         (sec. 614)
       The House bill contained a provision (sec. 614) that would 
     extend the authority for the aviation officer retention 
     bonus, 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 skills until December 31, 
     2004.
       The Senate amendment contained an identical provision (sec. 
     614).
       The conference agreement includes this provision.
     Hazardous duty pay for duty involving ski-equipped aircraft 
         on Antarctica or the Arctic icepack (sec. 615)
       The House bill contained a provision (sec. 619) that would 
     authorize incentive pay for service members performing duty 
     on the ground in Antarctica or on the icepack in the Arctic 
     at the rate of $5 per day.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     incentive pay under section 301 of title 37, United States 
     Code, for hazardous duty involving use of ski-equipped 
     aircraft on the ground in Antarctica or on the Arctic 
     icepack.
     Special pay for reserve officers holding positions of unusual 
         responsibility and of critical nature (sec. 616)
       The Senate amendment contained a provision (sec. 615) that 
     would authorize reserve component officers to receive special 
     pay under section 306 of title 37, United States Code.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Payment of Selected Reserve reenlistment bonus to members of 
         Selected Reserve who are mobilized (sec. 617)
       The Senate amendment contained a provision (sec. 618) that 
     would clarify that members entitled to a bonus under section 
     308b of title 37, United States Code, who are called or 
     ordered to active duty, may be paid any amount of such bonus 
     that is payable during the period of active duty without 
     regard to the fact that the member is serving on active duty 
     pursuant to such call or order to active duty.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Availability of hostile fire and imminent danger special pay 
         for reserve component members on inactive duty (sec. 618)
       The House bill contained a provision (sec. 616) that would 
     authorize payment of hostile fire and imminent danger pay 
     under section 310 of title 37, United States Code, to reserve 
     component members performing inactive-duty training at duty 
     locations designated for receipt of this special pay. The 
     provision would be effective as of September 11, 2001.
       The Senate amendment contained a similar provision (sec. 
     620).
       The House recedes with a clarifying amendment.
     Temporary increase in authorized amount of hostile fire and 
         imminent danger special pay (sec. 619)
       The House bill contained a provision (sec. 622) that would 
     increase the rate of special pay for duty subject to hostile 
     fire or imminent danger under section 310 of title 37, United 
     States Code, from $150 per month to $225 per month for 
     service members performing duty in the combat zones 
     designated for Operation Iraqi Freedom and Operation Enduring 
     Freedom. The Senate amendment contained a provision (sec. 
     619) that would increase the rate of special pay for duty 
     subject to hostile fire or imminent danger from $150 per 
     month to $225 per month for all service members who are 
     eligible to receive this special pay.

[[Page 27846]]

       The House recedes with an amendment that would make the 
     rate of $225 per month effective for the period beginning on 
     October 1, 2003, and ending on December 31, 2004.
     Retroactive payment of hostile fire or imminent danger pay 
         for service in eastern Mediterranean Sea in Operation 
         Iraqi Freedom (sec. 620)
       The conferees agree to include a provision that would 
     authorize the Secretary of Defense to approve special pay for 
     duty subject to hostile fire or imminent danger under section 
     310(a) of title 37, United States Code, to members of the 
     armed forces who were assigned to duty, during the period 
     beginning on March 19, 2003, and ending on April 11, 2003, 
     located in the Mediterranean Sea east of 30 degrees East 
     Longitude.
     Expansion of overseas tour extension incentive program to 
         officers (sec. 621)
       The House bill contained a provision (sec. 617) that would 
     authorize officers to receive the same compensation or rest 
     and recuperative leave benefits as granted to enlisted 
     members who extend their overseas tours of duty at designated 
     locations.
       The Senate amendment contained a similar provision (sec. 
     621).
       The Senate recedes.
     Repeal of congressional notification requirement for 
         designation of critical military skills for retention 
         bonus (sec. 622)
       The House bill contained a provision (sec. 661) that would 
     repeal the requirement for 90 days advance notice to Congress 
     before implementation of a critical skills retention bonus.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Eligibility of warrant officers for accession bonus for new 
         officers in critical skills (sec. 623)
       The House bill contained a provision (sec. 618) that would 
     amend section 324 of title 37, United States Code, to allow 
     members appointed in the grade of warrant officer (W1) to 
     receive the accession bonus for new officers in critical 
     skills.
       The Senate amendment contained a similar provision (sec. 
     622).
       The House recedes.
     Special pay for service as member of weapons of mass 
         destruction civil support team (sec. 624)
       The House bill contained a provision (sec. 620) that would 
     authorize members assigned by orders to duty as members of 
     Weapons of Mass Destruction Civil Support Teams to be paid a 
     special pay of $150 per month.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment that would 
     authorize secretaries of military departments to pay this 
     special pay only if the secretary determines that the payment 
     of this special pay is needed to address recruitment or 
     retention concerns for members of Weapons of Mass Destruction 
     Civil Support Teams. Additionally, the monthly rate of such 
     special pay may be in any amount up to, but not exceeding, 
     $150.
     Incentive bonus for conversion to military occupational 
         specialty to ease personnel shortage (sec. 625)
       The House bill contained a provision (sec. 621) that would 
     authorize the service secretaries to offer a lump sum bonus 
     of up to $4000 to eligible enlisted members, in pay grade E-6 
     with less than 10 years of service, or pay grade E-5 and 
     below, regardless of years of service, who successfully 
     convert from ratings or occupational specialties designated 
     by the secretary concerned as adequately manned or overmanned 
     to one in which there is a designated shortage of trained and 
     qualified personnel.
       The Senate amendment contained a similar provision (sec. 
     623).
       The House recedes with an amendment that would limit the 
     minimum obligated service to three years that members would 
     incur who receive this bonus.
     Bonus for reenlistment during service on active duty in 
         Afghanistan, Iraq, or Kuwait (sec. 626)
       The conferees agree to include a provision that would 
     authorize waiver of certain eligibility requirements under 
     sections 308(a), 308b(c), and 308h(a) of title 37, United 
     States Code, and payment of a bonus to active duty and 
     reserve members of the armed forces who reenlist or 
     voluntarily extend their enlistments while serving on active 
     duty in Afghanistan, Iraq, or Kuwait in support of Operation 
     Enduring Freedom or Operation Iraqi Freedom.

            Subtitle C--Travel and Transportation Allowances

     Shipment of privately owned motor vehicle within continental 
         United States (sec. 631)
       The House bill contained a provision (sec. 631) that would 
     allow service members to contract personally for the 
     transportation of a motor vehicle in permanent change of 
     station moves within the continental United States instead of 
     relying exclusively on the government to arrange such 
     transport. The amount of the allowance for such 
     transportation would not be more than the amount that would 
     have been paid if the member or a dependent had driven the 
     vehicle between duty stations.
       The Senate amendment contained a similar provision (sec. 
     631).
       The House recedes.
     Transportation of dependents to presence of members of the 
         armed forces retired for illness or injury incurred in 
         active duty (sec. 632)
       The Senate amendment contained a provision (sec. 634) that 
     would modify section 411 of title 37, United States Code, to 
     authorize under certain conditions transportation at 
     government expense of up to two family members to the 
     location of a service member who is retired for an illness or 
     injury incurred on active duty.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Payment or reimbursement of student baggage storage costs for 
         dependent children of members stationed overseas (sec. 
         633)
       The House bill contained a provision (sec. 632) that would 
     expand the eligibility for dependent children of members 
     stationed overseas to store student baggage to include 
     storage at any point during the same fiscal year and not just 
     at the time of the dependent student's annual trip to the 
     member's overseas duty station.
       The Senate amendment contained an identical provision (sec. 
     632).
       The conference agreement includes this provision.
     Contracts for full replacement value for loss or damage to 
         personal property transported at government expense (sec. 
         634)
       The Senate amendment contained a provision (sec. 633) that 
     would authorize the Secretary of Defense to require by 
     contract that household goods carriers pay the full 
     replacement value for loss or damage to the property of 
     members of the armed forces moved under such a contract. 
     Additionally, in the event that a carrier does not settle a 
     claim for loss or damage within a reasonable period of time, 
     this provision would authorize deduction of an amount equal 
     to the full replacement value from the amount owed by the 
     United States to the carrier under the contract, and 
     remission of the amount so deducted to the claimant.
       The House bill contained no similar provision.
       The House recedes.
       The conferees understand that the Department of Defense 
     intends to implement changes to claims procedures, including 
     use of the full replacement value standard, as part of more 
     comprehensive changes under the ``Families First'' Program. 
     The conferees fully support implementation of the various 
     aspects of the ``Families First'' program, including use of 
     customer surveys, increased direct deliveries through 
     customer to carrier contact, and the on-line claims filing 
     processing. Additionally, the conferees expect that the full 
     replacement value standard for loss or damage will be 
     implemented in a manner that is consistent with commercial 
     practices and that is fully explained to military members who 
     should benefit from this new approach.
       The conferees recognize that a reasonable time period 
     should be established in which a servicemember's claim should 
     be resolved before the services exercise their prerogative to 
     make deductions from the amount owed to the carrier by the 
     United States. The conferees support adoption of industry 
     recommendations wherever feasible, and expect the Department 
     to adopt a reasonable time period to resolve claims, ideally 
     no less than sixty days, as part of its implementation of 
     full value replacement. The conferees urge the Department to 
     continue working closely with industry representatives to 
     resolve open issues prior to implementation and intend to 
     monitor both the implementation of ``full replacement value'' 
     and the ``Families First'' Program and assess the overall 
     costs of the program and the impact of these initiatives on 
     small businesses and quality of life of military members and 
     their families.
     Payment of lodging expenses of members during authorized 
         leave from temporary duty location (sec. 635)
       The House bill contained a provision (sec. 633) that would 
     authorize the secretaries of the military departments to 
     reimburse reservists and retirees serving on active duty at 
     duty locations away from their homes the lesser of the 
     lodging portion of the applicable per diem rate or the actual 
     cost of lodging paid by the member for the period during 
     which the member is in an authorized leave status.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     service secretaries prospectively to pay or reimburse a 
     member of the active or reserve components for lodging 
     expenses incurred for a period during which the member is in 
     an authorized leave status. To qualify for such payment, 
     members must be assigned to temporary duty for a period of 
     more than 30 days, in support of a contingency operation or 
     in other specific situations designated by the secretary 
     concerned.

[[Page 27847]]



             Subtitle D--Retired Pay and Survivor Benefits

     Phase-in of full concurrent receipt of military retired pay 
         and veterans' disability compensation for certain 
         military retirees (sec. 641)
       The Senate amendment contained a provision (sec. 644) that 
     would repeal the prohibition against receipt of both military 
     retired pay and veterans' disability compensation.
       The House bill contained no similar provision.
       The House recedes with an amendment that would establish 
     two new provisions. Effective January 1, 2004, one provision 
     (sec. 641) would modify section 1414 of title 10, United 
     States Code, to authorize concurrent receipt of both military 
     retired pay and veterans' disability compensation phased in 
     over ten years for retirees whose disability is rated at 50 
     percent or greater.
       The second provision (sec. 642) would authorize payment of 
     special compensation for combat-related disabilities, as 
     enacted in the National Defense Authorization Act for Fiscal 
     Year 2003 (Public Law 107-314), to all retirees who are 
     eligible under the criteria set forth for a combat-related 
     disability, including those whose disability is 50 percent or 
     less, and a process for coordination with concurrent receipt 
     of both military retired pay and veterans' disability 
     compensation.
     Special rule for computation of retired pay base for 
         commanders of combatant commands (sec. 643)
       The Senate amendment contained a provision (sec. 641) that 
     would increase the rate of retired pay for combatant 
     commanders to correspond with that of the service chiefs.
       The House bill contained no similar provision.
       The House recedes.
     Survivor benefit plan annuities for surviving spouses of 
         reserves not eligible for retirement who die from a cause 
         incurred or aggravated while on inactive-duty training 
         (sec. 644)
       The Senate amendment contained a provision (sec. 642) that 
     would extend benefits under the Survivor Benefit Plan to 
     surviving spouses of reservists not eligible for retirement 
     who die from an injury or illness incurred or aggravated in 
     the line of duty during inactive-duty training. This 
     provision would be effective as of September 10, 2001.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       The conferees continue to be concerned about continuing 
     inconsistent practices involving expedited approval of 
     physical disability retirement and election of Survivor 
     Benefit Plan beneficiaries when death of a service member is 
     imminent. This problem was noted in the National Defense 
     Authorization Act for Fiscal Year 2002 (Public Law 107-107), 
     but the Secretary of Defense has not yet issued regulations 
     required by July 1, 2002, governing imminent death 
     retirements. The conferees direct the Secretary to issue 
     regulations by March 1, 2004, which will provide needed 
     direction to the services on how they should proceed in these 
     difficult situations.
     Survivor Benefit Plan modifications (sec. 645)
       The conferees agree to include a provision that would amend 
     section 1448(d) of title 10, United States Code, to expand 
     coverage under the Survivor Benefit Plan for dependent 
     children and surviving spouses of military personnel who die 
     on active duty. The provision would also modify section 
     1448(b)(1) and section 1458 of title 10, United States Code, 
     to require vitiation of elections by military personnel 
     retired under chapter 61 of title 10, United States Code, 
     with respect to Supplemental Survivor Benefit Plan benefits 
     and annuity payments to individuals with an insurable 
     interest who are not dependents of the retiree when the 
     retiree dies within one year of retirement of a cause related 
     to the disability causing retirement.
     Increase in death gratuity payable with respect to deceased 
         members of the armed forces (sec. 646)
       The Senate amendment contained a provision (sec. 643) that 
     would increase the death gratuity from $6000 to $12,000, 
     effective as of September 11, 2001. Additionally, the 
     provision would require the Secretary of Defense to carry out 
     a study on death benefits to determine the adequacy of such 
     benefits. It would also require the Comptroller General to 
     conduct a study to identify the death benefits that are 
     payable under applicable law for employees of the Federal 
     Government and state and local governments.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

     Expanded commissary access for selected reserve members, 
         reserve retirees under age 60, and their dependents (sec. 
         651)
       The House bill contained a provision (sec. 651) that would 
     authorize members of the Selected Reserve, reserve retirees 
     qualified to receive retired pay, except that they are not 
     age 60, and their dependents to use commissaries to the same 
     extent as active duty members and their dependents.
       The Senate amendment contained a similar provision (sec. 
     369).
       The Senate recedes.
     Defense commissary system and exchange stores system (sec. 
         652)
       The House bill contained a provision (sec. 652) that would 
     require the Secretary of Defense to operate separate defense 
     commissary and exchange store systems.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     continued operation of NEXMART stores established before 
     October 1, 2003.
     Limitations on private operation of defense commissary store 
         functions (sec. 653)
       The House bill contained a provision (sec. 653) that would 
     clarify that only selected store functions may be considered 
     for privatization and that proposed changes to private 
     operation of commissary store functions would not go into 
     effect until a period of 90 days of continuous session of 
     Congress expires after the Secretary of Defense notifies 
     Congress of the proposed changes.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to inform Congress of changes to commissary store 
     functions performed by more than ten Department of Defense 
     civilian employees, and such changes would not go into effect 
     until expiration of a period of 75 calendar days following 
     Congressional notification.
     Use of appropriated funds to operate defense commissary 
         system (sec. 654)
       The House bill contained a provision (sec. 654) that would 
     require the use of appropriated funding to support commissary 
     operating expenses.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Recovery of non-appropriated fund instrumentality and 
         commissary store investments in real property at military 
         installations closed or realigned (sec. 655)
       The House bill contained a provision (sec. 655) that would 
     authorize the use, without further appropriation, of funds 
     resulting from the transfer or disposal (during base closures 
     or realignments prior to 2005) of real property or facilities 
     that had been acquired, constructed or improved with non-
     appropriated or commissary store funds.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     use of these funds without further appropriation, not to 
     exceed the following amounts: $31.0 million in fiscal year 
     2004; $24.0 million in fiscal year 2005; and $15.0 million in 
     fiscal year 2006.
       The conferees authorize the use of these funds, but do not 
     in any way designate a specific use of such funds.

                       Subtitle F--Other Matters

     Comptroller General report on adequacy of special pays and 
         allowances for frequently deployed members (sec. 661)
       The Senate amendment contained a provision (sec. 652) that 
     would require the Comptroller General to submit a report not 
     later than April 1, 2004, regarding the adequacy of special 
     pays and allowances for service members who experience 
     frequent deployments away from their permanent duty stations 
     for periods of less than 30 days.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                   Legislative Provisions Not Adopted

     Assignment incentive pay for service in Korea
       The Senate amendment contained a provision (sec. 616) that 
     would require payment of assignment incentive pay in the 
     amount of $100 per month to all military members stationed in 
     the Republic of South Korea.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees appreciate the hardships and sacrifices being 
     shouldered by military personnel and their families as a 
     result of the high-tempo of operations worldwide in fighting 
     the global war on terrorism. However, endemic substandard 
     living and working conditions for soldiers in Korea and the 
     adverse effects of these conditions on soldier morale, 
     retention, and the Army's current overseas duty assignment 
     policies are a source of ongoing concern. The Commander, 
     United States Forces Korea, testified before Congress in 2003 
     that family separation, poor living and working conditions, 
     and financial hardship have a severe adverse effect on the 
     desirability of duty in Korea. The conferees applaud the 
     Commander's strong and visible commitment to improved working 
     and living conditions and fully support his priority 
     objective of making Korea ``an assignment of choice.''
       The conferees are encouraged by recent cooperative efforts 
     of the Department of Defense and the Army to identify options 
     to improve housing and compensation such as additional 
     hardship duty pay, a cost of living allowance, implementation 
     of discretionary

[[Page 27848]]

     assignment incentive pay, and awarding partial basic 
     allowance for housing to compensate for substandard housing. 
     The conferees direct the Secretary of Defense to submit a 
     report by March 1, 2004, assessing: (1) progress and 
     projections for eliminating substandard housing for U.S. 
     military personnel stationed in Korea; (2) pay comparability 
     for soldiers stationed in Korea with soldiers stationed in a 
     cross section of bases in the continental United States, 
     Kosovo, Bosnia, Iraq, Afghanistan, and Japan; (3) evaluation 
     of the Commander's goal of providing command-sponsored 
     housing for at least 25 percent of married military members 
     and their families by 2010; (4) the effect on the quality of 
     life for U.S. military personnel of the Republic of South 
     Korea's host nation funded construction programs; (5) 
     progress in achieving the goal of providing unaccompanied 
     enlisted service members with quality housing by 2008, as 
     mandated by DOD policy; (6) evaluation of the funding levels 
     for the Sustainment, Restoration, and Modernization accounts 
     in reversing deteriorating facilities; (7) improvements in 
     quality of life, including morale, welfare, and recreation 
     resources, internet access, and communication capabilities 
     for personal use, for personnel and their families while 
     stationed in Korea; and (8) recommendations for improving the 
     compensation and quality of life for soldiers, sailors, 
     airmen, and Marines and their dependents stationed in Korea.
     Availability of hostile fire and imminent danger pay for 
         reserve component members serving in response to certain 
         domestic terrorist attacks
       The House bill contained a provision (sec. 623) that would 
     authorize payment of special pay for duty subject to hostile 
     fire or imminent danger to members of a reserve component who 
     were on duty as first responders, or who accompany or protect 
     first responders, to terrorist attacks on the United States 
     where there was an immediate threat of physical harm or 
     imminent danger as a result of direct or residual effects of 
     an attack or potential secondary attack.
       The Senate amendment contained no similar provision.
       The House recedes.
     Commissary shelf-stocking pilot program
       The House bill contained a provision (sec. 656) that would 
     authorize the Secretary of Defense to conduct a pilot program 
     using federal civilian employees or contract employees to 
     stock shelves at commissaries.
       The Senate amendment contained no similar provision.
       The House recedes.
     Computation of hazardous duty incentive pay for demolition 
         duty and parachute jumping by members of reserve 
         components entitled to compensation under section 206 of 
         title 37
       The House bill contained a provision (sec. 615) that would 
     authorize qualified reservists to be paid hazardous duty pay 
     at the same monthly rates paid to qualified members serving 
     on active duty for explosives demolition and parachute 
     jumping duties.
       The Senate amendment contained no similar provision.
       The House recedes.
     Extension of requirement for exemplary conduct by commanding 
         officers and others in authority to include civilians in 
         authority in the Department of Defense
       The House bill contained a provision (sec. 561) that would 
     consolidate and broaden the scope of the statutory standards 
     for exemplary conduct that are presently codified for 
     commanding officers in the Army, Navy, Marine Corps, and Air 
     Force, and set forth standards applicable to civilian leaders 
     in the Department of Defense and the military departments.
       The Senate amendment contained no similar provision.
       The House recedes.
     Funding for special compensation authorities for Department 
         of Defense retirees
       The House bill contained a provision (sec. 641) that would 
     require that payments made to retirees eligible for either 
     special compensation for the severely disabled or special 
     compensation for the combat disabled would be paid from the 
     Military Retirement Trust Fund. This provision would also 
     provide that any increase in the Department of Defense's 
     annual accrual payment to the Military Retirement Trust Fund 
     resulting from the payment of the foregoing special 
     compensations, or from concurrent receipt, would be provided 
     by a contribution from the U.S. Treasury.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that this provision was substantially 
     adopted as part of the provision implementing phased-in full 
     concurrent receipt of military retired pay and veterans' 
     disability compensation for certain military retirees.
     Increased maximum amount of reenlistment bonus for active 
         members
       The Senate amendment contained a provision (sec. 617) that 
     would authorize an increase in the reenlistment bonus to a 
     maximum amount of $70,000.
       The House bill contained no similar provision.
       The Senate recedes.

                   Title VII--Health Care Provisions

               Subtitle A--Enhanced Benefits for Reserves

     Medical and dental screening for members of Selected Reserve 
         units alerted for mobilization (sec. 701)
       The House bill contained a provision (sec. 707) that would 
     authorize the Secretary of Defense to provide medical and 
     dental screening and care for members of the Selected Reserve 
     who are assigned to a unit that has been alerted or notified 
     that members of the unit will be mobilized for active duty in 
     support of an operational mission or contingency operation 
     during a national emergency or time of war.
       The Senate amendment contained a similar provision (sec. 
     701(f)(1)-(2)).
       The House recedes with a technical amendment.
       The conferees are aware that under current law there is 
     often inadequate time in the post mobilization period to 
     ensure that members of the Selected Reserve receive needed 
     medical and dental evaluations and care. Therefore, the 
     conferees take this action to enhance both the opportunities 
     for that needed care and the overall medical readiness of 
     members of the Selected Reserve.
     Coverage for ready reserve members under TRICARE program 
         (sec. 702-705)
       The Senate amendment contained a provision (sec. 701(f)(3)) 
     that authorizes participation by members of the selected 
     reserve and the individual ready reserve in the TRICARE 
     program, whether on active duty or not.
       The House bill contained no similar provision.
       The conferees agree to include three temporary authorities 
     which would provide access to health care for the reserve 
     components and their dependents, and allow for assessment of 
     the merit of continuing such programs. The conferees agree to 
     provide access to the TRICARE program for inactive Reservists 
     and their family members, if they are eligible for 
     unemployment compensation or are not eligible for health care 
     benefits under an employer-sponsored health benefits plan. 
     Further, the conferees authorize expanding the time period 
     Reservists would be considered to be on active duty for 
     purposes of TRICARE eligibility. Finally, the conferees amend 
     the Transitional Assistance Medical Program benefit coverage 
     period from 60 to 180 days beginning on the date on which the 
     members are separated from active duty for both active and 
     reserve members.
       The conferees recognize the high cost of extending such 
     health care benefits and based on information provided by the 
     Congressional Budget Office, have been advised that the cost 
     of this demonstration program is approximately $200,000,000 
     based on projected utilization rates. The conferees assume 
     that not more than $400,000,000 shall be required to 
     implement the demonstration program in Fiscal Year 2004. The 
     conferees direct the Comptroller General to study the health 
     care needs of the reserve components and implement this 
     demonstration, assess it's effectiveness, and recommend to 
     the Congress whether these enhanced benefits are necessary 
     for Reserve and National Guard members and their families.
       Limitation on fiscal year 2004 outlays for temporary 
     reserve health care programs (sec. 706)
       The conferees agree to include a provision that would cap 
     the fiscal year 2004 outlays associated with the temporary 
     reserve health care programs to an amount not to exceed 
     $400,000,000.
     TRICARE beneficiary counseling and assistance coordinators 
         for reserve component beneficiaries (sec. 707)
       The Senate amendment contained a provision (sec. 702) that 
     would direct the Secretary of Defense to establish TRICARE 
     beneficiary counseling and assistance coordinators for 
     reserve and National Guard service members and their 
     families.
       The House bill contained no similar provision.
       The House recedes.
       Given the extensive use of the National Guard and reserve 
     forces in recent operations, including Afghanistan and now 
     Iraq, it is critical that reserve component service members 
     and their families have access to a comprehensive benefit 
     package, including timely access to quality health care. The 
     transition between private sector health plans and the 
     TRICARE program can be confusing and challenging, often at 
     critical times when support is needed the most. Beneficiary 
     counseling and assistance coordinators have proven very 
     successful in assisting service members and their families in 
     using the TRICARE system. The conferees believe that 
     beneficiary counseling and assistance coordinators, trained 
     in the unique challenges that reserve component service 
     members and their families face, could dramatically increase 
     satisfaction with, and access to the military health care 
     system for reserve component service members and their 
     families. The conferees expect that, should the Department of 
     Defense transition to fewer geographic regions with future 
     contract initiatives, sufficient beneficiary counseling and 
     assistance coordinators to support the needs of both active 
     and reserve component members would continue to be available.

[[Page 27849]]


     Eligibility of reserve officers for health care pending 
         orders to active duty following commissioning (sec. 708)
       The Senate amendment contained a provision (sec. 708) that 
     would authorize the same health care benefits for newly 
     commissioned reserve officers awaiting orders to active duty 
     as they will have when on active duty.
       The House bill contained no similar provision.
       The House recedes.
       The conferees also remain concerned about the availability 
     of military health care for other categories of reserve 
     members prior to entry on active duty, including recruit 
     candidates in the delayed entry program. The conferees direct 
     the Secretary of Defense to examine and consider actions 
     necessary to address access to health care by all categories 
     of reserve service members. The conferees are eager to 
     receive a related report on health and disability benefits 
     for pre-accession training and education programs that was 
     required by section 546 of the National Defense Authorization 
     Act for Fiscal Year 2002 (Public Law 107-107) and was due to 
     the Congress on March 1, 2002.

                Subtitle B--Other Benefits Improvements

     Acceleration of implementation of chiropractic health care 
         for members on active duty (sec. 711)
       The House bill contained a provision (sec. 706) that would 
     require the Secretary of Defense to accelerate the 
     implementation of the program, required by section 702 of the 
     Floyd D. Spence National Defense Authorization Act for Fiscal 
     Year 2001 (Public Law 106-398), to provide chiropractic 
     health care services and benefits to active duty members by 
     one year.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Reimbursement of covered beneficiaries for certain travel 
         expenses relating to specialized dental care (sec. 712)
       The Senate amendment contained a provision (sec. 709) that 
     would require the Secretary of Defense to reimburse covered 
     beneficiaries for certain travel expenses relating to 
     specialized dental care.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Eligibility for continued health benefits coverage extended 
         to certain members of uniformed services (sec. 713)
       The conferees agree to include a provision that would 
     authorize members and dependents of members of uniformed 
     services, including the Commissioned Corps of the Public 
     Health Service and National Oceanic and Atmospheric 
     Administration who are TRICARE beneficiaries, to be eligible 
     for the premium based temporary health care program currently 
     available to members of the armed forces.
     Authority for designated providers to enroll covered 
         beneficiaries with other primary health insurance 
         coverage (sec. 714)
       The Senate amendment contained a provision (sec. 706) that 
     would eliminate the current legislative restriction on 
     designated providers, as defined in section 724(d) of the 
     National Defense Authorization Act for Fiscal Year 1997 
     (Public Law 104-201), enrolling otherwise eligible 
     beneficiaries who have other health insurance in U.S. Family 
     Health Plans (``covered beneficiaries'').
       The House bill contained no similar provision.
       The House recedes with an amendment that would allow 
     designated providers to market services to, and enroll 
     covered beneficiaries. However, for fiscal years beginning 
     after September 30, 2003, the number of covered beneficiaries 
     who are newly enrolled by a designated provider may not 
     exceed 10 percent of the excess (if any) of the number of 
     enrollees in managed care plans offered by designated 
     providers of the first day of such fiscal year over the 
     number of such enrollees as of the first day of the 
     immediately preceding fiscal year.
       The conferees direct the Secretary of Defense to prescribe 
     policies and modify contracts, as the Secretary considers 
     appropriate, to ensure that: (1) designated providers submit 
     to the Secretary information on the number of enrollees of 
     the provider who have other primary health insurance 
     coverage; (2) a system is established to ensure effective 
     Department of Defense oversight of and designated compliance 
     with the 10 percent limit established by this provision; and 
     (3) the Department's reimbursement rate to the designated 
     providers for covered beneficiaries takes into account 
     amounts for health care provided to the designated providers 
     by other health insurance providers.

           Subtitle C--Planning, Programming, and Management

     Permanent extension of authority to enter into personal 
         services contracts for the performance of health care 
         responsibilities at locations other than military medical 
         treatment facilities (sec. 721)
       The House bill contained a provision (sec. 703) that would 
     authorize the Secretary of Defense to enter into personal 
     services contracts to carry out health care responsibilities.
       The Senate amendment contained a similar provision (sec. 
     703).
       The Senate recedes.
     Department of Defense Medicare-eligible retiree health care 
         fund valuations and contributions (sec. 722)
       The House bill contained a provision (sec. 701) that would 
     give the Secretary of Defense increased flexibility in 
     calculating the normal cost contributions to the Department 
     of Defense Medicare-Eligible Retiree Health Care Fund for any 
     uniformed service participating separately from the other 
     participating uniformed services if the Secretary determines 
     that a more accurate and appropriate contribution rate would 
     be achieved by doing so.
       The Senate amendment contained a similar provision (sec. 
     704).
       The House recedes with a technical amendment.
     Surveys on continued viability of TRICARE Standard (sec. 723)
       The Senate amendment contained a provision (sec. 705) that 
     would require the Secretary of Defense to survey and 
     determine health care provider acceptance of the TRICARE 
     Standard benefit, and to designate a senior official to take 
     the actions necessary to achieve and maintain adequate levels 
     of provider participation in the TRICARE Standard program. 
     The provision would also direct the Comptroller General to 
     review processes and procedures to ensure the Department of 
     Defense is providing ready access to the TRICARE Standard 
     program.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Plan for providing health coverage information to members, 
         former members, and dependents eligible for certain 
         health benefits (sec. 724)
       The House bill contained a provision (sec. 704) that would 
     require the Secretary of Defense to develop a plan to provide 
     TRICARE Standard beneficiaries information concerning health 
     care coverage, ensure assistance to beneficiaries in locating 
     TRICARE-authorized providers, and institute an approach to 
     assessing and recruiting TRICARE Standard providers.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       An active outreach program to assist beneficiaries and 
     health care providers in their participation in the TRICARE 
     Standard program is critical to improving satisfaction with 
     the TRICARE Standard program. The conferees expect that the 
     Department should focus significant effort on areas with high 
     concentrations of reserve component personnel.
     Transfer of certain members from pharmacy and therapeutics 
         committee to uniform formulary beneficiary advisory panel 
         under the pharmacy benefits program (sec. 725)
       The House bill contained a provision (sec. 702) that would 
     realign the membership of the Pharmacy and Therapeutics 
     Committee and the Uniform Beneficiary Advisory Panel to 
     improve the ability of both bodies to meet their defined 
     roles.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Working group on military health care for persons reliant on 
         health care facilities at military installations to be 
         closed or realigned (sec. 726)
       The House bill contained a provision (sec. 705) that would 
     require the Secretary of Defense to establish a working group 
     to provide input to the Secretary on the provision of health 
     care to persons in the United States and overseas who rely on 
     military health care facilities on installations that are 
     selected for closure or realignment.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would provide for 
     a termination date.
       The conferees believe that the working group that assessed 
     health care needs for previous base realignment and closure 
     initiatives was of great value and feel that it would be 
     beneficial to move forward early in the process of the next 
     base realignment and closure round to assess the health care 
     needs of all potentially impacted beneficiaries through the 
     establishment of this group. It is not the intent of the 
     conferees to change the status or access priority of any 
     category of beneficiaries, either in the United States or 
     overseas, through this review.
     Joint program for development and evaluation of integrated 
         healing care practices for members of the armed forces 
         and veterans (sec. 727)
       The Senate amendment contained a provision (sec. 707(d)) 
     that would authorize the Secretary of Defense and the 
     Secretary of Veterans Affairs to conduct a program to develop 
     and evaluate integrated healing care practices for members of 
     the armed forces and veterans.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

[[Page 27850]]



  Title VIII--Acquisition Policy, Acquisition Management, and Related 
                                Matters

                     Legislative Provisions Adopted

             Subtitle A--Acquisition Policy and Management

     Consolidation of contract requirements (sec. 801)
       The Senate amendment contained a provision (sec. 866) that 
     would require that, prior to the consolidation of Department 
     of Defense contract requirements in excess of $5.0 million, a 
     determination be made that the benefits of that acquisition 
     strategy substantially exceed the benefits of alternative 
     contracting approaches that would involve a lesser degree of 
     consolidation.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment to establish 
     an implementation date.
     Quality control in procurement of aviation critical safety 
         items and related services (sec. 802)
       The Senate amendment contained a provision (sec. 805) that 
     would require the establishment of a policy for quality 
     control in the procurement of critical aircraft spare parts.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to prescribe in regulations a quality 
     control policy for the procurement of aviation critical 
     safety items and the procurement of modifications, repair, 
     and overhaul of these items. An approved source may include a 
     dealer, manufacturer, repair or overhaul facility, broker, or 
     distributor who provides aviation critical safety items to 
     the Department of Defense.
     Federal support for enhancement of State and local anti-
         terrorism response capabilities (sec. 803)
       The Senate amendment contained a provision (sec. 852) that 
     would require the establishment of a program where state and 
     local governments could buy anti-terrorism technology 
     solutions from Federal Government contracts and, 
     additionally, would authorize grants to local fire 
     departments to hire personnel.
       The House bill contained no similar provision.
       The House recedes with an amendment that would split the 
     provision into two sections. The amendment would require the 
     Administrator of the Office of Federal Procurement Policy to 
     establish a program under which states and local governments 
     could procure anti-terrorism technologies or services through 
     contracts entered into by the Department of Defense (DOD) or 
     the Department of Homeland Security (DHS). Under the 
     direction of the Administrator of the Office of Federal 
     Procurement Policy, DOD, and DHS would be authorized to award 
     contracts using the same procedures as the multiple awards 
     schedule program of the General Services Administration. The 
     issue of the establishment of a grant program to assist local 
     fire departments to hire personnel is addressed elsewhere in 
     the conference report.
     Special temporary contract closeout authority (sec. 804)
       The Senate amendment contained a provision (sec. 802) that 
     would allow the Secretary of Defense to settle the financial 
     accounts for contracts executed prior to September 30, 1996, 
     that have unreconciled balances of less than $100,000. This 
     provision would give the Secretary of Defense three fiscal 
     years to execute this authority.
       The House bill contained no similar provision.
       The House recedes.
     Competitive award of contracts for reconstruction activities 
         in Iraq (sec. 805)
       The Senate amendment contained a provision (sec. 1209) that 
     would require the Department of Defense to conduct a full and 
     open competition for performing work needed for the 
     reconstruction of the Iraqi oil industry and the Secretary of 
     Defense to report to Congress until such time a competitive 
     contract has been awarded.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     number of reports required by the provision. The conferees 
     note that section 2304a(d)(3) of title 10, United States 
     Code, and section 253h(d) title 41, United States Code, 
     establish a statutory preference for the award of separate 
     task order or delivery order contracts for the same or 
     similar services or property to two or more sources to 
     facilitate competition for individual task orders and 
     delivery orders. The conferees encourage the Department of 
     Defense and the Coalition Provisional Authority to utilize 
     multiple task order and delivery order contracts to 
     facilitate competition for task orders and delivery orders 
     for Iraqi reconstruction to the maximum extent practicable.

