[House Report 108-354]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES                 
 1st Session                                                    108-354
_______________________________________________________________________

                                     


                     NATIONAL DEFENSE AUTHORIZATION
                        ACT FOR FISCAL YEAR 2004

                               ----------                              

                           CONFERENCE REPORT

                              to accompany

                               H.R. 1588




 November 7 (legislative day, November 6), 2003.--Ordered to be printed
        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2004



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES                 
 1st Session                                                    108-354
_______________________________________________________________________

                                     


                     NATIONAL DEFENSE AUTHORIZATION

                        ACT FOR FISCAL YEAR 2004

                               __________

                           CONFERENCE REPORT

                              to accompany

                               H.R. 1588




 November 7 (legislative day, November 6), 2003.--Ordered to be printed


                            C O N T E N T S

                              ----------                              
                                                                   Page
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE.......   443
    Summary Statement of Conference Actions......................   443
    Summary Table of Authorizations..............................   443
DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS.................   451
Title I--Procurement.............................................   451
            Procurement Overview.................................   451
            Aircraft Procurement, Army--Overview.................   453
            UH-60 Blackhawk......................................   457
            Missile Procurement, Army--Overview..................   457
            Procurement of Weapons and Tracked Combat Vehicles, 
              Army--Overview.....................................   460
            Other Procurement, Army--Overview....................   464
            Combat Support Medical...............................   468
            Aircraft Procurement, Navy--Overview.................   468
            Weapons Procurement, Navy--Overview..................   480
            Procurement of Ammunition, Navy and Marine Corps 
              Overview...........................................   488
            Shipbuilding and Conversion, Navy--Overview..........   491
            Other Procurement, Navy--Overview....................   494
            Procurement, Marine Corps--Overview..................   504
            Aircraft Procurement, Air Force--Overview............   510
            E-8C joint surveillance and target attack radar 
              system reengining..................................   517
            Overview.............................................   517
            Missile Procurement, Air Force--Overview.............   520
            Other Procurement, Air Force--Overview...............   523
            Procurement, Defense-Wide--Overview..................   530
            Advanced SEAL Delivery System advance procurement....   536
            National Guard and Reserve Equipment.................   536
        Subtitle A--Authorization of Appropriations..............   536
            Authorization of appropriations (secs. 101-104)......   536
            Subtitle B--Army Programs............................   537
            Stryker vehicle program (sec. 111)...................   537
            CH-47 helicopter program (sec. 112)..................   537
        Subtitle C--Navy Programs................................   537
            Multiyear procurement authority for F/A-18 aircraft 
              program (sec. 121).................................   537
            Multiyear procurement authority for Tactical Tomahawk 
              cruise missile program (sec. 122)..................   538
            Multiyear procurement authority for Virginia class 
              submarine program (sec. 123).......................   538
            Multiyear procurement authority for E-2C aircraft 
              program (sec. 124).................................   539
            Multiyear procurement authority for Phalanx close in 
              weapon system program (sec. 125)...................   539
            Pilot program for flexible funding of cruiser 
              conversions and overhauls (sec. 126)...............   539
        Subtitle D--Air Force Programs...........................   540
            Elimination of quantity limitations on multiyear 
              procurement authority for C-130J aircraft (sec. 
              131)...............................................   540
            Limitation on retiring C-5 aircraft (sec. 132).......   540
            Limitation on obligation of funds for procurement of 
              F/A-22 aircraft (sec. 133).........................   540
            Aircraft for performance of aerial refueling mission 
              (sec. 134).........................................   541
            Procurement of tanker aircraft (sec. 135)............   541
            Air Force Air Refueling Transfer Account.............   541
        Subtitle E--Other Programs...............................   542
    Legislative Provisions Not Adopted...........................   542
            B-1B bomber aircraft.................................   542
            Configuration of the fourth Stryker brigade combat 
              team...............................................   542
            LPD-17 class vessel..................................   542
            Rapid infusion pumps.................................   542
            Reduction in authorization...........................   543
Title II--Research, Development, Test, and Evaluation............   543
            Overview.............................................   543
            Department of Defense science and technology funding.   545
                Research, Development, Test and Evaluation, 
                  Army--Overview.................................   546
                Patriot Advanced Capability--3 spiral development   560
                Space-based Radar................................   561
                Research, Development, Test and Evaluation, 
                  Navy--Overview.................................   562
                Research, Development, Test and Evaluation, Air 
                  Force--Overview................................   578
                Operationally responsive launch..................   591
                Research, Development, Test and Evaluation, 
                  Defense-Wide--Overview.........................   591
                Chemical and biological defense program applied 
                  research.......................................   604
                Ballistic missile defense products...............   604
                Ballistic missile defense system core............   604
                Operational Test and Evaluation, Defense--
                  Overview.......................................   605
    Items of Special Interest....................................   607
            Manned airborne reconnaissance aircraft replacement..   607
            Sniper detection systems.............................   608
            Supercomputer research and development...............   608
    Legislative Provisions Adopted...............................   609
        Subtitle A--Authorization of Appropriations..............   609
            Authorization of appropriations (sec. 201)...........   609
            Amount for defense science and technology (sec. 202).   609
        Subtitle B--Program Requirements, Restrictions, and 
          Limitations............................................   609
            Collaborative program for development of 
              electromagnetic gun technology (sec. 211)..........   609
            Leadership and duties of Department of Defense Test 
              Resource Management Center (sec. 212)..............   610
            Development of the joint tactical radio system (sec. 
              213)...............................................   610
            Future combat systems (sec. 214).....................   611
            Extension of reporting requirement for RAH-66 
              Comanche aircraft program (sec. 215)...............   612
            Studies of Fleet Platform Architectures for the Navy 
              (sec. 216).........................................   612
        Subtitle C--Ballistic Missile Defense....................   613
            Enhanced flexibility for ballistic missile defense 
              systems (sec. 221).................................   613
            Fielding of ballistic missile defense capabilities 
              (sec. 222).........................................   613
            Oversight of procurement of ballistic missile defense 
              system elements(sec. 223)..........................   613
            Renewal of authority to assist local communities 
              affected by ballistic missile defense system test 
              bed (sec. 224).....................................   614
            Prohibition on use of funds for nuclear armed 
              interceptors in missile defense systems (sec. 225).   615
            Follow-on research, development, test, and evaluation 
              related to system improvements for missile defense 
              programs transferred to military departments (sec. 
              226)...............................................   615
        Subtitle D--Other Matters................................   615
            Global Research Watch Program in the Office of the 
              Director of Defense Research and Engineering (sec. 
              231)...............................................   615
            Defense Advanced Research Projects Agency Biennial 
              Strategic Plan (sec. 232)..........................   615
            Enhancement of authority of Secretary of Defense to 
              support science, mathematics, engineering and 
              technology education (sec. 233)....................   617
            Department of Defense program to expand high-speed, 
              network-centric bandwidth capabilities for network-
              centric operations (sec. 234)......................   617
            Blue forces tracking initiative (sec. 235)...........   618
    Legislative Provisions Not Adopted...........................   619
            Amount for collaborative information warfare network.   619
            Amount for joint engineering data management 
              information and control systems....................   619
            Amount for network centric operations................   619