      Subtitle B--United States Defense Industrial Base Provisions

     Consistency with United States obligations under 
         international agreements (sec. 811)
       The conferees agree to include a provision that would 
     require that no provision of subtitle B of this act shall 
     apply if the Secretary of Defense, in consultation with the 
     Secretary of Commerce, the United States Trade 
     Representative, and the Secretary of State, determines that 
     it is inconsistent with international agreements.
     Assessment of United States defense industrial base 
         capabilities (sec. 812)
       The House bill contained a provision (sec. 811) that would 
     direct the Secretary of Defense and the secretaries of each 
     military department to establish a program to assess the 
     ability of the United States industrial base to produce 
     military systems necessary to support national security 
     requirements.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would modify the 
     provision's reporting requirements.
     Identification of essential items: military system breakout 
         list (sec. 813)
       The House bill contained a provision (sec. 812) that would 
     direct the Secretary of Defense to identify and list all 
     items and components of military systems which are essential 
     and critical to the U.S. industrial base. The Secretary of 
     Defense would be required to submit an annual report to the 
     committees on Armed Services of the Senate and the House of 
     Representatives that would compile the lists required under 
     this section, including a list of items and components that 
     are manufactured outside the United States.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     that existing data sources be used to meet the requirements 
     of this provision and a Federally Funded Research and 
     Development Center conduct a study to support the Secretary 
     of Defense in developing common definitions and recommending 
     which items and components of military systems that are 
     deemed essential.
     Production capabilities improvement for certain critical 
         items using Defense Industrial Base Capabilities Fund 
         (sec. 814)
       The House bill contained a provision (sec. 814) that would 
     establish within the Department of the Treasury, the Defense 
     Industrial Base Capabilities Fund that would be used to 
     develop U.S. capabilities for the production of essential or 
     other important defense items and authorize $100.0 million 
     for the fund in fiscal year 2004.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would delete the 
     $100.0 million authorization.
     Elimination of unreliable sources of defense items and 
         components (sec. 821)
       The House bill contained a provision (sec. 823) that would 
     require the Secretary of Defense to identify foreign 
     countries that restricted the provision or sale of military 
     goods and services to the United States because of the U.S. 
     policy toward, or military operations in, Iraq after 
     September 12, 2002 and prohibit the Secretary of Defense from 
     procuring any items or components contained in military 
     systems that were manufactured in the identified foreign 
     countries. The Secretary could waive this requirement for an 
     unusual and compelling urgency that would otherwise injure 
     the United States.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense in coordination with the Secretary of 
     State to identify and list those countries that have 
     restricted the provision or sale of military goods or 
     services to the U.S. because of U.S. counter-terrorism or 
     military operations after the date of enactment of this act 
     and to provide for a process whereby the list can be 
     periodically reviewed and countries can be removed from the 
     list.
     Incentive program for major defense acquisition programs to 
         use machine tools and other capital assets produced 
         within the United States (sec. 822)
       The House bill contained a provision (sec. 826) that would 
     require that within four years the defense contractors 
     fulfilling procurement contractors for major defense 
     acquisition programs shall use only machine tools produced 
     entirely within the United States.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would direct the 
     Secretary of Defense to establish an incentive program for 
     contractors to purchase capital assets manufactured in the 
     United States.
     Technical assistance relating to machine tools (sec. 823)
       The House bill contained a provision (sec. 827) that would 
     require the Secretary of Defense to collect data identifying 
     all contractors and subcontractors with defense contracts 
     over $5 million that use machine tools to perform the 
     contracts. The section would also require the Secretary to 
     establish a center to assist machine tool companies and firms 
     that use machine tools with understanding government 
     contracting regulations and contracting opportunities.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense

[[Page 27851]]

     to publish information on resources available to assist 
     machine tool companies and users of machine tools in 
     Government contracting. The Secretary would be required to 
     incorporate into the Department of Defense's science and 
     technology initiatives on manufacturing technology an 
     objective of developing advanced machine tool capabilities.
     Study of beryllium industrial base (sec. 824)
       The Senate amendment contained a provision (sec. 1025) that 
     would require the Secretary of Defense to conduct a study of 
     the adequacy of the U.S. industrial base to meet the defense 
     requirements of the United States for beryllium.
       The House bill contained no similar provision.
       The House recedes.
     Exceptions to Berry amendment for contingency operations and 
         other urgent situations (sec. 826)
       The Senate amendment contained a provision (sec. 831) that 
     would clarify the requirements of section 2533a of title 10, 
     United States Code, to facilitate timely purchases of 
     products needed to support contingency operations and for 
     other circumstances of unusual and compelling urgency when 
     the use of procedures other than competitive procedures have 
     been approved.
       The House bill contained no similar provision.
       The House recedes with an amendment to clarify that the 
     provision would not apply to the procurement of textiles.
     Inapplicability of Berry amendment to procurements of waste 
         and byproducts of cotton and wool fiber for use in the 
         production of propellants and explosives (sec. 827)
       The Senate amendment contained a provision (sec. 832) that 
     would eliminate domestic source restrictions for gun cotton 
     lintners used in the production of propellants and 
     explosives.
       The House bill contained no similar provision.
       The House recedes.
     Buy American exception for ball bearings and roller bearings 
         used in foreign products (sec. 828)
       The Senate amendment contained a provision (sec. 834) that 
     would amend section 2534(a)(5) of title 10, United States 
     Code, which places limitations on the procurement of ball 
     bearings and roller bearings other than those produced in the 
     national technology and industrial base, by creating an 
     exemption for ball bearings and roller bearings used in an 
     end product or component of non-domestic origin.
       The House bill contained no similar provision.
       The House recedes.

   Subtitle C--Defense Acquisition and Support Workforce Flexibility

     Subtitle C--defense acquisition and support workforce (secs. 
         831-836)
       The Senate amendment contained a provision (sec. 841) that 
     would amend the Defense Acquisition Workforce Improvement Act 
     (DAWIA) to give the Secretary of Defense greater flexibility 
     in managing the acquisition and support workforce. 
     Specifically, the provision would give the Secretary the 
     flexibility to establish different experience, educational, 
     and tenure requirements for acquisition positions; require 
     the establishment of a single acquisition corps; and 
     streamline obsolete and outdated provisions of DAWIA.
       The House bill contained no similar provision.
       The House recedes with an amendment to split the provision 
     into several sections.

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

     Additional authorities relating to obtaining personal 
         services (sec. 841)
       The House bill contained a provision (sec. 805) that would 
     authorize the Secretary of Defense to award certain personal 
     service contracts without application of section 3109 of 
     title 5, United States Code.
       The Senate amendment contained a similar provision (sec. 
     813).
       The Senate recedes with an amendment that would authorize 
     the Secretary of Defense to enter into personal services 
     contracts for urgent or unique services that would not be 
     practicable for the Department to obtain by other means: (1) 
     the overseas activities and programs of the Department of 
     Defense (DOD); (2) elements of the DOD within the 
     intelligence community or counter-intelligence community; and 
     (3) the mission of the U.S. Special Operations Command.
     Elimination of certain subcontract notification requirements 
         (sec. 842)
       The House bill contained a provision (sec. 802) that would 
     amend section 2306 of title 10, United States Code, by 
     eliminating the requirement that contractors with a cost 
     contract notify the agency before awarding a cost-plus-fixed-
     fee or a fixed price subcontract greater than the simplified 
     acquisition threshold or five percent of the estimated cost 
     of the prime contract. The requirement would no longer apply 
     in those instances where the Secretary of Defense approves 
     the contractor's purchasing system.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Multiyear task and delivery order contracts (sec. 843)
       The House bill contained a provision (sec. 804) that would 
     amend section 811 of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314) 
     in order to clarify the period of time for which task and 
     delivery order contracts can be awarded.
       The Senate amendment contained a similar provision (sec. 
     863).
       The House recedes with an amendment that would amend 
     section 2304a of title 10, United States Code, to limit to 
     five years the base period of time (not including options) 
     for which task and delivery order contracts may be awarded.
     Elimination of requirement to furnish written assurances of 
         technical data conformity (sec. 844)
       The House bill contained a provision (sec. 803) that would 
     eliminate the requirement for contractors providing technical 
     data to the government to furnish written assurances that the 
     technical data is complete, accurate, and satisfies the 
     requirements of the contract.
       The Senate amendment contained an identical provision (sec. 
     864).
       The conference agreement includes this provision.
     Access to information relevant to items deployed under rapid 
         acquisition procedures (sec. 845)
       The House bill contained a provision (sec. 212) that would 
     amend section 196(b)(1) of title 10, United States Code, to 
     provide that, in addition to a commissioned officer of the 
     armed forces serving on active duty, the Secretary of Defense 
     may also consider for possible selection as Director of the 
     Department of Defense Test Resource Center a senior civilian 
     official or employee of the Department of Defense who has 
     substantial experience in the field of test and evaluation.
       The Senate amendment contained a similar provision (sec. 
     862). The Senate provision would also clarify that access to 
     records and data by the Director of Operational Test and 
     Evaluation (DOT&E) would include relevant operational records 
     and data for systems that are deployed prior to the 
     completion of the operational test and evaluation.
       The House recedes with an amendment that would clarify 
     DOT&E access to records and data on deployed systems. The 
     balance of the issues addressed the House bill and the Senate 
     bill are addressed elsewhere in this conference report.
     Applicability of requirement for reports on maturity of 
         technology at initiation of major defense acquisition 
         programs (sec. 846)
       The Senate amendment contained a provision (sec. 823) that 
     would make a technical change to a reporting requirement 
     required under section 804(a) of the National Defense 
     Authorization Act for fiscal year 2002 (Public Law 107-107), 
     to conform to changes made in the Department of Defense's 
     acquisition regulations and instructions.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Certain weapons-related prototype projects (sec. 847)
       The House bill contained a provision (sec. 801) that would 
     extend for four years the other transaction prototype 
     authority under section 845 of the National Defense 
     Authorization Act for Fiscal Year 1994 (Public Law 103-160).
       The Senate amendment contained a provision (sec. 821) that 
     would: (1) extend for three years the other transaction 
     prototype authority under section 845 of the National Defense 
     Authorization Act for Fiscal Year 1994; (2) include a 
     clarification that other transaction prototype authority can 
     be used for prototype projects related to fielded systems; 
     and (3) establish a three-year pilot program to ease the 
     transition of nontraditional defense contractors from 
     prototype transactions to standard procurement contracts.
       The House recedes with an amendment that would include the 
     authorizations in the Senate provision and extend for four 
     years the other transaction prototype authority under section 
     845 of the National Defense Authorization Act for Fiscal Year 
     1994.
     Limited acquisition authority for Commander of United States 
         Joint Forces Command (sec. 848)
       The Senate amendment contained a provision (sec. 861) that 
     would give the Commander, U.S. Joint Forces Command (JFCOM), 
     the authority to acquire systems with research, development, 
     test and evaluation expenditure levels up to $10.0 million or 
     procurement expenditure levels up to $50.0 million for the 
     purpose of facilitating joint operations or enhancing 
     interoperability.
       The House bill contained no similar provision.
       The House recedes with an amendment that would give the 
     Secretary of Defense the discretion for three years to give 
     the Commander, JFCOM limited acquisition authority and 
     require the Comptroller General to report on the 
     implementation of this section two years after the date of 
     enactment of this Act.

[[Page 27852]]



       Subtitle E--Acquisition-Related Reports and Other Matters

     Report on contract payments to small businesses (sec. 851)
       The House bill contained a provision (sec. 806) that would 
     require the Secretary of Defense to evaluate provisions of 
     law and regulations relating to the prompt payment of amounts 
     due small business contractors under contracts with the 
     Department of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Comptroller General of the United States to review the 
     timeliness of contract payments the Department of Defense 
     made to small businesses during fiscal years 2001 and 2002.
     Contracting with employers of persons with disabilities (sec. 
         852)
       The Senate amendment contained a provision (sec. 368) 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 Senate provision would also provide 
     for a pilot demonstration project for contractors employing 
     persons with disabilities.
       The House bill contained no similar provision.
       The House recedes with an amendment to split the provision 
     into two sections. The pilot demonstration project is 
     addressed elsewhere in this conference report.
     Demonstration project for contractors employing persons with 
         disabilities (sec. 853)
       The Senate amendment contained a provision (sec. 368) that 
     would provide for two pilot demonstration projects for 
     contractors employing persons with disabilities. The Senate 
     provision would also 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 to: (1) split the 
     provision into two sections; (2) authorize a demonstration 
     project by entering into one or more contracts with an 
     eligible contractor for the purpose of providing defense 
     contracting opportunities for severely disabled individuals; 
     and (3) remove some of the limitations of the pilot program 
     to promote greater participation. The conferees intent is to 
     provide defense contracting opportunities for business 
     entities that employ the severely disabled. The conferees 
     believe such opportunities may exist in the purchase of 
     aerospace end items or components and information technology 
     products and services. 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 is addressed elsewhere in 
     this conference report.

                   Legislative Provisions Not Adopted

     Procurement of certain critical items from American sources
       The House bill contained a provision (sec. 813) that would 
     require the Secretary of Defense to purchase certain critical 
     items only if they are entirely produced in the United 
     States. The Senate amendment contained no similar provision.
       The House recedes.
     Domestic source limitation for certain additional items
       The House bill contained a provision (sec. 821) that would 
     expand the list of items in 10 U.S.C. 2534 that are required 
     to be procured from a source within the National Technology 
     and Industrial Base (NTIB). The provision would exclude 
     Canada from the definition of the NTIB and limit the 
     conditions under which the Secretary of Defense could waive 
     the domestic source requirements in 10 U.S.C. 2534.
       The Senate amendment contained no similar provision.
       The House recedes.
     Requirements relating to buying commercial items containing 
         specialty metals from American sources
       The House bill contained a provision (sec. 822) that would 
     define the requirements by which the Secretary of Defense 
     could procure commercial items containing specialty metals 
     produced outside of the United States upon agreement by 
     contractors to purchase an equivalent amount, plus 10 
     percent, of those specialty metals from sources within the 
     United States. The provision required specific contractor 
     reporting of annual usage for such specialty metals. The 
     provision also required that domestic sourcing of clothing 
     also include the materials and components thereof.
       The Senate amendment contained no similar provision.
       The House recedes.
     Congressional notification required before exercising 
         exception to requirement to buy specialty metals from 
         American sources
       The House bill contained a provision (sec. 824) that would 
     not allow the Secretary of Defense or Secretary of the 
     military department to procure specialty metals under the 
     exception in sec. 822 until the Secretary submits to Congress 
     and publish in the Federal Register notice of the 
     determination made under that section.
       The Senate amendment contained no similar provision.
       The House recedes.
     Repeal of authority for foreign procurement of para-aramid 
         fibers and yarns
       The House bill contained a provision (sec. 825) that would 
     repeal section 807 of the National Defense Authorization Act 
     for Fiscal Year 1999 (Public Law 105-261), which authorized 
     competition for para-aramid fibers and yarns between foreign 
     and domestic sources in order to avoid a domestic sole source 
     procurement.
       The Senate amendment contained no similar provision.
       The House recedes.
     Buy American enhancement
       The House bill contained a provision (sec. 828) that would 
     amend the criteria available to the Secretary of Defense 
     under 10 U.S.C. 2533 in determining whether the application 
     of the Buy American Act (41 U.S.C. 10A) is consistent with 
     the public interest.
       The Senate amendment contained no similar provision.
       The House recedes.
     Requirement relating to purchases by Department of Defense 
         subject to Buy American Act
       The House bill contained a provision (sec. 829) that would 
     require that, in any application of the Buy American Act to 
     the Department of Defense, the term ``substantially'' in 
     section 2 of the Act would mean 65 percent rather than the 50 
     percent for Federal agencies as provided in current 
     regulations implementing the Act.
       The Senate amendment contained no similar provision.
       The House recedes.
     Definitions
       The House bill contained a provision (sec. 831) that would 
     provide a number of definitions related to subtitle B of 
     title VIII of the House bill.
       The Senate amendment contained no similar provision.
       The House recedes.
     Applicability of Clinger-Cohen Act policies and requirements 
         to equipment integral to a weapon or weapon system
       The Senate amendment contained a provision (sec. 822) that 
     would clarify responsibility within the Department of Defense 
     ( for applying the requirements of the Clinger-Cohen Act, 
     Division D of the National Defense Authorization Act for 
     fiscal year 1996 (Public Law 104-106) to equipment determined 
     by the Secretary of Defense to be an integral part of a 
     weapon or weapon system.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees believe that section 5141 of the Clinger-
     Cohen Act provides the Department flexibility to determine 
     which organizations and the degree to which the Department 
     will apply the Act's capital planning and investment control, 
     and performance and results based management provisions to 
     embedded information technology on weapon systems. The 
     conferees direct the Department to review the procedures 
     implementing the Clinger-Cohen Act with respect to embedded 
     systems in order to streamline and eliminate duplicate or 
     unnecessary procedures. If the Department determines that 
     greater statutory flexibility is necessary in the application 
     of the Clinger-Cohen Act to embedded systems, the Secretary 
     of Defense should provide additional justification to 
     Congress prior to submission of the budget for fiscal year 
     2005.
     Waiver authority for domestic source or content requirements
       The Senate amendment contained a provision (sec. 833) 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.
     Application of indemnification authority to state and local 
         government contractors
       The Senate amendment contained a provision (sec. 851) that 
     would authorize the executive branch to apply discretionary 
     indemnification authority (50 U.S.C. 1431 et seq.; Public Law 
     85-804) to authorized Federal Government contracts where 
     state and local governments could buy anti-terrorism 
     technology solutions.
       The House bill contained no similar provision.
       The Senate recedes.
     Definitions
       The Senate amendment contained a provision (sec. 853) that 
     would provide a number of definitions related to subtitle F 
     of title VIII of the Senate bill.

[[Page 27853]]

       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 Officers

     Clarification of responsibility of military departments to 
         support combatant commands (sec. 901)
       The House bill contained a provision (sec. 904) that would 
     clarify the responsibility of the military departments of the 
     Department of Defense to fully support the current and future 
     operational requirements of the combatant commands, subject 
     to the authority, direction, and control of the Secretary of 
     Defense.
       The Senate amendment contained a similar provision (sec. 
     901).
       The House recedes.
     Combatant commander initiative fund (sec. 902)
       The Senate amendment contained a provision (sec. 921) that 
     would amend section 166(a) of title 10, United States Code, 
     by establishing an additional category of joint warfighting 
     capabilities to the authorized list of activities for which 
     combatant commander initiative funds can be used. The 
     provision would also amend the limitations currently 
     contained in title 10: allowing up to $15.0 million for 
     procurement of items with a unit cost in excess of $15,000; 
     allowing up to $10.0 million to pay for the expenses of 
     foreign nations participating in joint exercises; and, 
     allowing up to $10.0 million to provide military training and 
     education to military personnel and related civilians of 
     foreign nations.
       The House bill contained no similar provision.
       The House recedes with an amendment that would limit the 
     amount for procurement of items with unit cost in excess of 
     $15,000 to $10.0 million and limit the amount for military 
     training and education to $5.0 million.
     Biennial review of national military strategy by Chairman of 
         the Joint Chiefs of Staff (sec. 903)
       The House bill contained a provision (sec. 905) that would 
     require the Chairman of the Joint Chiefs of Staff, in 
     consultation with other members of the Joint Chiefs of Staff 
     and the combatant commanders, to submit a national military 
     strategy, including an assessment of the risk associated with 
     the strategy, no later than February 15, 2004, and every even 
     numbered year thereafter.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
       The conferees note, with concern, that the Chairman of the 
     Joint Chiefs of Staff had not submitted an annual risk 
     assessment for the last two years, as required by section 
     153(c) of title 10, United States Code. The conferees 
     consider the annual risk assessment to be an important tool 
     in assessing the adequacy of military capabilities to support 
     the National Security Strategy, expect the Department to 
     comply with this requirement.
     Report on changing roles of United States Special Operations 
         Command (sec. 904)
       The Senate amendment contained a provision (sec. 923) that 
     would direct the Secretary of Defense to prepare a report on 
     implementation of direction by the Secretary to the U.S. 
     Special Operations Command (SOCOM) to assume an expanded role 
     in the global war on terrorism, and to restructure SOCOM to 
     function as a supported combatant commander for planning and 
     executing operations, as well as a supporting combatant 
     commander.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require that 
     the discussion of decision making include consideration of 
     the requirement that special operations missions conducted 
     under the command of Commander, SOCOM, as a supported 
     combatant commander be authorized by the President or the 
     Secretary of Defense.
     Sense of Congress regarding continuation of mission and 
         functions of Army Peacekeeping Institute (sec. 905)
       The House bill contained a provision (sec. 1059) that would 
     express the sense of the Congress that the Secretary of 
     Defense should maintain the functions and missions of the 
     Army Peacekeeping Institute.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Transfer of personnel investigative functions and related 
         personnel of the Department of Defense (sec. 906)
       The Senate amendment contained a provision (sec. 1104) that 
     would authorize the Secretary of Defense, with the consent of 
     the Director of the Office of Personnel Management, to 
     transfer the personnel security investigations functions that 
     are performed by the Defense Security Service of the 
     Department of Defense to the Office of Personnel Management.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to certify to the Committees on Armed 
     Services that such a transfer would meet the following 
     conditions: that the Office of Personnel Management (OPM) has 
     the capability to handle high-priority investigations; that 
     OPM could ensure contract personnel would perform in a timely 
     manner; that appropriate federal employees were available to 
     perform counterintelligence and polygraph activities; that 
     adjudication authority would remain with the Department of 
     Defense (DOD); and that DOD would retain sufficient personnel 
     to improve industry security programs and practices. 
     Following congressional receipt of such certification, a 
     period of 30 days would elapse prior to initiation of any 
     transfer. The provision would also require the Director of 
     OPM, in coordination with the Secretary of Defense, to review 
     functions performed by Defense Security Service personnel and 
     to determine whether any functions are inherently 
     governmental or otherwise inappropriate for performance by 
     contractor personnel.
     Defense acquisition workforce freeze for fiscal year 2004 
         (sec. 907)
       The House bill contained a provision (sec. 910) that would 
     require a five percent reduction in the number of defense 
     acquisition and support personnel in the Department of 
     Defense in each of fiscal years 2004 through 2008.
       The Senate amendment contained a provision (sec. 842) that 
     would prohibit any reduction in the defense acquisition and 
     support workforce in fiscal years 2004 through 2006.
       The Senate recedes with an amendment that would freeze the 
     defense acquisition and support workforce for one year. The 
     number of acquisition and support personnel could vary by no 
     more than one percent up or down, but only for the purpose of 
     exercising normal hiring and firing flexibility during a 
     year. The Secretary of Defense would be permitted to waive 
     this limitation upon a determination that the waiver is 
     necessary to protect a significant national security interest 
     of the United States.

                      Subtitle B--Space Activities

     Coordination of space science and technology activities of 
         the Department of Defense (sec. 911)
       The Senate amendment contained a provision (sec. 911) that 
     would provide the Under Secretary of the Air Force oversight 
     authority for space science and technology (S&T) projects. 
     The provision would require the Under Secretary, in 
     consultation with the Director of Defense Research and 
     Engineering (DDR&E), to develop a space S&T strategy, and 
     allow the Department S&T entities to proceed with space S&T 
     projects only with the concurrence of the Under Secretary of 
     the Air Force. The provision would also require the Under 
     Secretary to submit a report on the strategy to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives not later than March 15, 2004, and a review 
     of the strategy and coordination by the Comptroller General.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to develop and implement, through the 
     DDR&E and the Executive Agent for Department of Defense (DOD) 
     Space, a space science and technology strategy. The strategy 
     would be included as part of the National Security Space 
     Plan, that is now required as part of DOD directive 5101.2 
     dated June 3, 2003. The amendment provides that the strategy 
     would be developed in consultation with the science and 
     technology entities of the DOD, that the strategy would be 
     available for review by the congressional defense committees, 
     and that the strategy and S&T coordination would be reviewed 
     by the Comptroller General.
       DOD Directive 5101.2 assigns the role of Executive Agent 
     for DOD Space to the Secretary of the Air Force, to be 
     redelegated to the Under Secretary of the Air Force. The 
     conferees understand that, as the Executive Agent for DOD 
     Space, the Under Secretary of the Air Force functions in a 
     Department-wide capacity. In the exercise of those duties, 
     the conferees understand that DOD directive 5101.1, dated 
     September 3, 2002, provides DOD executive agents with 
     considerable authority. The conferees note that section 4.4 
     of this directive states that: ``Within the scope of assigned 
     responsibilities and functions, the DOD Executive Agent's 
     authority takes precedence over the authority of other DOD 
     Component officials performing related or collateral joint or 
     multi-component support responsibilities and functions.'' The 
     conferees also note that DOD Directive 5101.2 assigns the 
     Executive Agent for DOD Space, in coordination with the Under 
     Secretary for Acquisition, Technology, and Logistics and the 
     DDR&E, responsibility for assuring that space programs of DOD 
     components, including research efforts, are properly 
     coordinated. This directive also requires the heads of DOD 
     components to ensure the cooperation of their components in 
     that endeavor.
       The conferees direct the Executive Agent for Space and the 
     DDR&E to execute their respective responsibilities and 
     authorities contained in DOD directive 5101.1, 5101.2, and 
     this provision to ensure that space S&T activities identified 
     in the space S&T strategy

[[Page 27854]]

     are executed in a manner that is consistent with the strategy 
     and to redirect or alter any of those activities inconsistent 
     with the strategy to ensure their proper coordination.
       The conferees recognize that space science and technology 
     efforts have not been well coordinated in the past. The 
     conferees intend to monitor progress in this area carefully 
     and to pursue additional steps if necessary to ensure 
     coordination in the future.
     Policy regarding assured access to space for United States 
         national security payloads (sec. 912)
       The Senate amendment contained a provision (sec. 913) that 
     would establish as the policy of the United States that the 
     President undertake actions appropriate to ensure that United 
     States has the capacity to launch national security payloads 
     when such payloads are needed in space. These steps would 
     include resources and policy guidance to sustain two launch 
     vehicles or families of launch vehicles capable of delivering 
     national security payloads to space and a robust space launch 
     infrastructure.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
       The conferees agree that sustaining two launch vehicles or 
     families of launch vehicles is important to ensuring that the 
     United States can deliver critical national security payloads 
     into orbit. The conferees note that this provision requires 
     that the two launch vehicles or families of launch vehicles 
     have the capability, in combination, to launch all national 
     security payloads.
     Pilot program for provision of space surveillance network 
         services to non-United States governmental entities (sec. 
         913)
       The House bill contained a provision (sec. 903) that would 
     authorize the Secretary of Defense to establish a three year 
     pilot program that would allow non-United States government 
     entities to purchase satellite tracking services from assets 
     owned or controlled by the Department of Defense, space 
     surveillance data, and analysis of space surveillance data, 
     if the Secretary of Defense determines that such purchase is 
     in the national security interests of the United States. 
     Sales to foreign entities would also require the approval of 
     the Secretary of State. Funds generated by the provision of 
     these services would be credited to Department of Defense 
     accounts.
       The Senate amendment contained a similar provision (sec. 
     914).
       The Senate recedes with an amendment that would authorize 
     the Secretary of Defense to provide satellite tracking 
     services from assets owned or controlled by the Department of 
     Defense, space surveillance data, and analysis of space 
     surveillance data, to non-United States government entities, 
     foreign governments, and foreign and domestic commercial 
     entities, if the Secretary determines that providing such 
     data and services is in the national security interests of 
     the United States. The Secretary could require payment by 
     foreign governments, and domestic and foreign commercial 
     entities to cover the cost of providing the data and services 
     to those entities. Funds so generated would be credited to 
     Department of Defense accounts originally charged to provide 
     the data and services.
     Content of biennial global positioning system report (sec. 
         914)
       The Senate amendment contained a provision (sec. 915) that 
     would modify an existing reporting requirement on the 
     operational status and effectiveness of the Global 
     Positioning System (GPS). The House bill contained no similar 
     provision.
       The House recedes with a technical amendment.
     Report on processes--related space systems (sec. 915)
       The House bill contained a provision (sec. 1024) that would 
     require the Secretary of Defense to submit a report to the 
     congressional defense committees on how the United States 
     Strategic Command generates planning and requirements to 
     support U.S. warfighters with space capabilities.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to provide a report to the congressional 
     defense committees no later than March 15, 2004, that 
     assesses the role of the United States Strategic Command in 
     planning and requirements development for space systems, 
     assesses the processes by which space system capabilities are 
     integrated into service training and doctrine, and makes 
     recommendations for improvements in these processes.

                          Subtitle C--Reports

     Redesignation of the National Imagery and Mapping Agency as 
         the National Geospatial-Intelligence Agency (sec. 921)
       The House bill contained a provision (sec. 902) that would 
     change the name of the National Imagery and Mapping Agency 
     (NIMA) to the National Geospatial-Intelligence Agency.
       The Senate amendment contained a similar provision (sec. 
     902) that would also introduce, as a matter of law, the term 
     ``geospatial intelligence,'' and would include a requirement 
     for the Director, NIMA, to submit a report on utilization of 
     certain data extraction and exploitation capabilities.
       The Senate recedes with an amendment that would define the 
     term ``geospatial intelligence,'' and clarify the original 
     language in the House bill.
       The conferees direct the Director, NIMA, to submit a report 
     to the congressional defense committees and the Select 
     Committee on Intelligence of the Senate and the Permanent 
     Select Committee on Intelligence of the House of 
     Representatives on the status of efforts by NIMA to 
     incorporate within the Commercial Joint Mapping Tool Kit 
     applications for the rapid extraction and exploitation of 
     three-dimensional geospatial data from reconnaissance 
     imagery. This report shall be submitted no later than 60 days 
     after the date of enactment of this Act.
     Protection of operational files of the National Security 
         Agency (sec. 922)
       The House bill contained a provision (sec. 1050) that would 
     exempt certain operational files at the National Security 
     Agency (NSA) from the search, review, and disclosure 
     provisions of the Freedom of Information Act, contained in 
     section 552 of title 5, United States Code. This authority 
     parallels the authority currently available to the Central 
     Intelligence Agency, the National Imagery and Mapping Agency, 
     and the National Reconnaissance Office.
       The Senate amendment contained a similar provision (sec. 
     1035) that would also limit the specific offices at the NSA 
     that can qualify for an exemption.
       The House recedes with a clarifying amendment.
     Integration of Defense intelligence, surveillance, and 
         reconnaissance capabilities (sec. 923)
       The Senate amendment contained a provision (sec. 924) that 
     would require the Under Secretary of Defense for Intelligence 
     (USD (I)) to establish an Intelligence, Surveillance, and 
     Reconnaissance (ISR) Integration Council, composed of the 
     senior intelligence officers of the military services, the 
     directors of the defense intelligence agencies, and the 
     Director of Operations, J3, the Joint Staff, to provide a 
     permanent forum for the discussion and arbitration of issues 
     relating to the development and integration of Defense-wide 
     ISR capabilities. The provision would also require the USD 
     (I), in consultation with the Defense ISR council, to develop 
     a comprehensive plan to guide the development, fielding, and 
     integration of Department of Defense ISR capabilities over 
     the next 15 years, to be submitted to the congressional 
     defense and intelligence committees no later than September 
     30, 2004.
       The House bill contained no similar provision.
       The House recedes.
     Management of National Security Agency modernization program 
         (sec. 924)
       The Senate amendment contained a provision (sec. 804) that 
     would transfer acquisition milestone decision authority for 
     major defense acquisition programs at the National Security 
     Agency (NSA) from the Director, NSA, to the Under Secretary 
     of Defense for Acquisition, Technology and Logistics (USD 
     (AT&L)), effective upon enactment of this Act. The provision 
     would also prohibit the USD (AT&L) from returning this 
     authority to the Director, NSA, before October 1, 2006, and 
     then only after the Under Secretary of Defense for 
     Intelligence (USD (I)), in coordination with the Deputy 
     Director of Central Intelligence for Community Management 
     (DDCI (CM)), certifies that the NSA has implemented 
     acquisition management policies, procedures, and practices 
     that are sufficient to ensure that acquisitions by the NSA 
     are conducted in a manner consistent with sound, efficient 
     acquisition practices.
       The House bill had no similar provision.
       The House recedes with an amendment that would allow the 
     USD (AT&L) to delegate milestone decision authority back to 
     the Director, NSA, after September 30, 2005, provided 
     conditions established in the provision are met.
     Modification of obligated service requirements under National 
         Security Education Program (sec. 925 )
       The Senate amendment contained a provision (sec. 1036) that 
     would transfer administration of the National Security 
     Education Program (NSEP) from the Department of Defense (DOD) 
     to the Central Intelligence Agency.
       The House bill contained no similar provision.
       The House recedes with an amendment that would retain the 
     NSEP within the DOD, but would amend section 1902 of title 
     50, United States Code, to modify the service commitment 
     associated with participation in the program. Under current 
     law, participants in the NSEP program may perform alternative 
     service in the civilian education community if they are 
     unable to find suitable employment in a national security 
     position within a year of finishing their participation in 
     the NSEP. The conferees strongly feel that participants in 
     the NSEP should fulfill a service commitment in a position in 
     the DOD or in a position in the Intelligence Community 
     certified by the Secretary of Defense as appropriate to 
     utilize the unique language and regional expertise acquired 
     by NSEP participants.

[[Page 27855]]


     Authority to provide living quarters for certain students in 
         cooperative and summer education programs of the National 
         Security Agency (sec. 926)
       The House bill contained a provision (sec. 1046) that would 
     amend section 2195 of title 10, United States Code, to allow 
     the National Security Agency to provide and pay for living 
     quarters for qualifying students who are employed at the 
     National Security Agency under a Student Educational 
     Employment Program or a similar cooperative or summer 
     education program.
       The Senate amendment contained a similar provision (sec. 
     1034).
       The Senate recedes.
     Commercial imagery industrial base (sec. 927)
       The Senate amendment contained a provision (sec. 312) that 
     would require that: (1) at least ninety percent of the funds 
     authorized for commercial imagery be available for the 
     acquisition of commercial space imagery or to support the 
     development of next generation commercial imagery satellites; 
     and (2) the Secretary of Defense, in consultation with the 
     Director of Central Intelligence, submit a report to the 
     Committees on Armed Services of the Senate and the House of 
     Representatives by March 1, 2004, on how the Secretary will 
     implement the President's policy on commercial remote 
     sensing.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require that 
     at least ninety percent of the funds authorized for 
     commercial imagery be available for the acquisition of 
     commercial space imagery, to support the development of next 
     generation commercial imagery satellites, and to support 
     unique infrastructure improvements that meet unique 
     requirements related to commercial space imagery. The 
     amendment would also allow the Secretary of Defense, in 
     consultation with the Director of Central Intelligence, to 
     waive the requirement that ninety percent of these funds be 
     available for the designated purposes if he determines that 
     such a waiver is in the national security interest. If a 
     waiver is issued, the provision would require that the 
     Secretary provide a report that includes the reasons for the 
     waiver and a plan on how commercial imagery funds would be 
     spent. The amendment would also require the Secretary of 
     Defense, in consultation with the Director of Central 
     Intelligence, to submit a report by March 1, 2004, on how the 
     Secretary will implement the President's policy on commercial 
     remote sensing. Reports required in the provision are to be 
     submitted to the congressional defense committees, the Select 
     Intelligence Committee of the Senate, and the Permanent 
     Select Intelligence Committee of the House of 
     Representatives.