            Boron energy cell technology.........................   619
            Composite sail test articles.........................   619
            Coproduction of Arrow ballistic missile defense 
              system.............................................   619
            Enhanced production of titanium......................   620
            Human tissue engineering.............................   620
            Magnetic levitation..................................   620
            Modification of program element of short range air 
              defense radar program of the Army..................   620
            Non-thermal imaging systems..........................   621
            Portable mobile emergency broadband systems..........   621
            Program increases....................................   621
            Prohibition on transfer of certain programs outside 
              the Office of the Secretary of Defense.............   622
            Requirement for specific authorization of Congress 
              for design, development, or deployment of hit-to-
              kill ballistic missile interceptors................   623
Title III--Operation and Maintenance.............................   623
            Overview.............................................   623
            Budget Items.........................................   664
                Flight School XXI................................   664
                Marine Corps initial issue.......................   664
    Items of Special Interest....................................   664
            Range requirements for supersonic flight training....   664
    Legislative Provisions Adopted...............................   665
        Subtitle A--Authorization of Appropriations..............   665
            Authorization of appropriations (secs. 301-303)......   665
        Subtitle B--Environmental Provisions.....................   665
            Reauthorization and modification of title I of Sikes 
              Act (sec. 311).....................................   665
            Clarification of Department of Defense response to 
              environmental emergencies (sec. 312)...............   666
            Repeal of authority to use environmental restoration 
              account funds for relocation of contaminated 
              facility (sec. 313)................................   666
            Authorization for Department of Defense participation 
              in wetland mitigation banks (sec. 314).............   666
            Inclusion of environmental response equipment and 
              services in Navy definitions of salvage facilities 
              and salvage services (sec. 315)....................   667
            Repeal of model program for base closure 
              environmental restoration (sec. 316)...............   667
            Requirements for Restoration Advisory Boards and 
              exemption from Federal Advisory Committee Act (sec. 
              317)...............................................   667
            Military readiness and conservation of protected 
              species (sec. 318).................................   667
            Military readiness and marine mammal protection(sec. 
              319)...............................................   668
            Report regarding impact of civilian community 
              encroachment and certain legal requirements on 
              military installations and ranges and plan to 
              address encroachment (sec. 320)....................   670
            Cooperative water use management related to Fort 
              Huachuca, Arizona, and Sierra Vista subwatershed 
              (sec. 321).........................................   670
            Task force on resolution of conflict between military 
              training and endangered species protection at Barry 
              M. Goldwater Range, Arizona (sec. 322).............   671
            Public health assessment of exposure to perchlorate 
              (sec. 323).........................................   671
            Comptroller General review of Arctic Military 
              Environmental Cooperation Program (sec. 324).......   671
        Subtitle C--Workplace and Depot Issues...................   672
            Exemption of certain firefighting service contracts 
              from prohibition on contracts for performances of 
              firefighting functions (sec. 331)..................   672
            Technical amendment relating to termination of 
              Sacramento Army Depot, Sacramento, California (sec. 
              332)...............................................   672
            Exception to competition requirement for workloads 
              previously performed by depot-level activities 
              (sec. 333).........................................   672
            Resources-based schedules for completion of public-
              private competitions for performance of Department 
              of Defense functions (sec. 334)....................   673
            Delayed implementation of revised Office of 
              Management and Budget Circular A-76 by Department 
              of Defense pending report (sec. 335)...............   673
            Pilot program for best-value source selection for 
              performance of information technology services 
              (sec. 336).........................................   673
            High-performing organization business process 
              reengineering pilot program (sec. 337).............   673
            Naval Aviation Depots multi-trades demonstration 
              project (sec. 338).................................   674
        Subtitle D--Other Matters................................   674
            Cataloging and standardization for defense supply 
              management (sec. 341)..............................   674
            Sale of Defense Information Systems Agency services 
              to contractors performing the Navy-Marine Corps 
              Intranet contract (sec. 342).......................   674
            Permanent authority for purchase of certain municipal 
              services at installations in Monterey County, 
              California (sec. 343)..............................   674
            Department of Defense telecommunications benefit 
              (sec. 344).........................................   675
            Independent assessment of material condition of the 
              KC-135 aerial refueling fleet (sec. 345)...........   675
    Legislative Provisions Not Enacted...........................   676
            Availability of funds for local educational agencies 
              affected by the Brooks Air Force Base demonstration 
              project............................................   676
            Construction of wetland crossings, Camp Shelby 
              Combined Arms Maneuver Area, Camp Shelby, 
              Mississippi........................................   676
            Counterexploitation initiative.......................   676
            Emergency and morale communications programs.........   676
            Exclusion of certain expenditures from percentage 
              limitation on contracting for performance of depot-
              level maintenance and repair workloads.............   677
            Expansion of Department of Defense excess personal 
              property disposal program to include health 
              agencies in addition to law enforcement and 
              firefighting agencies..............................   677
            Impact aid for children with severe disabilities.....   677
            Information operations sustainment for land forces 
              readiness of Army Reserve..........................   677
            Performance-based and results-based management 
              requirements for Chief Information Officers of 
              Department of Defense..............................   678
            Preservation of Air Force Reserve weather 
              reconnaissance mission.............................   678
            Reduction in authorization for Air Force operation 
              and maintenance account............................   678
            Reimbursement of reserve component accounts for costs 
              of intelligence activities support provided by 
              reserve component personnel........................   678
            Reimbursement of reserve component military personnel 
              accounts for personnel costs of special operations 
              reserve component personnel engaged in landmines 
              clearance..........................................   679
            Space-available transportation for dependents of 
              members assigned to overseas duty locations for 
              continuous period in excess of one year............   679
            Submittal of survey on perchlorate contamination at 
              Department of Defense sites........................   680
Title IV--Military Personnel Authorizations......................   680
    Legislative Provisions Adopted...............................   680
        Subtitle A--Active Forces................................   680
            End strengths for active forces (sec. 401)...........   680
            Revision in permanent active duty end strength 
              minimum levels (sec. 402)..........................   681
            Personnel strength authorization and accounting 
              process (sec. 403).................................   681
        Subtitle B--Reserve Forces...............................   681
            End strengths for Selected Reserve (sec. 411)........   681
            End strengths for Reserves on active duty in support 
              of the Reserves (sec. 412).........................   682
            End strengths for military technicians (dual status) 
              (sec. 413).........................................   682
            Fiscal year 2004 limitations on non-dual status 
              technicians (sec. 414).............................   683
            Permanent limitations on number of non-dual status 
              technicians (sec. 415).............................   683
        Subtitle C--Authorization of Appropriations..............   683
            Authorization of appropriations for military 
              personnel (sec. 421)...............................   683
            Armed Forces Retirement Home (sec. 422)..............   684
    Legislative Provisions Not Adopted...........................   684
            Exclusion of recalled retired members from certain 
              strength limitations during period of war or 
              national emergency.................................   684
            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).......................................   684
Title V--Military Personnel Policy...............................   684
    Items of Special Interest....................................   684
            Superintendent of the United States Air Force Academy 