                       Subtitle D--Other Matters

     Authority for Asia-Pacific Center for Security Studies to 
         accept gifts and donations (sec. 931)
       The House bill contained a provision (sec. 906) that would 
     expand the authority of the Asia-Pacific Center for Security 
     Studies to accept gifts and donations from domestic sources 
     as well as foreign sources.
       The Senate amendment contained a similar provision.
       The Senate recedes with an amendment that would preclude 
     authority for the Asia-Pacific Center to accept gifts and 
     donations from a department or agency of the United States. 
     The conferees agreed that such authority would represent an 
     undesirable exception to the Economy Act (31 U.S.C. 1535).
     Repeal of rotating chairmanship of Economic Adjustment 
         Committee (sec. 932)
       The House bill contained a provision (sec. 907) that would 
     amend section 4004(b) of the Defense Economic Adjustment, 
     Diversification, Conversion, and Stabilization Act of 1990 to 
     authorize the Secretary of Defense to serve as the permanent 
     Chairman of the Economic Adjustment Committee.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Extension of certain authorities applicable to the Pentagon 
         Reservation to include a designated Pentagon continuity-
         of-government location (sec. 933)
       The House bill contained a provision (sec. 909) that would 
     expand the definition of the Pentagon Reservation to include 
     property at the Raven Rock Mountain Complex, and other 
     parcels of land within a 100 mile radius of the District of 
     Columbia, to the extent such property may be utilized as a 
     facility relating to continuity of operations and continuity 
     of government.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that eliminates the 
     100 mile radius and adds only the land and facilities at 
     Raven Rock Mountain Complex to the Pentagon Reservation and 
     to the National Capital Region.

                   Legislative Provisions Not Adopted

     Standards of conduct for members of the Defense Policy Board 
         and the Defense Science Board
       The Senate amendment contained a provision (sec. 903) that 
     would require the Secretary of Defense to promulgate 
     standards of conduct for members of the Defense Policy Board 
     (DPB) and the Defense Science Board (DSB).
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees direct the Secretary to review existing 
     standards of conduct applicable to members of the DPB and the 
     DSB and report to the congressional defense committees not 
     later than six months after the date of enactment of this Act 
     on the adequacy of such standards of conduct to ensure public 
     confidence in the DPB and the DSB.
     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 
     redesignate the title of the Secretary of the Navy to the 
     Secretary of the Navy and Marine Corps.
       The Senate amended contained no similar provision.
       The House recedes.
       The conferees continue to view the proposal to change the 
     title of the Secretary of the Navy to Secretary of the Navy 
     and Marine Corps as one deserving of careful study and 
     consideration. Respect for naval traditions that can be 
     traced directly to the Founding Fathers and the origins of 
     the Republic have inherent value in linking the sailors and 
     Marines of today to those of the past and fostering esprit de 
     corps and a sense of unity, purpose, and pride.
       The Department of the Navy was established and named on 
     April 30, 1798, by an act of Congress that stated in part: 
     ``. . . there shall be an Executive Department under the 
     denomination of the Department of the Navy, the chief officer 
     of which shall be called the Secretary of the Navy, whose 
     duty it shall be to execute such orders as he shall receive 
     from the President of the United States, relative to the 
     procurement of naval stores and materials, and the 
     construction, armament, equipment, and employment of vessels 
     of war, as well as other matters connected with the naval 
     establishment of the United States.'' This designation by 
     Congress of the Department of the Navy and the Secretary of 
     the Navy is noteworthy. Similarly, the decision by the 
     Congress in 1834 to place the U.S. Marine Corps within the 
     Department of the Navy without change to the denomination of 
     the Department or its chief officer has precedential value. 
     Nonetheless, proponents for the new title of Secretary of the 
     Navy and Marine Corps state that such a change will more 
     accurately signify the dual duties of the Secretary and 
     recognize the equal status and contributions of the U.S. Navy 
     and U.S. Marine Corps.
       The conferees welcome debate on this proposal and urge 
     congressional hearings and public debate to create a record 
     that would form the basis for a more informed decision on 
     this issue.
     Establishment of the National Guard of the Northern Mariana 
         Islands
       The Senate amendment contained a provision (sec. 925) that 
     would authorize the Secretary of Defense to cooperate with 
     the Governor of the Northern Mariana Islands to establish the 
     National Guard of the Northern Mariana Islands and integrate 
     into the Army National Guard and Air National Guard of the 
     United States the members of the National Guard of the 
     Northern Mariana Islands who are granted federal recognition 
     under title 32, United States Code.
       The House bill contained no similar provision.
       The Senate recedes.
     Required force structure
       The House bill contained a provision (sec. 911) that would 
     establish force structure floors for the U.S. Army, Navy and 
     Air Force at the levels outlined in the 2001 Quadrennial 
     Defense Review.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees support the principle that the current force 
     structure, as reflected in the 2001 Quadrennial Defense 
     Review, is the baseline from which the Department of Defense 
     will develop a transformed force that has the capabilities to 
     meet current and future military requirements. The conferees 
     expect that any planned transformation of that base force 
     will sustain and improve U.S. military advantages, meet 
     critical operational goals, and ensure success in future 
     military operations.
       The conferees note that the terrorist attacks of September 
     11, 2001, the Global War on Terrorism, continuing operations 
     in Iraq and Afghanistan, as well as enduring and emerging 
     military commitments elsewhere have significantly altered the 
     strategic landscape facing the United States, and the 
     resulting operational tempo has placed considerable stress on 
     both the active and reserve components of the U.S. Armed 
     Forces. The Department of Defense has undertaken a series of 
     studies to fully understand the ramifications of this 
     changing security environment. Given the fluid nature of 
     today's global security requirements and current operational 
     commitments, the conferees believe that it would be premature 
     for the Department to reduce or significantly alter the 
     current military force structure until on-going studies are 
     complete, and their findings thoroughly examined, in 
     consultation with Congress.

[[Page 27856]]



                      Title X--General Provisions

                       Items of Special Interest

     Internet access in Iraq
       The conferees understand that living conditions for members 
     of the U.S. Armed Forces in Iraq are austere, but steadily 
     improving. Nonetheless, communications with loved ones back 
     home remain difficult, with troops enduring long lines to 
     call home and with internet access not available in many 
     locations. The conferees are aware of efforts by the 
     Department of Defense to increase internet access, as well as 
     initiatives taken by some local commanders, including the 
     101st Airborne Division in Mosul, to encourage local Iraqi 
     entrepreneurs to establish internet cafes that can be used by 
     U.S. troops.
       The conferees applaud these initiatives that have the 
     potential both to help the local economy and to improve the 
     morale of U.S. troops. The conferees encourage the Secretary 
     of Defense to expand these internet access initiatives to as 
     many U.S. troop locations in Iraq as possible, consistent 
     with force protection considerations.
     Security of sensitive software
       The conferees believe that comprehensive information 
     assurance programs must consider and employ defenses against 
     a variety of sophisticated threats, well beyond the attacks 
     commonly experienced by the general public on the internet. 
     The conferees support the use of commercial off-the-shelf 
     (COTS) software, but believe the Department of Defense (DOD) 
     must ensure that the recent emphasis on procurement of COTS 
     software will not open vulnerabilities in sensitive DOD 
     command, control, communications and intelligence software.
       The conferees believe that the Department must be more 
     proactive in protecting the Department's robust information 
     systems that are critical enablers of U.S military combat 
     power. In that regard, the conferees are concerned that the 
     Department has not implemented an overall architecture or 
     blueprint for all of its information technology (IT) systems. 
     This architecture must provide information assurance and 
     protection for all DOD IT assets, including, but not limited 
     to: unauthorized modifications to code in mission critical 
     software; the insertion of malicious code into mission 
     critical software, and reverse engineering of proprietary 
     intellectual property residing in mission critical software.
       The conferees are aware of the existence of tamper-
     resistant security software that may be effective to defend 
     against these threats by the insertion of security related 
     functionality directly into the binary level of software 
     code. The conferees are also aware that other potential 
     solutions may also be under development. The conferees direct 
     the Secretary of Defense to assess the utility of tamper-
     resistant security software and other innovative software 
     security tools in protecting critical DOD command, control, 
     communications and intelligence software and to incorporate 
     such protections, as appropriate, into the Department's 
     information assurance programs.

                     Legislative Provisions Adopted

                     Subtitle A--Financial Matters

     Transfer Authority (sec. 1001)
       The House bill contained a provision (sec. 1001) that would 
     provide $2.5 billion in transfer authority among accounts in 
     Division A of this Act for fiscal year 2004.
       The Senate amendment contained a similar provision (sec. 
     1001) that would provide $3.0 billion in transfer authority.
       The Senate recedes.
     United States contribution to NATO common-funded budgets in 
         fiscal year 2004 (sec. 1002)
       The Senate amendment contained a provision (sec. 1002) that 
     would authorize the U.S. contribution to NATO common-funded 
     budgets for fiscal year 2004, 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 1989, that payments exceed the 
     fiscal year 1998 total.
       The House bill contained no similar provision.
       The House recedes.
     Authorization of supplemental appropriations for fiscal year 
         2003 (sec. 1003)
       The House bill contained a provision (sec. 1002) that would 
     authorize supplemental appropriations for the Department of 
     Defense (DOD) and the national security activities of the 
     Department of Energy (DOE) for fiscal year 2003 contained in 
     the Emergency Wartime Supplemental Appropriations Act, 2003 
     (Public Law 108-11). The House bill would also authorize 
     supplemental appropriations for the DOD and the national 
     security activities of the DOE for fiscal year 2003 in any 
     act enacted after May 23,2003.
       The Senate amendment contained a provision (sec. 1003) that 
     would authorize supplemental appropriations for the DOD and 
     the national security activities of the DOE contained in 
     Public Law 108-11 and would require a report on all DOD 
     transfers from the Iraqi Freedom Fund or any similar account.
       The House recedes.
     Authorization of supplemental appropriations for fiscal year 
         2004 (sec. 1004)
       The conferees agree to include a provision (sec. 1004) that 
     would authorize supplemental appropriations for the 
     Department of Defense for fiscal year 2004 contained in the 
     Emergency Supplemental Act for Defense and for the 
     Reconstruction of Iraq and Afghanistan, 2004.
     Reestablishment of authority for short-term leases of real or 
         personal property across fiscal years (sec. 1005)
       The House bill contained a provision (sec. 1004) that would 
     restore the authority of the Department of Defense to enter 
     into 12-month leases at any time during a fiscal year.
       The Senate amendment contained a similar provision (sec. 
     865).
       The House recedes with an amendment that would establish an 
     effective date for this authority.
     Reimbursement rate for certain airlift services provided to 
         Department of State (sec. 1006)
       The Senate amendment contained a provision (sec. 343 (a), 
     (b)) that would authorize the Secretary of Defense to charge 
     the Department of State the same reimbursement rate for 
     airlift services as charged to other Department of Defense 
     components.
       The House bill contained no similar provision.
       The House recedes with technical amendments.
     Limitation on payment of facilities charges assessed by 
         Department of State (sec. 1007)
       The Senate amendment contained a provision (sec. 343(c)) 
     that would permit the Secretary of Defense to offset, on an 
     annual basis, any fees charged to the Department of Defense 
     by the Department of State for the maintenance, upgrade or 
     construction of U.S. diplomatic facilities by the total 
     amount of the unreimbursed costs incurred by the Department 
     of Defense for providing goods and services to the Department 
     of State during that year.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
       It is the intent of the conferees that the offset authority 
     granted by this provision to the Secretary of Defense would 
     apply only if the administration proceeds with the 
     establishment of a capital cost sharing program or any other 
     funding mechanism that would permit the Secretary of State to 
     collect fees from other government agencies and to use such 
     fees to upgrade and construct U.S. diplomatic facilities. 
     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 neither 
     takes into account the goods and services that other 
     departments and agencies provide to the Department of State 
     at no cost, nor does the program give other departments and 
     agencies, or the congressional committees that oversee their 
     budgets, a statutory role in determining how funds authorized 
     and appropriated for those departments and agencies will be 
     spent by the Department of State. The conferees urge the 
     administration to request sufficient funds in future year 
     budget requests to provide for the costs of upgrading or 
     constructing U.S. diplomatic facilities.
     Use of the Defense Modernization Account for life cycle cost 
         reduction initiatives (sec. 1008)
       The Senate amendment contained a provision (sec. 362) that 
     would extend the authorization for the Defense Modernization 
     Account and amend the existing authority to allow the 
     Department to program funds into this account to provide 
     start-up funds for projects to improve the life cycle cost of 
     new or existing systems.
       The House bill contained no similar provision.
       The House recedes.
     Provisions relating to defense travel cards (sec. 1009)
       The Senate amendment contained a series of provisions 
     (sections 1011-1013) that addressed the management of defense 
     travel cards. Section 1011 would make mandatory the authority 
     in section 2784a(a) of title 10, United State Code, to 
     require direct payment to the issuer of a Department of 
     Defense (DOD) travel card for official travel or 
     transportation expenses charged on the travel card by a DOD 
     employee or member. Section 1012 would require the Secretary 
     of Defense to establish a program for evaluating the 
     creditworthiness of individuals prior to the issuance of a 
     DOD travel card. Section 1013 would require the Secretary of 
     Defense to prescribe guidelines and procedures for making 
     determinations regarding disciplinary actions against DOD 
     personnel for improper, fraudulent, or abusive use of defense 
     travel cards by such personnel.
       The House bill contained no similar provisions.
       The House recedes with an amendment that would combine 
     these two provisions into one provision. The amendment would 
     also authorize the Secretary of Defense to

[[Page 27857]]

     waive the requirement for direct payment where appropriate 
     and require the Secretary to issue regulations on taking 
     disciplinary action and assessing penalties for improper, 
     fraudulent, or abusive use of the travel card to ensure 
     consistency with the penalties for improper, fraudulent, or 
     abusive use of the purchase card.

                Subtitle B--Naval Vessels and Shipyards

     Repeal of requirement regarding preservation of surge 
         capability for naval surface combatants (sec. 1011)
       The House bill contained a provision (sec. 1011) that would 
     repeal subsection (b) of section 7296 of title 10, United 
     States Code, and would include associated clerical 
     amendments. This provision would repeal the requirement that 
     the Secretary of the Navy maintain on the Naval Register a 
     sufficient number of combatant surface vessels to enable the 
     Navy to regain a force of at least 116 combatant surface 
     vessels within 120 days after the date of any decision by the 
     President to increase the number of surface combatant 
     vessels.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Enhancement of authority relating to use for experimental 
         purposes of vessels stricken from the Naval Vessel 
         Register (sec. 1012)
       The House bill contained a provision (sec. 1012) that would 
     amend section 7306a of title 10, United States Code, to 
     authorize the Secretary of the Navy to retain proceeds from 
     the sale of material and equipment stripped from vessels 
     stricken from the Naval Vessel Register to pay for the 
     stripping and environmental remediation of other vessels used 
     for fleet training exercises.
       The Senate amendment contained a similar provision (sec. 
     327).
       The House recedes with a technical amendment.
     Transfer of vessels stricken from the Naval Vessel Register 
         for use as artificial reefs (sec. 1013)
       The House bill contained a provision (sec. 1013) that would 
     authorize the Secretary of the Navy to transfer vessels 
     stricken from the Naval Vessel Register to States or other 
     political entities of the United States for use as artificial 
     reefs.
       The Senate amendment contained a similar provision (sec. 
     328).
       The House recedes with a technical amendment.
       The conferees agree that there is a need to authorize the 
     Secretary of the Navy to utilize the full range of ship 
     disposal options in order to ensure the availability of cost 
     effective and efficient methods. In addition, coastal 
     communities can benefit from these efforts because sunken 
     vessels build reefs that prevent beach erosion and support 
     marine life, commercial and sport fishing, and recreational 
     diving.
     Priority for Title XI assistance (sec. 1014)
       The House bill contained a provision (sec. 1014) that would 
     establish a pilot program which would enable the Secretary of 
     the Navy to guarantee loans for the construction of two 
     qualified sealift ships built in a United States shipyard and 
     for the facilities or equipment associated with the marine 
     operations of those ships. The provision would authorize 
     $40.0 million to be appropriated to the Secretary to 
     guarantee a loan for these ships, exercising authorities that 
     are substantially the same as the authorities available to 
     the Secretary of Transportation under title XI of the 
     Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et seq.).
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would amend 
     section 1103 of the Merchant Marine Act, 1936 (46 App. U.S.C. 
     1273) by striking the word ``priority'' in subsection (i) (as 
     added by section 3544 of this act, and inserting ``priority 
     for National Defense Tank Vessels'' and adding at the end a 
     section that would require the Secretary of Transportation to 
     give priority for loan guarantees to vessels that the 
     Secretary of Defense deems suitable for service as a naval 
     auxiliary in time of war or national emergency and meets a 
     shortfall in sealift capacity or capability.
       The provision would also require the Secretary of 
     Transportation and the Secretary of Defense to submit a 
     report, within 180 days of enactment of the Act, to the 
     Senate Committee on Armed Services, the Senate Committee on 
     Commerce, Science, and Transportation, and the House 
     Committee on Armed Services that defines the criteria to be 
     used by the Secretary of Defense in determining the 
     suitability of a vessel as a naval auxiliary and how it meets 
     a sealift shortfall, and the procedure by which the Secretary 
     of Defense will review applications.
       The conferees expect that the Department of Defense review 
     would be timely so as not to delay the application process, 
     review, and award of guarantees. The conferees further expect 
     that all applications, regardless of priority established 
     under this section, will meet all program requirements, 
     including financial commitment and economic soundness, prior 
     to the awarding of a commitment to guarantee or a guarantee.
     Support for transfers of decommissioned vessels and shipboard 
         equipment (sec. 1015)
       The Senate amendment contained a provision (sec. 366) that 
     would enable the Navy to provide assistance to certain 
     foreign, State and municipal governments, organizations, and 
     other entities in support of certain ship and shipboard 
     equipment transfers. The provision would only apply to 
     transfers made in accordance with sections 2572, 7306, 7307, 
     or 7545 of title 10, United States Code, and would also 
     authorize the Navy to be reimbursed for such assistance.
       The House bill contained no similar provision.
       The House recedes.
     Advanced shipbuilding enterprise (sec. 1016)
       The Senate amendment contained a provision (sec. 1040) that 
     would express the sense of the Senate that the advanced 
     shipbuilding enterprise of the national shipbuilding research 
     program is supported, and that the Secretary of Defense and 
     the Secretary of the Navy are encouraged to continue funding 
     for the program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would express the 
     sense of Congress that the advanced shipbuilding enterprise 
     of the national shipbuilding research program is supported, 
     and that the Secretary of Defense and the Secretary of the 
     Navy are encouraged to continue funding for the program.
     Report on Navy plans for basing aircraft carriers (sec. 1017)
       The Committee on Armed Services of the Senate, in the 
     Senate report to accompany the bill S. 2514 (S.R. 107-151), 
     directed the Chief of Naval Operations to submit a report on 
     Navy plans for basing aircraft carriers through 2015 to the 
     congressional defense committees not later than 180 days 
     after enactment of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (P.L. 107-314).
       The conferees note that the required report has not been 
     delivered.
       Neither the House bill nor the Senate amendment contained 
     any provisions relating to the report on the Navy's plan for 
     basing aircraft carriers.
       The conferees recommend a provision that would direct the 
     Secretary of Defense to submit a report on Navy plans for 
     basing aircraft carriers through 2020 to the congressional 
     defense committees not later than 120 days after enactment of 
     the National Defense Authorization Act for Fiscal Year 2004.
     Limitation on disposal of obsolete naval vessel (sec. 1018)
       The conferees agree to include a provision that would 
     preclude the Secretary of the Navy from disposing of the ex-
     Forest Sherman (DD-931) during fiscal year 2004 to afford 
     nonprofit groups the opportunity to make application to the 
     Secretary of the Navy under the terms of section 7306 of 
     title 10, United States Code.
       The conferees understand that there is at least one 
     nonprofit entity that may be interested in acquiring this 
     obsolete vessel under section 7306, the authority for the 
     Navy's transfer of vessels stricken from the Naval Vessel 
     Register. The conferees believe that this period should 
     provide ample opportunity for any interested nonprofit 
     organizations to make application to the Navy and for the 
     Navy to render a judgement on such applications.

                    Subtitle C--Counterdrug Matters

     Expansion and extension of authority to provide additional 
         support for counter-drug activities (sec. 1021)
       The Senate amendment contained a provision (sec. 1207) that 
     would extend the authority in section 1033 of the National 
     Defense Authorization Act for Fiscal Year 1998 (Public Law 
     105-84), for counter-drug support to Colombia and would renew 
     the authority for counter-drug support to Peru that expired 
     at the end of fiscal year 2002. This authority would extend 
     through fiscal year 2006. Additionally, the provision would 
     authorize the same type of counter-drug support for 
     Afghanistan, Bolivia, Ecuador, Pakistan, Tajikistan, 
     Turkmenistan, and Uzbekistan through the end of fiscal year 
     2006. The provision would limit the maximum amount of annual 
     support in fiscal years 2004, 2005 and 2006 for this program 
     to $40.0 million.
       The House bill contained no similar provision.
       The House recedes.
     Authority for Joint Task Forces to provide support to law 
         enforcement agencies conducting counter-terrorism 
         activities (sec. 1022)
       The House bill contained a provision (sec. 1048) that would 
     authorize Department of Defense (DOD) joint task forces to 
     provide the same support, subject to all applicable laws and 
     regulations, to law enforcement agencies conducting counter-
     terrorism activities as DOD is currently authorized to give 
     to law enforcement agencies conducting counter-drug 
     activities.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Use of funds for unified counterdrug and counterterrorism 
         campaign in Colombia (sec. 1023)
       The Senate amendment contained a provision that would 
     extend, for two additional

[[Page 27858]]

      years, the expanded authority to use Department of Defense 
     counterdrug funds to support a unified campaign against 
     narcotics cultivation and trafficking, and against associated 
     terrorist organizations in Colombia.
       The House bill contained a similar provision.
       The House recedes with an amendment that would limit the 
     extension of authority to fiscal year 2004.
     Sense of Congress on reconsideration of decision to terminate 
         border and seaport inspection duties of National Guard 
         under National Guard drug interdiction and counter-drug 
         program (sec. 1024)
       The Senate amendment contained a provision (sec. 1044) that 
     would express the sense of the Senate that the Secretary of 
     Defense should reconsider his decision to terminate the 
     support provided by the National Guard to the U.S. Border 
     Patrol and Customs Service in augmenting their ability to 
     conduct comprehensive counter-terrorism and counter-drug 
     inspections of cargo and personnel entering the United States 
     by land, sea, and air.
       The House bill contained no similar provision.
       The House recedes with a technical amendment that would 
     change the provision to a sense of Congress.

                          Subtitle D--Reports

     Repeal and modification of various reporting requirements 
         applicable to the Department of Defense (sec. 1031)
       The House bill contained a provision (sec. 1021) that would 
     repeal or modify a number of obsolete or superceded reporting 
     requirements presently imposed by statute on the Department 
     of Defense.
       The Senate amendment contained a similar provision (sec. 
     1021).
       The conferees agree to repeal or modify 82 reports 
     currently required of the Department.
     Plan for prompt global strike capability (sec. 1032)
       The Senate amendment contained a provision (sec. 1022) that 
     would require the Secretary of Defense to prepare a global 
     strike plan that would be updated annually, and to provide an 
     annual report on the roadmap through fiscal year 2006 to the 
     congressional defense committees.
       The House bill contained no similar provision.
       The House recedes.
     Annual report concerning dismantlement of strategic nuclear 
         warheads (sec. 1033)
       The House bill included a provision (sec. 1056) that would 
     require the President to submit an annual report to Congress 
     on warheads dismantled in the preceding year within the 
     boundaries of the Treaty Between the United States of America 
     and the Russian Federation on Strategic Offensive Reductions 
     (known as the Moscow Treaty), and dismantlements pursuant to 
     the Treaty planned for the current calendar year.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Director of Central Intelligence to provide an annual report, 
     while the Moscow Treaty is in force, on dismantlement of 
     warheads by the Russian Federation. The report would be 
     submitted to the Committees on Armed Services and Foreign 
     Relations, and the Select Committee on Intelligence of the 
     Senate, and to the Committees on Armed Services and 
     International Relations, and the Permanent Select Committee 
     on Intelligence of the House of Representatives.
       The conferees note that Congress receives information on 
     U.S. warhead dismantlement in the Weapon System Classified 
     Annex to the annual budget justification material provided by 
     the Department of Energy. The conferees direct that this 
     material be annotated to indicate which of the dismantlements 
     described in the annex are a result of Moscow Treaty 
     compliance activities. The conferees further direct that, to 
     the extent possible, this information be included in the 
     unclassified annual Department of Energy budget justification 
     material.
     Report on use of unmanned aerial vehicles for support of 
         homeland security missions (sec. 1034)
       The Senate amendment contained a provision (sec. 1037) that 
     would require the President to provide a report, produced in 
     consultation with all relevant federal agencies, no later 
     than April 1, 2004, on the potential use of Unmanned Aerial 
     Vehicles for homeland security.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

             Subtitle E--Extension of Expiring Authorities

       Codification and revision of defense counterintelligence 
     polygraph program authority (sec. 1041)
       The House bill contained a provision (sec. 1041) that would 
     remove existing limits on the number of polygraph 
     examinations that the Department of Defense (DOD) may 
     administer in any fiscal year. The provision also expands the 
     categories of individuals who may be required to undergo 
     polygraph examinations, to include persons applying for 
     positions at DOD and persons from other agencies assigned or 
     detailed to DOD who will require access to top secret or 
     special access information. The provision would further 
     require the Secretary of Defense to institute a process to 
     monitor responsible and effective application of polygraphs 
     within DOD, and to make information on the use of polygraphs 
     available to the congressional defense committees on request, 
     in lieu of a recurring reporting requirement.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     General definitions applicable to facilities and operations 
         of Department of Defense (sec. 1042)
       The Senate amendment contained a provision (sec. 321) that 
     would amend section 101 of title 10, United States Code, to 
     clarify the definitions of military munitions, operational 
     range, range, and range activities in relation to Department 
     of Defense facilities and operations. The definitions provide 
     a foundation for the Department's entire munitions response 
     program. That program is in its early stages, but is growing 
     rapidly and the Department anticipates additional statutory 
     directives in this area.
       The House bill contained no similar provision.
       The House recedes with technical amendments.
     Additional definitions for purposes of title 10, United 
         States Code (sec. 1043)
       The House bill contained a provision (sec. 1043) that would 
     define the terms ``congressional defense committees'' and 
     ``base closure law'' for purposes of title 10 of the United 
     States Code, and would make technical and conforming changes 
     to that title.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Inclusion of annual military construction authorization 
         request in annual defense authorization request (sec. 
         1044)
       The House bill contained a provision (sec. 1044) that would 
     amend section 113a(b) of title 10, United States Code, by 
     requiring the annual military construction authorization 
     request to be submitted with the annual defense authorization 
     request within 30 days of the date the President transmits to 
     Congress the budget request for that year. This provision 
     would also repeal section 2859 of title 10, United States 
     Code, and would make conforming changes.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Technical and clerical amendments (sec. 1045)
       The House bill contained a provision (sec. 1045) that would 
     make technical and clerical amendments to various provisions 
     of law.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would make an 
     additional technical and clerical amendment.

                       Subtitle F--Other Matters

     Assessment of effects of specified statutory limitations on 
         the granting of security clearances (sec. 1051)
       The House bill contained a provision (sec. 1060) that would 
     require the Secretary of Defense to assess the effects of 
     section 986 of title 10, United States Code, on the granting 
     or renewal of security clearances for Department of Defense 
     personnel and defense contractor personnel.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Acquisition of historical artifacts through exchange of 
         obsolete or surplus property (sec. 1052)
       The Senate amendment contained a provision (sec. 1032) that 
     would authorize, for fiscal years 2004 and 2005, the 
     secretaries of the military departments to exchange obsolete 
     or surplus property with an individual, organization, 
     institution, agency, or nation if the exchange would directly 
     benefit the historical collection of the armed forces.
       The House bill contained no similar provision.
       The House recedes.
     Conveyance of surplus T-37 aircraft to Air Force Aviation 
         Heritage Foundation, Incorporated (sec. 1053)
       The Senate amendment contained a provision (sec. 1038) that 
     would authorize the Secretary of the Air Force to convey a 
     surplus T-37 aircraft to the Air Force Aviation Heritage 
     Foundation of Georgia. This authority is discretionary and 
     the conveyance of an aircraft would be made at no cost to the 
     United States.
       The House bill contained no similar provision.
       The House recedes with an amendment that would specify 
     requirements for the demilitarization of the aircraft to 
     ensure that the aircraft is permanently unfit for flight.
     Department of Defense biennial strategic plan for management 
         of electromagnetic spectrum (sec. 1054)
       The Senate amendment contained a provision (sec. 235) that 
     would require the Secretary of Defense to develop a strategy 
     for

[[Page 27859]]

     management of electromagnetic spectrum to improve spectrum 
     access and high-bandwidth connectivity to military assets. 
     The provision would require that the strategy be developed by 
     a board of senior acquisition officials established to 
     administer the implementation of the policies and 
     requirements of chapter 113, Title 40, United States Code, in 
     procurement of information technology equipment that is an 
     integral part of a weapon or weapon system. The strategy 
     would include specific time lines, metrics, plans for 
     implementation of technologies for the efficient use of 
     spectrum, and proposals for program funding, all of which 
     would be updated biennially.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to update the DOD Electromagnetic 
     Spectrum Management Strategic Plan on a biennial basis and to 
     submit the updated plan to the Congress at the same time as 
     the budget submission.
       The conferees note that on December 3, 2002, the Deputy 
     Secretary of Defense promulgated the DOD Electromagnetic 
     Spectrum Management Strategic Plan, October 2002, which 
     identifies goals and strategies to ``. . . assure the 
     availability of, and access to, sufficient electromagnetic 
     spectrum,'' and to enhance collaboration within the 
     electromagnetic spectrum management and the electromagnetic 
     environmental effects communities. Prepared by the Assistant 
     Secretary of Defense (Command, Control, Communications, and 
     Intelligence), the plan outlines key strategic goals and 
     objectives for improving electromagnetic spectrum business, 
     practices, electromagnetic spectrum planning, efficient 
     electromagnetic spectrum utilization, and coordination with 
     electromagnetic environmental effects programs. The plan 
     identifies strategies and targets to be achieved for each of 
     the objectives. The plan also states that the Department will 
     develop implementation plans for each of the objectives 
     contained in the plan.
       The conferees believe that a published DOD electromagnetic 
     spectrum management strategy and implementation plans will 
     provide a framework for improving spectrum management, 
     access, and high-bandwidth connectivity within the 
     Department. The conferees direct the Secretary of Defense to 
     include a summary of the implementation plans, timelines, and 
     metrics for achieving each of the goals and objectives of the 
     DOD electromagnetic spectrum management strategy as an item 
     of special interest in the Information Technology Budget 
     Justification that accompanies the President's budget 
     submission.
     Revision of defense acquisition directive relating to 
         management and use of radio frequency spectrum (sec. 
         1055)
       The Senate amendment contained a provision (sec. 803) that 
     would require the Secretary of Defense to revise the 
     acquisition policies relating to the management and use of 
     the radio frequency spectrum. The provision would also 
     require the Secretary to appoint an official or board within 
     the Department of Defense (DOD) to review and approve the 
     proposed usage of the spectrum in acquisition programs.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require 
     revision of DOD Directive 4650.1 to ensure that planning for 
     spectrum usage is conducted as early as practicable in a 
     program's development.
       The conferees note that DOD program managers often fail to 
     obtain, consider, or act on concerns related to the 
     availability of adequate spectrum to support planned weapons 
     systems during the early phases of an acquisition program. As 
     a result, such programs have often experienced significant 
     development delays, reduced operational capabilities, or the 
     need for extensive redesign, when spectrum availability 
     became an issue in the later stages of a program and after 
     key system development decisions had been made.
       The conferees note that the DOD has begun to address 
     spectrum issues in applicable plans and directives. DOD 
     Directive 4650.1 requires that spectrum management 
     requirements be addressed early in the development life 
     cycle. The DOD Electromagnetic Spectrum Management Strategic 
     Plan, October 2002, addresses the objective of identifying 
     electromagnetic spectrum certification requirements early in 
     the requirements generation, planning, and acquisition 
     process and establishes the target that DOD program managers 
     will address electro-magnetic spectrum certification and 
     electromagnetic environmental effects at each acquisition 
     milestone. DOD Instruction 5000.2 provides that 
     electromagnetic spectrum certification shall be accomplished 
     by Milestone B (program initiation) for all systems and 
     equipment that require utilization of the electromagnetic 
     spectrum for those programs.
       The conferees expect responsible DOD officials ensure the 
     consistent application of the policies established in this 
     provision and in applicable plans and directives to all 
     acquisition programs.
     Sense of Congress on deployment of airborne chemical agent 
         monitoring systems at chemical stockpile disposal sites 
         in the United States (sec. 1056)
       The Senate amendment contained a provision (sec. 1042) that 
     would express the sense of the Senate that the Secretary of 
     the Army should develop and deploy a program to upgrade the 
     airborne chemical agent monitoring systems at all chemical 
     stockpile disposal sites across the United States in order to 
     achieve the broadest possible protection of the general 
     public, personnel involved in the chemical demilitarization 
     program, and the environment.
       The House bill contained no similar provision.
       The House recedes with an amendment that would express the 
     sense of Congress that the Secretary of the Army, in 
     coordination with relevant Department of Defense research and 
     development agencies, should invigorate and coordinate 
     efforts to develop and deploy chemical agent monitors with 
     improved sensitivity, specificity, and response time.
       The conferees note that the National Research Council (NRC) 
     has completed six reports since 1994 that include assessments 
     of the capabilities of airborne chemical agent monitoring 
     systems installed at the chemical agent and munitions 
     stockpile and destruction sites. In these reports, the NRC 
     has consistently cited several problems with the airborne 
     chemical agent sensors. While the NRC has determined that 
     monitoring levels used at the demilitarization facilities are 
     very conservative and are highly protective of workers and 
     public health and safety, the conservative monitoring levels 
     used are a contributing factor in a high incidence of false 
     positive alarms. The NRC has urged the Project Manager for 
     Chemical Demilitarization to improve both the reliability and 
     response time of its airborne agent monitoring systems and 
     recommended that the Army develop a real-time system for 
     airborne-agent monitoring. The NRC has also noted the lack of 
     robust techniques for rapidly measuring agent and agent 
     breakdown products present in liquid waste streams and 
     associated solid materials. The NRC acknowledges the progress 
     made by the Army over the last decade in developing better 
     agent monitoring technology, but concludes that the results 
     to date have been disappointing.
       The conferees note that the Army's Chemical Material Agency 
     (CMA) conducts an active program for evaluating new equipment 
     and methods for improving both near-real time monitoring and 
     historical long-term monitoring and continues to improve 
     technologies and equipment to increase specificity, lower 
     detection limits and response times, and minimize false 
     alarms. The conferees believe that these efforts should be 
     coordinated with, and take advantage of, the increased level 
     of interest in and increased resources available for 
     developing chemical agent detectors for homeland defense. The 
     committee strongly supports these actions of the CMA that 
     promote the maximum protection of the general public, 
     personnel involved in the chemical demilitarization program, 
     and the environment.
     United States Fire Administration grants to make fighting 
         fires safer (sec. 1057)
       The Senate amendment contained a provision (sec. 852) that 
     would authorize grants to local fire departments to hire 
     personnel and require the establishment of a program where 
     state and local governments could buy anti-terrorism 
     technology solutions from Federal Government contracts.
       The House bill contained no similar provision.
       The House recedes with an amendment that would: (1) direct 
     that the grant program be administered by the U.S. Fire 
     Administrator; (2) authorize providing the grants directly to 
     local fire departments; (3) require a local contribution in 
     the first year of the grant program to ensure that all 
     recipients of grants are capable of acquiring state or local 
     funding; (4) ensure that 10 percent of grant aid will be 
     available to volunteer fire departments; and (5) authorize 
     appropriations until fiscal year 2010. The issue of the 
     establishment of a program where state and local governments 
     could buy anti-terrorism technology solutions from Federal 
     Government contracts is addressed elsewhere in this 
     conference report.
     Review and Enhancement of Existing Authorities for Using Air 
         Force and Air National Guard Modular Fire-Fighting System 
         and Other Department of Defense Assets to Fight Wildfires 
         (sec. 1058)
       The House bill contained a provision (sec 1057) that would 
     establish a pilot program to improve the use of Air Force and 
     Air National Guard Modular Airborne Fire-Fighting Systems to 
     fight wildfires. The section would have authorized the 
     Secretary of the Interior and the Secretary of Agriculture to 
     waive the provisions of section 1535(a)(4), title 31, United 
     States Code, to procure the services of military aircraft of 
     Air Force and Air National Guard Modular Airborne Fire-
     Fighting Systems units without first comparing the cost and 
     convenience of procuring such services to services from a 
     commercial enterprise, during a two-year pilot program. The 
     section also required a report on the use of the authority 
     and the ability of such units to respond to wildfires in a 
     timely and effective manner.
       The Senate amendment contained no similar provision.