              (sec.     )........................................   684
    Legislative Provisions Adopted...............................   685
        Subtitle A--Officer Personnel Policy.....................   685
            Standardization of qualifications for appointment as 
              service chief (sec. 501)...........................   685
            Eligibility for appointment as Chief of Army 
              Veterinary Corps (sec. 502)........................   685
            Repeal of required grade of defense attache in France 
              (sec. 503).........................................   685
            Repeal of termination provisions for certain 
              authorities relating to management of general and 
              flag officers in certain grades (sec. 504).........   685
            Retention of health professions officers to fulfill 
              active-duty service commitments following promotion 
              nonselection (sec. 505)............................   685
            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)...............................   686
            Contingent exclusion from officer strength and 
              distribution-in-grade limitations for officer 
              serving as Associate Director of Central 
              Intelligence for Military Support (sec. 507).......   686
            Reappointment of incumbent Chief of Naval Operations 
              (sec. 508).........................................   686
            Secretary of Defense approval required for practice 
              of wearing uniform insignia of higher grade known 
              as ``frocking'' (sec. 509).........................   686
        Subtitle B--Reserve Component Matters....................   687
            Streamlined process for continuation of officers on 
              the reserve active-status list (sec. 511)..........   687
            Consideration of reserve officers for position 
              vacancy promotions in time of war or national 
              emergency (sec. 512)...............................   687
            Authority for delegation of required secretarial 
              special findings for placement of certain retired 
              members in Ready Reserve (sec. 513)................   687
            Authority to provide expenses of Army and Air Staff 
              personnel and National Guard Bureau personnel 
              attending national conventions of certain military 
              associations (sec. 514)............................   688
            Expanded authority for use of Ready Reserve in 
              response to terrorism (sec. 515)...................   688
            National Guard officers on active duty in command of 
              National Guard units (sec. 516)....................   688
            Presidential report on mobilization of reserve 
              component personnel and Secretary of Defense 
              assessment (sec. 517)..............................   688
            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).................................   689
        Subtitle C--ROTC and Military Service Academies..........   689
            Expanded educational assistance authority for cadets 
              and midshipmen receiving ROTC scholarships (sec. 
              521)...............................................   689
            Increase in allocation of scholarships under Army 
              Reserve ROTC scholarship program to students at 
              military junior colleges (sec. 522)................   689
            Authority for nonscholarship senior ROTC sophomores 
              to voluntarily contract for and receive subsistence 
              allowance (sec. 523)...............................   690
            Appointments to military service academies from 
              nominations made by delegates from Guam, Virgin 
              Islands, and American Samoa (sec. 524).............   690
            Readmission to service academies of certain former 
              cadets and midshipmen (sec. 525)...................   690
            Defense task force on sexual harassment and violence 
              at the military service academies (sec. 526).......   690
            Actions to address sexual harassment and violence at 
              the service academies (sec. 527)...................   691
            Study and report related to permanent professors at 
              the United States Air Force Academy (sec. 528).....   691
            Dean of the Faculty of the United States Air Force 
              Academy (sec. 529).................................   691
        Subtitle D--Other Education and Training Matters.........   691
            Authority for the Marine Corps University to award 
              the degree of master of operational studies. (sec. 
              531)...............................................   692
            Authorization for Naval Postgraduate School to 
              provide instruction to enlisted member 
              participating in certain programs (sec. 532).......   692
            Cost reimbursement requirements for personnel 
              receiving instruction at the Air Force Institute of 
              Technology (sec. 533)..............................   692
            Inclusion of accrued interest in amounts that may be 
              repaid under Selected Reserve critical specialties 
              education loan repayment program (sec. 534)........   692
            Funding of education assistance enlistment incentives 
              to facilitate national service through Department 
              of Defense Education Benefits Fund (sec. 535)......   693
            Assistance to local educational agencies that benefit 
              dependents of members of the Armed Forces and 
              Department of Defense civilian employees (sec. 536)   693
            Impact aid eligibility for heavily impacted local 
              educational agencies affected by privatization of 
              military housing (sec. 537)........................   693
        Subtitle E--Administrative Matters.......................   693
            High-tempo personnel management and allowance (sec. 
              541)...............................................   693
            Enhanced retention of accumulated leave for high-
              deployment members (sec. 542)......................   694
            Standardization of statutory authorities for 
              exemptions from requirement for access to secondary 
              schools by military recruiters (sec. 543)..........   694
            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)..   694
            Authority for reserve and retired regular officers to 
              hold state and local office notwithstanding call to 
              active duty (sec. 545).............................   695
            Policy on public identification of casualties (sec. 
              546)...............................................   695
            Space personnel career fields (sec. 547).............   695
            Department of Defense joint advertising, market 
              research, and studies program (sec. 548)...........   696
            Limitation on aviation force structure changes in the 
              department of the Navy (sec. 549)..................   696
        Subtitle F--Military Justice Matters.....................   696
            Extended limitation period for prosecution of child 
              abuse cases in courts-martial (sec. 551)...........   696
            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)..................................   697
        Subtitle G--Benefits.....................................   697
            Additional classes of individuals eligible to 
              participate in the federal long-term care insurance 
              program (sec. 561).................................   697
            Authority to transport remains of retirees and 
              retiree dependents who die in military treatment 
              facilities (sec. 562)..............................   697
            Eligibility for dependents of certain mobilized 
              reservists stationed overseas to attend Defense 
              Dependents Schools overseas (sec. 563).............   697
        Subtitle H--Domestic Violence............................   698
            Travel and transportation for dependents relocating 
              for reasons of personal safety (sec. 571)..........   698
            Commencement and duration of payment of transitional 
              compensation (sec. 572)............................   698
            Exceptional eligibility for transitional compensation 
              (sec. 573).........................................   698
            Types of administrative separations triggering 
              coverage (sec. 574)................................   698
            Comptroller General review and report (sec. 575).....   699
            Fatality reviews (sec. 576)..........................   699
            Sense of Congress (sec. 577).........................   699
        Subtitle I--Other Matters................................   699
            Recognition of military families (sec. 581)..........   699
            Permanent authority for support for certain chaplain-
              led military family support programs (sec. 582)....   700
            Department of Defense-Department of Veterans Affairs 
              Joint Executive Committee (sec. 583)...............   700
            Review of the 1991 death of Marine Corps Colonel 
              James E. Sabow (sec. 584)..........................   700
            Policy on concurrent deployment to combat zones of 
              both military spouses of military families with 
              minor children (sec. 585)..........................   700
            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)............................   701
            Study of National Guard Challenge Program (sec. 587).   701
            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).....................................   701
    Legislative Provisions Not Adopted...........................   702
            Alternate initial military service obligation for 
              persons accessed under direct entry program........   702
            Enhancement of voting rights of members of the 
              uniformed services.................................   702
            Increased flexibility for management of senior level 
              education and post-education assignments...........   702
            Repeal of prohibition on transfer between line of the 
              Navy and Navy staff corps applicable to regular 
              Navy officers in grades above lieutenant commander.   702
            Simplification of determination of annual 
              participation for purposes of Ready Reserve 
              training requirements..............................   703
            Standardization of time-in-service requirements for 
              voluntary retirement of members of the Navy and 
              Marine Corps with Army and Air Force requirements..   703
Title VI--Compensation and Other Personnel Benefits..............   703
    Legislative Provisions Adopted...............................   703
        Subtitle A--Pay and Allowances...........................   703
            Increase in basic pay for fiscal year 2004 (sec. 601)   704
            Revised annual pay adjustment process (sec. 602).....   704
            Computation of basic pay rate for commissioned 
              officers with prior enlisted or warrant officer 
              service (sec. 603).................................   704
            Special subsistence allowance authorities for members 
              assigned to high-cost duty location or under other 
              unique and unusual circumstances (sec. 604)........   704
            Basic allowance for housing for each member married 
              to another member without dependents when both 
              spouses are on sea duty (sec. 605).................   704
            Temporary increase in authorized amount of family 
              separation allowance (sec. 606)....................   704
        Subtitle B--Bonuses and Special and Incentive Pays.......   705
            One-year extension of certain bonus and special pay 
              authorities for reserve forces (sec. 611)..........   705
            One-year extension of certain bonus and special pay 
              authorities for certain health care professionals 
              (sec. 612).........................................   705
            One-year extension of special pay and bonus 
              authorities for nuclear officers (sec. 613)........   705
            One-year extension of other bonus and special pay 
              authorities (sec. 614).............................   706
            Hazardous duty pay for duty involving ski-equipped 
              aircraft on Antarctica or the Arctic icepack (sec. 
              615)...............................................   706
            Special pay for reserve officers holding positions of 
              unusual responsibility and of critical nature (sec. 
              616)...............................................   706
            Payment of Selected Reserve reenlistment bonus to 
              members of Selected Reserve who are mobilized (sec. 
              617)...............................................   706
            Availability of hostile fire and imminent danger 
              special pay for reserve component members on 
              inactive duty (sec. 618)...........................   706
            Temporary increase in authorized amount of hostile 
              fire and imminent danger special pay (sec. 619)....   707
            Retroactive payment of hostile fire or imminent 
              danger pay for service in eastern Mediterranean Sea 
              in Operation Iraqi Freedom (sec. 620)..............   707
            Expansion of overseas tour extension incentive 
              program to officers (sec. 621).....................   707
            Repeal of congressional notification requirement for 
              designation of critical military skills for 
              retention bonus (sec. 622).........................   707
            Eligibility of warrant officers for accession bonus 
              for new officers in critical skills (sec. 623).....   707
            Special pay for service as member of weapons of mass 
              destruction civil support team (sec. 624)..........   708