[[Page 27860]]

       The Senate recedes with an amendment that would require 
     that within 120 days of enactment, the Director of the Office 
     of Management and Budget conduct a review of existing 
     authorities regarding the use of Air Force and Air National 
     Guard Modular Airborne Fire-Fighting Systems units and other 
     Department of Defense assets to fight wildfires to ensure 
     that such assets are available in the most expeditious manner 
     consistent with applicable law to fight wildfires on Federal 
     and non-Federal lands at the request of a Federal agency or 
     State government. In conducting the review, the Director must 
     consider any adverse impact caused by restrictions contained 
     in section 1535(a)(4), title 31, United States Code, or 
     caused by the interpretation of those restrictions. The 
     Director must also consider whether the authorities of the 
     Robert T. Stafford Disaster Relief and Emergency Assistance 
     Act (42 U.S.C. 5121 et seq.) are being properly utilized to 
     facilitate an expeditious Department of Defense response to 
     State requests for firefighting services, in accordance with 
     that Act. The amendment requires a determination on the basis 
     of the review whether existing authorities are being used in 
     a manner consistent with using the available capabilities of 
     Department of Defense assets to fight wildfires in the most 
     expeditious and efficacious way to minimize the risk to 
     public safety. Finally, the Director must report the results 
     of the review and determination required above and wait 
     thirty days for Congressional review before any 
     implementation of improved procedures. If appropriate, the 
     report must include a description of any expedited Economy 
     Act review processes determined to be necessary, and plans 
     related to the implementation of such processes. Further, if 
     appropriate, the report must describe any revised policies 
     and implementation plans related to the use of existing 
     authorities in title 31 and title 42, United States Code, to 
     improve the ability of the Department of Defense to respond 
     to a request by a Federal agency or State government to 
     assist in fighting wildfires on Federal or non-Federal lands 
     under such authorities. The report shall also include such 
     recommendations for legislative changes that further improve 
     the use of Department of Defense assets for fighting 
     wildfires as the Director determines to be warranted.

                   Legislative Provisions Not Adopted

     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. 1055) 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 United States 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.
       The Senate amendment contained no similar provision.
       The House recedes.
     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. 1051) that would 
     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 Nuclear Strategy of the United States
       The House bill contained a provision (sec. 1053) that would 
     establish a Commission on Nuclear Strategy of the United 
     States to assess and make recommendations about current U.S. 
     strategy, as described by the Nuclear Posture Review and 
     other planning documents, as well as possible alternative 
     strategies that could be pursued over the next 20 years. The 
     Commission would have broad purview to consider matters of 
     policy, force structure, stockpile stewardship, and estimates 
     of threats and force requirements, and would have the 
     authority to hold hearings and take testimony.
       The Senate amendment contained no similar provision.
       The House recedes.
     Extension of Counterproliferation Program Review Committee
       The House bill contained a provision (sec. 1054) that would 
     amend section 1605(f) of the National Defense Authorization 
     Act for Fiscal Year 1994 (Public Law 103-160), as amended.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees have reviewed the annual CPRC Report on 
     Activities and Program for Countering Proliferation and NBC 
     Terrorism, dated May 2003, and noted its findings and 
     recommendations. The conferees recognize that development and 
     deployment of advanced technologies are key 
     counterproliferation elements and encourage the interagency 
     community to make development and execution of an integrated 
     strategy a high priority. The conferees endorse the 
     recommendations to integrate the Under Secretary of Defense 
     for Intelligence into the CPRC process, and for the CPRC to 
     establish communications and coordination with the Assistant 
     Secretary of Defense (Homeland Defense) and Northern Command. 
     The conferees express their support for the newly established 
     National Security Council-initiated Counterproliferation 
     Technology Coordination Committee as a means of improving 
     interagency coordination. The conferees also endorse the need 
     for a comprehensive counterproliferation acquisition 
     strategy. Progress made in these areas should be noted in 
     future annual reports submitted to the Congress.
     Limitation on number of United States military personnel in 
         Colombia
       The House bill contained a provision (sec. 1208) that would 
     limit the number of members of the U.S. Armed Forces in 
     Colombia to 500 personnel. U.S. military personnel working at 
     the U.S. Embassy in Colombia for the purpose of conducting 
     search and rescue of U.S. Government personnel or 
     participating in authorized humanitarian relief operations, 
     or just transiting Colombia would not be counted against this 
     limitation.
       The Senate amendment contained no similar provision.
       The House recedes.
     Repeal of requirement for two-year budget cycle for the 
         Department of Defense
       The House bill contained a provision (sec. 1006) that would 
     repeal section 1405 of the Department of Defense 
     Authorization Act, 1986 (Public Law 99-145; 31 U.S.C. 1105 
     note) requiring the Department of Defense to submit a two-
     year budget every other year.
       The Senate amendment contained no similar provision.
       The House recedes.
     Sense of Congress on commercial air carrier accommodation for 
         members of the armed forces purchasing tickets for 
         personal use
       The Senate amendment contained a provision (sec. 1041) that 
     would express the sense of the Senate that each U.S. air 
     carrier should make every effort to allow active duty members 
     of the armed forces to purchase tickets on a space available 
     basis for the lowest fares possible and offer flexible terms 
     that allow members of the armed forces to purchase, modify, 
     or cancel tickets without time restrictions, fees, or 
     penalties.
       The House bill contained no similar provision.
       The Senate recedes.
     Use of National Driver Register for personnel security 
         investigations and determinations
       The House bill contained a provision (sec. 1049) that would 
     amend title 49, United States Code, to authorize access to 
     the National Driver Register by federal agencies for use in 
     personnel security investigations and determinations and for 
     use in personnel investigations with regard to federal 
     employment.
       The Senate amendment contained no similar provision.
       The House recedes.
     Authority to transfer procurement funds for a major defense 
         acquisition program for continued development work on 
         that program
       The House bill contained a provision (sec. 1003) that would 
     amend section 2114 of title 10, United States Code, to 
     provide the Secretary of Defense additional authority to 
     transfer funds to correct specific acquisition funding 
     problems that occur during the transition phase of an 
     acquisition program from development to production.
       The Senate amendment contained no similar provision.
       The House recedes.
     Authority to provide reimbursement for use of personal 
         cellular telephones when used for official government 
         businesses
       The House bill contained a provision (sec. 1007) that would 
     allow the Department of Defense to reimburse individuals with 
     a validated need for an official government cellular 
     telephone using a flat rate or monthly stipend for such 
     individuals' use of their personal cellular telephone.
       The Senate amendment contained no similar provision.
       The House recedes.
     Codification and revision of limitation on modification of 
         major items of equipment scheduled for retirement or 
         disposal
       The House bill contained a provision (sec. 1042) that would 
     revise existing reporting requirements on modifications to 
     aircraft, weapons, vessels, and other items of equipment 
     scheduled to be retired or disposed of within five years.
       The Senate amendment contained no similar provision.
       The House recedes.
     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. 1051) that would 
     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.

[[Page 27861]]

       The Senate amendment contained no similar provision.
       The House recedes.

           Title XI--Department of Defense Civilian Personnel

                     Legislative Provisions Adopted

  Subtitle A--Department of Defense National Security Personnel System

     Department of Defense National Security Personnel System 
         (sec. 1101)
       The House bill contained a provision (sec. 1121) that would 
     amend title 5 of the United States Code by adding a new 
     chapter 99 entitled ``Department of Defense National Security 
     Personnel System'' at the end of subpart I of part III. The 
     new chapter contained the following sections: (1) section 
     9901 would provide definitions of various terms used 
     throughout the new chapter; (2) section 9902 would authorize 
     the establishment of a human resources management system; (3) 
     section 9903 would authorize the Department to hire highly 
     qualified experts for up to five years and to prescribe the 
     appropriate pay rates; (4) section 9904 would authorize the 
     Secretary of Defense to hire American citizens 55 years of 
     age and older to work for DOD for up to two years, without a 
     reduction in any annuity, pension, retirement pay, or similar 
     payment; and (5) section 9905 would authorize DOD to align 
     the allowances and benefits of certain employees outside the 
     United States with those of the Foreign Service and the 
     Central Intelligence Agency.
       The Senate bill contained no similar provision.
       The Senate recedes with an amendment that would modify the 
     House provision to: (1) require the Secretary of Defense to 
     develop the new personnel system in collaboration with the 
     Office of Personnel Management; (2) authorize the 
     establishment of a labor relations system for the Department 
     of Defense based on a collaborative issue-based approach to 
     labor relations (subject to a six-year sunset); (3) provide 
     for independent third party review of issues arising in the 
     labor relations system, including defining what decisions are 
     reviewable, what body would conduct the review, and the 
     standard or standards for that review; (4) authorize the 
     establishment of a streamlined appeals process for adverse 
     actions against individual employees, subject to review by 
     the Merit Systems Protection Board; (5) direct the Secretary 
     to maintain current levels of funding for civilian pay 
     accounts; (6) provide for voluntary separation incentive 
     payments for up to 25,000 employees per year; (7) establish 
     new authority for employment of up to 2,500 highly qualified 
     experts; (8) provide the Department with authority to develop 
     new polices for recruitment, assignment, promotion and 
     reduction in force flexibility while maintaining Veterans' 
     preference; (9) provide for a phase-in of the NSPS by 
     authorizing the Secretary to apply the National Security 
     Personnel System to more than 300,000 civilian employees of 
     the Department only after the Department of Defense has in 
     place a performance management system that meets specific 
     criteria; and (10) delay the incorporation of the Department 
     of Defense demonstration laboratories into the National 
     Security Personnel System until October 1, 2008, and place 
     certain conditions on such incorporation.
       The conferees fully appreciate the need for a more flexible 
     and responsive personnel management system for the civilian 
     employees of the Department of Defense. The DOD has embarked 
     on a number of demonstration initiatives to determine the 
     most appropriate and productive approach to management of 
     civilian personnel with the Department of Defense and is 
     ready to expand on the lessons learned through those efforts.
       The conferees direct the Secretary to implement a pay-for-
     performance evaluation system established in accordance with 
     this chapter to better link individual pay to performance and 
     provide an equitable method for appraising and compensating 
     employees. Implementing regulations shall: (1) group 
     employees into pay bands in accordance with the type of work 
     that such employees perform and their level of 
     responsibility; (2) establish a performance rating process, 
     which shall include, at a minimum (i) rating periods; (ii) 
     communication and feedback requirements; (iii) performance 
     scoring systems; (iv) a system for linking performance scores 
     to salary increases and performance incentives; (v) a review 
     process; (vi) a process for addressing performance that fails 
     to meet expectations; and (vii) a pay-out process; (3) 
     establish an upper and lower salary level for each pay band; 
     (4) ensure that performance objectives are established for 
     individual position assignments and position 
     responsibilities; and (5) establish performance factors to be 
     used to evaluate the accomplishment of performance objectives 
     and ensure that comparable scores are assigned for comparable 
     performance, while accommodating diverse individual 
     objectives.
       The conferees understand that the Secretary's decision to 
     utilize national-level collective bargaining procedures in 
     accordance with subsection (g) would not be subject to 
     outside review. However, the result of any such national-
     level collective bargaining would be subject to review by an 
     independent third-party only to the extent provided and 
     pursuant to procedures established under paragraph (6) of 
     subsection (m).
       Nothing in this provision should be construed to expand the 
     scope of bargaining under chapter 71 or this subsection with 
     respect to any provision of title 5 that may be waived, 
     modified, or otherwise affected under this section.
       The conferees agree that in designing the labor relations 
     system the Secretary should take into consideration the 
     unique requirements and contributions of public safety 
     employees in supporting the national security mission of the 
     Department.
       Finally, as the Department trains new personnel on the 
     National Security Personnel System, the conferees urge the 
     Department to fully utilize facilities with existing 
     contracts for Department of Defense civilian personnel.

     Subtitle B--Department of Defense Civilian Personnel Generally

     Pilot program for improved civilian personnel management 
         (sec. 1111)
       The House bill contained a provision (sec. 908) that would 
     establish a pilot program for Improved Civilian Personnel 
     Management to assess the utility of an automated civilian 
     personnel management program to provide needed improvements 
     in the current management performance of the Department of 
     Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would reduce the 
     reporting requirements of the provision.
       In evaluating offers to assist in the pilot program, the 
     conferees direct the Department to consider factors that are 
     likely to contribute to the successful deployment of an 
     automated personnel management system, such as the offer of a 
     system that: (1) is currently in use by the Federal 
     Government; (2) is able to be purchased on an annual 
     subscription basis; (3) requires no capital investment; and 
     (4) is able to be fully hosted by the vendor so that 
     customers only require internet access to use the system.
     Clarification and revision of authority for demonstration 
         project relating to certain acquisition personnel 
         management policies and procedures (sec. 1112)
       The Senate amendment contained a provision that would 
     strengthen the acquisition workforce pilot program 
     established in section 4308 of the National Defense 
     Authorization Act for Fiscal Year 1996 (Public Law 104-106). 
     In particular, the provision would: (1) relax the existing 
     requirement that the entire workforce of a participating 
     organization consist of members of the acquisition workforce 
     and supporting personnel assigned to work directly with the 
     acquisition workforce; (2) increase the total number of 
     civilian personnel permitted to participate in the pilot 
     program; and (3) ensure that an organization that is properly 
     designated to participate in the pilot program would continue 
     to do so, notwithstanding any reorganization, restructuring, 
     realignment, consolidation, or other organizational change.
       The House bill contained no similar provision.
       The House recedes.
     Military leave for mobilized federal civilian employees (sec. 
         1113)
       The House bill contained a provision (sec. 1102) that would 
     amend section 6323 of title 5, United States Code to allow 
     federal civilian employees to receive 22 additional workdays 
     of military leave when performing full-time military service 
     as a result of a call or order to active duty in support of a 
     contingency operation.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Restoration of annual leave for certain Department of Defense 
         employees (sec. 1114)
       The conferees agree to include a provision that would 
     authorize the Secretary of Defense to provide for restoration 
     of forfeited annual leave for employees transferring from a 
     closing or realigning Department of Defense installation or 
     activity who were improperly given credit for restored leave 
     if: (1) the employee relied in good faith upon the guidance 
     provided by agency officials; and (2) the action occurred 
     through no wrong doing by the employee.
     Authority to employ civilian faculty members at the Western 
         Hemisphere Institute for Security Cooperation (sec. 1115)
       The Senate amendment contained a provision (sec. 1101) that 
     would amend section 1595 of title 10, United States Code, to 
     add the Western Hemisphere Institute for Security Cooperation 
     as a covered institution of the Department of Defense at 
     which the Secretary of Defense may employ civilians as 
     professors, instructors, and lecturers, and may prescribe 
     their compensation.
       The House bill contained no similar provision.
       The House recedes.
     Extension, expansion, and revision of authority for 
         experimental personnel program for scientific and 
         technical personnel (sec. 1116)
       The Senate bill contained a provision (sec. 1103) that 
     would extend and expand the Defense Advanced Research 
     Projects Agency (DARPA) Experimental Personnel Program. The 
     provision extended the program for three years, from the 
     current expiration date

[[Page 27862]]

     of 2005 to 2008. In addition, the provision increased the 
     number of positions available to the Director of DARPA from 
     40 to 50.
       The House amendment contained no similar provision.
       The House recedes with an amendment that would extend the 
     experimental personnel program for three years, from 2005 to 
     2008.
       The conferees do not intend for the extension of the DARPA 
     Experimental Personnel Program to be interpreted as a 
     permanent, free standing program outside of the National 
     Security Personnel System (NSPS). Instead, the conferees 
     expect that the extension will allow the DARPA program to 
     become part of the NSPS as soon as practical, in a manner 
     that provides a seamless transition for DARPA personnel, 
     while maintaining DARPA's ability to successfully fulfill its 
     mission.

    Subtitle C--Other Federal Government Civilian Personnel Matters

     Modification of the overtime pay cap (sec. 1121)
       The House bill contained a provision (sec. 1101) that would 
     modify the overtime pay cap to allow for payment of at least 
     the hourly rate of basic pay for an employee.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Common occupational and health standards for differential 
         payments as a consequence of exposure to asbestos (sec. 
         1122)
       The House bill contained a provision (sec. 1103) that would 
     amend sections 5343 and 5545 of title 5, United States Code, 
     to establish a common standard for payment of hazardous duty 
     differential pay for reason of exposure to asbestos for 
     prevailing rate and general schedule federal employees.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Increase in annual student loan repayment authority (sec. 
         1123)
       The House bill contained a provision (sec. 1104) that would 
     increase the annual amount that an agency can repay a highly 
     qualified employee for a student loan from $6,000 to $10,000 
     per year without increasing the overall limit of $40,000.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Authorization for Cabinet Secretaries, secretaries of 
         military departments and heads of executive agencies to 
         be paid on a biweekly basis (sec. 1124)
       The House bill contained a provision (sec. 1105) that would 
     authorize the Office of Personnel Management to promulgate 
     regulatory guidelines that would permit Cabinet Secretaries, 
     secretaries of the military departments and heads of 
     executive agencies, who are currently paid on a monthly 
     basis, to be paid on the same biweekly basis as most federal 
     employees.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Senior executive service and performance (sec. 1125)
       The House bill contained a provision (sec. 1106) that would 
     amend Chapter 53 of title 5, United States Code, relating to 
     pay of senior executives. Specifically the provision would 
     revise eligibility for locality pay, ranges of rates of basic 
     senior executive service (SES) pay, the maximum rate for SES 
     levels, and post employment restrictions.
       The Senate amendment contained no similar provision.
       The Senate recedes with technical amendments.
     Design elements of pay-for-performance systems in 
         demonstration projects (sec. 1126)
       The House bill contained a provision (sec. 1107) that would 
     provide for specific elements to be incorporated into any 
     pay-for-performance system established in a demonstration 
     project under chapter 47 of title 5, United States Code, and 
     that such a system include a fair, credible, and transparent 
     appraisal system, provide a link between pay-for-performance 
     and an agencies strategic plan, and provide for training and 
     feedback.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Federal flexible benefits plan administrative costs (sec. 
         1127)
       The House bill contained a provision (sec. 1108) that would 
     prohibit agencies that provide or plan to provide flexible 
     benefits plans for employees from imposing fees related to 
     the program. The section would also require reporting 
     requirements associated with benefits plans.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Employee surveys (sec. 1128)
       The House bill contained a provision (sec. 1110) that would 
     require executive agencies to conduct annual surveys of their 
     employees in order to assess leadership and management 
     practices, employee satisfaction, assessment of work 
     environment opportunities for personal and professional 
     growth, and opportunities to contribute to organizational 
     missions.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Human capital performance fund (sec. 1129)
       The House bill contained a provision (sec. 1111) that would 
     amend title 5, United States Code, and add a new Chapter 54 
     that would provide for establishment of a human capital 
     performance fund to reward an agencies highest performing and 
     most valuable employees.
       The Senate amendment contained no similar provision.
       The Senate recedes.

                   Legislative Provisions Not Adopted

     Clarification of Hatch Act
       The House bill contained a provision (sec. 1109) that would 
     prohibit the enforcement of section 7326 of title 5, United 
     States Code, against an individual who, before the date of 
     enactment of this Act, was employed by the Office of the 
     Department of Defense Inspector General and who then 
     transferred to a Special Court sponsored by the United 
     Nations pursuant to the authority contained in section 
     3582(a) of title 5, United States Code, unless the individual 
     subsequently became reemployed in the civil service.
       The Senate amendment contained no similar provision.
       The House recedes.
     Pay authority for critical positions (sec.    )
       The Senate amendment contained a provision (sec. 1102) that 
     would give the Department of Defense critical pay authority 
     for up to 40 administrative, technical, or professional 
     positions.
       The House bill contained no similar provision.
       The Senate recedes.

              Title XII--Matters Relating to Other Nations

                  Subtitle A--Matters Relating to Iraq

     Medical assistance to Iraqi children injured during Operation 
         Iraqi Freedom (sec. 1201)
       The House bill contained a provision (sec. 1213) that would 
     direct the Secretary of Defense, to the maximum extent 
     practicable, to provide all necessary support, in an 
     expeditious manner to assist Iraqi children who were injured 
     during Operation Iraqi Freedom.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Report on the conduct of Operation Iraqi Freedom (sec. 1202)
       The House bill contained a provision (sec. 1022) that would 
     require the Secretary of Defense to submit a comprehensive 
     report to the Committees on Armed Services of the Senate and 
     House of Representatives on lessons learned during major 
     combat operations in Operation Iraqi Freedom (OIF), not later 
     than June 15, 2004, with a preliminary report to be submitted 
     by January 15, 2004.
       The Senate amendment contained a similar provision (sec. 
     1023) that would also require specific information on family 
     support services available to mobilized members of reserve 
     components, and on non-competitive contracting for the 
     reconstruction of infrastructure of Iraq.
       The House recedes with an amendment that would require the 
     Secretary to submit a comprehensive report on the conduct of 
     military operations during the major combat phase of OIF to 
     the congressional defense committees not later than March 31, 
     2004. The requirement for the Secretary to include a report 
     on non-competitive contracting would not be included in this 
     report.
       The conferees were reassured by the successful military 
     campaign in Iraq that recent investments in personnel, 
     military equipment, and new technologies were well-founded. 
     Legacy equipment appeared to perform well alongside new 
     technologies. The military services seemed to continue to 
     improve their collective capabilities to fight as a joint 
     force. As in all military operations, however, many things 
     went well, but other areas were identified that can be 
     improved. The conferees urge the Secretary to take full 
     advantage of this opportunity to fully document important 
     lessons learned, and to work closely with the Congress to 
     identify those capabilities where investment needs to be 
     curtailed, sustained, or increased.
       Of particular note, the conferees are concerned about the 
     extensive use of reserve component personnel in OIF, as well 
     as other U.S. military commitments around the world, and the 
     overall impact of frequent, extended deployments on the 
     families of mobilized reserve component personnel. To address 
     this concern, the conferees urge the Secretary to ensure a 
     comprehensive study is conducted regarding the availability 
     of family support services provided to dependents of members 
     of reserve components who are called to active duty. Included 
     in this study would be: (1) a discussion of the extent to 
     which cooperative agreements are in place, or need to be in 
     place, to ensure that dependents of mobilized members receive 
     adequate family support services from military installations 
     and associated family readiness groups without regard to the 
     members' affiliation with a component of the armed forces; 
     (2) a discussion of what additional family support services, 
     and what additional family support agreements between

[[Page 27863]]

     and among the U.S. Armed Forces, including the Coast Guard, 
     are necessary to ensure that adequate family support services 
     are provided to the families of mobilized members; (3) a 
     discussion of what additional resources are necessary to 
     ensure that adequate family support services are available to 
     dependents of mobilized members at military installations 
     nearest the residence of dependents; (4) a discussion of the 
     additional outreach programs that should be established 
     between families of mobilized members and the sources of 
     family support services at the military installations in 
     their respective regions; and, (5) a discussion of the 
     procedures in place for providing information on availability 
     of family support services to families of mobilized members 
     at the time the members are called or ordered to active duty.
       The conferees are also interested in contracting procedures 
     for reconstruction in Iraq. A requirement for reporting on 
     such procedures is contained elsewhere in this conference 
     report.
     Report on Department of Defense security and reconstruction 
         activities in Iraq (sec. 1203)
       The House bill contained a provision (sec. 1023) that would 
     require the Secretary of Defense to report to Congress, 
     within 90 days of enactment of this Act, on the range of 
     Department of Defense activities in post-conflict Iraq.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would acknowledge 
     that significant military operations continue in Iraq and 
     expand the scope of the required report to include training 
     of Iraqi security forces and the effect of continuing U.S. 
     military deployments in Iraq on global U.S. military 
     deployments.
     Report on acquisition by Iraq of advanced weapons (sec. 1204)
       The House bill contained a provision (sec. 1205) that would 
     direct the Secretary of Defense to submit a report to the 
     Committees on Armed Services and Foreign Relations of the 
     Senate and the Committees on Armed Services and International 
     Relations of the House of Representatives on efforts by Iraq 
     to acquire weapons of mass destruction and associated 
     delivery systems, and the acquisition by Iraq of advanced 
     conventional weapons.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Sense of Congress on the use of small businesses, minority-
         owned businesses, and women-owned businesses in efforts 
         to rebuild Iraq (sec. 1205)
       The House bill contained a provision (sec. 1058) that would 
     require the Secretary of Defense to study the feasibility of 
     use of small businesses, minority-owned businesses, and 
     women-owned businesses in efforts to rebuild Iraq.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would express the 
     sense of Congress that the Secretary Defense should ensure 
     that outreach procedures are in place to provide information 
     on contract opportunities for efforts to rebuild Iraq to 
     small businesses, minority-owned businesses, and women-owned 
     businesses.

           Subtitle B--Matters Relating to Export Protections

     Review of export protections for military superiority 
         resources (sec. 1211)
       The House bill contained a provision (sec. 1204) that would 
     direct the Secretary of Defense to establish a catalog of 
     goods, materials, weapons systems technologies, and 
     developing critical technologies and know-how that either 
     could enhance a potential adversary's military capabilities 
     or are critical to maintaining the superiority and 
     qualitative advantage of the U.S. Military.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to determine to what degree goods and 
     technologies identified under the provision are being 
     controlled for export purposes and to provide a more limited 
     reporting requirement.
     Report on Department of Defense costs relating to national 
         security controls on satellite export licensing (sec. 
         1212)
       The Senate amendment contained a provision (sec. 1205) that 
     would amend section 1514 of the National Defense 
     Authorization Act for Fiscal Year 1999 (Public Law 105-261) 
     to clarify that only costs directly related to monitoring the 
     launch of a satellite in a foreign country shall be 
     reimbursed by contractors to the Department of Defense and 
     require the U.S. Comptroller General to conduct a study of 
     these costs.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Inspector General of the Department of Defense to conduct a 
     study of the Department's costs for monitoring launches of 
     satellites in a foreign country and the costs incurred in 
     connection with applications for licences for the export of 
     satellites. The conferees expect that the Department will 
     include in its budget request for fiscal year 2005 those 
     portions of direct or indirect costs that are not directly 
     related to monitoring the launch of a satellite in a foreign 
     country.

        Subtitle C--Administrative Requirements and Authorities

     Authority to use funds for payment of costs of attendance of 
         foreign visitors under Regional Defense Counterterrorism 
         Fellowship Program (sec. 1221)
       The Senate amendment contained a provision (sec. 1201) that 
     would amend title 10, United States Code, to authorize the 
     Department of Defense to use appropriated funds to pay the 
     costs of attendance of certain qualified foreign visitors to 
     designated training and educational events under the auspices 
     of the Regional Defense Counterterrorism Fellowship Program.
       The House bill contained no similar provision.
       The House recedes.
     Recognition of superior noncombat achievements or performance 
         by member of friendly foreign forces and other foreign 
         nationals (sec. 1222)
       The House bill contained a provision (sec. 1202) that would 
     authorize the Department of Defense to expend operations and 
     maintenance funds to recognize superior noncombat 
     achievements or performance by members of foreign forces and 
     other foreign nationals that significantly enhance or support 
     the National Security Strategy of the United States.
       The Senate amendment contained a similar provision (sec. 
     1202).
       The Senate recedes with a technical amendment.
     Expansion of authority to waive charges for cost of 
         attendance at George C. Marshall European Center for 
         Security Studies (sec. 1223)
       The House bill contained a provision (sec. 1203) that would 
     permit the Secretary of Defense to waive reimbursement of 
     costs for military officers and civilian officials from 
     states in Europe and the former Soviet Union participating in 
     Marshall Center programs. The effect of this provision is to 
     expand the current authority of the Secretary to waive costs 
     so that Balkan-state participants will now be eligible to 
     have their costs waived.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Authority for check cashing and currency exchange services to 
         be provided to foreign military members participating in 
         certain activities with United States forces (sec. 1224)
       The House bill contained a provision (sec. 1206) that would 
     authorize a disbursing official of the U.S. Government to 
     allow military personnel from allied nations to cash checks 
     and certain negotiable instruments and exchange foreign 
     currency, provided these individuals are participating in 
     military training activities with U.S. Armed Forces.
       The Senate amendment contained a similar provision (sec. 
     1203).
       The Senate recedes with a technical amendment.
     Depot maintenance and repair work on certain types of trainer 
         aircraft to be transferred to foreign countries as excess 
         aircraft (sec. 1225)
       The House bill contained a provision (sec. 1207) that would 
     expand the requirements of section 2581 of title 10, United 
     States Code, to include T-2 Buckeye aircraft and the T-37 
     Tweet aircraft.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require 
     that the Secretary of Defense make all reasonable efforts to 
     ensure that necessary depot maintenance and repair work is 
     performed in the United States prior to transferring T-2 or 
     T-37 aircraft to a foreign country for the purpose of flight 
     operations by that country.

   Subtitle D--Other Reports and the Sense of the Congress Statements

     Annual report on the NATO Prague capabilities commitment and 
         the NATO response force (sec. 1231)
       The Senate amendment contained a provision (sec. 1206) that 
     would require the Secretary of Defense to submit an annual 
     report, prepared in consultation with the Secretary of State, 
     on implementation of the North Atlantic Treaty Organization 
     (NATO) Prague capabilities commitment and development of the 
     NATO response force by the member nations of NATO.
       The House bill contained no similar provision.
       The House recedes with an amendment that would sunset this 
     report requirement after calendar year 2008.
     Report on actions that could be taken regarding countries 
         that initiate certain legal actions against United States 
         officials or members of the armed forces (sec. 1232)
       The House bill contained a provision (sec. 1211) that would 
     require the Secretary of Defense to submit to Congress a 
     report on appropriate steps that could be taken by the

[[Page 27864]]

     Department of Defense to respond to any action by a foreign 
     government to commence legal proceedings against, or attempt 
     to compel the appearance of, or production of documents from, 
     any current or former official or employee of the United 
     States or member of the Armed Forces of the United States 
     relating to the performance of official duties.
       The Senate amendment contained no similar provision.
       The Senate recedes with clarifying amendments that would 
     make clear that the report is not meant to address actions 
     taken by a foreign government pursuant to a Status of Forces 
     Agreement or other international agreement to which the 
     United States is a party, and would add additional examples 
     to the list of types of appropriate steps that the Department 
     of Defense could consider in its report.
     Sense of Congress on redeployment of United States forces in 
         Europe (sec. 1233)
       The House bill contained a provision (sec. 1210) that would 
     express the sense of the Congress that the President should 
     initiate a reevaluation of the current posture of U.S. forces 
     stationed in Europe.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would express the 
     sense of Congress that the Secretary of Defense, in 
     consultation with the Secretary of State, should initiate a 
     reevaluation of the current posture of U.S. forces stationed 
     in Europe; and would make a clarifying amendment to the 
     findings section.
     Sense of Congress concerning Navy port calls in Israel (sec. 
         1234)
       The House bill contained a provision (sec. 1212) that 
     expresses the sense of Congress that the Navy should resume 
     regular port visits to the port of Haifa, Israel.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
       The conferees are concerned that despite having invested 
     significant amounts of money in expanding the capacity and 
     capabilities of the port of Haifa, Israel, the U.S. Navy has 
     not conducted regular port visits to Haifa since the attack 
     on the U.S.S. Cole in Aden, Yemen, on October 12, 2000. The 
     conferees feel that the Secretary of Defense and the U.S. 
     Navy should be able to conclude consultations with the 
     Government of Israel that will lead to the establishment of 
     effective arrangements to ensure the safety of U.S. Navy 
     vessels and personnel, thus enabling the Navy to take 
     advantage of the logistics and communications capabilities of 
     the Haifa port area. The conferees also feel that Navy port 
     visits to Haifa are a strong and visible expression of 
     continuing American national interest in this important 
     region, and an important demonstration of support and 
     commitment to the State of Israel. The conferees urge the 
     Secretary of Defense to consider resumption of regular port 
     visits to Haifa, Israel.