            Incentive bonus for conversion to military 
              occupational specialty to ease personnel shortage 
              (sec. 625).........................................   708
            Bonus for reenlistment during service on active duty 
              in Afghanistan, Iraq, or Kuwait (sec. 626).........   708
        Subtitle C--Travel and Transportation Allowances.........   708
            Shipment of privately owned motor vehicle within 
              continental United States (sec. 631)...............   708
            Transportation of dependents to presence of members 
              of the armed forces retired for illness or injury 
              incurred in active duty (sec. 632).................   709
            Payment or reimbursement of student baggage storage 
              costs for dependent children of members stationed 
              overseas (sec. 633)................................   709
            Contracts for full replacement value for loss or 
              damage to personal property transported at 
              government expense (sec. 634)......................   709
            Payment of lodging expenses of members during 
              authorized leave from temporary duty location (sec. 
              635)...............................................   710
        Subtitle D--Retired Pay and Survivor Benefits............   710
            Phase-in of full concurrent receipt of military 
              retired pay and veterans' disability compensation 
              for certain military retirees (sec. 641)...........   710
            Special rule for computation of retired pay base for 
              commanders of combatant commands (sec. 643)........   711
            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)..................   711
            Survivor Benefit Plan modifications (sec. 645).......   711
            Increase in death gratuity payable with respect to 
              deceased members of the armed forces (sec. 646)....   711
        Subtitle E--Commissary and Nonappropriated Fund 
          Instrumentality Benefits...............................   712
            Expanded commissary access for selected reserve 
              members, reserve retirees under age 60, and their 
              dependents (sec. 651)..............................   712
            Defense commissary system and exchange stores system 
              (sec. 652).........................................   712
            Limitations on private operation of defense 
              commissary store functions (sec. 653)..............   712
            Use of appropriated funds to operate defense 
              commissary system (sec. 654).......................   712
            Recovery of non-appropriated fund instrumentality and 
              commissary store investments in real property at 
              military installations closed or realigned (sec. 
              655)...............................................   713
        Subtitle F--Other Matters................................   713
            Comptroller General report on adequacy of special 
              pays and allowances for frequently deployed members 
              (sec. 661).........................................   713
    Legislative Provisions Not Adopted...........................   713
            Assignment incentive pay for service in Korea........   713
            Availability of hostile fire and imminent danger pay 
              for reserve component members serving in response 
              to certain domestic terrorist attacks..............   714
            Commissary shelf-stocking pilot program..............   714
            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............................   715
            Extension of requirement for exemplary conduct by 
              commanding officers and others in authority to 
              include civilians in authority in the Department of 
              Defense............................................   715
            Funding for special compensation authorities for 
              Department of Defense retirees.....................   715
            Increased maximum amount of reenlistment bonus for 
              active members.....................................   715
Title VII--Health Care Provisions................................   716
        Subtitle A--Enhanced Benefits for Reserves...............   716
            Medical and dental screening for members of Selected 
              Reserve units alerted for mobilization (sec. 701)..   716
            Coverage for ready reserve members under TRICARE 
              program (sec. 702-705).............................   716
            Limitation on fiscal year 2004 outlays for temporary 
              reserve health care programs (sec. 706)............   717
            TRICARE beneficiary counseling and assistance 
              coordinators for reserve component beneficiaries 
              (sec. 707).........................................   717
            Eligibility of reserve officers for health care 
              pending orders to active duty following 
              commissioning (sec. 708)...........................   717
        Subtitle B--Other Benefits Improvements..................   718
            Acceleration of implementation of chiropractic health 
              care for members on active duty (sec. 711).........   718
            Reimbursement of covered beneficiaries for certain 
              travel expenses relating to specialized dental care 
              (sec. 712).........................................   718
            Eligibility for continued health benefits coverage 
              extended to certain members of uniformed services 
              (sec. 713).........................................   718
            Authority for designated providers to enroll covered 
              beneficiaries with other primary health insurance 
              coverage (sec. 714)................................   718
        Subtitle C--Planning, Programming, and Management........   719
            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)...............................................   719
            Department of Defense Medicare-eligible retiree 
              health care fund valuations and contributions (sec. 
              722)...............................................   719
            Surveys on continued viability of TRICARE Standard 
              (sec. 723).........................................   719
            Plan for providing health coverage information to 
              members, former members, and dependents eligible 
              for certain health benefits (sec. 724).............   720
            Transfer of certain members from pharmacy and 
              therapeutics committee to uniform formulary 
              beneficiary advisory panel under the pharmacy 
              benefits program (sec. 725)........................   720
            Working group on military health care for persons 
              reliant on health care facilities at military 
              installations to be closed or realigned (sec. 726).   720
            Joint program for development and evaluation of 
              integrated healing care practices for members of 
              the armed forces and veterans (sec. 727)...........   721
Title VIII--Acquisition Policy, Acquisition Management, and 
  Related Matters................................................   721
    Legislative Provisions Adopted...............................   721
        Subtitle A--Acquisition Policy and Management............   721
            Consolidation of contract requirements (sec. 801)....   721
            Quality control in procurement of aviation critical 
              safety items and related services (sec. 802).......   721
            Federal support for enhancement of State and local 
              anti-terrorism response capabilities (sec. 803)....   721
            Special temporary contract closeout authority (sec. 
              804)...............................................   722
            Competitive award of contracts for reconstruction 
              activities in Iraq (sec. 805)......................   722
        Subtitle B--United States Defense Industrial Base 
          Provisions.............................................   722
            Consistency with United States obligations under 
              international agreements (sec. 811)................   722
            Assessment of United States defense industrial base 
              capabilities (sec. 812)............................   723
            Identification of essential items: military system 
              breakout list (sec. 813)...........................   723
            Production capabilities improvement for certain 
              critical items using Defense Industrial Base 
              Capabilities Fund (sec. 814).......................   723
            Elimination of unreliable sources of defense items 
              and components (sec. 821)..........................   723
            Incentive program for major defense acquisition 
              programs to use machine tools and other capital 
              assets produced within the United States (sec. 822)   724
            Technical assistance relating to machine tools (sec. 
              823)...............................................   724
            Study of beryllium industrial base (sec. 824)........   724
            Exceptions to Berry amendment for contingency 
              operations and other urgent situations (sec. 826)..   724
            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).........................................   725
            Buy American exception for ball bearings and roller 
              bearings used in foreign products (sec. 828).......   725
        Subtitle C--Defense Acquisition and Support Workforce 
          Flexibility............................................   725
            Subtitle C--defense acquisition and support workforce 
              (secs. 831-836)....................................   725
        Subtitle D--Amendments to General Contracting 
          Authorities, Procedures, and Limitations...............   725
            Additional authorities relating to obtaining personal 
              services (sec. 841)................................   725
            Elimination of certain subcontract notification 
              requirements (sec. 842)............................   726
            Multiyear task and delivery order contracts (sec. 
              843)...............................................   726
            Elimination of requirement to furnish written 
              assurances of technical data conformity (sec. 844).   726
            Access to information relevant to items deployed 
              under rapid acquisition procedures (sec. 845)......   726
            Applicability of requirement for reports on maturity 
              of technology at initiation of major defense 
              acquisition programs (sec. 846)....................   727
            Certain weapons-related prototype projects (sec. 847)   727
            Limited acquisition authority for Commander of United 
              States Joint Forces Command (sec. 848).............   727
        Subtitle E--Acquisition-Related Reports and Other Matters   728
            Report on contract payments to small businesses (sec. 
              851)...............................................   728
            Contracting with employers of persons with 
              disabilities (sec. 852)............................   728
            Demonstration project for contractors employing 
              persons with disabilities (sec. 853)...............   728
    Legislative Provisions Not Adopted...........................   729
            Procurement of certain critical items from American 
              sources............................................   729
            Domestic source limitation for certain additional 
              items..............................................   729
            Requirements relating to buying commercial items 
              containing specialty metals from American sources..   729
            Congressional notification required before exercising 
              exception to requirement to buy specialty metals 
              from American sources..............................   729
            Repeal of authority for foreign procurement of para-
              aramid fibers and yarns............................   729
            Buy American enhancement.............................   730
            Requirement relating to purchases by Department of 
              Defense subject to Buy American Act................   730
            Definitions..........................................   730
            Applicability of Clinger-Cohen Act policies and 
              requirements to equipment integral to a weapon or 
              weapon system......................................   730
            Waiver authority for domestic source or content 
              requirements.......................................   731
            Application of indemnification authority to state and 
              local government contractors.......................   731
            Definitions..........................................   731
Title IX--Department of Defense Organization and Management......   731
    Legislative Provisions Adopted...............................   731
        Subtitle A--Duties and Functions of Department of Defense 
          Officers...............................................   731
            Clarification of responsibility of military 
              departments to support combatant commands (sec. 
              901)...............................................   731
            Combatant commander initiative fund (sec. 902).......   731
            Biennial review of national military strategy by 
              Chairman of the Joint Chiefs of Staff (sec. 903)...   732
            Report on changing roles of United States Special 
              Operations Command (sec. 904)......................   732
            Sense of Congress regarding continuation of mission 
              and functions of Army Peacekeeping Institute (sec. 
              905)...............................................   732
            Transfer of personnel investigative functions and 
              related personnel of the Department of Defense 
              (sec. 906).........................................   733