                   Legislative Provisions Not Adopted

     Assessment and report concerning the location of NATO 
         headquarters
       The House bill contained a provision (sec. 1209) that would 
     require the Secretary of Defense to conduct an assessment of, 
     and submit to Congress a report on, the costs associated with 
     the location of NATO headquarters in Brussels, Belgium, and 
     the costs and benefits of relocating NATO headquarters to 
     another NATO country.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees note that the costs and benefits of moving 
     NATO headquarters can be considered in the context of the 
     report required by sec. 1232 on actions that could be taken 
     regarding countries that initiate certain legal actions 
     against U.S. officials.
     Expansion of authority to provide administrative support and 
         services and travel and subsistence expenses for certain 
         foreign liaison officers
       The House bill contained a provision (sec. 1201) that would 
     remove limitations on certain nations from existing law and 
     expand the authority of the Department of Defense to provide 
     administrative support and services, as well as fund travel 
     and subsistence expenses for liaison officers of certain 
     nations.
       The Senate amendment contained no similar provision.
       The House recedes.
     Clarification and extension of authority to provide 
         assistance for international nonproliferation activities
       The Senate amendment contained a provision (sec. 1204) that 
     would authorize the Department of Defense to continue to 
     support activities of the United Nations Monitoring, 
     Verification and Inspection Commission and limit the amount 
     of funding for such activities pursuant to section 1505 of 
     the Weapons of Mass Destruction Control Act of 1992 (22 
     U.S.C. 5859a) to $15.0 million.
       The House bill contained no similar provision.
       The Senate 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. 
     1301).
       The conferees agree to include the provision.
     Funding allocations (sec. 1302)
       The House bill contained a provision (sec. 1302) that would 
     authorize $450.8 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 2004 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. 
     Regarding specific program elements, the House provision 
     would authorize $86.4 million for strategic offensive arms 
     elimination in Russia, $171.5 million for chemical weapons 
     destruction in Russia, and $11.1 million for defense and 
     military contacts.
       The Senate amendment contained a similar provision (sec. 
     1302) that, consistent with the budget request for the 
     specific program elements, would authorize $57.6 million for 
     strategic offensive arms elimination in Russia, $200.3 
     million for chemical weapons destruction in Russia, and $11.0 
     million for defense and military contacts.
       The conferees agree to a provision that would authorize 
     $450.8 million for the CTR Program and, with respect to the 
     specific program elements, $57.6 million for strategic 
     offensive arms elimination in Russia, $200.3 million for 
     chemical weapons destruction in Russia, and $11.1 million for 
     defense and military contacts.
     Limitation on use of funds until certain permits obtained 
         (sec. 1303)
       The House bill contained a provision (sec. 1303) that would 
     require the Secretary of Defense to determine for new or 
     incomplete Cooperative Threat Reduction (CTR) projects what 
     permits will be needed and obtain copies of those permits 
     before obligating more than 35 per cent of a CTR project's 
     total cost.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to determine for new or incomplete CTR construction 
     projects what permits will be needed and, for new 
     construction projects, to obtain copies of those permits 
     required to begin construction, before obligating more than 
     40 percent of a CTR construction project's total cost. The 
     amendment provides authority for the Secretary to waive this 
     limitation on funds if it is in the national interest.
     Limitation on use of funds for biological research in the 
         former Soviet Union (sec. 1304)
       The House bill contained a provision (sec. 1304) that would 
     prohibit obligating funds for cooperative biodefense research 
     or bioattack early warning and preparedness under a 
     Cooperative Threat Reduction (CTR) program at a site in the 
     former Soviet Union until the Secretary of Defense: has 
     determined that no prohibited biological weapons research is 
     being conducted at that site; has assessed the vulnerability 
     of the site to external or internal attempts to exploit or 
     obtain dangerous pathogens illicitly; and has begun to 
     implement appropriate security measures to reduce any 
     vulnerabilities and prevent diversion of dangerous pathogens 
     from legitimate research purposes.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would prohibit 
     the obligation of funds for collaborative biodefense research 
     or bioattack early warning and preparedness projects under a 
     CTR program at a facility in the former Soviet Union until 
     the Secretary determines that no prohibited biological 
     weapons research is being conducted at that facility, and 
     that appropriate security measures have begun to be, or will 
     be, put in place at the facility to prevent theft of 
     dangerous pathogens. The amendment permits up to 25 percent 
     of funds authorized for such projects to be obligated and 
     expended for the purposes of making those determinations.
     Requirement for on-site managers (sec. 1305)
       The House bill contained a provision (sec. 1306) that would 
     require the Secretary of Defense to appoint an on-site 
     manager to oversee Cooperative Threat Reduction (CTR) 
     projects involving a dismantlement, destruction or storage 
     facility or construction of a facility in the former Soviet 
     Union whose total U.S. cost will exceed $25.0 million over 
     the life of the project.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to appoint an employee of the Federal Government as

[[Page 27865]]

     an on-site manager to oversee CTR projects involving a 
     dismantlement, destruction or storage facility or 
     construction of a facility in the former Soviet Union whose 
     total U.S. cost will exceed $50.0 million over the life of 
     the project. The amendment would allow one individual to 
     serve as the site manager for more than one project so long 
     as the total cost of the projects does not exceed $150.0 
     million for that fiscal year.
     Temporary authority to waive limitation on funding for 
         chemical weapons destruction facility in Russia (sec. 
         1306)
       The House bill contained a provision (sec. 1307) that would 
     extend for a period of one year the President's authority to 
     waive existing certification requirements before obligating 
     funds for the construction of the Shchuch'ye Chemical Weapons 
     Destruction Facility in Russia. The provision would provide 
     that $71.5 million of fiscal year 2004 funds be available for 
     obligation on and after October 1, 2003, but that authorized 
     amounts above $71.5 million could be obligated only at an 
     amount no greater than two times the amount obligated by 
     Russia and any other state for the planning, design, 
     construction or operation of a chemical weapons destruction 
     facility in Russia.
       The Senate amendment contained a similar provision (sec. 
     1305) that would extend for a period of one year the 
     President's authority to waive existing certification 
     requirements before obligating funds for the construction of 
     the Shchuch'ye Chemical Weapons Destruction Facility in 
     Russia.
       The Senate recedes with an amendment that would extend for 
     a period of one year the President's authority to waive 
     existing certification requirements before obligating funds 
     for the construction of the Shchuch'ye Chemical Weapons 
     Destruction Facility in Russia.
     Annual certifications on use of facilities being constructed 
         for Cooperative Threat Reduction projects or activities 
         (sec. 1307)
       The Senate amendment contained a provision (sec. 1303) that 
     would require the Secretary of Defense to provide the 
     congressional defense committees with an annual certification 
     that would indicate whether each facility constructed for a 
     Cooperative Threat Reduction (CTR) project or activity will 
     be used for its intended purpose by the host country, and 
     whether the host country remains committed to using the 
     facility for its intended purpose.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Defense to certify also that actions have been 
     taken to ensure security at each facility, including secure 
     transportation of any materials, substances or weapons to, 
     from, or within the facility.
     Authority to use Cooperative Threat Reduction funds outside 
         the former Soviet Union (sec. 1308)
       The Senate amendment contained a provision (sec. 1304) that 
     would authorize the President to obligate and expend 
     Cooperative Threat Reduction (CTR) funds for a fiscal year, 
     and any CTR funds that remain available for obligation from 
     any previous fiscal year, for proliferation threat reduction 
     projects or activities in countries outside the states of the 
     former Soviet Union. The amount that may be obligated in a 
     fiscal year for this purpose would not exceed $50.0 million.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     President to make certain determinations and to notify 
     Congress in writing within 10 days after obligating funds 
     under this authority of those determinations as follows: (1) 
     that the project or activity will assist the United States in 
     the resolution of a critical emerging proliferation threat; 
     or permit the United States to take advantage of 
     opportunities to achieve long-standing nonproliferation 
     goals; (2) that the Department of Defense is the entity of 
     government most capable of carrying out the project or 
     activity; and (3) that the project or activity will be 
     completed in a short period of time. The written notification 
     is to include a justification for the determinations and a 
     description of the scope and duration of the project or 
     activity.
       The conferees expect that the President would assign such 
     projects or activities to the agency whose mission is most 
     appropriate to the project or activity. The conferees further 
     expect that this authority will be used only for projects or 
     activities that are expected to be completed within a short 
     period of time.
     Authority to use Cooperative Threat Reduction funds outside 
         the former Soviet Union (sec. 1308)
       The Senate amendment contained a provision (sec. 1304) that 
     would authorize the President to obligate and expend 
     Cooperative Threat Reduction (CTR) funds for a fiscal year, 
     and any CTR funds that remain available for obligation from 
     any previous fiscal year, for proliferation threat reduction 
     projects or activities in countries outside the states of the 
     former Soviet Union. The amount that may be obligated in a 
     fiscal year for this purpose would not exceed $50.0 million.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     President to make certain determinations and to notify 
     Congress in writing within 10 days after obligating funds 
     under this authority of those determinations as follows: (1) 
     that the project or activity will assist the United States in 
     the resolution of a critical emerging proliferation threat; 
     or permit the United States to take advantage of 
     opportunities to achieve long-standing nonproliferation 
     goals; (2) that the Department of Defense is the entity of 
     government most capable of carrying out the project or 
     activity; and (3) that the project or activity will be 
     completed in a short period of time. The written notification 
     is to include a justification for the determinations and a 
     description of the scope and duration of the project or 
     activity.
       The conferees expect that the President would assign such 
     projects or activities to the agency whose mission is most 
     appropriate to the project or activity. The conferees further 
     expect that this authority will be used only for projects or 
     activities that are expected to be completed within a short 
     period of time.

                   Legislative Provisions Not Adopted

     Authority and funds for nonproliferation and disarmament
       The House bill contained a provision (sec. 1305) that would 
     authorize the Secretary of Defense to transfer $78.0 million 
     in prior year Cooperative Threat Reduction funds from the 
     Department of Defense to the Department of State for 
     disarmament and nonproliferation purposes outside the 
     territory of the former Soviet Union.
       The Senate amendment contained no similar provision.
       The House recedes.

                 Title XIV--Services Acquisition Reform

                     Legislative Provisions Adopted

     Short title (sec. 1401)
       The House bill contained a provision (sec. 1401) that would 
     provide that this title may be cited as the Services 
     Acquisition Reform Act of 2003.
       The Senate amendment contained no similar provision.
       The Senate recedes.

             Subtitle A--Acquisition Workforce and Training

     Definition of acquisition (sec. 1411)
       The House bill contained a provision (sec. 1411) that would 
     amend section 4 of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 403) by defining the term acquisition. The new 
     definition would encompass the entire spectrum of 
     acquisition, starting with the development of an agency's 
     requirements through management and measurement of contract 
     performance.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Acquisition workforce training fund (sec. 1412)
       The House bill contained a provision (sec. 1412) that would 
     amend section 37 of the Office of Federal Procurement Policy 
     Act (41 U.S.C. 403) to establish within the General Services 
     Administration an acquisition workforce-training fund to be 
     managed by the Federal Acquisition Institute (FAI). The fund 
     would be financed by depositing 5 percent of the fees 
     collected by various executive agencies under their 
     government-wide contracts. This approach would provide the 
     funding for FAI to develop training resources needed to 
     support new acquisition initiatives. The fund would only be 
     used for acquisition workforce training across civilian 
     government agencies. This provision would not apply to the 
     Department of Defense (DOD).
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment that would 
     exempt the DOD from making contributions to the workforce 
     training fund and would include a five year sunset provision.
     Acquisition workforce recruitment program (sec. 1413)
       The House bill contained a provision (sec. 1413) that would 
     authorize the head of an agency to determine if, for purposes 
     of sections 3304, 5333, and 5753 of title 5, United States 
     Code, certain federal acquisition positions are in a shortage 
     category for purposes of recruiting and directly hiring 
     persons with high qualifications.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment that would 
     require the Office of Personnel Management (OPM), in 
     consultation with the Office of Federal Procurement Policy, 
     to report to the congressional defense committees on the 
     extent to which the authority has been used and whether such 
     use has been consistent with regulations issued by OPM.
     Architectural and engineering acquisition workforce (sec. 
         1414)
       The House bill contained a provision (sec. 1414) that would 
     require the Administrator for Federal Procurement Policy, in 
     consultation with the Secretary of Defense, the Administrator 
     of General Services, and the Director of the Office of 
     Personnel Management, to develop and implement a plan to

[[Page 27866]]

     ensure that the Federal Government maintains the necessary 
     capability to contract effectively for the performance of 
     architectural and engineering services.
       The Senate amendment contained no similar provision.
       The Senate recedes.

        Subtitle B--Adaptation of Business Acquisition Practices

     Chief Acquisition Officers (sec. 1421)
       The House bill contained a provision (sec. 1421) that would 
     amend section 16 of the Office of Federal Procurement Policy 
     Act (41 U.S.C. Sec. 414) to provide for the appointment of a 
     non-career employee as the chief acquisition officer for each 
     executive agency other than the Department of Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would limit the 
     number of agencies required to have Chief Acquisition 
     Officers and to retain the requirement for all agencies to 
     have senior procurement executives.
     Chief Acquisition Officers Council (sec. 1422)
       The House bill contained a provision (sec. 1422) that would 
     establish a Chief Acquisition Officers Council to monitor and 
     improve the federal acquisition system.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would modify the 
     membership of the Council.
     Statutory and regulatory review (sec. 1423)
       The House bill contained a provision (sec. 1423) that would 
     require the Administrator for Federal Procurement Policy to 
     establish an advisory panel to review acquisition laws and 
     regulations to ensure greater use of commercial practices and 
     performance-based contracting, as well as enhance the 
     performance of acquisition functions across agency lines, and 
     the use of government-wide contracts. The advisory panel 
     would consist of at least nine experts in acquisition law and 
     policy who represent diverse public and private sector 
     experiences.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment.
     Extension of authority to carry out franchise fund programs 
         (sec. 1426)
       The House bill contained a provision (sec. 1426) that would 
     amend section 403(f) of the Federal Financial Management Act 
     of 1994 (Public Law 103-356) to reauthorize the federal 
     government's franchise funds until October 1, 2006.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would extend the 
     authority to carry out franchise fund programs through 
     December 31, 2004. The conferees direct the Comptroller 
     General to review the Department of Defense use of franchise 
     fund programs and to report to the congressional defense 
     committees on the results of this review no later than six 
     months after the date of enactment of this Act.
     Improvements in contracting for architectural and engineering 
         services (sec. 1427)
       The House bill contained a provision (sec. 1428) that would 
     amend section 2855(b) of title 10, United States Code, to 
     raise from $85,000 to $300,000 the threshold for a 
     participation incentive for small business concerns in 
     acquisitions for architectural and engineering services. This 
     provision would also require that architectural and 
     engineering services offered under multiple-award schedule 
     contracts awarded by the General Services Administration or 
     under government-wide task and delivery order contracts be 
     performed under the supervision of a licensed professional 
     engineer and be awarded pursuant to the quality-based 
     selection procedures in chapter 11 of title 40, United States 
     Code.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Authorization of telecommuting for Federal contractors (sec. 
         1428 )
       The House bill contained a provision (sec. 1429) that would 
     require the federal acquisition regulations to provide that 
     solicitations for federal contracts should not contain any 
     requirement or evaluation criteria that would render an 
     offeror ineligible or would reduce the scoring of the 
     offeror's proposal based upon the offeror's inclusion of a 
     plan to allow its employees to telecommute, unless the 
     contracting officer determines in writing that the needs of 
     the agency could not be met if telecommuting is permitted. 
     This provision would also require the Comptroller General to 
     report to the Congress on the implementation.
       The Senate amendment contained no similar provision.
       The Senate recedes with a clarifying amendment. The 
     provision would also eliminate the requirement for a report 
     by the Comptroller General.

              Subtitle C--Acquisition of Commercial Items

     Additional incentive for use of performance-based contracting 
         for services (sec. 1431)
       The House bill contained a provision (sec. 1441) that would 
     amend the Office of Federal Procurement Policy Act (41 U.S.C. 
     403) to create an additional incentive for the use of 
     performance-based services contracts by authorizing a 
     performance-based contract or a performance-based task order 
     for services to be treated as a contract for the procurement 
     of a commercial item if each task is defined in measurable, 
     mission related terms with specific products or outputs, and 
     the contractor provides similar services to the general 
     public. This provision would also require the Administrator 
     for Federal Procurement Policy to establish a center of 
     excellence for service contracting to assist the acquisition 
     community in identifying best practices in service 
     contracting.
       The Senate amendment contained a provision (section 811) 
     that would extend the authority in section 821(b) of the 
     Floyd Spence National Defense Authorization Act for fiscal 
     year 2001 to treat Department of Defense performance based 
     services contracts as contracts for the procurement of 
     commercial items and raise the ceiling on such contracts to 
     $10.0 million.
       The Senate recedes with an amendment that would make the 
     new government-wide contract authority consistent with 
     existing authority applicable to the DOD, extend the 
     authority for ten years, and raise the ceiling to $25.0 
     million.
     Authorization of additional commercial contract types (sec. 
         1432)
       The House bill contained a provision (sec. 1442) that would 
     amend section 8002(d) of the Federal Acquisition Streamlining 
     Act of 1994 (Public Law 103-355) to provide that the federal 
     acquisition regulations include authority for time and 
     material contracts or labor hour contracts to be used for the 
     acquisition of a commercial service commonly sold to the 
     general public through such contracts.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would place 
     additional safeguards and limitations on the use of time-and-
     materials and labor-hour contracts for the procurement of 
     commercial services.
       The conferees note that section 821 of the Floyd D. Spence 
     National Defense Authorization Act for Fiscal Year 2001 
     (Public Law 106-398) establishes a statutory preference for 
     performance-based contracts and performance-based task orders 
     that contain firm fixed prices for the specific tasks to be 
     performed. The provision recommended by the conferees does 
     not change that preference. The provision would make a time-
     and-materials contract or a labor-hours contract an available 
     option only if the contracting officer executes a 
     determination and finding that no other contract type is 
     suitable. A performance-based contract or task order that 
     contains firm fixed prices for the specific tasks to be 
     performed remains the preferred option for the acquisition of 
     either commercial or non-commercial items.
       The conferees direct the Comptroller General to review the 
     use of this authority and to report to the Armed Services 
     Committees of the Senate and the House of Representatives, 
     the Governmental Affairs Committee of the Senate, and the 
     Government Reform and Oversight Committee of the House of 
     Representatives not later than one year after the date of 
     enactment of this Act. The Comptroller General's report 
     should address, at a minimum: the extent to which the 
     authority provided in this provision has been used; the types 
     of contracts for which the authority has been used; and the 
     degree to which such use has been in compliance with the 
     safeguards included in this section (including the 
     requirement that time-and-materials contracts be used only 
     where no other contract type is suitable).
     Clarification of commercial services definition (sec. 1433)
       The House bill contained a provision (sec. 1443) that would 
     amend section 4 of the Office of Federal Procurement Policy 
     (OFPP) Act [41 U.S.C. 403(12)] by modifying the criteria 
     applied to a commercial service purchased under the 
     procedures for the purchase of a commercial item.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would modify the 
     definition of commercial services to conform the language to 
     terms used in section 41 of the OFPP Act as added by section 
     1431 of this bill.

                       Subtitle D--Other Matters

     Authority to enter into certain transactions for defense 
         against or recovery from terrorism or nuclear, 
         biological, chemical, or radiological attack (sec. 1441)
       The House bill contained a provision (sec. 1451) that would 
     amend title III of the Federal Property and Administrative 
     Services Act of 1949 (Public Law 81-152) to provide the 
     Director of the Office of Management and Budget authority to 
     grant to the head of selected executive agencies the 
     authority to enter into transactions (other than contracts, 
     cooperative agreements, and grants) and to carry out 
     prototype projects in accordance with the requirements and 
     conditions for such projects, as provided under section 845 
     of the National Defense Authorization Act for Fiscal Year 
     1994 (Public Law 103-160).
       The Senate amendment contained no similar provision.

[[Page 27867]]

       The Senate recedes with an amendment that would conform the 
     authority provided to civilian agencies with the existing 
     authority under section 845 and would clarify that the 
     Director of the Office of Management and Budget must 
     authorize the use of this authority by civilian agencies on a 
     case-by-case basis.
     Public disclosure of noncompetitive contracting for the 
         reconstruction of infrastructure in Iraq (sec. 1442)
       The House bill contained a provision (sec. 1455) that would 
     require agencies to report on the justification for awarding 
     a contract for the reconstruction of infrastructure in Iraq 
     without full and open competition.
       The Senate amendment contained a similar provision (sec. 
     1209).
       The Senate recedes with an amendment that would limit the 
     reporting requirement to contracts entered into on or before 
     September 30, 2005.
     Special emergency procurement authority (sec. 1443)
       The House bill contained a provision (sec. 1456) that would 
     amend the federal emergency procurement authorities in 
     section 852 of the Homeland Security Act of 2002 (Public Law 
     107-296) by repealing the sunset for authorities applicable 
     for defense against or recovery from terrorism or nuclear, 
     biological, chemical, or radiological attack and to adjust 
     thresholds amounts.
       The Senate amendment contained a provision (sec. 801) that 
     would extend by two years temporary emergency procurement 
     authority under section 852 to assist the Department of 
     Defense (DOD) in facilitating the defense against terrorist 
     biological or chemical attack.
       The Senate recedes with an amendment that would modify the 
     Office of Federal Procurement Policy Act (Public Law 93-400) 
     by providing special emergency procurement authority to the 
     DOD and civilian agencies. The provision would authorize the 
     use of the new authority: (1) to support a contingency 
     operation; or (2) to facilitate the defense against or 
     recovery from nuclear, biological, chemical, or radiological 
     attack on the United States. The simplified acquisition 
     threshold, the micropurchase threshold, and the threshold for 
     use of simplified acquisition procedures would be increased 
     for all procurements covered by this provision. In addition, 
     the head of an executive agency would be authorized to deem 
     items or services purchased to facilitate the defense against 
     or recovery from nuclear, biological, chemical, or 
     radiological attack on the United States as commercial items 
     (subject to certain limitations). Finally, the provision 
     would extend certain authorities provided in the Clinger-
     Cohen Act (division D of Public Law 104-106).

                   Legislative Provisions Not Adopted

     Executive agency defined
       The House bill contained a provision (sec. 1402) that would 
     use the term executive agency, as defined in section 4 of the 
     Office of Federal Procurement of Policy Act (41 U.S.C. 403).
       The Senate amendment contained no similar provision.
       The House recedes.
     Agency acquisition protests
       The House bill contained a provision (sec. 1427) that would 
     amend Chapter 137 of title 10, United States Code, and the 
     Federal Property and Administrative Services Act of 1949 
     (Public Law 81-152) to provide statutory authority for an 
     agency-level acquisition protest process.
       The Senate amendment contained no similar provision.
       The House recedes.
     Incentives for contract efficiency
       The House bill contained a provision (sec. 1431) that would 
     amend the Office of Federal Procurement Policy Act (Public 
     Law 93-400) by authorizing agencies to include options in 
     service contracts that extend the contract by one or more 
     performance periods based on exceptional performance, as 
     measured by standards set forth in the contract.
       The Senate amendment contained no similar provision.
       The House recedes.
     Designation of commercial business entities
       The House bill contained a provision (sec. 1444) that would 
     amend section 4 of the Office of Federal Procurement Policy 
     Act (Public Law 93-400) to authorize federal agencies to 
     treat the purchase of products or services provided by a 
     commercial entity as a procurement of a commercial item.
       The Senate amendment contained no similar provision.
       The House recedes.
     Authority to make inflation adjustments to simplified 
         acquisition threshold
       The House bill contained a provision (sec. 1452) that would 
     authorize the Administrator for Federal Procurement Policy to 
     adjust the simplified acquisition threshold, as defined in 
     section 4(11) of the Office of Federal Procurement Policy Act 
     (Public Law 93-400), every five years to an amount equal to 
     $100,000 in constant fiscal year 2003 dollars.
       The Senate amendment contained no similar provision.
       The House recedes.
     Applicability of certain provisions to sole source contracts 
         for goods and services treated as commercial items
       The House bill contained a provision (sec. 1454) that would 
     limit certain commercial item authority.
       The Senate amendment contained no similar provision.
       The House recedes.
     Prohibition on use of quotas
       The House bill contained a provision (sec. 1453) that would 
     prohibit the Office of Management and Budget from 
     establishing, applying, or enforcing quotes on federal 
     agencies with respect to the number of employees that should 
     be part of a public-private competition.
       The Senate amendment contained no similar provision.
       The House recedes.

   Title XV--Authorization of Appropriations for the War on Terrorism

     Veterans' Disability Benefits Commission (sec. 1501-1507)
       The conferees agree to include a provision that would 
     establish a Veterans' Disability Benefits Commission composed 
     of 13 members that would carry out a study of the benefits 
     provided to compensate and assist veterans and their 
     survivors for disabilities and deaths attributable to 
     military service. The Commission would be required, not later 
     than 15 months after the date on which it first meets, to 
     submit to the President and the Congress a report on the 
     study, including recommendations for revising the benefits 
     provided by the United States to veterans and their survivors 
     for disability and death attributable to military service.
     Higher education relief opportunities for students
       The House bill contained provisions (secs. 1501-1506) that 
     would amend the Higher Education Act of 1965 (20 U.S.C. 1001 
     et seq.). These provisions would authorize the Secretary of 
     Education to waive or modify any statutory or regulatory 
     provision applicable to certain student financial assistance 
     programs with respect to individuals who are serving on 
     active duty during a war or other military operation or 
     national emergency. Additionally, a provision would express 
     the sense of Congress that all institutions offering post-
     secondary education should provide a full refund of tuition 
     and related fees to students who are unable to receive 
     academic credit due to their active military service.
       The Senate amendment contained no similar provision.
       The House recedes.
       The Higher Education Relief Opportunities for Students Act 
     of 2003 (Public Law 108-76) was enacted on August 18, 2003.

                     Legislative Provisions Adopted

                   Legislative Provisions Not Adopted

             Title XVI--Defense Biomedical Countermeasures

     Research and development of defense biomedical 
         countermeasures (sec. 1601)
       The House bill contained a provision (sec. 1031) that would 
     require the Secretary of Defense to establish and carry out a 
     program to accelerate the research and development of 
     biomedical countermeasures, including therapeutics and 
     vaccines, for protecting members of the Armed Forces from 
     attack by chemical, biological, radiological, or nuclear 
     (CBRN) agents.
       The Senate amendment contained no similar provision.
       The conferees agree to an amendment that would require the 
     Secretary of Defense to establish a program to accelerate 
     research and development of biological countermeasures to 
     CBRN threats. The amended provision would encourage 
     interagency cooperation and provide incentives for the 
     program through the use of increased thresholds for expedited 
     acquisition authority and streamlined authority for hiring 
     professional and technical employees, both of which are 
     established elsewhere in the bill.
     Procurement of defense biomedical countermeasures (sec. 1602)
       The House bill contained a provision (sec. 1032) that would 
     require the Secretary of Defense, in consultation with the 
     Secretaries of Health and Human Services and of Homeland 
     Security, to assess emerging threats of the use of CBRN 
     agents, identify those agents for which biomedical 
     countermeasures are needed to protect the health of members 
     of the Armed Forces, and procure qualified biomedical 
     countermeasures for the DOD stockpile.
       The Senate amendment contained no similar provision.
       The conferees agree to an amendment that would authorize 
     the Secretary of Defense to enter into an interagency 
     agreement with the Secretaries of Homeland Security and 
     Health and Human Services to provide for acquisition by the 
     Secretary of Defense for use by the Armed Forces of 
     biomedical countermeasures procured for the Strategic 
     National Stockpile by the Secretary of Health and Human 
     Services. The amendment authorizes the Secretary of Defense 
     to transfer those funds to the Secretary of Health and Human 
     Services that are necessary to carry out such agreements and 
     the Secretary of Health and Human Services to expend any such 
     transferred funds to procure such counter-measures for use by 
     the Armed Forces, or to replenish the stockpile.

[[Page 27868]]


     Authorization for medical products for use in emergencies 
         (sec. 1603)
       The House bill contained a provision (sec. 1033) that would 
     define the conditions under which the Secretary of Defense 
     could declare a state of emergency that would authorize use 
     on members of the Armed Forces of a drug or device intended 
     for use in an actual or potential emergency.
       The Senate recedes with an amendment that would permit the 
     Secretary of Health and Human Services to authorize emergency 
     use by the general public of certain drugs, devices, or 
     biological products based on a determination by the Secretary 
     of Defense that there is a military emergency involving a 
     heightened risk to United States military forces of attack 
     with specified biological, chemical, radiological, or nuclear 
     agents. The amendment would authorize the President to waive 
     the right of service members to refuse administration of a 
     product if the President determines, in writing, that 
     affording service members the right to refuse the product is 
     not feasible, is contrary to the best interests of the 
     members affected, or is not in the interests of national 
     security. If the President makes this determination, the 
     amendment would authorize the Secretary of Defense, in 
     consultation with the Secretary of Health and Human Services, 
     to make a determination that it is not feasible based on time 
     limitations to advise military personnel in advance of the 
     significant known benefits and risks of use of the product.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

     Overview
       The administration originally requested authorization of 
     appropriations in fiscal year 2004 for military construction 
     and housing programs totaling $8,965.2 million. The 
     administration's amended budget for authorization of 
     appropriations totaled $9,144.1 million, which included the 
     use of rescinded authorization totaling $153.4 million from 
     the termination of fiscal year 2003 military construction 
     projects.
       The House bill would authorize appropriations totaling 
     $9,789.5 million for military construction and family 
     housing, which included the use of $261.2 million from fiscal 
     year 2003 project authorization recisions.
       The Senate amendment would authorize appropriations 
     totaling $9,458.6 million for military construction and 
     family housing, which included the use of $153.4 million from 
     fiscal year 2003 project authorization recisions.
       The conferees recommend authorization of appropriation of 
     $9,685.7 million for the military construction and family 
     housing accounts of the Department of Defense for fiscal year 
     2004, which includes the use of $496.2 million from multiple 
     prior year project authorization recisions. With the prior 
     year recisions, the conference agreement is consistent with a 
     budget authority level of $9,189.4 million for military 
     construction and family housing.
       The conferees agreed to transfer $119.8 million in 
     authorization requested by the administration in the Chemical 
     Agents and Munitions Destruction program Defense-wide account 
     to the Military Construction, Defense-wide account.
       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 the fiscal year 2004 amended budget 
     request submitted by the administration on May 1, 2003 to 
     realign certain military construction and family housing 
     projects.

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                     Legislative Provisions Adopted

     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 2004.
       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 of $3,056.7 
     million for Army military construction and housing programs 
     for fiscal year 2004.
       The Senate amendment would authorize appropriations of 
     $2,801.8 million for Army military construction and family 
     housing programs for fiscal year 2004.
       The conferees recommend authorization of appropriation of 
     $2,874.9 million for army military construction and family 
     housing programs for fiscal year 2004. The conferees 
     recommend a general reduction to the authorization of 
     appropriation of $10.0 million, which represents corrections 
     to estimates for military family housing support.

                       Items of Special Interest

     Powertrain/flexible maintenance center, Anniston Army Depot, 
         Alabama
       The conferees understand that a project to construct a 
     powertrain/flexible maintenance center at the Anniston Army 
     Depot, Alabama, is included in the Future Years Defense Plan 
     for the Army. Although the conferees were unable to authorize 
     this project due to severe funding constraints, the conferees 
     strongly encourage the Secretary of Defense to include this 
     project in the President's fiscal year 2005 budget submission 
     for the Army.

                     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 for fiscal year 
     2004.
       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 FY2004,'' 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 2004.
       The Senate amendment contained a similar 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 FY2004,'' 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 2004.
       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 2004. This provision would also provide an 
     overall limit on the amount the Army is authorized to spend 
     on military construction projects in fiscal year 2004.
       The Senate amendment contained a similar provision (sec. 
     2104).
       The conference agreement includes this provision.
     Termination or modification of authority to carry out certain 
         fiscal year 2003 projects (sec. 2105)
       The Senate amendment contained a provision (sec. 2105) that 
     would amend the table in section 2101 of the Military 
     Construction Authorization Act for Fiscal Year 2003 (division 
     B of Public Law 107-314) to rescind project authority from 
     five installations in Germany and one in Korea, resulting in 
     a total decrease of $118.4 million.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     table for projects inside the United States in section 2101 
     of the Military Construction Authorization Act for Fiscal 
     Year 2003 (division B of Public Law 107-314) to increase 
     amounts authorized for Fort Riley, Kansas. The provision 
     would also rescind project authority from five additional 
     installations in Korea.
     Modification of authority to carry out certain fiscal year 
         2002 projects (sec. 2106)
       The House bill contained a provision (sec. 2105) that would 
     amend the table in section 2101 of the Military Construction 
     Authorization Act for Fiscal Year 2002 (division B of Public 
     Law 107-107) as further amended by section 2105 of the 
     Military Construction Act for Fiscal Year 2003 (division B of 
     Public Law 107-314) to increase the amount authorized for 
     construction at Fort Richardson, Alaska.
       The Senate amendment contained a similar provision (sec. 
     2107).
       The House recedes with an amendment that would additionally 
     modify the table for projects outside the United States in 
     section 2101 of the Military Construction Authorization Act 
     for Fiscal Year 2002 (division B of Public Law 107-107) as 
     further amended by section 2105 of the Military Construction 
     Act for Fiscal Year 2003 (division B of Public Law 107-314) 
     to decrease amounts authorized at Camp Hovey, Korea, and Camp 
     Stanley, Korea, by a total of $24.0 million.
     Termination or modification of authority to carry out certain 
         fiscal year 2001 projects (sec. 2107)
       The Senate amendment contained a provision (sec. 2108) that 
     would amend the table in section 2101 of the Military 
     Construction Authorization Act for Fiscal Year 2001 (division 
     B of Public Law 106-398) as further amended by section 2105 
     of the Military Construction Authorization Act for Fiscal 
     Year 2002 (division B of Public Law 107-107) to increase the 
     funding authorization for Pohakoula Training Facility, 
     Hawaii.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     table for projects inside the United States in section 2101 
     of the Military Construction Authorization Act for Fiscal 
     Year 2001 (division B of Public Law 106-398) as further 
     amended by section 2105 of the Military Construction 
     Authorization Act for Fiscal Year 2002 (division B of Public 
     Law 107-107) to increase amounts authorized for Fort Bragg, 
     North Carolina. The provision would also rescind project 
     authorization for Camp Stanley, Korea.

                            Title XXII--Navy

     Overview
       The House bill would authorize appropriations of $2,288.9 
     million for Navy military construction and housing programs 
     for fiscal year 2004.
       The Senate amendment would authorize appropriations of 
     $2,179.9 million for Navy military construction and family 
     housing programs for fiscal year 2004.
       The conferees recommend authorization of appropriation of 
     $2,267.7 million for Navy military construction and family 
     housing programs for fiscal year 2004. The conferees 
     recommend a general reduction to the authorization of 
     appropriation of $10.0 million, which represents corrections 
     to estimates for military family housing support.

                     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 
     2004.
       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 FY2004,'' 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 2004.
       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 FY2004,'' 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 2004.
       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 2004. This provision would also provide an 
     overall limit on the amount the Navy is

[[Page 27888]]

     authorized to spend on military construction projects in 
     fiscal year 2004.
       The Senate amendment contained a similar provision (sec. 
     2204).
       The conference agreement includes this provision.
     Termination of authority to carry out certain fiscal year 
         2003 projects (sec. 2205)
       The Senate amendment contained a provision (sec. 2205) that 
     would amend sections 2201 and 2204 of the Military 
     Construction Act for Fiscal Year 2003 (division B of Public 
     Law 107-314) to rescind a project authorization of $14.9 
     million for a dining facility at Keflavik, Iceland.
       The House bill contained no similar provision.
       The House recedes with an amendment that would further 
     modify sections 2201 and 2204 of the Military Construction 
     Act for Fiscal Year 2003 (division B of Public Law 107-314) 
     to rescind project authorizations of $10.1 million at Naval 
     Air Warfare Center, China Lake, California, $6.04 million at 
     Marine Corps Air Station Cherry Point, North Carolina, and 
     $6.8 million at Naval Support Activity, Joint Headquarters 
     Command, Larissa, Greece. This provision would also amend 
     section 2202(a) of the Military Construction Act for Fiscal 
     Year 2003 (division B of Public Law 107-314) to rescind 
     project authorization of $18.5 million for new housing units 
     at Joint Maritime Facility, Saint Mawgan, United Kingdom.
     Termination or modification of authority to carry out certain 
         fiscal year 2002 projects (sec. 2206)
       The conferees agree to include a provision that would amend 
     sections 2201 and 2204 of the Military Construction Act for 
     Fiscal Year 2002 (division B of Public Law 107-107) to amend 
     project authorization for Naval Air Warfare Center, China 
     Lake, California, and to strike the project authorization for 
     Naval Support Activity, Joint Headquarters Command, Larissa, 
     Greece, and to decrease the total project authorization 
     outside the United States by $12.2 million.

                         Title XXIII--Air Force

     Overview
       The House bill would authorize appropriations of $2,477.6 
     million for Air Force military construction and housing 
     programs for fiscal year 2004.
       The Senate amendment would authorize appropriations of 
     $2,505.4 million for Air Force military construction and 
     family housing programs for fiscal year 2004.
       The conferees recommend authorization of appropriation of 
     $2,550.9 million for Air Force military construction and 
     family housing programs for fiscal year 2004. The conferees 
     recommend a general reduction to the authorization of 
     appropriation of $10.0 million, which represents corrections 
     to estimates for military family housing support.

                       Items of Special Interest

     Child Development Center, Little Rock Air Force Base, 
         Arkansas
       The conferees recognize the importance of supporting 
     projects that improve the quality of life for the families of 
     military members during long deployments. The conferees 
     understand that a project to construct a child development 
     center at Little Rock Air Force Base, Arkansas, is included 
     in the Future Years Defense Plan for the Air Force. Although 
     the conferees were unable to authorize this project due to 
     severe funding constraints, the conferees strongly encourage 
     the Secretary of Defense to include this project in the 
     President's fiscal year 2005 budget submission for the Air 
     Force.

                     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 2004.
       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 FY2004,'' 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 2004.
       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 FY2004,'' 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 for fiscal year 2004.
       The Senate amendment contained an identical provision (sec. 
     2303).
       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 2004. 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 2004.
       The Senate amendment contained a similar provision (sec. 
     2304).
       The conference agreement includes this provision.
     Termination or modification of authority to carry out certain 
         fiscal year 2003 projects (sec. 2305)
       The Senate amendment contained a provision (sec. 2305) that 
     would amend sections 2301 and 2304 of the Military 
     Construction Act for Fiscal Year 2003 (division B of Public 
     Law 107-314) to decrease authorization for family housing 
     construction world-wide unspecified account by $19.3 million 
     for a housing improvement project at Spangdahlem, Germany.
       The House bill contained no similar provision.
       The House recedes with an amendment that would amend 
     section 2301(c) of the Military Construction Act for Fiscal 
     Year 2003 (division B of Public Law 107-314) to terminate a 
     project at a classified location.

                      Title XXIV--Defense Agencies

                     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 2004.
       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 FY2004,'' provides the binding list of 
     specific construction projects authorized at each location.
     Family housing (sec. 2402)
       The House bill contained a provision (sec. 2402) that would 
     authorize new construction and planning and design of family 
     housing units for the Defense Agencies in fiscal year 2004.
       The Senate amendment contained an identical provision (sec. 
     2402).
       The conference agreement includes this provision.
     Improvements to military family housing units (sec. 2403)
       The House bill contained a provision (sec. 2403) that would 
     authorize improvements to existing units of the Defense 
     Agencies' family housing in fiscal year 2004.
       The Senate amendment contained an identical provision (sec. 
     2403).
       The conference agreement includes this provision.
     Energy conservation projects (sec. 2404)
       The House bill contained a provision (sec. 2404) that would 
     authorize the Secretary of Defense to carry out energy 
     conservation projects.
       The Senate amendment contained an identical provision (sec. 
     2404).
       The conference agreement includes this provision.
     Authorization of appropriations, Defense Agencies (sec. 2405)
       The House bill contained a provision (sec. 2405) that would 
     authorize specific appropriations for each line item 
     contained in the Defense Agencies' military construction 
     budget in fiscal year 2004. 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 2004.
       The Senate amendment contained a similar provision (sec. 
     2405).
       The conference agreement includes this provision.
     Termination of authority to carry out certain fiscal year 
         2003 projects (sec. 2406)
       The Senate amendment contained a provision (sec. 2407) that 
     would amend sections 2401 and 2404 of the Military 
     Construction Act for Fiscal Year 2003 (division B of Public 
     Law 107-314) to change the location for project authority in 
     Korea and to rescind project authority from one installation 
     in Germany, resulting in a decrease of $997,000.
       The House bill contained no similar provision.
       The House recedes with an amendment that would additionally 
     rescind project authority from one installation in Korea, 
     resulting in an overall decrease of $32.7 million.

                   Legislative Provisions Not Adopted

     Modification of authority to carry out certain fiscal year 
         2003 projects
       The Senate amendment contained a provision (sec. 2406) that 
     would amend sections 2401 of the Military Construction Act 
     for Fiscal Year 2003 (division B of Public Law 107-

[[Page 27889]]

     314) to transfer project authority for a Department of 
     Defense Dependents Schools from Seoul, Korea, to Camp 
     Humphreys, Korea.
       The House bill contained no similar provision.
       The Senate recedes.

   Title XXV--North Atlantic Treaty Organization Security Investment 
                                Program

     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 $169.3 million for the U.S. 
     contribution to the North Atlantic Treaty Organization (NATO) 
     security investment program.
       The Senate amendment contained an identical provision (sec. 
     2502).
       The conference agreement includes this provision.

            Title XXVI--Guard and Reserve Forces Facilities

     Overview
       The House bill would authorize appropriations of $573.9 
     million for military construction and land acquisition for 
     fiscal year 2004 for the Guard and Reserve components.
       The Senate amendment would authorize appropriations of 
     $647.8 million for military construction and land acquisition 
     for fiscal year 2004 for the Guard and Reserve components.
       The conferees recommend authorization of appropriations of 
     $730.5 million for military construction and land acquisition 
     for fiscal year 2004 for the Guard and Reserve components. 
     This authorization would be distributed as follows:

Army National Guard........................................$311,592,000
Air National Guard..........................................222,908,000
Army Reserve.................................................88,451,000
Naval and Marine Corps Reserve...............................45,498,000
Air Force Reserve............................................62,032,000
                                                       ________________
                                                       
    Total...................................................730,481,000

                       Items of Special Interest

     Readiness Center, Charleston, South Carolina
       The conferees recognize the contribution of National Guard 
     readiness centers, formally known as armories, to the 
     training and morale of Guard and Reserve units around the 
     country. The conferees understand that a project to construct 
     a readiness center in Charleston, South Carolina, is included 
     in the Future Years Defense Plan for the Army National Guard. 
     The conferees strongly encourage the Secretary of Defense to 
     include this project in the President's fiscal year 2005 
     budget submission for the Army National Guard.

                     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 2004.
       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 FY2004,'' provides 
     the binding list of specific construction projects authorized 
     at each location.

        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 infrastructure program, and 
     guard and reserve projects will expire on October 1, 2006, or 
     the date of enactment of an act authorizing funds for 
     military construction for fiscal year 2007, 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 2001 
         projects (sec. 2702)
       The House bill contained a provision (sec. 2702) that would 
     provide for the extension of certain fiscal year 2001 
     military construction project authorizations until October 1, 
     2004, or the date of enactment of an act authorizing funds 
     for military construction for fiscal year 2005, whichever is 
     later.
       The Senate amendment contained a similar provision (sec. 
     2702).
       The House recedes with an amendment that would amend the 
     list of fiscal year 2001 military construction project 
     authorizations to be extended.
     Extension of authorizations of certain fiscal year 2000 
         projects (sec. 2703)
       The House bill contained a provision (sec. 2703) that would 
     provide for the extension of certain fiscal year 2000 
     military construction project authorizations until October 1, 
     2004, or the date of enactment of an act authorizing funds 
     for military construction for fiscal year 2005, whichever is 
     later.
       The Senate amendment contained an identical 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, 2003, 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, 2003, this provision is no longer required and was 
     not included in the conference agreement.

                    Title XXVIII--General Provisions

                       Items of Special Interest

     Use of authorities to correct a deficiency that is life-
         threatening, health-threatening, or safety-threatening
       United States Code title 10, section 2805 authorizes higher 
     statutory limits for the use of operation and maintenance 
     funds and unspecified minor military construction funds for 
     projects intended to correct deficiencies that threaten life, 
     health, or safety of personnel.
       The conferees have recently received numerous notifications 
     from the services stating their intent to award construction 
     projects using this authority. While the conferees encourage 
     the use of section 2805 to provide for immediate actions to 
     protect the livelihood of military personnel, the conferees 
     are concerned that the both the increased frequency and 
     justifications included within the services' notifications 
     represent an expansive interpretation of Congressional intent 
     regarding the higher limits for compelling emergencies.
       The conferees expect the services, when utilizing section 
     2805 authority to fund construction to correct life-, health-
     , or safety-threatening conditions, to include within the 
     notification sent to Congress a description of when the 
     requirement was determined and why deferral of the project 
     until the next Military Construction Authorization Act poses 
     an unacceptable and imminent risk to military personnel. The 
     conferees also expect the justification to include a 
     description of on-going actions and temporary work-arounds to 
     mitigate risk and safeguard lives.
       The conferees also expect the services to include in the 
     notification sent to Congress an explanation why the facility 
     deficiency cannot be repaired or corrected by other means, 
     and an assurance that the military construction project is 
     intended primarily to correct the facility deficiency that 
     threatens the life, safety, or health of personnel.
       The conferees understand that chronic under-funding of 
     facility repairs, revitalization, and modernization has 
     resulted in a substantial number of military facilities that 
     pose a risk to life, safety, or health due to code 
     violations, antiquated ventilation and utility systems, 
     failing roofs, and other deficiencies. However, the use of 
     section 2805 should be reserved to correct those deficiencies 
     that pose an imminent and substantial risk to military 
     personnel.
     Preservation of historical military facilities
       The conferees are concerned about the military departments' 
     apparent inability to accurately track the costs of 
     maintaining, repairing, and renovating over 17,000 historic 
     facilities in the Department of Defense (DOD) inventory. In 
     an April 2001 General Accounting Office report, the 
     Comptroller General noted that data is not readily available 
     to identify the costs of maintaining historic properties or 
     to separately account for repairs related to historic aspects 
     of these properties. (Defense Infrastructure: Military 
     Services Lack Reliable Data on Historic Properties, April 
     2001, GAO-01-437) While the conferees recognize the need for 
     the Department of Defense to comply with the National 
     Historic Preservation Act (P.L. 89-665) (codified as USC 16, 
     sec 470 et. seq.), it is equally important that reliable data 
     be available on the life-cycle costs of the requirement in 
     order to provide an adequate basis for comparison to the 
     overall costs related to non-historic facilities. In the same 
     report, the Comptroller General noted that the costs of 
     maintenance can be proportionally greater in cases where 
     historic facilities are larger in size than facilities 
     constructed in accordance with current military requirements. 
     For example, the DOD budget request for fiscal year 2004 
     includes more than $14.0 million just to repair, maintain, or 
     renovate historic general and flag officers' quarters. 
     Without

[[Page 27890]]

     reliable and complete data, there is no basis to assess the 
     overall return on investment and the impact these costs may 
     have on other military requirements.
       The conferees concur with the Comptroller General's 
     recommendation to the military departments to maintain 
     reliable cost data on historic structures. The conferees 
     expect the military services and DOD agencies to include an 
     assessment of the costs associated with historical 
     requirements in each in construction project justification 
     contained in the annual President's budget submission and 
     with each facility repair project notification required by 
     section 2811 of Title 10, United States Code. In addition, 
     the conferees encourage the Department to develop a long-term 
     plan to sustain its historic facilities. This plan should 
     include a roadmap to identify and efficiently manage the 
     costs of maintaining historic facilities and a review of 
     innovative efforts to reduce the budget impact of historic 
     facilities. The conferees also encourage the Department to 
     increase service-to-service sharing of historic facility 
     management concepts and experience. The conferees believe 
     that sharing lessons-learned will result in more accurate 
     cost estimates and innovative solutions to cost management.
       The conferees expect the Department's effort to include a 
     review of the Marine Corps' renovation of the Commandant's 
     Home in Washington, D.C. This project experienced significant 
     growth in cost and scope, largely due to the historic aspects 
     of the facility. In addition, the Marine Corps renovated the 
     interior of the home before completing roof and exterior 
     work, resulting in additional costs and schedule delays due 
     to leaking roof areas. Also of concern was the Marine Corps' 
     decision to utilize statutory gift authorities, intended to 
     offset the costs of the renovation, for upgrades to 
     furnishings. While the conferees recognize the historic and 
     symbolic value of the Commandant's home to the Marine Corps, 
     the conferees believe that decisions made during the 
     renovation process resulted in a project that could have 
     instead set a benchmark for successful renovation of a 
     historic facility.

                     Legislative Provisions Adopted

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

     Modification of general definitions relating to military 
         construction (sec. 2801)
       The Senate amendment contained a provision (sec. 2801) that 
     would amend section 2801 of title 10, United States Code, to 
     clarify definitions for military construction and military 
     installations. Under this provision, military construction 
     would include any temporary or permanent construction, 
     development, conversion, or extension of any kind carried out 
     with respect to a military installation. The scope and 
     duration of the operational requirement necessitating 
     military construction does not affect the definition. This 
     provision would also clarify the definition of military 
     installations. The House bill contained no similar provision.
       The House recedes.
     Increase in maximum amount of authorized annual emergency 
         construction (sec. 2802)
       The House bill contained a provision (sec. 2801) that would 
     amend section 2803 of title 10, United States Code, to 
     increase from $30,000,000 to $45,000,000 the annual limit on 
     the amount a service secretary may obligate for emergency 
     military construction projects not otherwise authorized by 
     law.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Increase in number of family housing units in Italy 
         authorized for lease by Navy (sec. 2803)
       The House bill contained a provision (sec. 2802) that would 
     amend section 2828(e) of title 10, United States Code, to 
     increase from 2,000 to 2,400 the number of family housing 
     units the Secretary of the Navy may lease in Italy for not 
     more than $25,000 per unit per year.
       The Senate amendment contained a similar provision (sec. 
     2802).
       The House recedes.
     Increase in authorized maximum lease term for family housing 
         and other facilities in certain foreign countries (sec. 
         2804)
       The House bill contained a provision (sec. 2807) that would 
     amend section 2828(d) of title 10, United States Code, to 
     increase from 10 to 15 years the maximum length of lease that 
     the Department of Defense may enter for housing facilities in 
     Korea. This provision would also increase from 5 to 15 years 
     the maximum length of a lease that the Department may enter 
     for other military-related facilities in Korea.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Conveyance of property at military installations closed or 
         realigned to support military construction (sec. 2805)
       The House bill contained a provision (sec. 2805) that would 
     amend chapter 169 of title 10, United States Code, to expand 
     existing Department of Defense authority to transfer property 
     at military installations that have been closed or are 
     subject to closure to persons who, in exchange, construct or 
     provide family housing. The expanded authority would permit 
     the Department to transfer property at such installations in 
     exchange for family housing, unaccompanied housing, and 
     authorized military construction activities. The provision 
     would require the Department to utilize this authority for 
     land-for-construction trades in at least 20 percent of base 
     closure disposals of property that has not been identified as 
     essential to a redevelopment plan, and would require each of 
     the services to endeavor to use the authority provided for at 
     least $200.0 million worth of exchanges annually. In 
     addition, the provision would require that the fair market 
     value of the housing or facilities received by the Department 
     equal or exceed the fair market value of the real property 
     conveyed, or the Department must receive payments equal to 
     the difference. Finally, the provision would require the 
     Department to provide an annual report to Congress on the use 
     of this authority.
       The Senate amendment contained a provision (sec. 2813) that 
     would amend section 2905 of the Defense Base Closure and 
     Realignment Act of 1990 (part A of Public Law 101-501) to 
     expand the authority to allow for the transfer of property in 
     exchange for unaccompanied housing.
       The Senate recedes with an amendment that would establish a 
     pilot program for use of these expanded authorities instead 
     of requiring the services to use them to specific, mandated 
     levels. The pilot program would require each Service to carry 
     out, to the maximum extent practicable, at least one exchange 
     in fiscal year 2004 of a value no less than $1.0 million. The 
     provision would also require the Department to notify the 
     Congress of the conveyance and to wait 14 days before 
     entering into an agreement. In addition, the provision would 
     authorize the services to notify prospective purchasers of 
     property at military installations closed or realigned under 
     a base closure law that exchanges for military construction 
     projects, in lieu of or in addition to cash payments, would 
     be considered. While the provision does not require the 
     services to notify prospective purchasers, the conferees 
     encourage the Department to do so in order to explore the 
     opportunities available under this authority.
     Inapplicability of space limitations to military 
         unaccompanied housing units acquired or constructed under 
         alternate authority (sec. 2806)
       The House bill contained a provision (sec. 2803) that would 
     amend section 2880 of title 10, United States Code, to 
     provide increased flexibility for the Department of Defense 
     (DOD) to determine the amount of space provided to each 
     person in on-base unaccompanied housing built under the 
     privatization program. The provision would also amend section 
     2883 of title 10, United States Code, to merge the DOD Family 
     Housing Improvement Fund and the DOD Unaccompanied Housing 
     Improvement Fund into a single DOD Housing Improvement Fund. 
     This single fund would give the Department increased 
     flexibility in managing its housing resources. Finally, the 
     provision would amend section 2883 to increase the cap on 
     budget authority for contracts and investments to military 
     housing privatization projects from $850.0 million to $900.0 
     million.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would amend 
     section 2880 of title 10, United States Code, to provide 
     increased flexibility for DOD to determine the amount of 
     space provided to each person in on-base unaccompanied 
     housing built under the privatization program.
     Additional material for reports on housing privatization 
         program (sec. 2807)
       The House bill contained a provision (sec. 2804) that would 
     amend section 2884 of Title 10, United States Code, to 
     require the Department of Defense to include additional 
     information in its annual report on housing privatization 
     programs. The additional information would include a review 
     of privatization activities entered into in previous years, 
     planned privatization activities, authorities necessary to 
     improve the program, and additional facilities planned as 
     part of each privatization project. Finally, the report would 
     include an explanation for each instance in which a 
     privatization effort does not include additional facilities, 
     such as schools, in the contract.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Department to provide detailed information for each housing 
     privatization contract that includes guarantees in the event 
     of closure or realignment of an installation or major changes 
     in the number of personnel stationed or deployed away from 
     the installation. The information provided must describe the 
     nature and specific conditions of the guarantee and assess 
     the extent and potential cost of the Federal Government's 
     liability as a result of the guarantee.

[[Page 27891]]


     Temporary, limited authority to use operation and maintenance 
         funds for construction projects outside the United States 
         (sec. 2808)
       The House bill contained a provision (sec. 2806) that would 
     limit the ability of the Department of Defense (DOD) to 
     utilize operation and maintenance funds for certain 
     construction purposes by prohibiting the obligation of such 
     funds for any single construction project exceeding $5.0 
     million and limiting the total annual obligation to $200.0 
     million. This provision would require the Department to 
     notify Congress 14 days before obligating more than $1.5 
     million of operation and maintenance funds for construction 
     purposes, but allow a service secretary to waive the notice 
     and wait requirement in cases where a delay would jeopardize 
     national security, health, or safety. The provision would 
     also require the Department to provide a quarterly report to 
     Congress on the worldwide use of operation and maintenance 
     funds for construction purposes.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the Secretary of Defense, in fiscal year 2004, to use 
     operation and maintenance funds for military construction 
     requirements outside the United States, with specific 
     conditions. The Secretary of Defense, or a designee within 
     DOD in a position that requires confirmation by the Senate, 
     would have to determine:
       (1) that military construction would be necessary to 
     satisfy urgent requirements in support of temporary 
     operations related to a declaration of war, national 
     emergency, or a contingency operation;
       (2) that military construction would not be carried out at 
     a military installation where the United States is reasonably 
     expected to have a long-term presence, such as locations with 
     permanently stationed U.S. Armed Forces or locations 
     identified as forward operating bases for rotational U.S. 
     Armed Forces;
       (3) the United States would have no intention of using the 
     constructed facility or infrastructure after the operation 
     formally ceased; and
       (4) the level of construction would be the minimum 
     necessary to meet the operational requirement and temporary 
     methods of construction would be used to the extent 
     practicable to safely support the operation.
       The Secretary would also be required to submit a 
     notification to the congressional defense committees within 
     seven days after the obligation of funds with the following 
     information:
       (1) certification that the project meets the conditions 
     required by this provision;
       (2) a description of the operational requirement for which 
     funds have been obligated;
       (3) all relevant documentation detailing the construction 
     project, to include a Department of Defense Form 1391 and 
     other supporting information that fully explains the 
     construction project; and
       (4) a cost estimate of the total construction requirement 
     and the amount of funds that have been obligated to date.
       The Secretary would also be authorized to waive the $200.0 
     million limitation on the annual total obligation of 
     operation and maintenance funds for military construction 
     requirements if the Secretary determines that exceeding the 
     limitation is vital to the national security. The Secretary 
     must notify the congressional defense committees within five 
     days of granting such a waiver.
       The amendment would also clarify the relationship of this 
     provision to other authorities granted in title 10, United 
     States Code, for the use of operation and maintenance funds 
     for military construction requirements.
       The conferees support operational flexibility and the 
     ability of commanders to satisfy urgent requirements in 
     support of contingency operations. The temporary authority in 
     this provision is specifically written to facilitate these 
     activities under certain conditions without prior 
     notification to Congress. If this authorization does not 
     provide the necessary flexibility, the Department should seek 
     to amend existing law. If continuation of the authority is 
     desired, the conferees expect the Department of Defense to 
     include a legislative proposal related to this matter in the 
     fiscal year 2005 defense authorization request.
     Report on military construction requirements to support new 
         homeland defense missions of the armed forces (sec. 2809)
       The House bill contained a provision (sec. 2808) that would 
     require the Secretary of Defense to provide an annual 
     assessment of the anticipated military construction 
     requirements necessary to support current and future homeland 
     defense missions of the armed forces.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to report by February 15, 2004, on military 
     construction requirements identified to meet new homeland 
     defense missions of the armed forces. The report shall 
     include a list of military construction projects initiated to 
     support new homeland defense missions since September 11, 
     2001, and an assessment of military construction requirements 
     identified to meet the armed forces' homeland defense 
     missions during the next three years.
       The conferees recognize that defining ``new homeland 
     defense missions'' may be difficult. As such, the conferees 
     expect the report to include the Department of Defense 
     definition of specific homeland defense missions, which 
     should include requirements identified by the U.S. Northern 
     Command. The report should also address specific military 
     construction requirements, such as operations centers, that 
     would support other federal or state agencies contributing to 
     homeland defense missions. In addition, the report should 
     specifically address new military construction requirements 
     necessary to support combat air patrols over U.S. cities.
       The conferees intend the report to provide a baseline for 
     Congress to assess the adequacy of the Department's current 
     infrastructure and facilities, and its future infrastructure 
     and facility plans supporting the emerging homeland defense 
     requirements of the armed forces.

        Subtitle B--Real Property and Facilities Administration

     Enhancement of authority to acquire low-cost interests in 
         land (sec. 2811)
       The House bill contained a provision (sec. 2811) that would 
     amend section 2672 of title 10, United States Code, to 
     increase from $500,000 to $1,500,000 the limit on the amount 
     a service secretary may obligate to acquire land in the 
     interest of national defense. This provision would also amend 
     section 2672a of title 10, United States Code, to require a 
     service secretary who utilizes this authority to acquire land 
     to notify Congress within 10 days of determining that such an 
     acquisition is necessary. This provision would also amend 
     section 2662 of title 10, United States Code, which requires 
     service secretaries to report to Congress before entering 
     into certain real estate transactions. The Senate amendment 
     contained a similar provision (sec. 2811) that would amend 
     section 2662 of title 10, United States Code, by raising the 
     threshold of real property transactions that require 
     notification to the congressional defense committees.
       The Senate recedes with an amendment that would increase 
     from $500,000 to $750,000 the limit on the amount a service 
     secretary may obligate to acquire land under section 2672 of 
     title 10, United States Code. The Senate amendment would also 
     authorize the service secretary to acquire land under section 
     2672 up to $1,500,000 if the land is required to correct a 
     deficiency that is life-threatening, health-threatening or 
     safety-threatening. A separate Senate amendment to the House 
     bill (sec. 1021) would amend section 2662 of title 10, United 
     States Code, by raising the threshold of real property 
     transactions from $500,000 to $750,000 that require 
     notification to the congressional defense committees.
     Retention and availability of amounts realized from energy 
         cost savings (sec. 2812)
       The House bill contained a provision (sec. 1005) that would 
     allow the Department of Defense to obligate all funds 
     representing energy cost savings, not just two-thirds of such 
     funds, through the end of the fiscal year without additional 
     authorization or appropriation.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to identify in each fiscal year budget 
     submission the amounts available for obligation under this 
     authority.
     Acceptance of in-kind consideration for easements (sec. 2813)
       The Senate amendment contained a provision (sec. 2812) that 
     would amend sections 2668 and 2669 of title 10, United States 
     Code, to authorize the secretaries of the military 
     departments to accept in-kind payments in connection with 
     modification of existing and new easements for rights-of-way 
     and utilities. This provision would implement the same 
     process for the acceptance of in-kind considerations, as 
     directed in section 2667(c) of title 10, United States Code, 
     pertaining to the lease of property.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.

                Subtitle C--Base Closure and Realignment

     Consideration of public-access road issues related to base 
         closure, realignment, or placement in inactive status 
         (sec. 2821)
       The House bill contained a provision (sec. 2845) that would 
     amend section 2905(b) of the Defense Base Closure and 
     Realignment Act of 1990 (Public law 101-50) to require the 
     Secretary of Defense to consult with state and local 
     authorities on the continued availability of public roads 
     through, into, or around installations that have been closed, 
     realigned, or placed on inactive status by the Department of 
     Defense.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
     Consideration of surge requirements in 2005 round of base 
         realignments and closures (sec. 2822)
       The House bill contained a provision (sec. 2843) that would 
     amend section 2913(a) of the

[[Page 27892]]

     Defense Base Closure and Realignment Act of 1990 (Public Law 
     101-510) to require the Secretary of Defense, when making 
     closure and realignment recommendations, to use the force 
     structure plan included in section 2842 of the House bill.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Defense to assess the probable threats to 
     national security and, as part of such assessment, to 
     determine the potential, prudent, surge requirements 
     necessary to meet those threats. This provision would also 
     require the Secretary of Defense to use this determination in 
     the Base Realignment and Closure process.

                      Subtitle D--Land Conveyances


                        Part I--Army Conveyances

     Termination of lease and conveyance of Army Reserve Center, 
         Conway, Arkansas (sec. 2831)
       The House bill contained a provision (sec. 2821) that would 
     authorize the Secretary of the Army to terminate a property 
     lease with the University of Central Arkansas and convey, 
     without consideration, an existing Army Reserve Center on the 
     property that is no longer required by the Army to the 
     University of Central Arkansas.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees expect that the terms of legal liability for 
     facility conditions and compliance with environmental 
     requirements would be explicitly and formally agreed upon by 
     the Army and the University of Central Arkansas at the time 
     of the facility's conveyance.
     Land conveyance, Fort Campbell, Kentucky and Tennessee (sec. 
         2832)
       The House bill contained a provision (sec. 2824) that would 
     authorize the Secretary of the Army to convey a parcel of 
     property to the Department of Transportation of the State of 
     Tennessee for the purpose of realigning and expanding from 
     two to four lanes U.S. Highway 79 running through Fort 
     Campbell, Kentucky. In exchange, the Secretary would receive, 
     along with other considerations, approximately 200 acres of 
     replacement land, resulting in no net loss of training 
     capability at Fort Campbell. The provision would also 
     authorize the State to provide reimbursement for all 
     administration, survey, and other costs incurred by the 
     Secretary into the account from which funds originated.
       The Senate amendment contained a similar provision (sec. 
     2821).
       The House recedes with a technical amendment that would 
     clarify the source of funds available to the Department of 
     Transportation of the State of Tennessee.
     Land conveyance, Fort Knox, Kentucky (sec. 2833)
       The Senate amendment contained a provision (sec. 2822) that 
     would authorize the Secretary of the Army to convey, without 
     consideration, a parcel of real property consisting of 
     approximately 93 acres at Fort Knox to the Department of 
     Veterans Affairs of the Commonwealth of Kentucky for the 
     purpose of establishing a state-run cemetery for veterans of 
     the armed forces.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Army National Guard armory, Pierce City, Missouri (sec. 2834)
       The conferees agree to include a provision that would 
     authorize the Secretary of the Army to make a contribution 
     under section 18233(a) of title 10, United States Code, 
     without regard to the limits imposed by section 18236(b)(2) 
     of such title if the Secretary determines that:
       (1) a compelling and immediate need exists for the 
     facility;
       (2) the requirement for the facility was unforeseen and the 
     result of a natural disaster;
       (3) failure to construct the facility immediately would 
     have an adverse impact on the mission; and
       (4) the real property for the facility will be provided by 
     the State of Missouri.
       This provision would also authorize the Secretary of the 
     Army to accept real property from the State of Missouri of a 
     value not to exceed the financial contribution waived in this 
     provision.
     Land conveyance, Fort Belvoir, Virginia (sec. 2835)
       The House bill contained a provision (sec. 2827) that would 
     direct the Secretary of the Army to convey a parcel of 
     property consisting of approximately 10 acres and 
     improvements thereon at Fort Belvoir, Virginia, to the County 
     of Fairfax, Virginia. The provision would also authorize the 
     Secretary to receive reimbursement from the County for any 
     costs incurred by the conveyance of the parcel and to deposit 
     those funds into the accounts from which the costs were 
     expended.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would authorize 
     the Secretary of the Army to convey a parcel of property 
     consisting of approximately 12 acres at Fort Belvoir, 
     Virginia, to the County of Fairfax, Virginia, in exchange for 
     a parcel of property acceptable to the Secretary.


                       part II--navy conveyances

     Land conveyance, Navy property, Dixon, California (sec. 2841)
       The conferees agree to include a provision that would 
     authorize the Secretary of the Navy to convey, without 
     consideration, approximately 40 acres in Dixon, California, 
     to the Housing Authority of the city of Dixon, California, 
     for the purpose of permitting the Housing Authority to 
     continue to provide suitable housing and support services to 
     migrant workers. The Housing Authority would be required to 
     pay for or reimburse the Navy for costs incurred to carry out 
     the conveyance. This provision would also exempt the 
     conveyance from screening for further federal use.
     Land conveyance, Marine Corps Logistics Base, Albany, Georgia 
         (sec. 2842)
       The Senate amendment contained a provision (sec. 2823) that 
     would authorize the Secretary of the Navy to convey through 
     negotiated sale a parcel of property consisting of 
     approximately 11 acres at Marine Corps Logistics Base, 
     Albany, Georgia, to the Preferred Development Group 
     Corporation for the purpose of economic development.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment.
     Land conveyance, Naval and Marine Corps Reserve Center, 
         Portland, Oregon (sec. 2843)
       The Senate amendment contained a provision (sec. 2825) that 
     would authorize the Secretary of the Navy to convey a parcel 
     of property consisting of approximately 14 acres, and 
     improvements thereon, at the Naval and Marine Corps Reserve 
     Center, Portland, Oregon, to the United Parcel Service, 
     Incorporated, for the purpose of expanding a main 
     distribution complex. As consideration, the Secretary of the 
     Navy would receive property and new facilities equal to no 
     less than the fair market value of conveyed property, as 
     determined by the Secretary.
       The provision would also authorize the Secretary to receive 
     reimbursement for any costs incurred as a result of the 
     conveyance and to deposit those funds into the accounts from 
     which the costs were expended.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Land conveyance, Naval Reserve Center, Orange, Texas (sec. 
         2844)
       The House bill contained a provision (sec. 2826) that would 
     authorize the Secretary of the Navy to convey approximately 
     2.5 acres at Naval Reserve Center, Orange, Texas to the City 
     of Orange, Texas for the purpose of road construction, 
     economic development, and other public purposes. As 
     consideration, the City shall provide either cash payment or 
     other consideration equal to the fair market value of the 
     parcel, as determined by the Secretary.
       The provision also authorizes the Secretary of the Navy to 
     receive reimbursement from the City for costs incurred to 
     carry out the conveyance and to deposit this reimbursement 
     into the accounts from which funds were expended for services 
     related to the conveyance.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Land conveyance, Puget Sound Naval Shipyard, Bremerton, 
         Washington (sec. 2845)
       The House bill contained a provision (sec. 2828) that would 
     authorize the Secretary of the Navy to convey approximately 
     2.8 acres at the eastern end of the Puget Sound Naval 
     Shipyard, Bremerton, Washington, to the City of Bremerton, 
     Washington. As consideration, the City shall replace 
     administrative space on the parcel to be conveyed by 
     renovating approximately 7,500 square feet of existing space 
     in building 433 at Naval Station Bremerton to conditions 
     acceptable to the Secretary and at no cost to the United 
     States. In lieu of aforementioned renovation, the Secretary 
     may accept other facility alteration or repair of not than 
     less than equal value.
       The Secretary may also carry out environmental remediation 
     actions deemed necessary by the Secretary to conform to 
     section 120 of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 using funds available 
     in the Environmental Restoration Account.
       The provision would also authorize the Secretary to receive 
     reimbursement from the city for costs incurred to carry out 
     the conveyance and to deposit this reimbursement into the 
     accounts from which funds were expended for services related 
     to the conveyance.
       The Senate amendment contained no similar provision.
       The Senate recedes.


                    part III--air force conveyances

     Land exchange, March Air Reserve Base, California (sec. 2851)
       The conferees agree to include a provision that would 
     authorize the Secretary of the Army to convey five parcels, 
     including any

[[Page 27893]]

     improvements thereon, totaling approximately 37 acres at 
     March Air Reserve Base, California, to the March Joint Powers 
     Authority of Moreno Valley, California. This provision would 
     also authorize the Secretary of the Navy to convey two 
     parcels, including any improvements thereon, totaling 
     approximately 10 acres at March Air Reserve Base, California, 
     to the March Joint Powers Authority of Moreno Valley, 
     California. As consideration for the conveyances, the March 
     Joint Powers Authority would release interest in two 
     contiguous parcels of property at March Air Reserve Base, 
     consisting of 20 acres and 28 acres respectively. This 
     provision would also direct the Secretary of the Air Force to 
     transfer, without consideration, the same two parcels of land 
     to the Secretary of the Army.
     Actions to quiet title, Fallin Water Subdivision, Eglin Air 
         Force Base, Florida (sec. 2852)
       The House bill contained a provision (sec. 2822) that would 
     authorize the Secretary of the Air Force to quiet title to 
     tracts of land not to exceed a total of two acres at Eglin 
     Air Force Base, Florida, by conveying, acquiring, or 
     exchanging small parcels of land as consideration. This 
     authorization is intended to allow the Secretary to resolve 
     longstanding encroachment issues with local communities as a 
     result of inaccurate surveys.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Modification of land conveyance, Eglin Air Force Base, 
         Florida (sec. 2853)
       Public Law 91-347, an Act to Provide for the Conveyance of 
     Certain Real Property of the Federal Government to the Board 
     of Public Instruction, Okaloosa County, Florida, directed the 
     Secretary of the Air Force to transfer property to the School 
     Board of the County of Okaloosa, Florida, to support public 
     schools with a condition that any portion of the property not 
     used for public schools would be returned to the United 
     States.
       The House bill contained a provision (sec. 2823) that would 
     amend the Act to authorize the Okaloosa County School Board 
     to lease the undeveloped portion of the property to Okaloosa 
     County for other public uses.
       The Senate amendment contained no similar provision.
       The Senate recedes.


                       part IV--other conveyances

     Land conveyance, Army and Air Force Exchange Service 
         Property, Dallas, Texas (sec. 2861)
       The House bill contained a provision (sec. 2825) that would 
     authorize the Secretary of Defense to allow the Army and Air 
     Force Exchange Service (AAFES) to sell a parcel of real 
     property, including improvements, at 15 Roundtable Drive in 
     Dallas, Texas, at fair market value and to retain funds 
     received within AAFES-controlled accounts.
       The Senate amendment contained a similar provision (sec. 
     2824).
       The House recedes with a technical amendment.
     Land conveyance, Umnak Island, Alaska (sec. 2862)
       The conferees agree to include a provision that would 
     authorize the Secretary of the Air Force to relinquish the 
     claim of the former Nikolski Radio Relay Site (NRRS) on Umnak 
     Island, Alaska in order for the Secretary of the Interior to 
     carry out the following actions:
       (1) To receive as consideration all rights to lot 1, 
     section 14, township 81 south, range 133 west, Seward 
     meridian, Alaska. (2) Upon confirmation of the receipt of 
     consideration, to convey phase I of the surface estate of the 
     former radio relay site to the Chaluka Corporation as soon as 
     practicable, to convey phase II of the surface estate of the 
     former NRRS to the Chaluka Corporation upon the Department of 
     the Air Force's completion of environmental restoration in 
     accordance with applicable laws, and to convey the subsurface 
     estate of the former NRRS to the Aleut Corporation.
       This provision would also reaffirm the applicability of 
     section 120(h) of the Comprehensive Environmental Response, 
     Compensation, and Liability Act of 1980 (42 USC 9620(h)) and 
     other applicable laws for all conveyances.
       This provision would require the property conveyed to the 
     Chaluka Corporation and to the Aleut Corporation to be a part 
     of, and subject to, the Alaska Native Claims Settlement Act 
     (43 United States Code, section 1601 et seq.)
       This provision would also require the Secretary of the 
     Interior to convey without consideration an estate in fee 
     simple in each of lots 1, 2, 5, 6, and 9 of Tract B of 
     amended United States Survey 4904, that is the subject of an 
     Aleutian Housing Authority mutual help occupancy agreement, 
     to the Aleutian Housing Authority. This provision would also 
     require the Secretary of the Interior to convey without 
     consideration the remainder of such lots to the occupants of 
     such lots as of the date of the enactment of this Act.
       This provision would also require the Secretary of the 
     Interior to convey without consideration an estate in fee 
     simple in the Nikolski powerhouse land to the Indian 
     Reorganization Act Tribal Government for the Native Village 
     of Nikolski upon completion of environmental restoration if, 
     after the restoration is completed, the powerhouse continues 
     to be located on the Nikolski powerhouse land. If the 
     powerhouse is no longer located on the Nikolski powerhouse 
     land, this provision would require the Secretary of the 
     Interior to convey without consideration the surface estate 
     of the Nikolski powerhouse land to the Chaluka Corporation 
     and the subsurface estate of the powerhouse land to the Aleut 
     Corporation upon completion of environmental restoration.
       This provision would also require the Chaluka Corporation 
     to permit United States personnel to have unrestricted access 
     in perpetuity to the airfield at Nikolski for any activity 
     associated with site investigation, environmental monitoring, 
     restoration and remediation of the former Nikolski Radio 
     Relay Site. This provision would also require the Chaluka 
     Corporation to permit United States personnel to have 
     reasonable access to the airfield at Nikolski for any 
     activity associated with management of lands owned by the 
     United States and for other government purposes without cost 
     to the United States.
       This provision would also direct the surface estate of 
     Phase I and Phase II lands to be subject to the public's 
     right of access over Hill and Beach Streets, located on Tract 
     B of United States Survey 4904.
       This provision would also authorize the Secretary of the 
     Air Force to transfer $1.7 million of appropriated funds to 
     the Alaska Energy Authority for the purpose of assisting the 
     Authority to perform environmental restoration of the 
     Nikolski powerhouse land.
       This provision would cease to be effective if either the 
     Chaluka Corporation or the Aleut Corporation affirmatively 
     rejects the offer of conveyance or if required legally 
     binding resolutions are not submitted to the Secretary of the 
     Interior before the end of a 180-day period specified in this 
     provision.