            Defense acquisition workforce freeze for fiscal year 
              2004 (sec. 907)....................................   733
        Subtitle B--Space Activities.............................   733
            Coordination of space science and technology 
              activities of the Department of Defense (sec. 911).   733
            Policy regarding assured access to space for United 
              States national security payloads (sec. 912).......   734
            Pilot program for provision of space surveillance 
              network services to non-United States governmental 
              entities (sec. 913)................................   735
            Content of biennial global positioning system report 
              (sec. 914).........................................   735
            Report on processes--related space systems (sec. 915)   735
        Subtitle C--Reports......................................   736
            Redesignation of the National Imagery and Mapping 
              Agency as the National Geospatial-Intelligence 
              Agency (sec. 921)..................................   736
            Protection of operational files of the National 
              Security Agency (sec. 922).........................   736
            Integration of Defense intelligence, surveillance, 
              and reconnaissance capabilities (sec. 923).........   737
            Management of National Security Agency modernization 
              program (sec. 924).................................   737
            Modification of obligated service requirements under 
              National Security Education Program (sec. 925).....   737
            Authority to provide living quarters for certain 
              students in cooperative and summer education 
              programs of the National Security Agency (sec. 926)   738
            Commercial imagery industrial base (sec. 927)........   738
        Subtitle D--Other Matters................................   739
            Authority for Asia-Pacific Center for Security 
              Studies to accept gifts and donations (sec. 931)...   739
            Repeal of rotating chairmanship of Economic 
              Adjustment Committee (sec. 932)....................   739
            Extension of certain authorities applicable to the 
              Pentagon Reservation to include a designated 
              Pentagon continuity-of-government location (sec. 
              933)...............................................   739
    Legislative Provisions Not Adopted...........................   739
            Standards of conduct for members of the Defense 
              Policy Board and the Defense Science Board.........   739
            Change in title of Secretary of the Navy to Secretary 
              of the Navy and Marine Corps.......................   740
            Establishment of the National Guard of the Northern 
              Mariana Islands....................................   740
            Required force structure.............................   741
Title X--General Provisions......................................   741
    Items of Special Interest....................................   741
            Internet access in Iraq..............................   741
            Security of sensitive software.......................   741
    Legislative Provisions Adopted...............................   742
        Subtitle A--Financial Matters............................   742
            Transfer Authority (sec. 1001).......................   742
            United States contribution to NATO common-funded 
              budgets in fiscal year 2004 (sec. 1002)............   742
            Authorization of supplemental appropriations for 
              fiscal year 2003 (sec. 1003).......................   743
            Authorization of supplemental appropriations for 
              fiscal year 2004 (sec. 1004).......................   743
            Reestablishment of authority for short-term leases of 
              real or personal property across fiscal years (sec. 
              1005)..............................................   743
            Reimbursement rate for certain airlift services 
              provided to Department of State (sec. 1006)........   743
            Limitation on payment of facilities charges assessed 
              by Department of State (sec. 1007).................   743
            Use of the Defense Modernization Account for life 
              cycle cost reduction initiatives (sec. 1008).......   744
            Provisions relating to defense travel cards (sec. 
              1009)..............................................   744
        Subtitle B--Naval Vessels and Shipyards..................   745
            Repeal of requirement regarding preservation of surge 
              capability for naval surface combatants (sec. 1011)   745
            Enhancement of authority relating to use for 
              experimental purposes of vessels stricken from the 
              Naval Vessel Register (sec. 1012)..................   745
            Transfer of vessels stricken from the Naval Vessel 
              Register for use as artificial reefs (sec. 1013)...   745
            Priority for Title XI assistance (sec. 1014).........   745
            Support for transfers of decommissioned vessels and 
              shipboard equipment (sec. 1015)....................   746
            Advanced shipbuilding enterprise (sec. 1016).........   746
            Report on Navy plans for basing aircraft carriers 
              (sec. 1017)........................................   747
            Limitation on disposal of obsolete naval vessel (sec. 
              1018)..............................................   747
        Subtitle C--Counterdrug Matters..........................   747
            Expansion and extension of authority to provide 
              additional support for counter-drug activities 
              (sec. 1021)........................................   747
            Authority for Joint Task Forces to provide support to 
              law enforcement agencies conducting counter-
              terrorism activities (sec. 1022)...................   748
            Use of funds for unified counterdrug and 
              counterterrorism campaign in Colombia (sec. 1023)..   748
            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)..   748
        Subtitle D--Reports......................................   748
            Repeal and modification of various reporting 
              requirements applicable to the Department of 
              Defense (sec. 1031)................................   748
            Plan for prompt global strike capability (sec. 1032).   749
            Annual report concerning dismantlement of strategic 
              nuclear warheads (sec. 1033).......................   749
            Report on use of unmanned aerial vehicles for support 
              of homeland security missions (sec. 1034)..........   749
        Subtitle E--Extension of Expiring Authorities............   749
            Codification and revision of defense 
              counterintelligence polygraph program authority 
              (sec. 1041)........................................   749
            General definitions applicable to facilities and 
              operations of Department of Defense (sec. 1042)....   750
            Additional definitions for purposes of title 10, 
              United States Code (sec. 1043).....................   750
            Inclusion of annual military construction 
              authorization request in annual defense 
              authorization request (sec. 1044)..................   750
            Technical and clerical amendments (sec. 1045)........   750
        Subtitle F--Other Matters................................   751
            Assessment of effects of specified statutory 
              limitations on the granting of security clearances 
              (sec. 1051)........................................   751
            Acquisition of historical artifacts through exchange 
              of obsolete or surplus property (sec. 1052)........   751
            Conveyance of surplus T-37 aircraft to Air Force 
              Aviation Heritage Foundation, Incorporated (sec. 
              1053)..............................................   751
            Department of Defense biennial strategic plan for 
              management of electromagnetic spectrum (sec. 1054).   751
            Revision of defense acquisition directive relating to 
              management and use of radio frequency spectrum 
              (sec. 1055)........................................   752
            Sense of Congress on deployment of airborne chemical 
              agent monitoring systems at chemical stockpile 
              disposal sites in the United States (sec. 1056)....   753
            United States Fire Administration grants to make 
              fighting fires safer (sec. 1057)...................   754
            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)......   754
    Legislative Provisions Not Adopted...........................   755
            Assignment of members to assist Bureau of Border 
              Security and Bureau of Citizenship and Immigration 
              Services of the Department of Homeland Security....   755
            Assistance for study of feasibility of biennial 
              international air trade show in the United States 
              and for initial implementation.....................   756
            Commission on Nuclear Strategy of the United States..   756
            Extension of Counterproliferation Program Review 
              Committee..........................................   756
            Limitation on number of United States military 
              personnel in Colombia..............................   756
            Repeal of requirement for two-year budget cycle for 
              the Department of Defense..........................   757
            Sense of Congress on commercial air carrier 
              accommodation for members of the armed forces 
              purchasing tickets for personal use................   757
            Use of National Driver Register for personnel 
              security investigations and determinations.........   757
            Authority to transfer procurement funds for a major 
              defense acquisition program for continued 
              development work on that program...................   757
            Authority to provide reimbursement for use of 
              personal cellular telephones when used for official 
              government businesses..............................   757
            Codification and revision of limitation on 
              modification of major items of equipment scheduled 
              for retirement or disposal.........................   758
            Assistance for study of feasibility of biennial 
              international air trade show in the United States 
              and for initial implementation.....................   758
Title XI--Department of Defense Civilian Personnel...............   758
    Legislative Provisions Adopted...............................   758
        Subtitle A--Department of Defense National Security 
          Personnel System.......................................   758
            Department of Defense National Security Personnel 
              System (sec. 1101).................................   758
        Subtitle B--Department of Defense Civilian Personnel 
          Generally..............................................   760
            Pilot program for improved civilian personnel 
              management (sec. 1111).............................   760
            Clarification and revision of authority for 
              demonstration project relating to certain 
              acquisition personnel management policies and 
              procedures (sec. 1112).............................   760
            Military leave for mobilized federal civilian 
              employees (sec. 1113)..............................   761
            Restoration of annual leave for certain Department of 
              Defense employees (sec. 1114)......................   761
            Authority to employ civilian faculty members at the 
              Western Hemisphere Institute for Security 
              Cooperation (sec. 1115)............................   761
            Extension, expansion, and revision of authority for 
              experimental personnel program for scientific and 
              technical personnel (sec. 1116)....................   761
        Subtitle C--Other Federal Government Civilian Personnel 
          Matters................................................   762
            Modification of the overtime pay cap (sec. 1121).....   762
            Common occupational and health standards for 
              differential payments as a consequence of exposure 
              to asbestos (sec. 1122)............................   762
            Increase in annual student loan repayment authority 
              (sec. 1123)........................................   762
            Authorization for Cabinet Secretaries, secretaries of 
              military departments and heads of executive 
              agencies to be paid on a biweekly basis (sec. 1124)   762
            Senior executive service and performance (sec. 1125).   762
            Design elements of pay-for-performance systems in 
              demonstration projects (sec. 1126).................   762
            Federal flexible benefits plan administrative costs 
              (sec. 1127)........................................   763
            Employee surveys (sec. 1128).........................   763
            Human capital performance fund (sec. 1129)...........   763
    Legislative Provisions Not Adopted...........................   763
            Clarification of Hatch Act...........................   763
            Pay authority for critical positions (sec. ).........   763
Title XII--Matters Relating to Other Nations.....................   764
        Subtitle A--Matters Relating to Iraq.....................   764
            Medical assistance to Iraqi children injured during 
              Operation Iraqi Freedom (sec. 1201)................   764
            Report on the conduct of Operation Iraqi Freedom 
              (sec. 1202)........................................   764
            Report on Department of Defense security and 
              reconstruction activities in Iraq (sec. 1203)......   765