                       Subtitle E--Other Matters

     Authority to accept guarantees with gifts in development of 
         the Marine Corps Heritage Center, Marine Corps Base, 
         Quantico, Virginia (sec. 2871)
       The Senate amendment contained a provision (sec. 1033) that 
     would authorize the Secretary of the Navy to use authority in 
     section 6975 of Title 10, United States Code, to accept 
     guarantees with gifts in development of the Marine Corps 
     Heritage Center, Marine Corps Base, Quantico, Virginia. The 
     authorization would expire on December 31, 2006.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     move the provision from Title X of this Act to the Military 
     Construction Authorization Act for Fiscal Year 2004, and 
     would amend section 2884 of the Military Construction 
     Authorization Act for Fiscal Year 2001 (Public law 106-398).
     Redesignation of Yuma Training Range Complex as Bob Stump 
         Training Range Complex (sec. 2872)
       The House bill contained a provision (sec. 2841) that would 
     rename the Yuma Training Range Complex the Bob Stump Training 
     Range Complex in honor of the former chairman of the House 
     Committee on Armed Services, Bob Stump. The conferees note 
     that renaming the Yuma Training Range Complex in Congressman 
     Stump's honor is particularly fitting, as the congressman was 
     a cosponsor of legislation in 1985 that created the Barry M. 
     Goldwater Range, used in part by the Yuma Training Range 
     Complex and supported by Luke Air Force Base, Arizona.
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Feasibility study of conveyance of Louisiana Army Ammunition 
         Plant, Doyline, Louisiana (sec. 2873)
       The Senate amendment contained a provision (sec. 2827) that 
     would authorize the Secretary of the Army to conduct a study 
     of the feasibility, costs, and benefits of entering into a 
     public-private partnership for utilization and development of 
     the Louisiana Army Ammunition Plant, Doyline, Louisiana. The 
     study would consider the means by which a conveyance of the 
     plant could facilitate more efficient support for military 
     missions and the potential consideration provided for such 
     conveyance. The study would include evidence provided by the 
     State regarding the potential benefit to current and future 
     private sector and government tenants of the plant, as well 
     as the potential economic benefit to the surrounding 
     community. The report would be due to the congressional 
     defense committees not later than 180 days from enactment of 
     this Act.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.

                   Legislative Provisions Not Adopted

     Exemption from screening and use requirements under McKinney-
         Vento Homeless Assistance Act for Department of Defense 
         property in emergency support of homeland security
       The Senate amendment contained a provision (sec. 2814) that 
     would amend section 11411 of title 42, United States Code, to 
     provide an exemption for Department of Defense (DOD) property 
     from the requirement to

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     screen excess or surplus property for other uses when the 
     Secretary of Defense determines that such DOD property should 
     be made available for use by a state or local government or 
     private entity on a temporary basis to support homeland 
     security.
       The House bill contained no similar provision.
       The Senate recedes.
       The conferees agree that current law does not require 
     screening under the McKinney-Vento Homeless Assistance Act 
     (42 U.S.C. 11411) for the temporary transfer of DOD 
     facilities to support contingency responses for homeland 
     security activities, provided the property is returned to its 
     previous legal status when the Secretary determines the 
     property is no longer needed for the contingency response.
     Land conveyance, Fort Ritchie, Maryland
       The Senate amendment contained a provision (sec. 2826) that 
     would authorize the Secretary of the Army to convey, without 
     consideration, a parcel of property consisting of 
     approximately 33 acres at the former Fort Ritchie, Maryland, 
     to the PenMar Development Corporation, a public 
     instrumentality of the State of Maryland, for the purpose of 
     economic development.
       The House bill contained no similar provision.
       The Senate recedes.
     Sense of Congress on demolition of Army Tacony Warehouse 
         Depot Site, Philadelphia, Pennsylvania
       The House bill contained a provision (sec. 2812) that would 
     express the sense of Congress that the Secretary of the Army 
     should take swift action to demolish the Tacony warehouse at 
     Philadelphia, Pennsylvania.
       The Senate amendment contained no similar provision.
       The House recedes.
     Modification of authority to conduct a round of realignments 
         and closures of military installations in 2005
       The House bill contained a provision (sec. 2842) that would 
     amend section 2912(a) of the Defense Base Closure and 
     Realignment Act of 1990 (Public Law 101-510) as amended by 
     section 3001 of the National Defense Authorization Act for 
     Fiscal Year 2002 (Public Law 107-107) to define the 
     parameters by which the Secretary of Defense determines 
     military force structure and infrastructure requirements. 
     This provision would require the Secretary of Defense to 
     submit a force structure plan that assumes, at a minimum, the 
     1991 Base Force Structure plan. In addition, the Secretary's 
     description of supporting infrastructure must be capable of 
     sustaining the entire planned force structure if no U.S. 
     forces were permanently based outside of the United States. 
     This provision would also amend current law to require the 
     Secretary of Defense to submit, not later than April 1, 2005, 
     a list of core military installations considered absolutely 
     essential to national defense, to the base closure 
     commission. This list must contain at least 50 percent of the 
     total number of installations within the United States that 
     would be eliminated from consideration for closure or 
     realignment.
       The Senate amendment contained no similar provision.
       The House recedes.
     Requirement for unanimous vote of defense base realignment 
         and closure commission to recommend closure of military 
         installations not recommended for closure by the 
         Secretary of Defense
       The House bill contained a provision (sec. 2844) that would 
     amend section 2914(d) of the Defense Base Closure and 
     Realignment Act of 1990 (Public Law 101-510) as amended by 
     section 3003 of the National Defense Authorization Act for 
     Fiscal Year 2002 (Public Law 107-107) to require a unanimous 
     vote of the base closure commission to add an installation to 
     the list of bases recommended for closure by the Secretary of 
     Defense.
       The Senate amendment contained no similar provision.
       The House recedes.
     Review of overseas military facility structure
       The Senate amendment contained a provision (secs. 2841-
     2848) that would establish a commission to conduct a thorough 
     study of matters related to U.S. military facility structure 
     overseas. The Commission would assess the adequacy of current 
     U.S. overseas basing structure to execute current missions 
     and the feasibility of closures, realignments, or 
     establishment of new installations overseas to meet emerging 
     defense requirements. The Commission would not take the place 
     of or preclude in any way the ongoing efforts by the 
     Department of Defense to conduct its own review and to 
     develop a comprehensive and integrated global presence and 
     basing strategy.
       This provision would also authorize $3.0 million from the 
     Department of Defense operations and maintenance account to 
     be available to the Commission to carry out its specified 
     responsibilities.
       The House bill contained no similar provision.
       The Senate recedes with the acknowledgment that a similar 
     provision has been included in the fiscal year 2004 Military 
     Construction Appropriations Act.

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

      Title XXXI--Department of Energy National Security Programs

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         Subtitle A--National Security Programs Authorizations

     National Nuclear Security Administration (sec. 3101)
       The House bill contained a provision (sec. 3101) that would 
     authorize $8.8 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 (sec. 
     3101).
       The conferees agree to include a provision that would 
     authorize $8.9 billion for NNSA.
       The budget request included $405.7 million in stockpile 
     maintenance for directed stockpile work. The conferees agree 
     to authorize $415.7 million for directed stockpile work, an 
     increase of $10.0 million, to support activities at the Y-12 
     Plant in Oak Ridge, Tennessee, to replace aging manufacturing 
     process equipment and support systems at Y-12.
       The budget request included $65.8 million for the primary 
     certification campaign. The conferees agree to $64.8 million, 
     a decrease of $1.0 million.
       The budget request included $66.0 million in operations and 
     maintenance for the advanced radiography campaign. The 
     conferees agree to authorize $61.0 million for the advanced 
     radiography campaign, a decrease of $5.0 million. The 
     conferees urge NNSA to focus on delivering the radiographic 
     tools essential to its nearer term production requirements.
       The budget request included $38.0 million for the enhanced 
     surety campaign. The conferees agree to authorize $37.0 
     million for the enhanced surety campaign, a decrease of $1.0 
     million.
       The budget request included $94.8 million for the enhanced 
     surveillance campaign. The conferees agree to authorize $92.8 
     million for the enhanced surveillance campaign, a decrease of 
     $2.0 million.
       The budget request included $316.8 million in operations 
     and maintenance for the inertial confinement fusion (ICF) and 
     high yield campaign. The conferees agree to authorize $311.8 
     million for the ICF and high yield campaign, a decrease of 
     $5.0 million. While the conferees believe diagnostics and 
     target fabrication capabilities have been under emphasized in 
     the past, the conferees question whether such a large budget 
     increase could be executed effectively.
       The budget request included $713.3 million in operations 
     and maintenance for the advanced simulation and computing 
     campaign. The conferees agree to authorize $688.3 million for 
     the advanced simulation and computing campaign, a decrease of 
     $25.0 million.
       The budget request included $29.6 million for the high 
     explosives manufacturing and weapons assembly and disassembly 
     readiness campaign. The conferees agree to authorize $27.6 
     million for the high explosives manufacturing and weapons 
     assembly and disassembly readiness campaign, a decrease of 
     $2.0 million.
       The budget request included $37.4 million for the non-
     nuclear readiness campaign. The conferees agree to authorize 
     $34.4 million for the non-nuclear readiness campaign, a 
     decrease of $3.0 million.
       The budget request included $1.3 billion for Readiness in 
     Technical Base and Facilities (RTBF). The conferees agree to 
     authorize $1.4 billion, an increase of $106.3 million for the 
     operations of facilities program to include a $7 million 
     increase for facilities maintenance and legacy material 
     stewardship at Y-12, and a $20.0 million increase for plant 
     maintenance, plant projects and capital equipment at Pantex.
       The budget request included $50.0 million for RTBF to begin 
     construction of a national security sciences building 
     (project 04-D-104) at Los Alamos National Laboratory (LANL). 
     The conferees agree to authorize $38.0 million for project 
     03-D-102, a decrease of $12.0 million. The national security 
     sciences building at LANL, listed as 03-D-102, received an 
     advanced appropriation in fiscal year 2003 of $12.0 million. 
     The conferees note that construction projects should be 
     authorized prior to obligation of funds.
       The budget request included $585.8 million for safeguards 
     and security. The conferees agree to authorize $582.3 million 
     for safeguards and security, a decrease of $3.5 million in 
     physical and cyber security research and development. The 
     conferees note that the proposed activities would be largely 
     duplicative of research the Department of Energy requested in 
     other defense activities. Of the amounts authorized for 
     safeguards and security, the conferees agree to authorize the 
     Department to expend appropriated funds available, not to 
     exceed $8.0 million, for the planning, engineering, and 
     design of a proposed Security Improvements project at the Y-
     12 National Security Complex.
       The budget request included $226.0 million for 
     international nuclear materials protection and cooperation. 
     The conferees agree to authorize $231.0 million, an increase 
     of $5.0 million for the second line of defense program which 
     helps to prevent nuclear materials from being smuggled across 
     Russian and other international borders. The budget request 
     included $30.0 million for accelerated materials disposition. 
     The conferees agree to authorize $25.0 million for 
     accelerated materials disposition, a decrease of $5.0 
     million. The conferees note their concern with the cost-
     effectiveness of this program.
     Defense environmental management (sec. 3102)
       The House bill contained a provision (sec. 3102) that would 
     authorize $6.8 billion for the Department of Energy for 
     defense environmental management (EM) activities for fiscal 
     year 2004, including funds for defense site acceleration 
     completion and defense environmental services.
       The Senate amendment contained a similar provision (sec. 
     3102) that would authorize $6.8 billion for defense 
     environmental activities.
       The conferees agree to authorize $6.8 billion for defense 
     environmental management, the amounts of the budget request, 
     including $5.8 billion for defense site acceleration 
     completion and $995.2 million for defense environmental 
     services.
       The conferees support the continuing efforts of the 
     Department of Energy to accelerate cleanup at all of the 
     environmental management (EM) sites, which will result in 
     reducing risk to the environment, workers, and the community, 
     shortening cleanup schedules, and saving tens of billions of 
     dollars across the EM complex. The conferees also support a 
     policy that would take funds made available due to the 
     cleanup completion of Fernald, Mound, Rocky Flats and other 
     sites, and roll them into the remaining EM sites to help 
     accelerate their completion even sooner, if possible.
     Other defense activities (sec. 3103)
       The House bill contained a provision (sec. 3103) that would 
     authorize $497.3 million for the Department of Energy (DOE) 
     for other defense activities for fiscal year 2004.
       The Senate amendment contained a similar provision (sec. 
     3103) that would authorize $465.1 million for DOE other 
     defense activities.
       The conferees agreed to authorize $489.1 million, a 
     reduction of $5.3 million below the budget request.
       The budget request included $4.3 million for program 
     direction for energy security and assurance. The conferees 
     agree to authorize no funds for these activities. These funds 
     are requested for program direction costs for an operational 
     component of this office that was transferred to the 
     Department of Homeland Security (DHS) in fiscal year 2003. 
     The conferees note that funding for this component should be 
     included in the DHS budget.
       The budget request included $15.0 million for worker and 
     community transition (WCT), including $2.7 million for 
     program direction. The conferees agree to include $14.0 
     million for WCT, a reduction of $1.0 million to be taken out 
     of the program direction activities. The conferees note that 
     the request for programmatic funds drops 46 percent from 
     fiscal year 2003, while program direction remains level. The 
     conferees have included a proportional decrease to program 
     direction.
     Defense nuclear waste disposal (sec. 3104)
       The House bill contained a provision (sec. 3104) that would 
     authorize $430.0 million for defense nuclear waste disposal 
     for fiscal year 2004.
       The Senate amendment contained a similar provision (sec. 
     3104) that would authorize $360.0 million for defense nuclear 
     waste disposal.
       The conferees agree to authorize $392.5 million for defense 
     nuclear waste disposal, a decrease of $37.5 million to the 
     budget request. The conferrees note that the authorized 
     amount for defense nuclear waste disposal reflects a $79.5 
     million increase to the fiscal year 2003 appropriated level.
     Energy supply (sec. 3105)
       The House bill contained a provision (sec. 3105) that would 
     authorize $110.5 million for defense energy supply programs 
     for fiscal year 2004
       The Senate amendment contained a similar provision (sec. 
     3105) that would authorize $110.5 million.
       The conferees agree to authorize $110.5 million for defense 
     energy supply programs for fiscal year 2004, the amount of 
     the budget request.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

     Termination of requirement for annual updates of long-term 
         plan for nuclear weapons stockpile life extension program 
         (sec. 3111)
       The House bill contained a provision (sec. 3112) that would 
     terminate certain annual reporting requirements related to 
     stockpile life extension programs, effective December 31, 
     2004.
       The Senate amendment contained no similar provision.
       The Senate recedes with a technical amendment.
       The conferees note that this material should be included in 
     the annual report submitted by the National Nuclear Security 
     Administration on the overall stockpile stewardship program, 
     as well as other required reports. The annual report just 
     received by Congress was extremely late. The conferees expect 
     subsequent reports to be submitted on time.
     Department of Energy project review groups not subject to 
         Federal Advisory Committee Act by reason of inclusion of 
         employees of Department of Energy management and 
         operating contractors (sec. 3112)
       The House bill contained a provision (sec. 3114) that would 
     allow an officer or employee

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     of a management and operating (M&O) contractor of the 
     Department of Energy, when serving on an advisory committee 
     or review group for the Department on matters related to the 
     Department's M&O contracts, to be treated as an officer or 
     employee of the Department for the purposes of determining 
     whether the group is an advisory committee within the meaning 
     of section 3 of the Federal Advisory Committee Act (5 United 
     States Code App.).
       The Senate amendment contained no similar provision.
       The Senate recedes.
     Readiness posture for resumption by the United States of 
         underground nuclear weapons tests (sec. 3113)
       The Senate amendment contained a provision (sec. 3132) that 
     would require the Secretary of Energy to achieve, and 
     thereafter maintain, a posture of 18 months for resumption by 
     the United States of underground nuclear tests. The Secretary 
     of Energy would achieve this readiness posture by October 1, 
     2006. However, if, through the review conducted to comply 
     with section 3142(c) of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003, the Secretary 
     determined that a different readiness posture was feasible 
     and advisable, then the provision would require the Secretary 
     to achieve, and thereafter maintain, that optimal test 
     readiness posture.
       The House bill contained no similar provision.
       The House recedes with an amendment that would eliminate 
     the requirement for the Secretary to identify an optimal test 
     readiness posture in lieu of 18 months. Consistent with 
     subsection 3142(c) of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314), 
     the Secretary determined that 18 months is the optimal test 
     readiness posture. Furthermore, the amendment clarified that 
     the readiness posture should be ``not more'' than 18 months 
     for resumption by the United States of underground nuclear 
     tests.
     Technical base and facilities maintenance and 
         recapitalization activities (sec. 3114)
       The Senate amendment contained a provision (sec. 3133) that 
     would require the Administrator for Nuclear Security to add 
     discipline, criteria, and new requirements and limitations to 
     the Operations of Facilities Program within the Readiness in 
     Technical Base and Facilities (RTBF) Program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Administrator to submit a report to the congressional defense 
     committees setting forth guidelines on how NNSA's current and 
     future maintenance needs shall be met, including the types of 
     criteria to be used. The goal of the guidelines included in 
     the report should be to avoid NNSA maintenance backlogs. The 
     Administrator of NNSA would be required to complete the 
     selection of the Facilities and Infrastructure 
     Recapitalization Program (FIRP) projects by December 31, 
     2004. The Operations of Facilities Program would remain a 
     subprogram within the RTBF Program. Within the RTBF Program, 
     the Deputy Administrator for Defense Programs would be 
     required to appoint an individual manager to ensure the 
     Operations of Facilities Program receives the focus and 
     priority it requires. Finally, the amendment would require 
     the Secretary of Energy to submit a detailed budget 
     justification for the Operations of Facilities Program broken 
     down into individual budget elements.
       The conferees note that FIRP was originally envisioned and 
     introduced to Congress as a ten-year program with a narrow 
     and specific goal of eliminating the enormous maintenance 
     backlog, which had accumulated over many years. Accordingly, 
     FIRP would terminate on September 30, 2011, at the end of the 
     program's tenth year.
       The conferees are concerned that the NNSA has not placed 
     enough priority on future maintenance and repair needs across 
     the nuclear weapons complex. While FIRP seems to be making 
     significant progress in addressing maintenance backlogs, the 
     NNSA needs to make much more progress in addressing current 
     and future maintenance and repair needs within the RTBF 
     program.
     Continuation of processing, treatment, and disposition of 
         legacy nuclear materials (sec. 3115)
       The Senate amendment contained a provision (sec. 3134) that 
     would amend section 3137 of the National Defense 
     Authorization Act for Fiscal Year 2001 (Public Law 106-398) 
     that prohibited the Department of Energy (DOE) from 
     decommissioning the F Canyon facility at the Savannah River 
     Site until the Secretary of Energy and the Defense Nuclear 
     Facilities Safety Board (DNFSB) jointly submits a report to 
     the Committees on Armed Services of the Senate and the House 
     of Representatives. The report would set forth an assessment 
     of whether or not all materials present in the F Canyon are 
     safely stabilized and future needs for fissile materials 
     disposition can be met through H Canyon. The Senate provision 
     would amend section 3137 of the National Defense 
     Authorization Act for Fiscal Year 2001 by deleting the 
     requirement that F Canyon be maintained in a high state of 
     readiness and eliminating the DNFSB certification 
     requirement. In addition, the provision would require the DOE 
     to submit a report to the congressional defense committees 
     and the DNFSB before commencing the decommissioning of F 
     Canyon. The provision would retain the requirement that H 
     Canyon be maintained in a high state of readiness to ensure 
     the availability of H Canyon for any future canyon processing 
     needs.
       The House bill contained no similar provision.
       The House recedes with a technical amendment.
     Repeal of prohibition on research and development of low-
         yield nuclear weapons (sec. 3116)
       The House bill contained a provision (sec. 3111) that would 
     amend section 3136 of the National Defense Authorization Act 
     for Fiscal Year 1994 (Public Law 103-160). The provision 
     would maintain the prohibition on development of new nuclear 
     weapons with yields less than five kilotons, but would allow 
     research on such weapons, including concept definition 
     studies, feasibility studies, and detailed engineering 
     design.
       The Senate amendment contained a similar provision (sec. 
     3131) that: (1) would repeal section 3136 of the National 
     Defense Authorization Act for Fiscal Year 1994 and thereby 
     end the prohibition on research and development of low-yield 
     nuclear weapons; (2) would state that nothing in the 
     provision should be construed as authorizing the testing, 
     acquisition, or deployment of a low-yield nuclear weapon; (3) 
     would require the Secretary of Energy to obtain specific 
     congressional authorization before commencing the engineering 
     development phase, or any subsequent phase, of a low-yield 
     nuclear weapon; and (4) would require the Secretary of State, 
     the Secretary of Defense and the Secretary of Energy to 
     jointly submit to Congress, no later than March 1, 2004, a 
     report assessing whether or not the repeal of section 3136 of 
     the National Authorization Act for Fiscal Year 1994 would 
     effect the ability of the United States to achieve its 
     nonproliferation objectives and whether or not any changes in 
     programs and activities would be required to achieve those 
     objectives.
       The House recedes.
     Requirement for specific authorization of Congress for 
         commencement of engineering development phase or 
         subsequent phase of robust nuclear earth penetrator (sec. 
         3117)
       The Senate amendment contained a provision (sec. 3135) that 
     would require the Secretary of Energy to obtain specific 
     authorization from Congress to commence development 
     engineering (phase 6.3) of the nuclear weapons development 
     process, or any subsequent phase, of a robust nuclear earth 
     penetrator weapon.
       The House bill contained no similar provision.
       The House recedes.

                   Subtitle C--Proliferation Matters

     Semi-annual financial reports on Defense Nuclear 
         Nonproliferation Programs (sec. 3121)
       The Senate bill contained a provision (sec. 3142) that 
     would require the Administrator for Nuclear Security to 
     submit to the Committees on Armed Services of the Senate and 
     House of Representatives a report every six months on the 
     financial status of Defense Nuclear Nonproliferation 
     Programs. Each semi-annual report would describe the amount 
     of funds authorized to be appropriated for the fiscal year in 
     which the report would be submitted, and include the 
     aggregate amount appropriated for that fiscal year, the 
     amounts obligated, committed, and disbursed as of the end of 
     the reporting period, and the amounts that remain available 
     for obligation. The first report would be required in fiscal 
     year 2004.
       The House bill contained no similar provision.
       The House recedes with a clarifying amendment that would 
     require the Administrator for Nuclear Security to submit to 
     the Committees on Armed Services of the Senate and House of 
     Representatives a report every six months on the financial 
     status of the Defense Nuclear Nonproliferation Programs by 
     program. Each semi-annual report would set forth the amount 
     of funds available for the fiscal year in which the report 
     would be submitted, the carry over or uncommitted balances, 
     the unobligated and unexpended balances as of the beginning 
     of the reporting period, the aggregate of any new funds 
     available during the reporting period, and the uncommitted or 
     unobligated and unexpended balances as of the end of the 
     reporting period. The reports are due to the committees 30 
     calendar days after the end of each fiscal half of the fiscal 
     year. The first report would be due April 30, 2004, and would 
     cover the first six months of fiscal year 2004.
       Because the conferees are concerned with the high level of 
     unexpended and unobligated balances in the Defense Nuclear 
     Nonproliferation Programs, the conferees believe it is 
     necessary that the program improve its budget management to 
     expend funds in a timely and efficient manner without 
     sacrificing oversight. The conferees believe that semi-annual 
     financial reporting will assist the committees with tracking 
     program expenditures to ensure that the national security 
     benefit proposed by the Defense Nuclear Nonproliferation 
     Programs can be realized.

[[Page 27918]]


     Report on reduction of excessive unobligated or unexpended 
         balances for defense nuclear nonproliferation activities 
         (sec. 3122)
       The Senate bill contained a provision (sec. 3143) that 
     would require the Administrator for Nuclear Security to 
     provide the Committees on Armed Services of the Senate and 
     the House of Representatives with an aggressive plan to 
     reduce the amount of funds obligated but not expended for the 
     Defense Nuclear Nonproliferation Program if, at the end of 
     fiscal year 2004, the program's obligated but not expended 
     balances exceed 20 percent of the amount appropriated for the 
     program in fiscal year 2004. This plan would be due not later 
     than November 30, 2004. The purpose of the plan would be to 
     provide the committees with the Department of Energy's 
     strategic approach to addressing the low expenditures of 
     defense nuclear nonproliferation appropriated funds from 
     current and previous fiscal years.
       The House bill contained no similar provision.
       The House recedes with technical amendments.
       The conferees believe the Defense Nuclear Nonproliferation 
     Program should strive to attain the department-wide average 
     of 15 percent obligated but not expended level per fiscal 
     year. Currently, the funds available for the program include 
     almost 50 percent uncosted and unexpended balances. The 
     conferees believe the program must address these expenditure 
     rates immediately by taking a more focused and aggressive 
     approach to expending these funds without sacrificing 
     accountability, management, and oversight. The conferees urge 
     the program to consider innovative methods in developing and 
     implementing such an approach, such as utilizing more robust 
     information technology systems to better track project 
     expenditure rates and contracting activities.
     Study and report relating to weapons-grade uranium and 
         plutonium of the independent states of the former Soviet 
         Union (sec. 3123)
       The House bill contained a provision (sec. 1308) that would 
     require the Secretary of Defense to conduct a study and 
     submit a report to Congress not later than one year after the 
     date of enactment of this Act. The study would examine the 
     costs and benefits of purchasing all former Soviet Union 
     weapons-grade uranium and plutonium in fiscal year 2005 and 
     safeguarding it from smuggling or theft until it could be 
     rendered unusable for nuclear weapons.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary of Energy to conduct a study and submit a report to 
     Congress not later than one year after the date of enactment 
     that would examine the feasibility, costs, and benefits of 
     purchasing former Soviet Union weapons-grade uranium and 
     plutonium excess to defense needs, and the feasibility and 
     costs of safeguarding this material from theft until it can 
     be rendered unusable for nuclear weapons. The conferees 
     encourage the Secretary to include in the study an analysis 
     of the feasibility of purchasing this material in one year, 
     as well as other options in quantity and timing as the 
     Secretary considers appropriate, and to consider several 
     possible locations for safeguarding this material using risk 
     of theft, cost, and practicality as metrics.
     Authority to Use International Nuclear Materials Protection 
         and Cooperation program funds outside the former Soviet 
         Union (sec. 3124)
       The Senate amendment contained a provision (sec. 3141) that 
     would authorize the Secretary of Energy to conduct nuclear 
     nonproliferation threat reduction activities and projects 
     outside the states of the former Soviet Union for the 
     International Nuclear Materials Protection and Cooperation 
     program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     President to make certain determinations and to notify the 
     Congress in writing within 10 days after obligating funds 
     under this authority of those determinations as follows: (1) 
     that the project or activity will assist the United States in 
     the resolution of a critical emerging proliferation threat; 
     or permit the United States to take advantage of 
     opportunities to achieve long-standing nonproliferation 
     goals; (2) that the Department of Energy is the entity of 
     government most capable of carrying out the project or 
     activity; and (3) that the project or activity will be 
     completed in a short period of time. The written notification 
     is to include a justification for the determinations and a 
     description of the scope and duration of the project or 
     activity.
       The conferees expect that the President would assign such 
     projects or activities to the agency whose mission is most 
     appropriate to the project or activity. The conferees further 
     expect that this authority will be used only for projects or 
     activities that are expected to be completed within a short 
     period of time.
     Requirement for on-site managers (sec. 3125)
       The House bill contained a provision (sec. 3117) that would 
     require the Secretary of Energy to appoint a federal employee 
     as an on-site manager before obligation of funds for any 
     defense nuclear nonproliferation program that involves 
     dismantlement, destruction, or storage facilities, or 
     construction of a facility, and that is executed in a state 
     of the former Soviet Union, if the total contribution by the 
     Department of Energy is expected to exceed $25.0 million.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     Secretary to appoint an employee of the Federal Government as 
     an on-site manager to oversee any defense nuclear 
     nonproliferation program that involves dismantlement, 
     destruction, or storage facilities, or construction of a 
     facility, and that is executed in a state of the former 
     Soviet Union, if the total contribution by the Department is 
     expected to exceed $50.0 million. The amendment would allow 
     one individual to serve as the site manager for more than one 
     project so long as the total cost of the projects does not 
     exceed $150.0 million for that fiscal year.

                       Subtitle D--Other Matters

     Performance of personnel security investigations of certain 
         Department of Energy and Nuclear Regulatory Commission 
         Employees in Sensitive Programs (sec. 3131)
       The Senate amendment contained a provision (sec. 3151) that 
     would amend section 145 of the Atomic Energy Act of 1954 
     (Public Law 83-703) to provide the Secretary of Energy the 
     authority to refer security investigations to either the 
     Federal Bureau of Investigations (FBI) or the Office of 
     Personnel Management (OPM). Current law requires the FBI to 
     investigate all initial personnel security investigations and 
     all reinvestigations for DOE federal and contractor employees 
     assigned to a Department of Energy Special Access Program 
     (SAP) or a Personnel Security and Assurance Program.
       The House bill contained no similar provision.
       The House recedes with an amendment that would amend 
     section 145(e)(2) of the Atomic Energy Act of 1954 to repeal 
     the requirement that the Secretary or the Commissioner of the 
     Nuclear Regulatory Commission (NRC), as successors to the 
     Atomic Energy Commission, must refer security investigations 
     concerning DOE federal and contractor employees assigned to a 
     Personnel Security and Assurance Program to the FBI. Under 
     this provision, the Secretary or Commissioner would have the 
     authority to refer such personnel security investigations to 
     either the FBI or OPM, as successor to the Civil Service 
     Commission. Nothing in this provision would change the 
     requirement that the Secretary or Commissioner must refer 
     security investigations to the FBI for DOE federal and 
     contractor employees assigned to a DOE Special Access 
     Program, or the authority to refer security investigations to 
     the FBI for personnel that the Secretary or the Commissioner 
     certifies, due to their specific position, to be of a high 
     degree of importance or sensitivity.
     Policy of Department of Energy regarding future defense 
         environmental management matters (sec. 3132)
       The Senate amendment contained a provision (sec. 3152) that 
     would require the Secretary of Energy to establish a policy 
     to clarify the shared or overlapping responsibilities between 
     the Environmental Management (EM) program and the National 
     Nuclear Security Administration (NNSA). This provision would 
     require the Secretary to include a report declaring DOE's 
     policy on these matters to be submitted with the 
     administration's budget request for fiscal year 2005.
       The provision would also require the Secretary of Energy to 
     prepare a plan to implement the new policy to be presented 
     with the administration's budget request for fiscal year 
     2006.
       The House bill contained no similar provision.
       The House recedes with an amendment that would require the 
     Secretary of Energy to put in place, not later than October 
     1, 2005, a policy for carrying out future defense 
     environmental management matters that have not already been 
     included or considered in the Defense Site Acceleration 
     Completion plan. The Secretary of Energy shall include in the 
     budget submission for fiscal year 2005 a report on the policy 
     the Secretary plans to have in effect as of October 1, 2005. 
     The Secretary of Energy must have the policy in effect no 
     later than October 1, 2005, and reflect the policy in the 
     budget submission for fiscal year 2006 and each fiscal year 
     thereafter.
       The conferees support EM's initiative to accelerate cleanup 
     across the entire NNSA and former nuclear weapons facilities 
     complex. However, as the Secretary seeks to define and 
     designate the complete scope of cleanup and waste management 
     within the accelerated cleanup initiative, the conferees want 
     to ensure that it is clear which program will be responsible 
     for future defense EM matters. The Secretary of Energy can 
     clarify this matter by establishing a clear policy that would 
     help both EM and NNSA plan for future cleanup activities and 
     the associated costs.
     Inclusion in 2005 stockpile stewardship plan of certain 
         information relating to stockpile stewardship criteria 
         (sec. 3133)
       The Senate amendment contained a provision (sec. 3153) that 
     would require the Secretary of Energy to submit a report to 
     the

[[Page 27919]]

     congressional defense committees, by March 1, 2005, on clear 
     and specific criteria for judging whether the science-based 
     tools being used by the Department of Energy for determining 
     the safety and reliability of the nuclear weapons stockpile 
     are performing in a manner that will provide an adequate 
     degree of certainty regarding the safety and reliability of 
     the stockpile. This would be an update of the report required 
     in section 3158 of the Strom Thurmond National Defense 
     Authorization Act for Fiscal Year 1999.
       The House bill contained no similar provision.
       The House recedes with an amendment that would include this 
     report as part of the Fiscal Year 2005 Stockpile Stewardship 
     Plan. The conferees note that this annual report has been 
     consistently late and urge the Department to submit this 
     important report on time.
     Progress reports on energy employees occupational illness 
         compensation program (sec. 3134)
       The Senate amendment contained a provision (sec. 3154) that 
     would require the National Institute for Occupational Safety 
     and Health (NIOSH) to submit a report to Congress on the 
     ability of NIOSH to obtain, in a timely, accurate, and 
     complete manner, information necessary to carry out radiation 
     dose reconstructions under the Energy Employees Occupational 
     Illness Compensation Program Act of 2000 (EEOICPA). The 
     report should be submitted within 90 days of enactment of 
     this Act.
       The House bill contained no similar provision.
       The House recedes.
       The conferees direct NIOSH to send the report to the 
     congressional defense committees, the Committees on 
     Government Affairs and Health Education, Labor and Pensions 
     of the Senate, and the Committees on Government Reform and 
     Education and the Workforce of the House of Representatives.
     Report on integration activities of Department of Defense and 
         Department of Energy with respect to robust nuclear earth 
         penetrator (sec. 3135)
       The Senate amendment contained a provision (sec. 3155) that 
     would require the Secretary of Energy and Secretary of 
     Defense to develop, submit to Congress three months after the 
     date of the enactment of this Act, and implement, a plan to 
     coordinate the robust nuclear earth penetrator (RNEP) 
     feasibility study at the Department of Energy (DOE) with the 
     ongoing conventional hard and deeply buried weapons 
     development programs at the Department of Defense.
       The House bill contained no similar provision.
       The House recedes with an amendment that would modify the 
     reporting requirement of section 1032 of the Bob Stump 
     National Defense Authorization Act for Fiscal Year 2003 
     (Public Law 107-314) to include analysis of the integration 
     and interoperability of the robust nuclear earth penetrator 
     with regard to research and development, procurement, and 
     other activities by the Departments of Defense and Energy 
     during fiscal year 2003. This information would be included 
     in the report due April 1, 2004.

       Subtitle E--Consolidation of National Security Provisions

     Transfer and consolidation of recurring and general 
         provisions on Department of Energy national security 
         programs (sec. 3141)
       The House bill contained a provision (sec. 3121) that would 
     assemble under the Atomic Energy Defense Act (title XXXVI) of 
     the Bob Stump National Defense Authorization Act for Fiscal 
     Year 2003 (Public Law 107-314), with technical and conforming 
     amendments, recurring and general provisions of law on 
     Department of Energy national security programs that remain 
     in force. Although there are technical and conforming changes 
     resulting in the recodification there are no substantive 
     changes in law effecting the DOE national security programs. 
     The provisions of the Atomic Energy Defense Act, as amended 
     by this provision, would be redesignated to a new chapter of 
     title 50, United States Code.
       The Senate amendment contained a similar provision (sec. 
     3161).
       The Senate recedes with technical amendments.

                       Items of Special Interest

     Thorium-based fuel cycle research
       The conferees believe the Secretary of Energy should review 
     whether there is a role for thorium fuel cycle research in 
     Department of Energy programs, to include nonproliferation 
     programs under the National Nuclear Security Administration 
     and advanced fuel cycle research and related work under the 
     Office of Nuclear Energy. If the Secretary determines this 
     technology should be pursued, this should be reflected in the 
     Fiscal year 2005 budget request.

                   Legislative Provisions Not Adopted

     Extension to all DOE facilities of authority to prohibit 
         dissemination of certain unclassified information
       The House bill contained a provision (sec. 3113) that would 
     amend section 148 of the Atomic Energy Act of 1954 (Public 
     Law 83-703) to expand the range of situations under which the 
     Department of Energy could treat information as sensitive 
     unclassified nuclear information, and consequently limit its 
     dissemination.
       The Senate amendment contained no similar provision.
       The House recedes.
     Availability of funds
       The House bill contained a provision (sec. 3115) that would 
     amend section 3628 of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314) 
     by establishing a three-year limitation on the availability 
     of funds for obligation within the National Nuclear Security 
     Administration (NNSA), for operation and maintenance and for 
     plant projects.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees are concerned that the NNSA has not complied 
     with section 3252 of the National Nuclear Security 
     Administration Act (Public Law 106-65), which provides that 
     at a minimum, the NNSA Administrator should establish 
     procedures that ``. . . provide for the planning, 
     programming, and budgeting of activities of the 
     Administration using funds that are available for obligation 
     for a limited number of years.'' Contrary to the requirements 
     of section 3252, the last four NNSA budget submissions have 
     not included a limit on the number of years the funds were 
     available for obligation. While the conferees have agreed not 
     to include a provision that would place a specific limitation 
     on the authority of funds in this Act, the conferees expect 
     the Administrator to meet the requirements of section 3252 of 
     the NNSA Act in the fiscal year 2005 budget and subsequent 
     submissions.
     Limitation on obligation of funds for nuclear test readiness 
         program
       The House bill contained a provision (sec. 3116) that would 
     prohibit the obligation of more than 40 percent of funds 
     available to the Secretary of Energy in fiscal year 2004 for 
     the nuclear test readiness program until the Secretary 
     submits the report on test readiness posture options required 
     by subsection 3142(c) of the Bob Stump National Defense 
     Authorization Act for Fiscal Year 2003 (Public Law 107-314).
       The Senate amendment contained no similar provision.
       The House recedes.
       The report on test readiness posture options was sent to 
     the congressional defense committees on May 20, 2003, and 
     received shortly thereafter. While this made the funding 
     limitation in the House bill no longer necessary, the 
     conferees note that the report was sent several months late 
     even though the information in that report was very relevant 
     to the fiscal year 2004 budget request for enhanced test 
     readiness. The conferees encourage the Department of Energy 
     to use due diligence in meeting report schedules and 
     deadlines in the future.

          Title XXXII--Defense Nuclear Facilities Safety Board

                     Legislative Provisions Adopted

     Authorization (sec. 3201)
       The House bill contained a provision (sec. 3201) that would 
     authorize $19.6 million for the Defense Nuclear Facilities 
     Safety Board for fiscal year 2004.
       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 for National Defense Stockpile Funds (sec. 
         3301)
       The House bill contained a provision (sec. 3301) that would 
     authorize $69.7 million from the National Defense Stockpile 
     Transaction Fund for the operation and maintenance of the 
     National Defense Stockpile for fiscal year 2004. 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.
     Revisions to required receipt objectives for previously 
         authorized disposals from National Defense Stockpile 
         (sec. 3302)
       The House bill contained a provision (sec. 3302) that would 
     amend section 3402 of the National Defense Authorization Act 
     for Fiscal Year 2000 (Public Law 106-65) to increase the 
     required receipt objectives for previously authorized 
     disposals from the National Defense Stockpile.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would increase 
     the required receipt objectives for previously authorized 
     disposals from the National Defense Stockpile.

                 Title XXXIV--Naval Petroleum Reserves

                     Legislative Provisions Adopted

     Authorization of appropriations (sec. 3401)
       The House bill contained a provision (sec. 3401) that would 
     authorize $16.5 million for the operation and maintenance of 
     the Naval Petroleum and Oil Shale Reserves.
       The Senate amendment contained no similar provision.
       The Senate recedes.
       The conferees understand that the administration intends to 
     request the transfer of Naval Petroleum Reserve Two from the 
     Department of Energy to the Department of Interior, and that 
     additional authority is necessary to proceed with such a 
     transfer. The

[[Page 27920]]

     conferees expect that a legislative package authorizing the 
     transfer would include the requisite changes to title 10, 
     United States Code, as well as the appropriate budgetary 
     adjustments.

                  Title XXXV--Maritime Administration

                     Legislative Provisions Adopted

     Title XXXV--Maritime Administration (sec. 3501-3546)
       The House bill contained several provisions (sec. 3501-
     3542) that would establish a new maritime security fleet 
     program, beginning in fiscal year 2006, establish a new 
     national defense tank vessel construction assistance program, 
     provide for the authorization of appropriations for the 
     Maritime Administration (MARAD) for fiscal year 2004, and 
     authorize the transfer of the USS Hoist to the Last Patrol 
     Museum, Toledo, Ohio.
       The Senate amendment contained no similar provisions.
       The Senate recedes with an amendment that would: (1) 
     authorize appropriations for MARAD for fiscal years 2004-
     2008; (2) provide general authority to MARAD to convey 
     obsolete vessels without additional statutory authorization; 
     (3) amend current law to bring the service obligation of 
     maritime academy students more in line with the requirements 
     of students at the other federal service academies; (4) amend 
     current law as it pertains to the preparation of MARAD 
     obsolete vessels for use as artificial reefs; (5) allow MARAD 
     to establish a pilot program to reimburse vessels 
     participating in the maritime security program for extra cost 
     for conducting U.S.-based maintenance and repair; (6) 
     authorize changes to the current title XI loan guarantee 
     program to reduce the likelihood of defaults; and (7) 
     establish a new maritime security fleet program and a new 
     national defense tank vessel construction assistance program.
       Section 3512 would grant MARAD general authority to 
     transfer obsolete vessels without the need for specific 
     legislative authorization. Many of these ships are in 
     disrepair and are no longer useful for government purposes, 
     but could be used by not-for-profit corporations as museums, 
     or by states or commonwealths for other public interest 
     projects.
       Under section 3515 of this title, students at the U.S. 
     Merchant Marine Academy and students at the state maritime 
     academies who receive federal scholarship assistance and who 
     have attended their respective schools for two or more years 
     would be required to serve on active duty or to reimburse the 
     government for educational expenses if the Secretary of 
     Transportation determined that the individuals breached their 
     service agreement. If for any reason the individual were not 
     ordered to active duty, the Secretary would be authorized to 
     recover costs of the provided education, including the use of 
     federal debt collection procedures, or other remedies to 
     obtain payment. This section would also grant the Secretary 
     similar authority with respect to graduate students. This 
     change would align the service obligation of maritime academy 
     students more closely with the requirements of students at 
     the other federal service academies. The section would 
     further require that U.S. Merchant Marine Academy graduates 
     and graduates of state maritime academies who receive federal 
     financial assistance maintain a valid merchant mariner 
     license and certification under the International Convention 
     for the Standards of Training, Certification, and Watch-
     keeping. Such a mandate would ensure that maritime academy 
     graduates possess the license and certifications necessary to 
     meet Coast Guard requirements. The section would also 
     authorize an increase in the amount of annual student 
     incentive payments for state maritime academy graduates from 
     $3,000 to $4,000. The conferees expect that this increase 
     would offset the increasing costs of higher education and 
     encourage students to serve the maritime and national 
     security needs of the United States.
       The conferees agree to include a provision (sec. 3516) that 
     would make technical amendments to section 3504(b) of the Bob 
     Stump National Defense Authorization Act for Fiscal Year 2003 
     (Public Law 107-314) regarding environmental best management 
     practices for preparing vessels for use as artificial reefs. 
     It is anticipated that these technical modifications would 
     facilitate the development of useful guidance for the 
     preparation of obsolete vessels for use as artificial reefs.
       Section 3517 would authorize the Secretary to establish a 
     pilot program that would provide financial assistance to 
     maritime security fleet contractors for the cost of repairs 
     performed in the United States. The conferees expect that 
     this program could be administered in a way that would 
     benefit and enhance our domestic ship repair base, on which 
     we rely for such important activities as maintaining and 
     activating the Ready Reserve Force ships during emergencies. 
     The conferees also believe that MARAD could administer such a 
     pilot program in a manner that would hold operators of the 
     U.S.-flag maritime security fleet harmless.
       Subtitle B would amend the Merchant Marine Act, 1936 (46 
     U.S.C. App. 1274 et seq.) to require the Secretary of 
     Transportation to adopt several changes to the vessel loan 
     guarantee program to help reduce the likelihood of loan 
     defaults. Section 3521 would require the Secretary to 
     establish a system of controls to ensure that no loan or 
     portion of a loan is disbursed to a ship owner before the 
     obligor of a loan guarantee has met its cost-sharing 
     obligation (25 percent or 12.5 percent depending on the type 
     of vessel).
       Section 3522 would require the Secretary to promulgate 
     regulations regarding the circumstances under which MARAD 
     could waive requirements concerning the financial condition 
     of the applicant, and establish a transparent, independent, 
     risk-based process for verifying and documenting the progress 
     of projects under construction before disbursing loan funds.
       Section 3523 would require the Secretary to monitor the 
     financial condition and operation of the obligor on a regular 
     basis during the term of the guarantee and to take additional 
     action if financial issues jeopardize the obligor's continued 
     ability to meet its responsibilities.
       Section 3524 would require the Secretary to maximize the 
     return on a default-related sale of assets by obtaining 
     independent appraisals and ensuring adequate competition 
     during foreclosure proceedings.
       The conference agreement also includes provisions that 
     would set deadlines for secretarial approval or denial of 
     applications for loan guarantees (sec. 3525), and would allow 
     the Secretary to obtain an independent risk analysis related 
     to markets, technology, financial structures, or other 
     factors (sec. 3526). The conferees intend that the Secretary 
     should not use this authority in routine cases nor where the 
     MARAD already has sufficient expertise to assess fully the 
     risk of approving a loan guarantee application.
       Section 3528 would require the Secretary to develop an 
     organizational framework for the management of the loan 
     guarantee program to ensure a clear distinction among the 
     functions of loan application and approval, project 
     monitoring, and default management. The Secretary would need 
     to update loan guarantee program risk categories and 
     associated subsidy rates on an annual basis. The Secretary 
     would also be required to consider the risk presented by an 
     unduly large percentage of loans outstanding by any one 
     borrower or group of affiliated borrowers before making an 
     obligation or commitment.
       Section 3531 would establish a new maritime security fleet 
     program upon the expiration of the current program at the end 
     of fiscal year 2005. The new program would expand upon the 
     current program by increasing the number of participating 
     vessels and the size of the monetary payment allowable for 
     each participating vessel. Under the new program, the 
     Department of Defense (DOD), in conjunction with the 
     Department of Transportation (DOT), could select the 
     participants and vessels that could provide the type of 
     sealift support that best complements the Department's 
     organic fleet. The new program would reflect an expansion 
     beyond the use of liner operators. In fact, the conferees 
     intend that this program would include significant roll on/
     roll off assets and double hulled product tanker assets. The 
     Secretary of Transportation, in conjunction with the 
     Secretary of Defense, could enter into 60 operating 
     agreements with eligible applicants, as opposed to the 
     current authorization for 47 such agreements. The section 
     would also authorize, subject to appropriations, contractor 
     reimbursement for each vessel operated in the program: $2.6 
     million per year for each of fiscal years 2006, 2007, and 
     2008; $2.9 million per vessel for each of fiscal years 2009, 
     2010, and 2011; and $3.1 million per vessel for each of 
     fiscal years 2012, 2013, 2014, and 2015.
       Section 3531 would establish age restrictions for vessels 
     entering the new maritime security fleet program, but would 
     allow operators with certain vessels that have participated 
     in the current program an additional 30 months to meet these 
     requirements. The conferees expect that the DOD, in 
     conjunction with the DOT, would work closely with existing 
     program participants and new applicants to ensure that the 
     newest and most capable vessels enter the program or are 
     offered as replacement vessels. The conferees recognize that 
     certain older vessels may remain in the program for some 
     time. However, the conferees encourage new and existing 
     participants to work closely with the DOD and DOT to address 
     the Departments' operational requirements that are not 
     adequately addressed by the current fleet.
       Section 3531 would establish four categories of eligibility 
     for program participation: (1) vessels owned and operated by 
     persons who are citizens of the United States, as described 
     under section 2 of the Shipping Act, 1916 (46 U.S.C. 802); 
     (2) vessels owned by section 2 citizens or U.S. citizens' 
     trusts, and chartered to a documentation citizen; (3) vessels 
     owned and operated by a defense contractor; and (4) vessels 
     owned by a documentation citizen, but chartered to a section 
     2 citizen. The provision would impose additional requirements 
     for corporate management and control of the demise charterer 
     for categories (2) and (3). In the case of category (3), the 
     provision would also impose a requirement for a special 
     security agreement.
       Finally, section 3531 would establish priorities for the 
     award of new agreements.
       (1) The first priority for up to five agreements or slots 
     would be accorded to section 2 citizens who own and operate 
     new tank vessels constructed in the United States. The

[[Page 27921]]

     conferees note that the lack of U.S.-flag tankers for 
     transporting jet fuel posed a serious risk to U.S. resupply 
     operations in Iraq. The establishment of a new priority for 
     U.S.-built, -owned, and -operated tankers is a first step in 
     alleviating this serious shortfall. During Operation Iraqi 
     Freedom, the United States chartered 26 double hulled product 
     tankers for the supply effort, however, only one was a 
     documented U.S.-flag vessel. While this group of vessels was 
     able to support our forces during Operation Iraqi Freedom, 
     the fact that only one was operated by a U.S.-flag carrier 
     raises concerns about the level of support for future 
     operations.
       (2) The second priority for the award of new operating 
     agreements would be accorded to the 47 vessels that are 
     participating in the current program. Additional latitude 
     would be granted on the age restrictions to allow for 
     replacement of older vessels with newer, more militarily 
     useful vessels.
       (3) The third priority would be reserved for vessels that 
     are owned and operated by section 2 citizens, or owned by 
     documentation citizens and operated by section 2 citizens.
       Section 3535 would require the Comptroller General of the 
     United States to conduct a study to determine the potential 
     effects of increasing or decreasing the current 7,500 ton 
     limitation on the carriage of bulk food aid cargo by maritime 
     security program participants, and to examine whether the 
     limitation should apply to bagged cargo, as well as bulk 
     cargo.
       Section 3541 would establish a new national defense tank 
     vessel construction assistance program. This program would 
     provide financial assistance to U.S. citizen owners in the 
     form of a direct payment for up to 75 percent of the actual 
     vessel construction, but in no case more than $50.0 million 
     per vessel. The provision would:
       (1) Establish size restrictions to ensure that these double 
     hulled vessels would be competitive in the commercial market 
     and would meet the petroleum transportation needs of the DOD 
     in time of war or other national emergency;
       (2) Grant vessel owners a priority for loan guarantees and 
     would make them eligible to use funds in their capital 
     construction fund accounts for building these vessels; and
       (3) Give vessel owners priority for the award of an 
     operating agreement under the new maritime security program.
       The conferees believe that this construction assistance 
     program would reduce the need for reliance on foreign-flag 
     product tankers.

                   Legislative Provisions Not Adopted

     Authority to convey National Defense Reserve Fleet vessels 
         and vessel contents
       The House bill contained a provision (sec. 3543) that would 
     authorize the Secretary of Transportation to convey the 
     right, title, and interest of the U.S. Government to certain 
     obsolete National Defense Reserve Fleet (NDRF) vessels for 
     use as moored support ships and as memorials.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees agree to provide the Secretary with the 
     general and permanent authority to transfer obsolete NDRF 
     vessels without specific statutory authority for each 
     transfer, as provided elsewhere in this conference report. 
     The conferees expect that the Secretary would quickly develop 
     procedures to allow for the efficient and safe transfer of 
     these obsolete vessels to deserving not-for-profit 
     corporations, appropriate states, or commonwealths.

                Title XXXVI--Nuclear Security Initiative

     Short title (sec. 3601)
       The House bill contained a provision (sec. 3601) that would 
     name this title the ``Nuclear Security Initiative Act of 
     2003.''
       The Senate amendment contained no similar provision.
       The Senate recedes.

    Subtitle A--Administration and Oversite of Threat Reduction and 
                       Nonproliferation Programs

     Management assessment of Department of Defense and Department 
         of Energy threat reduction and nonproliferation programs 
         (sec. 3611)
       The House bill contained a provision (sec. 3621) that would 
     require the National Academy of Sciences to carry out an 
     analysis of the effect on threat reduction and 
     nonproliferation programs of applicable congressional 
     oversight measures.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     General Accounting Office to carry out an assessment of the 
     management of the Department of Defense and Department of 
     Energy threat reduction and nonproliferation programs.

       Subtitle B--Relations Between the United States and Russia

     Comprehensive inventory of Russian tactical nuclear weapons 
         (sec. 3621)
       The House bill contained a provision (sec. 3631) that would 
     urge the United States to work with the Russian Federation to 
     develop comprehensive inventories of Russian highly enriched 
     uranium, weapons-grade plutonium, and assembled warheads, 
     with special attention to be focused on tactical warheads and 
     warheads that are no longer operationally deployed. The 
     provision would require the President to submit to the 
     Congress an annual report describing progress that has been 
     made toward creating an inventory and exchanging the 
     information.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would urge the 
     United States to work with the Russian Federation to develop 
     a comprehensive inventory of Russian tactical nuclear 
     weapons. The provision would require the President to submit 
     to the Congress a report describing the progress that has 
     been made toward creating such an inventory.
     Establishment of interparliamentary threat reduction working 
         group (sec. 3622)
       The House bill contained a provision (sec. 3632) that would 
     establish a Duma-Congress nuclear threat reduction working 
     group. The purpose of the working group would be to explore 
     means to enhance cooperation between the United States and 
     the Russian Federation with respect to nuclear proliferation 
     and security, and other issues related to reducing nuclear 
     weapons dangers.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would broaden the 
     working group to include participants from the Russian 
     Federation Council as well as the Russian Duma, and would 
     broaden the focus of the working group to include all types 
     of weapons of mass destruction.
       The conferees recommend that this working group coordinate 
     its activities with the Library of Congress Open World 
     Program. The conferees further recommend that the number of 
     Russian participants in the working group be roughly equal to 
     the number of U.S. participants.
     Sense of Congress on cooperation by United States and NATO 
         with Russia on ballistic missile defenses (sec. 3623)
       The House bill contained a provision (sec. 3633) that would 
     establish as national policy that: 1) the United States 
     should take the lead, in conjunction with the North Atlantic 
     Treaty Organization (NATO), in arranging appropriate 
     cooperative relationships with the Russian Federation with 
     respect to development and deployment of theater-level 
     ballistic missile defenses; 2) such cooperation should 
     promote a new bilateral strategic framework consisting of 
     transparency and confidence between and improve security of 
     the two countries. The provision would also require the 
     President to submit a report to Congress, no later than a 
     year after the enactment of this Act, on the feasibility of 
     increasing cooperation with the Russian Federation on 
     theater-level missile defenses.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would express the 
     sense of Congress that the President, in conjunction with 
     NATO, should encourage appropriate cooperative relationships 
     with the Russian Federation in the development and deployment 
     of ballistic missile defenses. The amendment would also 
     require the Secretary of Defense to submit a report to the 
     Armed Services Committees of the Senate and House of 
     Representatives not later than one year after the date of 
     enactment of this Act, on the feasibility of increasing 
     ballistic missile defense cooperation with the Russian 
     Federation.
       The conferees believe that missile defense cooperation with 
     the Russian Federation could improve the U.S. relationship 
     with Russia by enhancing transparency and confidence between 
     the two nations. The conferees also believe that such 
     cooperation would accurately reflect a new bilateral 
     relationship between the United States and Russia based on 
     openness, common interests, and mutual trust, rather than the 
     Cold War construct of mutual assured destruction.
     Sense of Congress on enhanced collaboration to achieve more 
         reliable Russian early warning systems (sec. 3624)
       The House bill contained a provision (sec. 3634) that would 
     make certain findings and establish as national policy that 
     the President should: (1)encourage joint United States-
     Russian programs to improve Russian ballistic missile early-
     warning systems, including the Russian-American Observation 
     Satellite (RAMOS) program and (2) encourage other joint 
     programs to assure that the Russian Federation has reliable 
     information regarding ballistic missile launches. It would 
     also require the Secretary of Defense to ensure that, pending 
     a new agreement between the United States and the Russian 
     Federation, sufficient funds are appropriated for the RAMOS 
     program for its satisfactory continuation during fiscal years 
     2004 and 2005.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would express the 
     sense of Congress that the United States should, consistent 
     with U.S. national security interests: (1) encourage joint 
     efforts by the United States and the Russian Federation to 
     improve Russian ballistic missile early warning systems; (2) 
     encourage other U.S.-Russian programs to ensure that the 
     Russian Federation has reliable information concerning 
     ballistic missile launches; and (3) ensure that funds

[[Page 27922]]

     appropriated for RAMOS Program are used to provide for the 
     satisfactory continuation of RAMOS.

                       Subtitle C--Other Matters

     Promotion of discussions on nuclear and radiological security 
         and safety between the International Atomic Energy Agency 
         and the Organization for Economic Cooperation and 
         Development (sec. 3631)
       The House bill contained a provision (sec. 3641) that would 
     express the sense of the Congress that the United States 
     should seek to initiate discussions between the International 
     Atomic Energy Agency and the Organization for Economic 
     Cooperation and Development for the purpose of exploring 
     issues of nuclear and radiological security and safety, 
     including the creation of new sources of revenue (including 
     debt reduction) for states to provide nuclear security. The 
     provision would require the President to submit to the 
     Congress a report on the efforts made by the United States to 
     initiate such discussions and on the results of such 
     discussions.
       The Senate amendment contained no similar provision.
       The Senate recedes with an amendment that would require the 
     President to submit a report to the Congress on the results 
     of the discussions only if efforts to have such discussions 
     have been made.

                   Legislative Provisions Not Adopted

     Annual report on the use of funds appropriated for threat 
         reduction and nonproliferation in states of the former 
         Soviet Union
       The House bill contained a provision (sec. 3622) that would 
     require the Secretary of Energy, in consultation with the 
     Secretary of Defense, to submit an annual report on the use 
     of funds appropriated for threat reduction and 
     nonproliferation programs in the Russian Federation and the 
     other independent states of the former Soviet Union.
       The Senate amendment contained no similar provision.
       The House recedes.
     Establishment of International Nuclear Materials Protection 
         and Cooperation Program in Department of State
       The House bill contained a provision (sec. 3611) that would 
     authorize the Secretary of State to establish an 
     international nuclear materials protection and cooperation 
     program with respect to countries other than the Russian 
     Federation and the other independent states of the former 
     Soviet Union.
       The Senate amendment contained no similar provision.
       The House recedes.
     Nonproliferation fellowships
       The House bill contained a provision (sec. 3636) that would 
     authorize the Administrator for Nuclear Security to carry out 
     a program under which the Administrator awards, to scientists 
     employed at the Kurchatov Institute of the Russian Federation 
     and the Lawrence Livermore National Laboratory, international 
     exchange fellowships, to be known as Teller-Kurchatov 
     Fellowships, in the nuclear nonproliferation sciences. The 
     purpose of the program would be to provide opportunities for 
     advancement in the field of nuclear nonproliferation to 
     scientists who, as demonstrated by their academic or 
     professional achievements, show particular promise of making 
     significant contributions in that field.
       The Senate amendment contained no similar provision.
       The House recedes.
       The conferees recommend that the Secretary of Energy assess 
     the feasibility and advisability of initiating a reciprocal 
     nonproliferation fellowship program that would provide the 
     opportunity for an employee of a U.S. national laboratory, 
     and an employee of a Russian nuclear institute or nuclear 
     laboratory, to study and work at a comparable institute or 
     laboratory in the other country focusing on nuclear 
     nonproliferation sciences.
     Plan for and coordination of chemical and biological weapons 
         nonproliferation programs with states of the former 
         Soviet Union
       The House bill contained a provision (sec. 3623) that would 
     require the President to develop with the President of the 
     Russian Federation a comprehensive plan to: account for, 
     secure and destroy all chemical and biological weapons and 
     the materials designed for use in such weapons that are 
     located in Russia and the independent states of the former 
     Soviet Union; and prevent the outflow from those states of 
     the technology and scientific expertise that could be used 
     for developing such weapons or their means of delivery.
       The Senate amendment contained no similar provision.
       The House recedes.
     Teller-Kurchatov Alliance for Peace
       The House bill contained a provision (sec. 3635) that would 
     urge the Secretary of Energy to enter into an agreement with 
     the Minister of Atomic Energy of the Russian Federation to 
     carry out a cooperative venture, to be known as the Teller-
     Kurchatov Alliance for Peace, to develop and promote 
     peaceful, safe, and environmentally sensitive uses of nuclear 
     energy.
       The Senate amendment contained no similar provision.
       The House recedes.

     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,
     Jim Saxton,
     John M. McHugh,
     Terry Everett,
     Roscoe Bartlett,
     Howard ``Buck'' McKeon,
     Mac Thornberry,
     John Hostettler,
     Walter B. Jones,
     Jim Ryun,
     Jim Gibbons,
     Robin Hayes,
     Heather Wilson,
     Ken Calvert,
     Ike Skelton,
     Solomon P. Ortiz,
     Lane Evans,
     Neil Abercrombie,
     Silvestre Reyes,

     From the Permanent Select Committee on Intelligence, for 
     consideration of matters within the jurisdiction of that 
     committee under clause 11 of rule X:
     Porter J. Goss,
     Pete Hoekstra,
     Jane Harman,

     From the Committee on Agriculture, for consideration of secs. 
     1057 and 2822 of the House bill, and modifications committed 
     to conference:
     Bob Goodlatte,
     Frank D. Lucas,
     Charles W. Stenholm,
     From the Committee on Education and the Workforce, for 
     consideration of secs. 544, 553, 563, 567, 907, 1046, 1501, 
     1502, and 1504-1506 of the House bill, and secs. 233, 351, 
     352, 368, 701, 1034, and 1036 of the Senate amendment, and 
     modifications committed to conference:
     Michael N. Castle,
     John Kline,

     From the Committee on Energy and Commerce, for consideration 
     of secs. 601, 3113, 3201, and 3517 of the House bill, and 
     secs. 601, 701, 852, 3151, and 3201 of the Senate amendment, 
     and modifications committed to conference:
     Billy Tauzin,
     Joe Barton,
     From the Committee on Financial Services, for consideration 
     of secs. 814 and 9072 of the House bill, and modifications 
     committed to conference:
     Michael G. Oxley,
     Peter T. King,
     From the Committee on Government Reform, for consideration of 
     secs. 315, 323, 551, 805, 822, 824, 828, 829, 1031, 1046, 
     1050, 1057, Title XI, Title XIV, secs. 2825 and 2826 of the 
     House bill, and secs. 326, 801, 811, 813, 822, 831-833, 841, 
     852, 853, 1013, 1035, 1102-1104, and 2824-2826 of the Senate 
     amendment, and modifications committed to conference:
     Tom Davis,
     Christopher Shays,
     Jo Ann Davis,
     Adam H. Putnam,
     Michael R. Turner,

     From the Select Committee on Homeland Security, for 
     consideration of sec. 1456 of the House bill, and 
     modifications committed to conference:
     Christopher Cox,
     John Shadegg,
     Bennie G. Thompson,
     From the Committee on House Administration, for consideration 
     of sec. 564 of the Senate amendment, and modifications 
     committed to conference:
     Robert W. Ney,
     John L. Mica,
     John B. Larson,

     From the Committee on International Relations, for 
     consideration of secs. 1047, 1201, 1202, 1209, Title XIII, 
     secs. 3601, 3611, 3631, 3632, and 3634-3636 of the House 
     bill, and secs. 323, 343, 921, 1201, 1202, 1204, 1205, 1207, 
     1208, Title XIII, and sec. 3141 of the Senate amendment, and 
     modifications committed to conference:
     Henry Hyde,
     Doug Bereuter,
     From the Committee on the Judiciary, for consideration of 
     secs. 661-665 and 851-853 of the Senate amendment, and 
     modifications committed to conference:
     James F. Sensenbrenner, Jr.,
     Lamar Smith,
     From the Committee on Resources, for consideration of secs. 
     311, 317-319, 601, and 1057 of the House bill, and secs. 322, 
     330, and 601 of the Senate amendment, and modifications 
     committed to conference:
     Richard Pombo,
     Denny Rehberg,
     From the Committee on Science, for consideration of secs. 852 
     and 911 of the Senate amendment, and modifications committed 
     to conference:
     Sherwood Boehlert,
     Nick Smith,
     Ralph M. Hall,
     From the Committee on Transportation and Infrastructure, for 
     consideration of secs. 312, 601, 907, 1049, 1051, and 2824 of 
     the House bill, and secs. 324, 601, and 2821 of the Senate

[[Page 27923]]

     amendment, and modifications committed to conference:
     Don Young,
     Thomas Petri,
     Brad Carson,
     From the Committee on Veterans Affairs, for consideration of 
     sec. 565 of the House bill, and secs. 644 and 707 of the 
     Senate amendment, and modifications committed to conference:
     Christopher H. Smith,
     Mike Bilirakis,
     From the Committee on Ways and Means, for consideration of 
     sec. 701 of the Senate amendment, and modifications committed 
     to conference:
     William Thomas,
     Jim McCrery,
                                Managers on the Part of the House.

     John W. Warner,
     John McCain,
     James Inhofe,
     Pat Roberts,
     Wayne Allard,
     Jeff Sessions,
     Susan Collins,
     John Ensign,
     James Talent,
     Saxby Chambliss,
     Lindsey Graham,
     Elizabeth Dole,
     John Cornyn,
     E. Benjamin Nelson,
     Mark Pryor,
     Managers on the Part of the Senate.

                          ____________________