            Report on acquisition by Iraq of advanced weapons 
              (sec. 1204)........................................   765
            Sense of Congress on the use of small businesses, 
              minority-owned businesses, and women-owned 
              businesses in efforts to rebuild Iraq (sec. 1205)..   765
        Subtitle B--Matters Relating to Export Protections.......   766
            Review of export protections for military superiority 
              resources (sec. 1211)..............................   766
            Report on Department of Defense costs relating to 
              national security controls on satellite export 
              licensing (sec. 1212)..............................   766
        Subtitle C--Administrative Requirements and Authorities..   766
            Authority to use funds for payment of costs of 
              attendance of foreign visitors under Regional 
              Defense Counterterrorism Fellowship Program (sec. 
              1221)..............................................   766
            Recognition of superior noncombat achievements or 
              performance by member of friendly foreign forces 
              and other foreign nationals (sec. 1222)............   767
            Expansion of authority to waive charges for cost of 
              attendance at George C. Marshall European Center 
              for Security Studies (sec. 1223)...................   767
            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)..........................   767
            Depot maintenance and repair work on certain types of 
              trainer aircraft to be transferred to foreign 
              countries as excess aircraft (sec. 1225)...........   767
        Subtitle D--Other Reports and the Sense of the Congress 
          Statements.............................................   768
            Annual report on the NATO Prague capabilities 
              commitment and the NATO response force (sec. 1231).   768
            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)...........................   768
            Sense of Congress on redeployment of United States 
              forces in Europe (sec. 1233).......................   768
            Sense of Congress concerning Navy port calls in 
              Israel (sec. 1234).................................   768
    Legislative Provisions Not Adopted...........................   769
            Assessment and report concerning the location of NATO 
              headquarters.......................................   769
            Expansion of authority to provide administrative 
              support and services and travel and subsistence 
              expenses for certain foreign liaison officers......   769
            Clarification and extension of authority to provide 
              assistance for international nonproliferation 
              activities.........................................   769
Title XIII--Cooperative Threat Reduction With States of the 
  Former Soviet Union............................................   770
    Legislative Provisions Adopted...............................   770
            Specification of Cooperative Threat Reduction 
              programs and funds (sec. 1301).....................   770
            Funding allocations (sec. 1302)......................   770
            Limitation on use of funds until certain permits 
              obtained (sec. 1303)...............................   770
            Limitation on use of funds for biological research in 
              the former Soviet Union (sec. 1304)................   771
            Requirement for on-site managers (sec. 1305).........   771
            Temporary authority to waive limitation on funding 
              for chemical weapons destruction facility in Russia 
              (sec. 1306)........................................   771
            Annual certifications on use of facilities being 
              constructed for Cooperative Threat Reduction 
              projects or activities (sec. 1307).................   772
            Authority to use Cooperative Threat Reduction funds 
              outside the former Soviet Union (sec. 1308)........   772
            Authority to use Cooperative Threat Reduction funds 
              outside the former Soviet Union (sec. 1308)........   773
    Legislative Provisions Not Adopted...........................   773
            Authority and funds for nonproliferation and 
              disarmament........................................   773
Title XIV--Services Acquisition Reform...........................   774
    Legislative Provisions Adopted...............................   774
            Short title (sec. 1401)..............................   774
        Subtitle A--Acquisition Workforce and Training...........   774
            Definition of acquisition (sec. 1411)................   774
            Acquisition workforce training fund (sec. 1412)......   774
            Acquisition workforce recruitment program (sec. 1413)   774
            Architectural and engineering acquisition workforce 
              (sec. 1414)........................................   775
        Subtitle B--Adaptation of Business Acquisition Practices.   775
            Chief Acquisition Officers (sec. 1421)...............   775
            Chief Acquisition Officers Council (sec. 1422).......   775
            Statutory and regulatory review (sec. 1423)..........   775
            Extension of authority to carry out franchise fund 
              programs (sec. 1426)...............................   775
            Improvements in contracting for architectural and 
              engineering services (sec. 1427)...................   776
            Authorization of telecommuting for Federal 
              contractors (sec. 1428)............................   776
        Subtitle C--Aquisition of Commercial Items...............   776
            Additional incentive for use of performance-based 
              contracting for services (sec. 1431)...............   776
            Authorization of additional commercial contract types 
              (sec. 1432)........................................   777
            Clarification of commercial services definition (sec. 
              1433)..............................................   778
        Subtitle D--Other Matters................................   778
            Authority to enter into certain transactions for 
              defense against or recovery from terrorism or 
              nuclear, biological, chemical, or radiological 
              attack (sec. 1441).................................   778
            Public disclosure of noncompetitive contracting for 
              the reconstruction of infrastructure in Iraq (sec. 
              1442)..............................................   778
            Special emergency procurement authority (sec. 1443)..   778
    Legislative Provisions Not Adopted...........................   779
            Executive agency defined.............................   779
            Agency acquisition protests..........................   779
            Incentives for contract efficiency...................   779
            Designation of commercial business entities..........   779
            Authority to make inflation adjustments to simplified 
              acquisition threshold..............................   780
            Applicability of certain provisions to sole source 
              contracts for goods and services treated as 
              commercial items...................................   780
            Prohibition on use of quotas.........................   780
Title XV--Authorization of Appropriations for the War on 
  Terrorism......................................................   780
            Veterans' Disability Benefits Commission (sec. 1501-
              1507)..............................................   780
            Higher education relief opportunities for students...   780
    Legislative Provisions Adopted...............................   781
    Legislative Provisions Not Adopted...........................   781
Title XVI--Defense Biomedical Countermeasures....................   781
            Research and development of defense biomedical 
              countermeasures (sec. 1601)........................   781
            Procurement of defense biomedical countermeasures 
              (sec. 1602)........................................   781
            Authorization for medical products for use in 
              emergencies (sec. 1603)............................   782
DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS.................   782
            Overview.............................................   782
    Legislative Provisions Adopted...............................   802
            Short title (sec. 2001)..............................   802
Title XXI--Army..................................................   802
            Overview.............................................   802
    Items of Special Interest....................................   802
            Powertrain/flexible maintenance center, Anniston Army 
              Depot, Alabama.....................................   802
    Legislative Provisions Adopted...............................   802
            Authorized Army construction and land acquisition 
              projects (sec. 2101)...............................   802
            Family housing (sec. 2102)...........................   803
            Improvements to military family housing units (sec. 
              2103)..............................................   803
            Authorization of appropriations, Army (sec. 2104)....   803
            Termination or modification of authority to carry out 
              certain fiscal year 2003 projects (sec. 2105)......   803
            Modification of authority to carry out certain fiscal 
              year 2002 projects (sec. 2106).....................   803
            Termination or modification of authority to carry out 
              certain fiscal year 2001 projects (sec. 2107)......   804
Title XXII--Navy.................................................   804
            Overview.............................................   804
    Legislative Provisions Adopted...............................   805
            Authorized Navy construction and land acquisition 
              projects (sec. 2201)...............................   805
            Family housing (sec. 2202)...........................   805
            Improvements to military family housing units (sec. 
              2203)..............................................   805
            Authorization of appropriations, Navy (sec. 2204)....   805
            Termination of authority to carry out certain fiscal 
              year 2003 projects (sec. 2205).....................   805
            Termination or modification of authority to carry out 
              certain fiscal year 2002 projects (sec. 2206)......   806
Title XXIII--Air Force...........................................   806
            Overview.............................................   806
    Items of Special Interest....................................   806
            Child Development Center, Little Rock Air Force Base, 
              Arkansas...........................................   806
    Legislative Provisions Adopted...............................   807
            Authorized Air Force construction and land 
              acquisition projects (sec. 2301)...................   807
            Family housing (sec. 2302)...........................   807
            Improvements to military family housing units (sec. 
              2303)..............................................   807
            Authorization of appropriations, Air Force (sec. 
              2304)..............................................   807
            Termination or modification of authority to carry out 
              certain fiscal year 2003 projects (sec. 2305)......   808
Title XXIV--Defense Agencies.....................................   808
    Legislative Provisions Adopted...............................   808
            Authorized Defense Agencies construction and land 
              acquisition projects (sec. 2401)...................   808
            Family housing (sec. 2402)...........................   808
            Improvements to military family housing units (sec. 
              2403)..............................................   808
            Energy conservation projects (sec. 2404).............   808
            Authorization of appropriations, Defense Agencies 
              (sec. 2405)........................................   809
            Termination of authority to carry out certain fiscal 
              year 2003 projects (sec. 2406).....................   809
    Legislative Provisions Not Adopted...........................   809
            Modification of authority to carry out certain fiscal 
              year 2003 projects.................................   809
Title XXV--North Atlantic Treaty Organization Security Investment 
  Program........................................................   809
            Authorized NATO construction and land acquisition 
              projects (sec. 2501)...............................   809
            Authorization of appropriations, NATO (sec. 2502)....   810
Title XXVI--Guard and Reserve Forces Facilities..................   810
            Overview.............................................   810
    Items of Special Interest....................................   810
            Readiness Center, Charleston, South Carolina.........   810
    Legislative Provisions Adopted...............................   810
            Authorized Guard and Reserve construction and land 
              acquisition projects (sec. 2601)...................   810
Title XXVII--Expiration and Extension of Authorizations..........   811
    Legislative Provisions Adopted...............................   811
            Expiration of authorizations and amounts required to 
              be specified by law (sec. 2701)....................   811
            Extension of authorizations of certain fiscal year 
              2001 projects (sec. 2702)..........................   811
            Extension of authorizations of certain fiscal year 
              2000 projects (sec. 2703)..........................   811
    Legislative Provisions Not Adopted...........................   811
            Effective date.......................................   811
Title XXVIII--General Provisions.................................   812
    Items of Special Interest....................................   812
            Use of authorities to correct a deficiency that is 
              life-threatening, health-threatening, or safety-
              threatening........................................   812
            Preservation of historical military facilities.......   812
    Legislative Provisions Adopted...............................   814
        Subtitle A--Military Construction Program and Military 
          Family Housing Changes.................................   814
            Modification of general definitions relating to 
              military construction (sec. 2801)..................   814
            Increase in maximum amount of authorized annual 
              emergency construction (sec. 2802).................   814
            Increase in number of family housing units in Italy 
              authorized for lease by Navy (sec. 2803)...........   814
            Increase in authorized maximum lease term for family 
              housing and other facilities in certain foreign 
              countries (sec. 2804)..............................   814
            Conveyance of property at military installations 
              closed or realigned to support military 
              construction (sec. 2805)...........................   815
            Inapplicability of space limitations to military 
              unaccompanied housing units acquired or constructed 
              under alternate authority (sec. 2806)..............   815
            Additional material for reports on housing 
              privatization program (sec. 2807)..................   816
            Temporary, limited authority to use operation and 
              maintenance funds for construction projects outside 
              the United States (sec. 2808)......................   816
            Report on military construction requirements to 
              support new homeland defense missions of the armed 
              forces (sec. 2809).................................   818
        Subtitle B--Real Property and Facilities Administration..   818
            Enhancement of authority to acquire low-cost 
              interests in land (sec. 2811)......................   818
            Retention and availability of amounts realized from 
              energy cost savings (sec. 2812)....................   819
            Acceptance of in-kind consideration for easements 
              (sec. 2813)........................................   819
        Subtitle C--Base Closure and Realignment.................   819
            Consideration of public-access road issues related to 
              base closure, realignment, or placement in inactive 
              status (sec. 2821).................................   819
            Consideration of surge requirements in 2005 round of 
              base realignments and closures (sec. 2822).........   819
        Subtitle D--Land Conveyances.............................   820
        Part I--Army Conveyances.................................   820
            Termination of lease and conveyance of Army Reserve 
              Center, Conway, Arkansas (sec. 2831)...............   820
            Land conveyance, Fort Campbell, Kentucky and 
              Tennessee (sec. 2832)..............................   820
            Land conveyance, Fort Knox, Kentucky (sec. 2833).....   820
            Army National Guard armory, Pierce City, Missouri 
              (sec. 2834)........................................   821
            Land conveyance, Fort Belvoir, Virginia (sec. 2835)..   821
        Part II--Navy Conveyances................................   821
            Land conveyance, Navy property, Dixon, California 
              (sec. 2841)........................................   821
            Land conveyance, Marine Corps Logistics Base, Albany, 
              Georgia (sec. 2842)................................   822
            Land conveyance, Naval and Marine Corps Reserve 
              Center, Portland, Oregon (sec. 2843)...............   822
            Land conveyance, Naval Reserve Center, Orange, Texas 
              (sec. 2844)........................................   822
            Land conveyance, Puget Sound Naval Shipyard, 
              Bremerton, Washington (sec. 2845)..................   822
        Part III--Air Force Conveyances..........................   823
            Land exchange, March Air Reserve Base, California 
              (sec. 2851)........................................   823
            Actions to quiet title, Fallin Water Subdivision, 
              Eglin Air Force Base, Florida (sec. 2852)..........   823
            Modification of land conveyance, Eglin Air Force 
              Base, Florida (sec. 2853)..........................   823
        Part IV--Other Conveyances...............................   824
            Land conveyance, Army and Air Force Exchange Service 
              Property, Dallas, Texas (sec. 2861)................   824
            Land conveyance, Umnak Island, Alaska (sec. 2862)....   824
        Subtitle E--Other Matters................................   825
            Authority to accept guarantees with gifts in 
              development of the Marine Corps Heritage Center, 
              Marine Corps Base, Quantico, Virginia (sec. 2871)..   825
            Redesignation of Yuma Training Range Complex as Bob 
              Stump Training Range Complex (sec. 2872)...........   826
            Feasibility study of conveyance of Louisiana Army 
              Ammunition Plant, Doyline, Louisiana (sec. 2873)...   826
    Legislative Provisions Not Adopted...........................   826
            Exemption from screening and use requirements under 
              McKinney-Vento Homeless Assistance Act for 
              Department of Defense property in emergency support 
              of homeland security...............................   826
            Land conveyance, Fort Ritchie, Maryland..............   827
            Sense of Congress on demolition of Army Tacony 
              Warehouse Depot Site, Philadelphia, Pennsylvania...   827
            Modification of authority to conduct a round of 
              realignments and closures of military installations 
              in 2005............................................   827
            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............   827
            Review of overseas military facility structure.......   828
DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS 
  AND OTHER AUTHORIZATIONS.......................................   828
Title XXXI--Department of Energy National Security Programs......   828
        Subtitle A--National Security Programs Authorizations....   850
            National Nuclear Security Administration (sec. 3101).   850
            Defense environmental management (sec. 3102).........   851
            Other defense activities (sec. 3103).................   852
            Defense nuclear waste disposal (sec. 3104)...........   852
            Energy supply (sec. 3105)............................   852
        Subtitle B--Program Authorizations, Restrictions, and 
          Limitations............................................   853
            Termination of requirement for annual updates of 
              long-term plan for nuclear weapons stockpile life 
              extension program (sec. 3111)......................   853
            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)...   853
            Readiness posture for resumption by the United States 
              of underground nuclear weapons tests (sec. 3113)...   853
            Technical base and facilities maintenance and 
              recapitalization activities (sec. 3114)............   854
            Continuation of processing, treatment, and 
              disposition of legacy nuclear materials (sec. 3115)   854
            Repeal of prohibition on research and development of 
              low-yield nuclear weapons (sec. 3116)..............   855
            Requirement for specific authorization of Congress 
              for commencement of engineering development phase 
              or subsequent phase of robust nuclear earth 
              penetrator (sec. 3117).............................   855
        Subtitle C--Proliferation Matters........................   856
            Semi-annual financial reports on Defense Nuclear 
              Nonproliferation Programs (sec. 3121)..............   856
            Report on reduction of excessive unobligated or 
              unexpended balances for defense nuclear 
              nonproliferation activities (sec. 3122)............   856
            Study and report relating to weapons-grade uranium 
              and plutonium of the independent states of the 
              former Soviet Union (sec. 3123)....................   857
            Authority to use International Nuclear Materials 
              Protection and Cooperation program funds outside 
              the former Soviet Union (sec. 3124)................   857
            Requirement for on-site managers (sec. 3125).........   858
        Subtitle D--Other Matters................................   858
            Performance of personnel security investigations of 
              certain Department of Energy and Nuclear Regulatory 
              Commission Employees in Sensitive Programs (sec. 
              3131)..............................................   858
            Policy of Department of Energy regarding future 
              defense environmental management matters (sec. 
              3132)..............................................   859
            Inclusion in 2005 stockpile stewardship plan of 
              certain information relating to stockpile 
              stewardship criteria (sec. 3133)...................   859
            Progress reports on energy employees occupational 
              illness compensation program (sec. 3134)...........   860
            Report on integration activities of Department of 
              Defense and Department of Energy with respect to 
              robust nuclear earth penetrator (sec. 3135)........   860
        Subtitle E--Consolidation of National Security Provisions   861
            Transfer and consolidation of recurring and general 
              provisions on Department of Energy national 
              security programs (sec. 3141)......................   861
    Items of Special Interest....................................   861
            Thorium-based fuel cycle research....................   861
    Legislative Provisions Not Adopted...........................   861
            Extension to all DOE facilities of authority to 
              prohibit dissemination of certain unclassified 
              information........................................   861
            Availability of funds................................   861
            Limitation on obligation of funds for nuclear test 
              readiness program..................................   862
Title XXXII--Defense Nuclear Facilities Safety Board.............   862
    Legislative Provisions Adopted...............................   862
            Authorization (sec. 3201)............................   862
Title XXXIII--National Defense Stockpile.........................   862
    Legislative Provisions Adopted...............................   862
            Authorized uses for National Defense Stockpile Funds 
              (sec. 3301)........................................   862
            Revisions to required receipt objectives for 
              previously authorized disposals from National 
              Defense Stockpile (sec. 3302)......................   863
Title XXXIV--Naval Petroleum Reserves............................   863
    Legislative Provisions Adopted...............................   863
            Authorization of appropriations (sec. 3401)..........   863
Title XXXV--Maritime Administration..............................   863
    Legislative Provisions Adopted...............................   863
            Title XXXV--Maritime Administration (sec. 3501-3546).   863
    Legislative Provisions Not Adopted...........................   867
            Authority to convey National Defense Reserve Fleet 
              vessels and vessel contents........................   867
Title XXXVI--Nuclear Security Initiative.........................   868
            Short title (sec. 3601)..............................   868
        Subtitle A--Administration and Oversite of Threat 
          Reduction and Nonproliferation Programs................   868
            Management assessment of Department of Defense and 
              Department of Energy threat reduction and 
              nonproliferation programs (sec. 3611)..............   868
        Subtitle B--Relations Between the United States and 
          Russia.................................................   868
            Comprehensive inventory of Russian tactical nuclear 
              weapons (sec. 3621)................................   868
            Establishment of interparliamentary threat reduction 
              working group (sec. 3622)..........................   868
            Sense of Congress on cooperation by United States and 
              NATO with Russia on ballistic missile defenses 
              (sec. 3623)........................................   869
            Sense of Congress on enhanced collaboration to 
              achieve more reliable Russian early warning systems 
              (sec. 3624)........................................   869
        Subtitle C--Other Matters................................   870
            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)...   870
    Legislative Provisions Not Adopted...........................   870
            Annual report on the use of funds appropriated for 
              threat reduction and nonproliferation in states of 
              the former Soviet Union............................   870
            Establishment of International Nuclear Materials 
              Protection and Cooperation Program in Department of 
              State..............................................   870
            Nonproliferation fellowships.........................   871
            Plan for and coordination of chemical and biological 
              weapons nonproliferation programs with states of 
              the former Soviet Union............................   871
            Teller-Kurchatov Alliance for Peace..................   871


108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    108-354

======================================================================



 
        NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2004

                                _______
                                

 November 7 (legislative day, November 6), 2003.--Ordered to be printed

                                _______
                                

 Mr. Hunter, from the committee of conference, submitted the following

                           CONFERENCE REPORT

                        [To accompany H.R. 1588]

    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.

                 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.
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.
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.

                        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.
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.
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. 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
            (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.
            (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 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.''.
    (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.
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 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 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.
            (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 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.
            (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.
    (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--
                    (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.
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
            (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
            (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.
    ``(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 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 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
            (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 (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) 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 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 Duties.4061''.

    (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 Duties.9061''.

    (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;
            (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 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:


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


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


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


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

SEC. 602. REVISED ANNUAL PAY ADJUSTMENT PROCESS.

    (a) Requirement for Annual Adjustment.--Subsection (a) of 
section 1009 of title 37, United States Code, is amended to 
read as follows:
    ``(a) Requirement for Annual Adjustment.--Effective on 
January 1 of each year, the rates of basic pay for members of 
the uniformed services under section 203(a) of this title shall 
be increased under this section.''.
    (b) Effectiveness of Adjustment.--Subsection (b) of such 
section is amended by striking ``shall--'' and all that follows 
and inserting ``shall have the force and effect of law.''.
    (c) Percentage of Adjustment; 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 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:
    ``(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.''.
    (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:

``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 
        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:
            ``(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.

    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.
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--
                    (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 programs so as to limit the total 
Department of Defense expenditures under those programs 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.''.
    (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.''.

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
            ``(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.

      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 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'';
            (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:
    ``(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 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:
            (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.
    ``(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:
            ``(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.
    ``(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 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 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.
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:

``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:
                    (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 
subsection (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.''.
    (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 COUNTERTERRORISM 
                    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.

                          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.''.

            (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 inserting 
                        a 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 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''.
            (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.
            (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.
                    ``(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 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.
            ``(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.
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:
            ``(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 
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 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'';
            (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 Botanical 
                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)--
                                    (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.

``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:

      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.
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 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.''.

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 
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:
            (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.

        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 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 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 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.
            (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 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 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 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 
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 Act, such a petition shall 
                be considered a petition filed under section 
                204(a)(1)(A) of such Act (8 U.S.C. 
                1154(a)(1)(A)).
                    (C) Exception.--Notwithstanding section 
                201(b)(2)(A)(i) of the Immigration and 
                Nationality Act (8 U.S.C. 1151(b)(2)(A)(i)), 
                for purposes of this paragraph, a citizen 
                described in subparagraph (A) does not have to 
                be 21 years of age for a parent to benefit 
                under this paragraph.
    (b) Applications for Adjustment of Status by Surviving 
Spouses, Children, and Parents.--
            (1) In general.--Notwithstanding subsections (a) 
        and (c) of section 245 of the Immigration and 
        Nationality Act (8 U.S.C. 1255), any alien who was the 
        spouse, child, or parent of an alien described in 
        paragraph (2), and who applied for adjustment of status 
        prior to the death described in paragraph (2)(B), may 
        have such application adjudicated as if such death had 
        not occurred.
            (2) Alien described.--An alien is described in this 
        paragraph if the alien--
                    (A) served honorably in an active duty 
                status in the military, air, or naval forces of 
                the United States;
                    (B) died as a result of injury or disease 
                incurred in or aggravated by combat; and
                    (C) was granted posthumous citizenship 
                under section 329A of the Immigration and 
                Nationality Act (8 U.S.C. 1440-1).
    (c) Spouses and Children of Lawful Permanent Resident 
Aliens.--
            (1) Treatment as immediate relatives.--
                    (A) In general.--A spouse or child of an 
                alien described in paragraph (3) who is 
                included in a petition for classification as a 
                family-sponsored immigrant under section 
                203(a)(2) of the Immigration and Nationality 
                Act (8 U.S.C. 1153(a)(2)) that was filed by 
                such alien, shall be considered (if the spouse 
                or child has not been admitted or approved for 
                lawful permanent residence by such date) a 
                valid petitioner for immediate relative status 
                under section 201(b)(2)(A)(i) of the 
                Immigration and Nationality Act (8 U.S.C. 
                1151(b)(2)(A)(i)). Such spouse or child shall 
                be eligible for deferred action, advance 
                parole, and work authorization.
                    (B) Petitions.--An alien spouse or child 
                described in subparagraph (A) may file a 
                petition with the Secretary of Homeland 
                Security for classification of the alien under 
                section 201(b)(2)(A)(i) of the Immigration and 
                Nationality Act (8 U.S.C. 1151(b)(2)(A)(i)). 
                For purposes of such Act, such a petition shall 
                be considered a petition filed under section 
                204(a)(1)(A) of such Act (8 U.S.C. 
                1154(a)(1)(A)).
            (2) Self-petitions.--Any spouse or child of an 
        alien described in paragraph (3) who is not a 
        beneficiary of a petition for classification as a 
        family-sponsored immigrant may file a petition for such 
        classification under section 201(b)(2)(A)(i) of the 
        Immigration and Nationality Act (8 U.S.C. 
        1151(b)(2)(A)(i)) with the Secretary of Homeland 
        Security, but only if the spouse or child files a 
        petition within 2 years after such date. Such spouse or 
        child shall be eligible for deferred action, advance 
        parole, and work authorization.
            (3) Alien described.--An alien is described in this 
        paragraph if the alien--
                    (A) served honorably in an active duty 
                status in the military, air, or naval forces of 
                the United States;
                    (B) died as a result of injury or disease 
                incurred in or aggravated by combat; and
                    (C) was granted posthumous citizenship 
                under section 329A of the Immigration and 
                Nationality Act (8 U.S.C. 1440-1).
    (d) Parents of Lawful Permanent Resident Aliens.--
            (1) Self-petitions.--Any parent of an alien 
        described in paragraph (2) may file a petition for 
        classification under section 201(b)(2)(A)(i) of the 
        Immigration and Nationality Act (8 U.S.C. 
        1151(b)(2)(A)(i)), but only if the parent files a 
        petition within 2 years after such date. For purposes 
        of such Act, such petition shall be considered a 
        petition filed under section 204(a)(1)(A) of such Act 
        (8 U.S.C. 1154(a)(1)(A)). Such parent shall be eligible 
        for deferred action, advance parole, and work 
        authorization.
            (2) Alien described.--An alien is described in this 
        paragraph if the alien--
                    (A) served honorably in an active duty 
                status in the military, air, or naval forces of 
                the United States;
                    (B) died as a result of injury or disease 
                incurred in or aggravated by combat; and
                    (C) was granted posthumous citizenship 
                under section 329A of the Immigration and 
                Nationality Act (8 U.S.C. 1440-1).
    (e) 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 `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
                                 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;
            (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........
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 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
                                 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
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
------------------------------------------------------------------------

    (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.

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.
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''.

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''.
    (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 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 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.
    (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.

                       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 (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.

                   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 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
                            (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.
``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).
            (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:

  ``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:

``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 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,''.
            (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:

         ``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 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''.

          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 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 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 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
                            ``(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 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 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 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''.
            (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 $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,
                                   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.
       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

    The managers on the part of the House and the Senate at the 
conference on the disagreeing votes of the two Houses on the 
amendment of the Senate to the bill (H.R. 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, submit the following joint statement to 
the House and the Senate in explanation of the effect of the 
action agreed upon by the managers and recommended in the 
accompanying conference report:
    The Senate amendment struck all of the House bill after the 
enacting clause and inserted a substitute text.
    The House recedes from its disagreement to the amendment of 
the Senate with an amendment that is a substitute for the House 
bill and the Senate amendment. The differences between the 
House bill, the Senate amendment, and the substitute agreed to 
in conference are noted below, except for clerical corrections, 
conforming changes made necessary by agreements reached by the 
conferees, and minor drafting and clarifying changes.

                Summary Statement of Conference Actions

      The Conferees recommend authorization of appropriations 
for fiscal year 2004 for the Department of Defense for 
procurement; research and development; test and evaluation; 
operation and maintenance; working capital funds; military 
construction and family housing; and for weapons and 
environmental restoration programs of the Department of Energy, 
that have a budget authority implication of $401.3 billion for 
the national defense function.

                    Summary Table of Authorizations

      The defense authorization act provides authorizations for 
appropriations but does not generally provide budget authority. 
Budget authority is provided in appropriations acts.
      In order to relate the conference recommendations to the 
Budget Resolution, matters in addition to the dollar 
authorizations contained in this bill must be taken into 
account. A number of programs in the national defense function 
are authorized permanently or, in certain instances, authorized 
in other legislation.
      The following table summarizes authorizations included in 
the bill for fiscal year 2004 and, in addition, summarizes the 
implications of the conference action for the budget authority 
totals for national defense (budget function 050). Conference 
agreement includes this provision.


            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.


                       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.


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.


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.


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.


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.


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.


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.


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.


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.


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.


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.


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.


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.


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.


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.


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 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 
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.



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.



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.



                               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.



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.


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.


                       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.

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.

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 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 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.
      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.



                              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 the 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 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.
      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.
      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 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:

----------------------------------------------------------------------------------------------------------------
                                                                     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
----------------------------------------------------------------------------------------------------------------

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 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 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.

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.

                  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.
      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 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 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.
      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.

             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 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.

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.

  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 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.

       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.
      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 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.

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.

                      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 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 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 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 timelines, 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 
electromagnetic 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.
      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.
      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 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 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 
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 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 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.
      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.
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.


                     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 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 107-314) 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 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 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.

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 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 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 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


         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 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.

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 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 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 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 
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 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, 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 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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